Market and competitor insights / strategy development - consumer products

Global leader in salty snacks seeking to enter major market in Central Europe

• What options do we have for entering this major market?

• IAMCO gathered information on the market and on competitors, analysed market data, and interviewed key trade accounts to understand growth prospects and barriers to entry. We then analysed competitor profitability and estimated the valuation of competitors. Using all of these insights, we assessed market attractiveness and recommended market entry options.

• The market had growth potential, largely as a result of its underdevelopment in comparison with other European markets.

• Barriers to organic entry were high, due to both shelf space restraints and a lack of enthusiasm in the trade for the emergence of a third strong player.

• The client lacked product quality or cost advantage over the two dominant players.

• The market leader was more profitable than its close follower and was therefore identified as a target for acquisition.

• Organic entry, drawing on Europe-wide production scale, was not feasible.

• Efforts should focus on wooing the market leader and its owners, rather than treating the two leading players in the market as equally viable candidates for acquisition.