Sathguru advised a leading Korean conglomerate on market entry strategy for agro-chemicals and seed business across Asia Pacific countries. Based on comprehensive research on the high growth yet diverse market (India, South Asia, South East Asia, China, East Asia), we recommended product and portfolio strategy optimized to leverage growth opportunities and positioned the client competitively to gain significant market share in an accelerated manner. We also developed the overall R&D blueprint and go to market strategy that ensured optimal level of centralization of resources and localization of market focused capabilities.
Context: Leading multinational seeking Pan-Asia strategy for agro-chemicals and seeds industry
Our client was a large multination with baseline presence in the agri-input sector. Building on this foundation, the Client sought strategic advisory to enter into the seed business across countries in Asia-Pacific. The client also sought to rapidly expand presence in the agro-chemicals segment across geographic markets. Within the Asia Pacific region, the client enjoyed presence in certain countries but aspired to enter other high growth markets. Foray into biologicals for enhanced competitiveness within the agro-inputs sector was also on the horizon. The Client engaged Sathguru for comprehensive support on market opportunity assessment, business plan development and identification of M&A targets.
Scope
Scope of the engagement included:
- Assessing relative opportunity across Asia Pacific countries: Profiling and extensively researching all countries in Asia Pacific (including India, China, South East Asia, South Asia) To critically analyze the competitive landscape, product feasibility and portfolio implications, research and development requirement, marketing considerations and also the legal and regulatory requirements across the seed and agro-chemicals segments
- Developing country specific business plan: Developing a business model for the shortlisted countries – analyzing optimal portfolio composition for competitiveness, commercial implications and business model warranted,
- Market entry strategy: Detailing market entry strategy and expansion plan for each country
- M&A targets: Identifying country specific acquisition targets to enable inorganic market entry and growth in each of the prioritized countries, assessing high level techno-commercial merit of potential target companies
Approach
We conducted detailed market research and industry assessment through secondary and primary research leveraging our internal repository and leveraging our network – relationship with various Universities / Government stakeholders / companies in respective countries.
- Analyzing the industry landscape, market players and domestic market dynamics of all Asia Pacific countries (India, China, South East Asia, South Asia)
- Shortlisting the countries assessed and further deep diving to understand the product feasibility, market dynamics, competitor analysis, research and development, demand and supply gap and regulatory assessment
- Developing business Models aligned to the strategic intent of the company and current market conditions to optimize synergy through Organic, Inorganic route and Product partnerships
- Defining the detailed market entry and expansion plan aligned to clients’ business objectives
Recommendations
- We recommended a hub and spoke model with the focus of research and development in the hub countries and thereby establishing the markets in both hub and spoke countries
- Inorganic mode of entry with phased expansion by restructuring and product portfolio prioritization and optimization to align with the strategic intent of the client
- Strategic partnerships with universities and government institutions for accessing germplasm and gaining technology led competitive advantage
- Comprehensive market specific detailing of strategy for each prioritized country in the Asia Pacific region
Impact
Sathguru’s strategic engagement on market entry enabled the client to make data driven decisions for expanding market presence in the agro-chemicals and seed industry. Our study was the basis for several inorganic growth exploration efforts and the recommendations are under implementation by the Client.