Cases

Defining an Entry Strategy into India, and a Marketing Strategy for an International Manufacturer of Health Supplement Products

Challenge

The client, an international health supplement manufacturer had strengths in the following key segments of the market:

  • General fitness
  • Prevention/ cure of cholesterol/ joint ailments
  • Weight loss
  • Muscle gain

The company wanted to enter India through a low cost joint venture route and had initiated talks with Indian partners. However, the top management was unclear on the following attributes of the Indian market:

  • Size of consumer class
  • Spending capacity
  • Maturity stage of the market
  • Willingness to switch from substitute products currently used in the market

Thus, the client turned to UC to create an entry strategy for India. It also needed an understanding on how they should market their products if there was an opportunity to explore.

Our Approach

To develop the entry strategy of the company, UC adopted the following approach:

  • Defined the Health Products market by segmenting it product wise
    • Multivitamins
    • Health snacks
    • Health drinks
    • Health supplements
  • Conducted primary research of the following respondent groups
    • End consumers
    • Personal trainers
    • Gymnasiums
    • Dieticians
    • Chemist shops
    • Custom notified shops
  • The primary research addressed the following key issues
    • Market existence
    • Segments predisposed to buying and consuming health supplements
    • Buying drivers and patterns
    • Buying process
    • Market size and expected growth segments
  • Defined the segment focus across ‘the rich’ and ‘the near rich’ categories
  • Developed the positioning strategy based on the functional and experiential branding needs
  • Developed a promotion strategy for each of the offerings and based on bottlenecks to brand loyalty from the stage of ‘awareness’ to ‘repeat purchase’
  • Defined a distribution strategy with a detailed outline of channel intensity and product focus, across the influencing entities such as gymnasiums/ health stores, personal trainers, dieticians, chemists, sports associations, beauty product associations, health fitness portals, departmental/ super stores
  • Developed a pricing strategy detailing out price points for the offerings
  • Defined a detailed implementation plan and financials for the company

Impact

The client received an in-depth understanding of the health products’ market in India. It also obtained the promotional, distributional and entry strategy required for the products, as well as a detailed implementation plan, including the financials for the same.