Entering a new market with confidence
A foreign FMCG company with limited financial resources and with neither Russian speaking staff, nor detailed knowledge of the Russian market, saw an opportunity and intended to enter the market by exporting its product to Russia. Due to its limited resources, the company favored pure export, without hiring additional salespeople on the ground and was therefore looking for suitable partners that could import, distribute, and sell the product in the market. Since the company’s product was previously unknown to most consumers, an extensive promotion campaign to find suitable partners was a necessary prerequisite.
By teaming up with experts from the corresponding industry, SCHNEIDER GROUP was able to offer its client the knowledge of an industry insider and the agility of dedicated market research experts in order to serve the client’s expectations and to identify market opportunities, promote and place the client’s products with the best partners in the country.
With our Market Representative solution, SCHNEIDER GROUP identified markets and suitable distributors, performed an assessment of the product´s market potential, contacted the manufacturer, advertised the product for suitable retailers and distributors, organized tasting sessions of the product in our office, sent samples to potentially interested parties, and conducted the follow-up.
The representation was offered for a 12 hrs/month for the duration of the contract, with the option to order more on demand. In addition to the search for potential partners in the country, the solution also included assistance in contract negotiations with potential partners and consultation on matters of import, certification, and labeling, which all need to be taken into consideration simultaneously in order to avoid long lead times for the first shipment to the new partners after contract signing.
The holistic approach of the Market Representative Solution offers clients the possibility to “test the waters” with minimal financial engagement and no risk of having taken on staff or rented office space during the pre-phase as well as the initial phase of market entry.
SCHNEIDER GROUP found a number of interested retailers and distributors, who are now rolling out the product via various sales channels throughout Russia.
The success of the initial sales campaign led the client to appoint a dedicated sales agent in Moscow, who is promoting the product further and initiating the expansion of the brand in Russia on a full-time basis with the prospect of opening a subsidiary.