GCC Market Entry Project Business Plan Implementation Methodology Pillars consultancy www.PILLARS-EG.COM [email protected] 1 Teckell – GCC Market Entry Project Table of Contents : Implementation Methodology • Strategic thinking • International opportunities evaluation Business Plan • Market entry strategy planning Implementation Methodology • International business planning presented to • International business management structure Key Next Steps • Agree on methodology TECKELL - Balilla Collection • Agree on Scope of Implementation www.teckell.com • Agreement on Time for Implementation • Agree on project Financial Terms BY Developed by Osama Abou Mousallam Jan 2012 2 3 Overview & Our Understanding “Glassy & Classy” • Perfected in Italy • One of a kind in the world • Turned table of sport into a luxury item • Ever piece is hand made • Crystal glass 4 Product Range Under the auspices of the 2003 Gulf Council Unification (GCU) Customs Union Agreement, the GCC members adopted an across-the- board common external tariff rate of five percent (5%) for most products. The GCC also agreed to develop a list of products to which higher tariff rates will apply. Likewise, certain staple items such as food and pharmaceutical products are exempt from tariff. 5 Product Details Teckell – Green Teckell 6 Product Details Teckell – Gold Teckell 7 Product Details Teckell – Coffee Teckell 8 Product Details Teckell – Krystall Teckell 9 Product Details Teckell – Total Krystall 10 Table of Contents Consumer : Understanding GCC Consumers • Marketing : Markets Trade Consumer Next Steps 11 12 13 About Foosball Product History & insights Foosball is a social game that requires two- four players. Even beyond the requirement for multiple players, when people play foosball it is typically in a social setting with socializing occurring during play. While there are some other casual players, most are or recently were college students. Foosball • Foosball, or table soccer is a popular table game that looks sort of like a soccer game. • The name is derived from the German word for field soccer which is fubball. • The adopted name in the States is foosball or table soccer. The game itself originated in Germany during the late 1920's and early 1930's. • A fact that may come as a surprise to many is that foosball is played on a competitive (professional) level. • There are several tours which exist with regional, national and international competitions. • Within the U.S. there are two well established associations, United States Table Soccer Association and the American Table Soccer Federation. • So while most participants are recreational players, there are many people who play foosball at a competitive level. • The bulk of Foosball Hall customers are the recreational players. 14 Key Questions • Our market entry studies provide practical and actionable findings to our clients by seeking to answer the questions most frequently asked by new market entrants: • What is the size of the target market? How do I know the target market is big enough for my product offering to be a success there? • How can I ensure that the target market understands my offering? • How should I market and promote my offering in a new territory? • Will my products or services need to be adjusted to meet the needs of the target market, and if so how? • How can I price my products and services in the new target market? • What are the routes to market? How should I seek to access the marketplace? • If there is an opportunity, what type of business would be best placed to make the most of this opportunity? For example, should we begin by setting up a representative office or subsidiary? What about a joint venture? Or should we begin by tapping into a local distribution network? 15 Background Great Product …. With Great Challenges : • sddd Area Challenges Key Points - Area Methodology Outcome • Barriers for entry - Legality , Logistics, Weight, Handling , Production capacities Research : • Final Product Range / Portfolio/ Product offering • Pricing : Landed cost , Tax, etc.. Qualitative Product Attributes Range & Pricing • Product Structure : Product uniqueness Research Product • Product offering – Range – Expected Sales Volumes • Expected product life cycle • Market prioritization - Defining Entry Strategy Market Priorities • Market Modes of Entry (by Country) • Desktop • Market Priority Market Entry Strategy Research • Entry Sequential – Parallel Market Entry • Field Visits • Trade Structure • Selective outlets • • Trade assessment - Key Retail partner (strategic fit) • Desktop Pricing Structure • Route to Market Trade Structure Research • Key Operating Alternatives – Hub - Direct – Regional office • Logistics & Related Trade • Trade Support / Merchandizing / Trade activities • Field