Market Entry Advisory: Helping a Yeast Manufacturing Company to Formulate a Successful Market Entry Strategy based on Different Aspects
Effective management, corrective action, and quality inspection are of paramount importance for yeast manufacturers looking to comply with the three-stage regulations. In the midst of rising competition from local and global manufacturers, manufacturers have been preparing for a difficult year ahead. Companies specializing in manufacturing yeast have a lot to contend with – stringent regulations, […]
Effective management, corrective action, and quality inspection are of paramount importance for yeast manufacturers looking to comply with the three-stage regulations.
In the midst of rising competition from local and global manufacturers, manufacturers have been preparing for a difficult year ahead. Companies specializing in manufacturing yeast have a lot to contend with – stringent regulations, rising economic uncertainty, increasing competitors, and many more. Since food manufacturing and distribution is highly regulated, companies have to maintain complete transparency in their supply chain and must be prepared to act fast in the event of a contamination that would jeopardize the health and well-being of consumers.
Alongside the systemic challenges faced by food and beverage manufacturers globally, there are several other organizational challenges such as the ones arising due to mergers and acquisitions and regulatory compliance. However, changes in regulatory guidelines have compelled yeast manufacturers to remain compliant and deliver safe, healthy, and affordable food products to consumers. Another noteworthy fact is that the majority of food standard legislation is set by the European Union; and with Brexit on the horizon, there are likely to be far-reaching effects that will manufacturers to change their operational procedures to comply with the new regulatory requirements.
The Business Challenge
The client: A yeast manufacturing company
With an objective to build a better market entry strategy, the client – a leading food and beverage industry player specializing in the manufacturing of yeast – approached Infiniti to help them identify the current and future market scenario. The primary objective of this study was to help the client understand and analyze the level of competition in the market that they wished to enter.
Increasing market share by adopting different strategies while entering new market segments was of prime importance to the client. Furthermore, the yeast manufacturer wanted to develop a market entry strategy based on different operational aspects to gain a stronger foothold in the new market.
Why is a market entry strategy important for yeast manufacturers?
A market entry strategy is the culmination of the planning it takes to develop a strategy on the ways to enter a new target market with a product/service offering. It includes a detailed plan on different ways to present the product, the price at which it has to be presented, to whom, and in what form. It is essential for players in this sector mainly because a precise plan helps them keep track of their goal, spot deviations, and helps firms to track their progress to know when it is time to plan further ahead.
Summary of our market entry advisory solution
To help the yeast manufacturer gain insights into the competitive nature of the global food and beverage industry and help them penetrate the niche market segments, Infiniti’s market entry strategy experts carried out extensive research with leading stakeholders in the food and beverage industry space. The market entry strategy experts also gathered and analyzed information from various proprietary sources including paid industry databases, company presentations, and industry forums.
Solution Benefits and the Business Impact
With the help of Infiniti’s market entry strategy, the client was able to gain detailed insights into the market segment they wished to enter. The solution offered turned out to be a major conclusive factor that helped them in deciding whether or not to proceed with the market entry operation. Moreover, our market entry experts also recommended a pricing strategy based on regional segmentation, which the company was able to implement successfully.
The market entry strategy based solutions obtained based on extensive market research offered immense value that helped the client to formulate a successful market entry strategy with respect to:
- Product adaptation strategy
- Technical innovation strategy
- Low price strategy
- Total adaptation and conformity strategy
- Availability and security strategy
Considering the fact that we live in an interconnected global economy, technological innovation is touted as the major driving force bringing about pervasive disruptions in several sectors including the food and beverage industry. There is a global need for yeast manufacturers to take into consideration the evolving environment to devise appropriate strategies for the future- why and how things are transforming, and how it might affect them in the near future.