Over a multi-year effort, Sathguru supported a global food company to access Indian market with a strategic and tailored plan and gain market leadership in India in an accelerated manner. Sathguru recommended India specific customized product portfolio and developed unique manufacturing and product distribution strategy that helped the company differentiate itself and gain significant market share in the Indian bakery market.
Context: Market entry and expansion for a premium bakery company
Our client, known worldwide for its premium bakery products and ingredients was keen on establishing presence in high growth emerging markets. India was prioritized as a strategic growth market due to perceived long term potential. The company sought advice from Sathguru on India specific market access strategy and a business plan covering all aspects of product introduction, operations, distribution and market outreach.
The scope of engagement included extensive market research, strategic advice on business, products and operations and overall blueprint for Indian operations:
- Developing India specific product portfolio based on their strengths and existing product line.
- Conceptualizing India centric operating model for product development and commercial scale manufacturing.
- Developing marketing and distribution strategy relevant to the Indian context.
Sathguru’s approach was to
a) Conduct a detailed market and industry assessment to:
- Identify and analyze major competitors operating in the bakery product segment.
- Assess product development, manufacturing and pricing strategy of major competitors.
- Map product and consumer trends with significant focus on emerging scenarios.
b) Perform comparative impact and cost-benefit analysis of in-house and out-sourced product development and manufacturing.
c) Develop a framework for evaluation and selection of contract manufacturers and guidelines to ensure adherence of quality standards.
d) Analyze various product distribution channels to develop a model that aligned with the proposed product mix and optimizes product reach.
Sathguru’s comprehensive advise on the Indian market opportunity, overall business plan, product portfolio and operational roadmap and marketing strategy included the following:
- Differentiated product strategy: Sathguru recommended product range that was focused on providing aspirational and nutritional solutions to various customer segments including mass market bottom of the pyramid segment.
- Optimal operating model: Sathguru recommended capital effecient operating model for India based on out sourced product manufacturing and in-house product development.
- Operating roadmap and the manufacturing network: Sathguru recommended contract manufacturers with capabilities to follow food safety and product quality standards established by the client. Sathguru also suggested conducting periodic third party quality audits for continuous evaluation of manufacturers and developed guidelines for the same.
- Tailored marketing and distribution plan: Sathguru developed specific product distribution models for each of the channels and recommended high strategic focus on base of pyramid consumer segment for optimized operations.
Sathguru’s advisory support on strategy and operations enabled the client to establish a strong market presence in India and gain market share from existing market leaders in the bakery segment.