What challenge(s) do our clients face?
Entering a new market is a pivotal moment for a company which requires robust planning in order to interconnect the business strategy, Go-to-Market model, financial planning and operations.
Entering a new market, category, business or region exposes companies to a balance of risk and opportunity. It requires organizations to navigate new territory and with this comes challenges that are often interdependent and multifaceted. Our clients often have doubts which can be characterized across 4 themes:
- Route-to-market: What is the best route to market for our business? Should we go it alone, acquire an existing player or find strategic partnerships? Considering our ambitions and strategy, how should we proceed with core decisions (velocity, financial leveraging, risk appetite, revenue and profitability targets)?
- Return on investment: How much will it cost to enter this market and what is our expected ROI? Based on our strategic decisions and entrance phasing, what are the associated ‘entry economics’ i.e. financial projections of revenue ramp up, costs (variable and fixed), profits, needs for financial leveraging, risk and disaster scenario estimations?
- Positioning: Given the market and competition, what is my marketing and sales entry plan? How should I position myself in terms of price, USPs, target audience etc.? What value proposition is likely to boost growth fastest? Which consumer segments will I target and which channels will I use to reach them?
- Implementation roadmap: How do I execute this strategy in real life and what are the associated risks and impacts? Which activities and projects should I initiate and in what order (roadshows, communications, client engagements, hiring, G&A investments, contracts, legal requirements, operations ramp up etc.)?
How do we help?
We support you in determining a financially sound entry strategy with a pragmatic route to implementation considering your context and goals.
Integration has a long track record of successful Market Entry projects across a range of sectors and through this experience we have developed a proprietary methodology which delivers the answers to the questions above, whilst also augmenting your internal capability for future challenges.
Although we keep a close relationship with our clients and follow-up after projects, our goal is to minimize any dependence by providing the guidance, tools and capabilities that will enable you and your teams to be empowered to take decisions and adjust to new realities long after Integration has left.
What are the benefits?
- Deeper understanding of different entry strategies and their implications, empowering decision makers to choose the option that best fits their strategy and ambition
- Higher chance of success by taking marketing and sales definitions adherent to your reality
- More action and less theory with a clear and holistic plan
- Fewer implementation risks by identifying them and defining mitigating actions
How does it work?
We work hand in hand with you to develop the entry strategy that suits your context and needs, bringing our external experience, proven implementable methodologies (e.g. how to conduct field assessments), and access to a network of industry experts.
We bring both mind and heart, connecting technical knowledge and in-depth analysis, with a commitment to creating tailored solutions that truly reflect our client’s pain points and needs.
Our strength lies in bringing original and perceptive insights – Integration teams don’t work sat in a room, looking at widely available industry reports, but out in the field, interviewing experts, talking to potential partners, and surveying real customers.
SUCCESS STORIES
CHALLENGE
Integration supported a global industry-leading consumer-packaged-goods organization in understanding the fundamentals and entry requirements for the Cuban market. The challenge the company faced was that Cuba has limited data, outdated studies and few published success stories, and so Integration had to gather the majority of the inputs on the ground.
APPROACH
Integration’s team spent more than a month fully embedded and living the Cuban life – an immersive experience that involved more than 80 interviews with consumers, 5 with state agencies and 10 with different retail companies. We visited more than 50 points of sales and utilised more than 60 sources of data.
RESULT
Integration developed a complete study on branding, consumption habits, channel profiles, distribution channels, governance procedures for market entry and the global supply chain route options for reaching the island. It was connected to a detailed step by step plan for how to enter the market with four different entry scenarios ranging from partnerships to stand alone full investment.
CHALLENGE
Integration supported a Brazilian plant-based food company in entering the European market. After conducting a market scan, where we had 27 countries and selected with the company 3 countries for entry, we then looked to define the entry strategy for the target countries.
Our task was to define where to pack, where to sell and at which price to generate healthy margins for the partners in the value chain (given there was a European distribution partner already pre-selected).
APPROACH
Integration’s hands on approach involved not only data research and interviews, but also a visit to one of the largest food fairs in Europe to understand the different steps of the value chain and assess different players. Each definition was also validated was the pre-selected distribution partner, to guarantee strategic adherence for both companies. This included addressing the partner’s capability gaps in the implementation phase in order to guarantee a smooth market entry.
RESULT
A P&L simulator was built to calculate the financial impact of the aforementioned choices. We also delivered a list of the priority channels for entry, which included specific accounts to activate and the necessary investments to convert the desired accounts.
Our latest thinking:
Knowledge sharing UK
OUR INDUSTRY EXPERIENCE
Integration’s track record involves a range of regional and international companies, across multiple countries and regions, from sectors such as Consumer Goods (especially Food, Beverage & Personal Care), Financial Sector, Technology, Retail, Construction and Services. This means we have developed an understanding of the market dynamics, consumer trends and local practices in various geographies and allows us to access experts worldwide in order to provide reliable and updated benchmarks that challenge our recommendations for each industry and region.