Assessing Market Attractiveness and Defining Entry Strategy into Food and Industrial sector
The client is into manufacturing of wide range of cables and wires in Uganda, Africa. The company occupies ~65% of market share in Uganda. The company’s products are as per ISO 9001:2000 specifications and certified by Uganda National Bureau of Standards. The Company management is planning to diversify into new product segments and increase its revenue streams utilizing the existing infrastructure and space, and has requested UC Strategy (UCIPL) to analyze and assess opportunities for diversification and increasing revenue streams.
To define strategy for diversification, UC adopted the following approach:
● Initiated the project with context building to understand strategic intent and company capabilities
● A long list of potential opportunities was prepared with total 42 product categories
● Out of a long list of potential opportunities, 9 were shortlisted for high level analysis, based on internal voting of client’s management team and UC STRATEGY team
● Performed desk research and primary interviews across East Africa and with respondents across various categories and across product segment (e.g. Competitors, Distributors, Contractors, Consultants, Traders, Customers etc.)
● Estimated the total market size of the opportunities such as LV Switchgear, Automobile Battery, Honey, Spices, Banana & Banana Fiber, Sanitary Pads and Nappies.
● Analyzed value chain for shortlisted product opportunities/competition and prepared price build up charts
● Identified the key market players and analyzed competition.
● Shortlisted top 4 opportunities (LV Switchgear, Automobile Battery, Honey and Chili) for deep dive assessment based on brainstorming with management on market size, competition, client’s capabilities etc. during first SCM
● Prepared Detailed GTM for shortlisted products based on competition benchmarking, critical success factors and feasibility for client
● Developed strategy w.r.t. Product, Price, Place, Promotion, Human Resource and product sourcing
● For LV Switchgear and Automobile Battery, conducted initial rounds of discussions with potential contract manufacturing partners across India, China and RoW.
● The client received recommendations on Market Attractiveness for 9 opportunities across Industrial and Food products and Market Entry Strategy for 4 products viz. LV Switchgear, Automobile Battery, Honey and Chili.
● Client also received detailed financial model with next 5 years revenue projections.
● A long list of potential contract manufacturing partners along with 3 level shortlisting and initial quotations.