Case Statement:
Your client is an international BPC player, and they have decided to enter India. Please advise them on what is the market size and how they should go about this?
I: Your, client is an international BPC player, and they want to enter India. How they should go about this?
C: Just to be clear, the decision to enter has been made. I need to only size the market and figure out the GTM strategy.
I: Exactly.
C: I want to understand the client a bit better. Do we have any information on where exactly do they lie in the value chain? What kind of products they sell and who do we target?
I: So, they manufacture and sell products to via 3rd party channels. They are in skincare specifically luxury segment with 100% natural products. The target group comprise urban female consumers.
C: I want to understand why do they want to enter India and what is the current industry and competitive landscape? What are their goals?
I: The client feels like that India has an underpenetrated market and has a lot of potential, currently growing at a rate of 15% annually. There are 6-7 players commanding 70% of the market rest 30% are filled with start-ups and small players. They want to grow as much as they can.
C: Okay, to size the market, we can target the urban T1 cities. Here, since we cater to just the females, this will be half of the population so far. Our products are luxury in nature to only the high and middle-income segments can afford. Also, 18-45 is the age segment, that typically uses such products. (Calculations....) So, approximately the market size comes down to 9.6cr users.
I: Makes sense.
C: What price do we sell at? What is the typical ARPU or volume that a consumer purchases at once?
I: You can expect, an average basket size of Rs. 1500/user. The products lasts for 3-month on average.
C: Okay, so that gives us ARPU of Rs 6000. So, we are looking at a sales of approx. 8640crs , given we are able to capture 15% of the market here
I: Alright, let us move to the strategy part.
C: Alright, I would like to look at the GTM strategy in five parts starting with the product strategy, followed by distribution channel, marketing and branding, regulatory constraints and then feedback and expansion.
I: Sure, go ahead. Given our discussion points, let's start with the product itself. Can you talk to me about your thoughts on product strategy?
C: Product Localization: India has a diverse climate and unique skincare needs. It's imperative to consider localizing products or introducing specific SKUs tailored for Indian skin types and conditions.
C: Pricing: While we want to maintain the luxury image, pricing needs to strike a balance. It should be competitive within the luxury segment in India, reflecting the brand's premium nature but also the local purchasing power.
C: Packaging: Incorporating localized design elements could resonate well with Indian aesthetics, adding a touch of personalization for the market.
I: Spot on. Distribution is the next critical area. How would you approach it?
C: Online Sales: Tying up with popular ecommerce platforms like Nykaa would be beneficial. Additionally, a dedicated brand website can cater to direct sales and offer a platform for customer engagement.
C: Retail Partnerships: Collaborating with luxury department stores and established skincare outlets in metro cities could provide the desired brand visibility.
C: Exclusive Brand Outlets: To cement its luxury positioning, opening exclusive stores in high-end shopping areas in major cities can be considered.
I: Excellent. What about marketing and branding?
C: Brand Ambassadors: Associating with Indian celebrities or influencers can create a buzz. The key is to pick someone who embodies the brand ethos.
C: Digital Marketing: A significant portion of India's luxury consumers is digitally savvy. Platforms like Instagram and YouTube are crucial for engagement
C: Local Collaborations: Indian events like Lakme Fashion Week or popular movie premieres could provide the brand an opportunity to align with the luxury space.
I: Before going full-scale, how do you envision testing the waters?
C: Pilot Launch: Starting in a city like Mumbai can offer insights. It's the hub for fashion, luxury, and has a significant audience with the right purchasing power.
C: Feedback Mechanism: Establish channels to collect feedback during the pilot phase. This can inform tweaks in product offerings, marketing strategies etc.
I: Assuming the pilot goes well, how would you proceed?
C: It's logical to then move to other major cities, prioritizing them based on market research on luxury consumer density. We can diversify the product range, too tapping into specific needs or gaps in the market.
I: Thank you for the insights. We can close the case here, all the best.
Background Information:
Client: Global BPC player
Competitors: There are 6-7 players commanding 70% of the market, rest 30% are startups and small players.
Value Chain: Manufactures and then sells it through 3rd party channels.
Customers: Urban female consumers
Products: Luxury skin-care line, 100% natural
Industry: Growing at 15%
Case Tips:
Always be as exhaustive as possible while you are trying to scope during the start. Make sure you are able to understand the needs and wants of the case.
Try to structure your approach to the key objective and requirement of the case, this will save time and cut down on time spent on things not required.
Check with the interviewer whether he wants to look into specific areas before jumping into one.
It is important to be well-versed in quick math. Please do make necessary approximations as and when necessary while sizing the market. Do run the interviewer through your approach first and then only dive-in.
