Once you have narrowed down on which markets to enter, we work with you to develop a strategy for entering the market. We follow our own proprietary value architecture methodology, broadly adapted from many methodologies from cutting-edge academic research on the subject.
MARKET STRATEGY
1
Who is playing in the market?
Which problems are more profitable to solve?
This element is a variant of market segmentations, that include and transcend the customer.
For example, for a client in the building materials industry, we discovered that he had to focus on do-it-yourself consumers and remodellers rather than builders and architects.
2
How to better extract value in a unique way?
This element focuses on competitive advantage of a market positioning.
For example, we advised a cosmetics client to focus on time-saving options, such as fast drying make-up, for the working women segment in Brazil, where time was a major driver of value.
3
What to offer to the customer of choice?
How best to price the offering?
Who pays? Who consumes? Who influences? Who collects?
For example, for a pharma client doing licensing deals, we evaluated the merits of trading off an upfront payment for higher profits and brand recognition.
4
How best to deliver on the promise is the question?
The element we focus on is value architecture.
We assist you on questions related to supply chain design.
For example, for clients in the motorcycle industry in Latin America looking to source from India, we help in selecting strategies (like CKD) to optimize tax impact.
DEVELOPING A BUSINESS CASE AND BUSINESS PLAN
Once the value architecture is ready, we need to create an operational plan for the market entry. We will work with you to develop a full-fledged business plan combining all the elements and developing sales, cost and investment projections. This will involve taking all elements of the value architecture and converting them into specific operational choices and evaluating how these will impact one or more of the following: sales, costs or investments.
Examples of converting value architecture in-to operational choices:
- Which products to launch? Which specific features?
- What warranties to offer?
- What specific regulatory norms need to be followed?
- How many sales people to hire? How much to pay them?
- Should we work with third-party warehouses but deliver by ourselves or should we work with a distributor?
- What parts to actually source locally?
We will also work with you to develop board communications of the plan to get the necessary approvals for moving ahead.
An illustrative list of clients to develop a business plan and techno-economic feasibility for a new market:
Indian pharma company in Mexico
Brazilian sportswear manufacturer in India
Colombian industrial conglomerate looking at entering the motorcycle business
US coking coal producer in India