Strategy for development of the competitive position in a newly-entered expansion market


Client Situation

A consumer goods company that is a leader in its natural market had a weak competitive position (small market share and negative results) in one of the expansion markets it had recently entered.

The cause of this situation was the company’s insufficient knowledge of the dynamics and keys of the new market as well as an undefined notion of the strategy to be developed.

Approach

In the first place a thorough analysis of the Key Success Factors of this market was undertaken, and then the company was given help in defining its strategic objectives for the market.

  • What was the goal of operations in this market?
  • How could the business grow?
  • How could the business be made profitable?

Lastly, an analysis was carried out of the gap in internal capacities, which had to be developed in order to achieve the defined strategic objectives.

Results

  • Definition of the brand portfolio strategy
  • Redistribution of the marketing budget
  • Definition of distribution policies
  • Study of other more profitable forms of distribution
  • Discard of clients who are not potentially profitable
  • Review of commercial conditions and account planning
  • Review of the incentive system and sales force goals
  • In the 2 years following the re-structuring sales growths of 40% and 25% were achieved respectively