Visits Which Consumer Segments We are Targeting : • Product Perception on “Consumer profile Levels “ • Focus Consumer • Occasion to use – Based on consumer profiles Groups Preferences • Reason to purchase • Marketing agenda & behaviour • Qualitative Consumer Research 16 Business Strategy Proposed Development of Solid Business Plan Marketing Plan Route to Market Scoping & methodology Based on & Estimated Sales RTM Agreement Research & Geo Volumes/ Coverage – Estimated Profitability Sales volumes Initial Market(s) Merchandising /Trade Selection (Geo Activities : Coverage) Examples : • Agree on Methodology • Sampling / POS Materials / Visibility • Initial Scope for Study Customer Awareness : To create Awareness of the product through the economical / effective Media Targeting Business Plan & Estimated Sales Preliminary Assessment Volumes/ Profitability • Agree on Methodology • Initial Scope for Study Consumer Research • Consumer Research for Effective • A Well positioned display for the media related to products product 17 Consumer Consumer Segments Segment B Segment A Product Perception Segment B Segment B Consumer preferences (how to Know About the product) Marketing Consumer Preferences Where to Buy ? 18 19 Product Profiling Distinctive collectable Traditional Teckell Targeting Age Group Benefits - Very Short life cycle : - Trendy – re-invented not new - Weight is an issue - Pricing could expensive - Occasion to purchase ??? - Distinguished RTM / Marketing has to be innovative enough to trigger purchase - Sampling / BTL Activity Could be required 20 21 • ATL are conventional medium like TV, Print ads, Radio etc. These days we have seen a new trend of companies not spending a lot on ATL as it is very expensive. Rather they are investing on BTL - Below the line activities. These are like giving coupons, road shows, buzz marketing etc. • BTL are very cheap and cost affective and we will see in future a skewness towards BTL as it is cost effective. 22 Market Entry for GCC : Scenarios Overview : A-Conservative Scenario : B-Optimistic Scenario : Single Market / Minimum Market Spending Single/Multi Market / Market Spending • Could fit a conservative marketing spending mainly BTL Activities • Could fit a conservative marketing spending mainly BTL Activities • Creating the need to purchase the product based on • Creating the need to purchase the product based on • Will cater for need of fun with friends mainly social gatherings • Will cater for need of fun with friends mainly social gatherings • Might • Might Overview This segment is typically made up of college men who enjoy playing Overview Would target Same Age Group as in Previous Sceanrio however foosball with their colleagues. This group of individuals typically would be bundled in creative advertisment plays to pass time and have fun as opposed to playing at a • Regional competitive level in tournaments. Characteristics of the individuals that make up this group are: Prerequisites • Gender 85% male. • Ages 17- 28. Target • College students- 74% of the participants are in college Population or recently graduated from college. • 69% play pool but prefer foosball because it combines similar levels of skill but at a much faster, exciting pace. Prerequisites Target Population Pros • Lower risk / Less investment required Pros • Suite product : Trendy – • Could be good for market testing prior to bigger Scale • Fits the product Short life Cycle • Fits single market Entry (geographically) • Could generate high sales Volumes • Balanced Sales Across the Region (Geographically) Cons • Marketing / Merchandising is based on the strength of the • Won’t rely on Distributors merchandising Activities distributor • Producer would be the Upper hand in Distributor Selection to fit the product • Might require Heavy ATL Activities / Discounts / Promotions to • Would enjoy of satellite Spread promote the product • Slow Growth in the product Awareness despite the nature of the Cons • Might Require Strong Logistics product (Trendy) • Requires heavy planning – Selection process for Partners • Would require heavy research for consumer prior launch Conclusion • If Research would not grant large sales volumes / would be a good • Higher Risk if not successful start of market entry / Market Test 23 • Could Suite Low Scale marketing activities and less Risk Conclusion A-Conservative Scenario : Single Market / Minimum Market Spending Marketing BTL Activities BTL Activities Customer Awareness Related Activities Planning Implementation Examples: BTL Activities Planning Marketing Related Marketing BTL Activities Planning Purchase Sales Related BTL Activities BTL Activities Related Activities Planning Implementation Sales Related Sales 24 25 Market Entry for GCC : A- Conservative Scenario : Conservative