Entry strategy for a multinational

IMPACT

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%.

THE ISSUE

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.

APPROACH

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.

OUTCOME

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. Collateral benefit of the study was the identification of portfolio
adaptation requirements.