India market entry strategy for a UK food company
In this client case Kanvic helped a leading UK-based health food company identify the right route to market in India.
Client Context
-
Our client, a fast-growing UK-based health food brand, wanted to tap the rapidly expanding Indian FMCG market as part of its internationalisation strategy.
-
Before entering the Indian market the company wanted to ensure that its entry strategy was aligned with the market opportunity.
-
The company sought Kanvic's expertise to identify the right geographic markets and retail channels to target, the right product mix to carry, and appropriate messaging to communicate to Indian consumers.
Kanvic's Approach
Identified the right regions and route to market
India's vast and diverse market demands a highly focused approach. We first identified the right geographic locations in India for the client to launch their product by comparing different regional markets according to the prevalence of the disease types their products addressed. This was supplemented by region-wise analysis of sales for related product categories and brands, along with identification of key channels and retail formats for premium health food products.
Calibrated the product portfolio
The client had developed a wide product portfolio that was suited to meet the tastes and needs of specific customer segments in its home markets. However, in India both the palette of consumers and their level of awareness about the category was very different. Therefore the wrong portfolio choices risked low consumer acceptance and a build-up of slow moving inventory. To overcome this challenge Kanvic conducted extensive product sampling with target customers to test their response to both the products and its packaging. We performed an ethnographic study to validate our research findings and gathered feedback from buyers and category managers at leading retailers.
Aligned the brand messaging
Through extensive customer research we ranked the product benefits Indian consumers most valued and then tested different formulations of the messages to understand their resonance. We also analysed competitor's claims against the actual benefits to identify a clearly differentiated positioning for the client.
Client Benefits
Optimal route to market
On the basis of our work, the client was able to select launch regions and cities where their product could gain maximum traction. They also gained a clear channel strategy focused on specific retail segments and formats.
Focused product portfolio
Kanvic recommended a streamlined product portfolio for launch that focussed on products with high awareness and acceptance by Indian consumers. By removing less preferred product lines the client reduced the risk of slow-moving inventory and customer disappointment, as well as simplifying the distribution process.
Relevant messaging
Based on Kanvic's recommendations the client could select the most relevant product benefits to communicate to the target customer and the right formulation of message which helped it establish a clear differentiation in the Indian market.
