European chemical company seek new markets Challenge Advisory advise that Brazil is the best opportunity and help them with market development
Facing slower growth in its traditional markets in Europe and North America and increasing challenges from competitors, a major chemical company asked Challenge Advisory to help it develop a strategy to enter a new market in South America. The client objectives were very clear; to provide country-wide distribution for 3 of their current products.
Small holder farmers exposure to climate change and climate variability is causing immediate food security challenges. Increased heat stress from high temperatures and low rainfall, associated with climate change, will make small holder farmers more exposed to challenges.
The new market functional practice team, in conjunction with the agriculture practice team, set out to develop a complete understanding of the new market including: potential customers, distributors, regulatory obstacles, competitors, buying culture and traditional trade terms.
The intent was discovering an untapped market opportunity that the company could push into. The team built and interviewed a database of prospective channel partners. Through this work, they garnered invaluable knowledge on how consumers currently purchase agrochemicals, knowledge on education, on market-size and a true understanding of what the market was lacking. This work was augmented and confirmed by market sizing and market analysis.
Following the data capture stage, the team developed a market analysis and business plan strategy that delivered over and above on the client’s ultimate goal of having country-wide distribution. The analysis highlighted a number of unmet needs in the targeted market, such has the potential to serve the higher-value segment of Bio Stimulants. This would give the company a focus area to deliver its value proposition to the distributors and the farmers. Focusing on Bio-Stimulants would also bypass the very complicated and drawn out process of achieving regulatory approval for its current chemical crop protection products.
After conducting our research the team also discovered, through the research, results that indicated the client’s company brand was not distinctive enough. This was very big news to the client, which resulted in adoption of a new brand strategy to achieve brand recognition within the market.
Within 18 months of rolling out the strategy our client had conducted successful field trials with 16 cooperatives in different parts of the country. They have agreements for distribution across the country. The client is now going through the regulatory process to bring their traditional crop protection products to market.