Situation / Challenge
As part of the international expansion, a food manufacturer in South America needed to define an entry strategy for the US market. Defining the size of the prize and validating the strategy was critical to the company as it was exploring alternative markets with limited financial resources. The company had very limited recognition in the US — primarily with Hispanic consumers.
Approach
Developed a six step process that started by aligning the Board of directors not only on objectives and expectations, but in the financial constraints. A deep assessment of relevant categories, the consumer and the competitive environment allowed us to build opportunity hypotheses that were then tested via consumer research. The size of the overall opportunity was validated and the roadmap for reaching key milestones was developed.
Results
Import volumes tripled in one year and one of the identified manufacturing facilities was acquired in the NE. Phase #1 portfolio of products was introduced in early 2012.
US Market entry for a leading South American food manufacturer
Situation/ Challenge
Our client is a major beverage company historically focused in Asian and European regions, yet with a mandate to aggressively diversify into new developed and emerging regions. While the company markets dozens of successful brands in its home region, it understood that entering a new one would require not only multiple Routes to Market (RTM), but also a brand portfolio made up of existing/adapted brands, and acquisitions inside the targeted new markets. This was especially true of Latin America, an attractive “white space” region where it had no experience.
Approach
To identify the right Region entry model, we designed and implemented a phased approach. From our extensive knowledge of Latin America beverages, we quickly developed an industry situation assessment and market/category overview, identifying the key strategic opportunities. We then increased the by-market granularity, identifying and prioritizing local M&A target opportunities for brands and RTM, with tailored approaches to each. Finally, we sorted our clients international portfolio of brands and screened the right ones via quantitative consumer research.
Results
The Company obtained a roadmap for phased entry, approving a set of markets, RTM, M&A and organic brand portfolio priorities. Our client was able to quickly launch the resulting Action Plan.