Cases

Entry Strategy into India for a Pneumatic Components Manufacturer

Background and Challenge

A large Italian company manufacturing pneumatic components was evaluating entering the Indian market. An Italian consulting firm requested UC to assist them in conducting the market study and developing an entry strategy for their client in Italy.

Approach and Recommendations

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

  • During the first phase of the engagement, a detailed secondary and primary research to assess the feasibility of entering the Indian market was conducted. The study included the assessment of the following -

    1) Demand / supply scenario

    2) Import / Export trend

    3) Key competition

    4) Dynamics and distribution chain

    5) Assessment of key markets and end consumers

    6) Buying behavior and unmet needs of customers

    7) Market entry and exit barriers

    8) Alternatives of market by product segment

  • Recommended the mode of entry based on two detailed studies of the Indian market
  • The recommended entry was through building relationships with key dealers in the various geographies in India
  • The second phase of the engagement included a visit to the list of short listed dealers to build their relationships with the Italian company. These visits were conducted along members from the client
  • This phase included details of the short listed dealers and a documentation of meeting takeaways from the dealer visits

Results

The client received a study of the market and entry strategy recommendations from UC, based on our knowledge and research of the pneumatic sector in India.