Client

Global Industrial Products Manufacturer

Project

Emerging Markets Research & Strategy

Executive Summary

The client developed a business case to introduce a new low-priced material to replace an existing product that is banned yet prevalent in many emerging markets, especially in China. Depending on the manufacturing cost and selling price, this new low-end replacement material could generate significant revenue for the client.

Navigate International was engaged to research and asses the validity of the business case and to investigate the market opportunity for this substitute product in various emerging markets. The market opportunity assessment enabled the client to develop an emerging markets strategy and to expand their business into new and untapped markets.

Business Challenge

In China, the most commonly used material is low in quality with inconsistent performance. With a growing demand for higher quality product, the client perceived an opportunity to develop and launch a price-competitive substitute of higher quality, performance, and durability.

With little experience in emerging markets, the client engaged Navigate International to determine the viability of this business case and to identify other emerging markets that would represent strong demand for the substitute product. The research and strategy plan would take into consideration emerging market trends, industry growth rates, the competitive landscape, and political, economic and social risks. The analysis would serve to judge the validity of the business case and ultimately as the foundation of the client's emerging markets growth strategy.

How Navigate International Helped

Navigate implemented a research and strategy planning initiative to prioritize the emerging market opportunities for the proposed new product and developed a market entry strategy for expansion in China. Based on macro-economic and sector specific trends, government regulation, and other market indicators, Navigate delivered a priority short-list of prospective new markets and evaluated the opportunities based on the competitive environment, market size, risk profile and other industry specific metrics. Additionally, Navigate evaluated the proposed business case against alternative emerging market growth strategies and presented the merits and tradeoffs associated with each strategy.

Value Delivered

Navigate delivered a detailed opportunity assessment of the top 10 emerging markets and a strategy plan for expansion within China and the Pacific Rim. Navigate provided detailed market intelligence based on primary research conducted on the ground in China, India and Brazil. Navigate provided a framework and methodology for evaluating emerging market opportunities and provided deep, country-specific expertise about how to conduct business in emerging markets.