Global Consumer Goods Company Expands Distribution Reach in Emerging Markets

Client Challenge

A leading global Consumer Packaged Goods (CPG) company wanted to find better ways to reach underserved consumers in developing countries. To do so, the company asked ZS to help identify best practices in various go-to-market (GTM) models of competitor companies and those in other industries in specific emerging markets.

ZS Solution

We combined desk research, ZS expertise and expert interviews to develop market briefs and best practice briefs. We then reviewed these briefs with our client and worked with them to develop a GTM strategy in each key market.

How It Worked

ZS interviewed local market owners of distribution companies, in-country CPG logistics consultants, and global sales leadership executives in CPG and other industries such as mobile devices to gain insights into the key markets.

Information collected from the interviews and included:

  • Market overview information detailing size, suppliers, trends, innovations and distribution capability
  • Best practice for key markets explaining sourcing distributors, economic models, service scope, role of purchasing, and sales program implementation
  • GTM models used by various companies for each focus market

Results

The project resulted in an outline of how the client should address the following issues in emerging markets:

  • Guiding strategies to expand into new markets that would enable local teams to identify and set up the appropriate channels that would best position the company to capture greater share
  • Regulatory guidelines for establishing distribution in new markets
  • Sourcing, pricing, and setting up contracts with distributors
  • Identifying and establishing non-traditional distribution channels where traditional infrastructure such as roads and railways are not present

These guidelines were fleshed out for China, Brazil, Indonesia, South Africa, India, Vietnam, Russia, as well as a number of other emerging markets.