Situation
An established consumer products company in the US decided to expand into the Asia-Pacific region. The initial strategy was to begin with a joint venture in China, then expand sales to other markets in the region. The company hired a seasoned international sales and marketing executive from the European operations of an unrelated consumer products company. After two years and nearly $2 million in losses, the company had no joint venture in China and very little sales elsewhere in the region.
Action
AsiaGlobal principals made a quick assessment of the company’s products and determined that several markets in the region had indigenous products that would make good companion products. AsiaGlobal entered these markets and introduced point of sale merchandising that brought the companion products together and sales took off instantly. Within the first six months, operations in the region were profitable and sales began a sustained period of rapid growth. The next step was to commission market research in Japan, Taiwan, and Malaysia to determine acceptance levels for the company’s products in the mainstream. The research revealed there was a market for the product, but the market was very small unless extensive product development was undertaken.
Results
Within two years, sales in the Asia-Pacific region exceeded sales in all other international divisions (EU, Latin America, Middle East) combined. AsiaGlobal’s principal assisted the client in developing a new product line, based on the company’s core US products, but tailored to Asian customers.