Business plan for an entry strategy in India for a fast-moving consumer goods producer, generating a turnover of 30 M € and EBIT of 20%.
Our client, a European fast-moving consumer goods producer, decided to enter the Indian market due to its rapid growth.
Because of the extension, market size, high heterogeneity in terms of consumer habits, legislation, and competitive environment, the company decided to develop a detailed entry strategy plan by relevant state.
Initially, the 28 states were prioritized according to attractiveness and ease of entry, based on interviews with distributors, industry experts, and existing public information. Afterwards, in the 8 states selected, we acquired a deep understanding of retailer and distributor business models in order to build an attractive and adapted offer and route-to-market model.
Given the characteristics of the Indian market (28 states and 1.270 million inhabitants), the major impact was seen in the prioritization of investment in the most attractive states, with the highest return on investment expected. Concentration of efforts in a reduced number of states was a key success factor of the operation. The entry strategy plan adapted to each state's reality included price and margin strategy, distributor policy, and organizational implications. A collateral benefit of the study was the identification of portfolio adaptation requirements.