This document outlines Mayora's process for entering new markets. It discusses the challenges of entering foreign markets and importance of market intelligence and pricing strategy. The key points are: 1) Entering new markets abroad requires gathering market intelligence on regulations, industry, culture and consumers to understand risks, opportunities and make informed decisions. 2) Market intelligence is obtained through secondary research online/media and primary research like customized surveys, expert opinions, and market visits to trade shows and stores. 3) Successful market entry depends on proper timing, suitable product portfolio, right marketing mix, strong distributors, good availability/visibility, and adapting based on progress monitoring. 4) Pricing strategy is based on competitor

1. ENTERING INTO A NEW
MARKET
The Mayora Way
Prepared and Presented by
Dipa S Komala, Group Country Head
Andi Nalu, Market Development Manager
Aug 27, 2014
Presented to Technologia de Monterey

2. INTRODUCTION
 Entering into a new market abroad is
a very challenging task
 There are so many uncertainties that
we have to deal with
 What works in one country may not
necessarily work in another
 Magic Price and Price Structure are
key for successful market penetration
besides the product itself.

3. MARKET INTELLIGENCE
 Activities to gather information or data
from the market that are relevant to an
organization to make better decisions to
achieve its goals when the findings are
combined with Business intelligence
 Market intelligence is from outside of the
organization while Business Intelligence is
from the inside organization.

4. HOW MUCH IS NEEDED?
The extend of market intelligence research required will
depend on:
 The risks involved
 Financial Risks
 Company Image
 The affordability: what we can afford
 The export strategy / entry mode
 Indirect export: not directly involved
 Direct Export: trading, brand building, local production
(fully owned or Joint Venture)
 Product and or Product Category:
 Life Cycle
 Differentiation or Unique Selling Proposition
 Adaptability / Compatibility
 Time / Urgency

5. HOW TO DO IT?
 Secondary Data
 Internet
 Print & Broadcast Media
 Research Institution Reports
 Primary Data
 A customized research designed to meet our unique
requirement
 Expert Opinions
 Practitioners
 Educators
 Researchers
 Agencies
 Competitors
 Market visit
 Participate in trade shows
 Visit major stores and distribution centers

6. BASIC KNOWLEDGE
 Local regulations
 Import regulations
 Product Registration
 VAT
 Legal Aspects
 Profile of the industry
 Product & Competitor Profiles
 Sales Profile
 Market Trends
 Local culture & consumer behaviors

7. KEY SUCCESS FOR NEW
MARKET ENTRY
 Timing for launching
 Right Product Portfolio
 Right Marketing Mix
 Know what to expect
 Market potential
 Market Size
 Sales potential
 Right Distributor(s)
 Partnering with Distributor(s)
 Good product availability & Visibility
 Monitor progress, evaluate results and make
changes in a timely manner.

8. HOW WE DO OUR PRICING
 Start with the Consumer Buying Price with the following in
mind:
 Prices of competing products
 Unique Selling Propositions
 Buying power
 Market Potential, Market Size, and Sales Potential
 Price sensitivity
 Category / Product Life Cycle
 Calculate Price backwardly by taking into account:
 Normal margin expected by each member of distribution channels
 Import duty & tariffs
 Other expenses related to clearance cost, inland transport,
warehousing cost, etc.
 Currency fluctuations
 Ideal landed cost
 Freight and Insurance Cost
 Margin we expect to earn

9. THINGS TO REMEMBER
 Different product categories may have different price
structure
 Different products may require different distribution
channels
 Different types of outlets may require different pack
sizes
 Different distribution channels may require different
buying price
 However, all importers in one market must have the
same buying prices for the same products.

10. The End of Presentation
Thanks to Ms Esther Medina who
invited me as a guest speaker.