New entrants strategy

ATHENA POLIAS Strategy Consulting case study

By Team, RockFord

New entrants strategy

Study Objectives

Analysis of Hand rub manufacturers to determine the opportunities and threats for entry strategy for hand rub market in India

ATHENA POLIAS Strategy consulting case study

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New entrants strategy

Table of Contents

Objectives Approach Used Manufacture Analysis Consumer Analysis Opportunities and Threats Research Data

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New entrants strategy

Approach Used

Consumer Preferences Manufacturer Goals

Detailed Secondary Research

Research assorted Websites

Assess Manufacturers Using a GoalsPreference Matrix

Qualitative observations Quantitative assessments

Analysis

Synthesis

Threats Opportunities

A set of manufacturer Goals and consumer Preferences were determined from news, blogs, websites, social media conversations on the subject of purchasing hand rubs. Using the Goals and Preferences, we interpreted the market research data and recorded the activity of the current manufacturers P&Q, Himgiri, Pure Car. The observations and ratings shows how each manufacturer is meeting their goals along the dimensions of the consumer preferences By rating the quality of activity seen, we plotted charts to make conclusions on relative performance and generated insights on threats and opportunities for Utsuk.

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New entrants strategy

Analysis of Manufacturers Goals

12 10 8 6
Effectiveness (out of15 )

4 2 0 Trust Awareness Competitive Segmentation Distribution channel P&Q Himgiri Pure Care

Manufacturer Goals

On creating Trust Leading brands have natural advantages but unbranded have done well too

P&Q is the Market Leader Being a market Leader had build trust on consumers. Varied Product Portfolio.

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New entrants strategy

Himgiri is the new entrant in anti-microbial hand rub market : New in market havent build trust with the consumers.

Pure Care is one of the leading brands : Trusted by consumers . Variety of products.

On creating Awareness - Unbranded players have generated awareness only due to price range. Branded players leveraged their awareness through both price and quality . On Creating Competitiveness - Quality and Price have been exemplified by P&Q and Unbranded as representation of Competitiveness . On Creating Segment - Range and price is the only method seen for creating segments.

P&Q is the Market Leader Varied Product Portfolio catering to different needs. Products in different packages targeting different segments of people. Provide lowest price in the market.

Himgiri is the new entrant in anti-microbial hand rub market : Deals in different product ranging from Personal Care to pharmaceutical

Pure care is one of the Market Leader : Product range include wipes and hand lotion and liquid hand wash.

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New entrants strategy

On distribution channel Market leaders and the branded players utilize their strong distribution networks opportunity for Utsuk to target both the institutional and retail segment.

P&Q is the Market Leader Distribution network include CFA and targeting Hospitals and institutional Segment.

Himgiri is the new entrant in anti-microbial hand rub market : Distribution network target the retail segment.

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New entrants strategy

Analysis of Consumer Preferences

Are consumer expectations being fulfilled?

12 10 8 6 4 2 0

P&Q Himgiri Pure Care

Consumer Preferences

The above graph measures the consumer preferences in effectiveness ( scale of 1 to 15).

Protection All the three competitors position their product as protection against illness. And it has a high correlation with establishing trust on the Manufacturer. Utsek has to position its product as the protection product as there is a room for improvement.

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New entrants strategy

Cleanliness Consumer rank as the cleanliness as one of the high preference areas. Utsek can position its product as high cleanliness product.

Price P&Q and other branded product provides a high range of price. There is low competition in the low prices an opportunity for Utsek.

Alcohol content - Only P&Q and pure Care have projected there product with alcohol content. Utsek can come up with the product having high alcohol content , which would in case target salons and clean rooms increasing consumer base.

Fragrance A hand rub with a fragrance is also being preferred by the consumers. Most branded players have perfumed products.

Packaging P&Q provided packaging in 50 ml bottles for lower prices. Utsek can package the products in small sachets for lower price ranges.

Anti-Microbial consumers are ware that anti microbial hand rub is most effective . Utsek can position its product as this.

Additional Features( Moisturizer and Deodorant) Customers usually prefers hand rubs that an also act as moisturizer and can have a deodorant effect. Utsek can provide a product with can provide these additional features.

Recommended by specialist Customers generally prefer if a dermatologist refer any product for usage. Many branded players havent positioned its product as such except P&Q . Utsek has opportunity to position its product as same.

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New entrants strategy

Distribution network

Customers: From the secondary data analysis, as a new entrant in market, Utsuk should focus on both retail and institutional sectors of the business. Larger glossary stores, malls & market and chemist should be his target customers. Again from institutional segment, Utsuk should concentrate on getting business from small hospitals.

Proposed distribution network:

Retailer Regional distribution center Company Depot CFA Medical store

Customer

Customer

Hospital stockist

Hospital

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New entrants strategy

Summary of opportunities and Threats using synthesis Matrix

Performance of the Manufacturer in meeting consumer preferences.

Vendor Goals Consumer Preference Protection Cleanliness/Disinfection Price of the product Alcohol content Fragrance Packaging Anti Microbial Additional Features( moisturizing and deodorant) Recommended by specialist

Create Trust
G1 P1 P2 P3 P4 P5 P6 P7 P8 P P P P.PC P,PC P,PC h ,pc P,PC

Increase Focus on vendor Competitive specific market awareness and Differentiation segments accessibility
G2 P P P PC P P, h, pc P,PC G3 P P P P.PC P.PC P,PC h, pc pc pc, H P,H,PC H H G4

Improve distribution channel

G5

P,H,PC

P9

P,H

P,H

High Correlation Medium Correlation No Correlation P- P&Q(Pureshield) , H- Himgiri, PC- Pure care Note: Entry as caps indicates stronger correlation.

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New entrants strategy

Summary of Opportunities (Gaps seen)

Better Trust Protection--Information to buyerSmart packagingsegmentation better distribution model

Cell Ref G1*P1 G3*P1 G1*P2 G3*P2 G1*P3 G2*P3 G3*P3 G1*P4 G1*P5 G2*P5 G3*P6 G1*P7 G3*P8 G1*P9

Opportunities Create trust through product Protection as the competitive differentiation factor Create trust through cleanliness feature of product Cleanliness as the competitive differentiation factor Price as factor to create trust

Recommendation Product providing higher level of protection Position product using protection Product providing higher level of Cleanliness Position product using cleanliness as one of the feature Provide quality product with varied price range

Varied price range in increasing Provide product in different packages awareness among different segment of with different Price range. consumers less competition in low price range Market prefers High alcohol content Create trust through product create varied range of product Scope to provide product in different packages to create quality product to create products with additional features to build trust through recommendation Provide product in different packages with different Price range. Product with higher alcohol content Provide varied fragrance range Increase product accessibility Provide product in small sachets in appropriate price range to provide products with anti-microbial contents Products having moisturizing and deodorant effect Market the product in collaboration with specialist/dermatologist

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