International Project Management / Market Entry Strategy and Execution
Objectives
The client originally aimed to enter the thriving Chinese petfood market via Cross-Border-E-Commerce. Due to the challenges posed by the Covid-19 pandemic as well as food related import restrictions, a totally new strategy had to be developed and executed: local production in China for the China market.
Key objectives were:
- secure local production via qualified contract producers,
- establish a strong market presence with trade, service partners and customers,
- develop a robust operational framework.
Gaining a strong foothold in the China market required setting up a Chinese entity as well as creating a comprehensive marketing and sales strategy.
MFC delivered mission critical insights and strategic supervision, detailed project management as well as hands-on on-site execution, guiding the client from initial market exploration to a successful entry, ensuring a strong foundation for future growth. Considering the un-surmountable travel restrictions during the Covid-19 pandemic, MFC was basically the fully trusted partner to drive all activities in China and to strategize with the client at HQ in Germany.
Specific objectives successfully achieved by MFC on behalf of the client during the market entry process:
- Identifying and evaluating most suitable cooperation partners, advising the client in selecting the the best possible set of local companies, even though during the pandemic only MFC team members in China were able to do onsite visits and execute nuts-and-bolt checks.
- Transitioning from Start-up to Scaling phase within one year by establishing efficient local structures for operations, sales, marketing, and production.
Processes
MFC supported the client through every stage of market entry, from early exploration to full-scale operations. Throughout each phase, MFC spearheaded the international project, delivering hands-on support in Germany and China, leveraging local networks and contacts to ensure the client’s success.
The market entry was segmented in four distinct phases: Exploration, Initiation, Start-up, and Scaling. MFC enabled the client with a system of clear milestones and tasks, ensuring a flexible yet strategic approach as this is essential for China-focused projects.
Exploration Phase
MFC conducted a comprehensive evaluation of the market environment and collaborating with the client in crafting a suitable market entry strategy. Key activities included:
- In-depth market research and competitor analysis.
- Developing key marketing and branding elements, including a compelling Chinese brand name and tag line.
- Exploring and securing suitable distribution and production setups.
Initiation Phase
Following the exploration phase, MFC together with the client established the foundation for its operations in China and forming essential partnerships. This phase included:
- Partnering with a local production company.
- Advising the client on the needs of establishing a Wholly Foreign-Owned Enterprise (WFOE).
- Setting up initial marketing and sales channels.
MFC acted as trusted partner for the establishment and management of
a comprehensive cooperation network for operations in China
Start-up Phase
With the foundation in place, the focus shifted to building robust operational systems critical for the client’s independent functioning in the Chinese market. MFC continued to assist by:
- Supporting the development of an efficient local team in China.
- Managing international project communication between the Chinese team, partners, and the headquarters.
- Providing strategic oversight during project execution, including stakeholder management and risk mitigation to address potential challenges.
Scaling Phase
Having successfully established operations in China, the client is ready to scale its business. The Chinese branch and partners were enabled to operate independently, with MFC becoming a strategic partner to navigate new challenges and ensure the long-term success of the business.
New team members are onboarded by MFC to ensure full understanding of the China Market dynamics and full understanding of the past, present and future roadmap for growth and RoI in China.
Results
- The client successfully navigated each phase of the market entry process, overcoming challenges along the way to establish a strong presence in China.
- The company now operates an efficient and adaptable Chinese branch, capable of responding swiftly to the dynamic market.
- Sales targets are being met, and the business continues to grow successfully in the Chinese market.
animonda booth at The One Pet Show (TOPS) in Shanghai
