New product development for a major European retail chain
Consumer goods & retail

Identifying attractive markets and defining entry & internationalization strategies for a new premium mineral-water brand


Challenge

Following a growth path, the client – a major European retailer and producer of several food and non-food categories -  had developed a new premium mineral-water brand and asked for identification of attractive markets for an internationalization strategy.

Besides identification of target markets, a detailed market-entry strategy was needed.

Approach

Arthur D. Little conducted a concept test within eight markets and a KPI review regarding size of the target segment, growth potential and competition.
After the prioritization of two target markets, the approach was

  • Detailed analysis of the selected markets (retail channels, competitors, consumers)
  • Development of a market-entry strategy, including detailed long- and shortlists of potential customers
  • Description of a commercialization concept 
  • Development of a business case

Value

  • Arthur D. Little made a final recommendation for distribution channels within the two markets based on a detailed market analysis
  • The commercialization concept allowed for direct use in order to present the core values 
  • The client received a detailed shortlist out of an extensive longlist of potential customers within the recommended retail channels for both markets  
  • Furthermore, the client obtained a business case with three different scenarios for a market-entry strategy within the two markets