Market Entry & Distribution Planning
Introduction:
The cement market is very dynamic and competition is fierce. Choosing the correct market entry strategy is critical for establishing oneself as a long term player in the market. Market Entry & Distribution Planning study gives a well defined market entry strategy which is imperative for a new entrant in the cement market.
This is achieved through a thorough assessment of the organisation's competitive position vis-à-vis current and potential competitors, market conditions and the likely response of these competitors to a new entrant..
Coverage/ Methodology:
There is a need for increased market orientation, as:
- Cement is slowly becoming a branded item rather than a commodity.
- Brand building is essential for both pull and push.
- There is a need to be proactive.
- There is a need for techno-marketing.
- There is a need to produce “What you can sell” as competition is ever increasing.
- Every region has its own market dynamics and it is important to understand the geographic diversity.
Holtec integrates the basic elements of the entry market strategy determination process.
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Deliverable based on the customer need could include:
- Market Transparency Report.
- Market Entry Strategy covering cement type/ grade, pricing, positioning, distribution channels (including location of dumps/ depots/ warehouses), customer segments, logistics, advertising & promotion, marketing organisation structure, market intelligence system, etc.
- Action Plans – detailed key action plans to ensure effective implementation of strategies.
- Implementation Assistance.
Benefits:
It helps in:
- Minimizing uncertainties faced by new entrants.
- Increasing competitiveness and maximizing revenue.
- Identifying strategic risk areas at an early stage – thereby, also prepare mitigating actions prior to market entry.
- Optimizing market reach.
- Prioritizing targeted customer segments.
- Deriving optimum product mix.
- Formulating suitable pricing policies.
- Selecting suitable distribution channels.
- Designing suitable advertising campaigns.
- Organizing marketing department structure for effective performance of various marketing functions.