We provide Market Development consulting services to our international clients since 1998.
After they launch sales in the new markets (presented with the emerging economies) the Western companies understand these markets must be developed in the same way as the mature markets, i.e. new customers must be searched among the rivals’ clients; customers who do not currently buy products/services must be somehow involved; and new market niches must be created to extend the coverage; and of course not forgetting about sales increase among the existing customers.
We assist in researching and understanding these possibilities, as well as in development of the market development strategies for the emerging markets (or in adopting the existing strategies to the conditions of the emerging markets).
Western automotive producer had a clear strategy for its sales in Russia and CEE countries; at some stage of its business deals in the area the company hired us to do the Market Development project – to look for the possibilities to expand the customer base and increase sales.
We did a market survey in Russia and selected CEE countries – with emphasis in the car class native to the client’s business. The special attention was paid to: a) competition in supply of the cars with the same body style, features and customer base; b) search of the new potential niches – customers who would like potentially buy the target cars; c) demand and competition in the aftermarket – in part supply and services.
By the results of the research stage we developed few particular strategies for the car producer:
- A strategy for competition improvement – with emphasis in expansion of the distribution network in the Russian cities with population > 500 thousand people
- A map for potential new customer niches – like people of particular age and social status who are ready to buy the target cars at some circumstances; we also prepared a marketing plan for better accessing such potential customer niches
- An aftermarket strategy update – now with focus in aftermarket part support as a separate business unit in Russia; we also developed recommendations how to decrease the volume of “grey” and “parallel” import for the spare parts (interaction with the custom office, etc.)
The car producer successfully integrated our market research findings and recommendations into its strategy in Russia and few CEE countries. The company started sales in few new customer niches identified with us, as well as increased the aftermarket business.