US Multinational Expansion in SE Asia.
The company has been operating for over 100 years in many international markets. They have already started expanded into Asia and are looking to Thailand and Malaysia to further their growth.
We were contracted to advise on market opportunities, potential competitor positioning, market pricing and to ascertain potential sales volumes. The brief included a detailed review of the top 5 companies already operating in their target niche including financials where possible with a view of potential acquisition.
There was some urgency as the company needed the report within 60 days. A team was assembled to work on all aspects of the project simultaneously. Staff were dispatched in the field with camera phones to discreetly gather market intelligence. This greatly enhanced our clients understanding of competitor product positioning.
A Mystery Shopping campaign was launched to ensure complete documentation of competitor marketing collateral and pricing. This also gave some insight into the operations of their competitors.
The materials gathered including financials were then translated and a report compiled. One of our client’s Directors then flew in to review our report in detail and to work further on their market entry strategy.
Outsourcing Manufacturing to SE Asia
Our client has been operating for 10 years and makes a plastic injection moulded product that is then assembled and shipped to the UK, Europe and USA. The product is made in their home country by contract manufacturers.
While the cost of production had been steadily increasing over the years, it was the escalating shipping costs that prompted their review. Some molds were also nearing the end of their productive life requiring significant re investment.
We were contracted to locate an Asian contract manufacturer.
The client was kept updated through regular emails and video conferencing where samples could be viewed and discussed. We also worked through all the inventory management and logistics/shipping options to ensure a smooth transition to preserve their existing customer relationships.
After a 3-month process, we presented the client with a complete solution including mold and production manufacture, assembly and inventory management in a Duty-Free Zone. Two Directors then flew to Thailand to view the manufacturing operations and to meet with the logistics company for a detailed overview of their involvement in the Supply Chain.
The company is now working through the final contracts as they complete their move.
Establishing Distributorship in India
Our client operates in a well defined niche and markets their product extensively in overseas markets. To date they have been reluctant to enter the Asian market due to their concern over protecting their IP.
Working closely with them we obtained a detailed understanding of the product positioning in their current markets. We then carried out detailed market research in SE Asia where we found some of their competitors already establishing a presence.
The product is at the advanced stage of its life cycle in Western countries. However it is very much in a market education and start-up phase in SE Asia. The product pricing is relatively low, so our advice to enter the market centred on the unlikely event that someone would try to copy the product and sell it at a lower price point. Also, competitor activity actually helps grow a market exponentially vs a sole marketer scenario so we believed the timing perfect.
There had been various enquiries over the years from Asia with the strongest most recent from India. While India is undoubtedly one of the hardest markets in the region to enter, the rewards can be significant with the right partner.
We accompanied our client to Mumbai to explore the potential distribution options and to gain a more detailed understanding of the market.
Detailed work was completed in conjunction with our clients Government Trade organization to thoroughly vet the potential Distributor and establish an initial working relationship. We also took up references from some of their existing suppliers and customers so we had complete visibility of their existing business.
Our presence in Asia makes it very easy for us to maintain the relationship both from a time zone perspective as well as being only a short flight away. We returned to India, this time to Delhi, to support our client and Distributor at a Trade Show and to further deepen our understanding of the market opportunity.
The Distributor relationship strengthened significantly as a result of the Delhi Trade Show presence and there continues to be regular orders and detailed communication with the Distributor.
We are now working on establishing new Distributor relationships in other SE Asian markets for our client.