Slowing domestic market growth encouraged this nearly 60-year old manufacturing concern to explore growth prospects abroad. The organization had engaged in expansion into the Chinese market three years prior using internal resources and although fairly pleased with the prospects in Asia, they felt that other markets held substantial—if not greater—promise than that of China. One of such market for consideration was Brazil. However, the organization had no prior experience in Brazil, nor did it have a team equipped with a proven methodology, an established network, or the linguistic fluency and cultural acumen needed to perform such market expansion. Nonetheless, they recognized the need for highly qualified, expertise and support to research the market, and to subsequently formulate and deploy a program to expand its footprint in Brazil that would include a network of partners in key regions of the country. Additionally, because of the risk-averse nature of its culture and the long-standing history of the organization the client required a turnkey program that could yield results minimal risks, shorter time-to-results, and superior outcomes than if it were to attempt such enter into this new market on its own.
The client sought our global market specialists' assistance to deploy a fully turnkey expansion into Brazil. We were engaged to act as an extension of the client’s team that would pinpoint on behalf of the organization, the regions within Brazil most likely to yield revenue growth and advanced their mission and then help identify the most suitable prospective candidates to partner with in the “boots-on-the-ground” phase.
We applied a proven approach customized to the client. As part of the approach, we conducted research on prospective partners according to client-specific (and client-approved) quantitative and qualitative criteria. This included an assessment of each prospective partner’s capacity to grow and service the market, reputation and financial standing, and English language proficiency. After identifying prospective partners, we then met with each of the most promising candidates and further assessed their capabilities, qualified their suitability, and followed up with addition due diligence to help ensure that such candidates were highly qualified partners.
With a set of qualified candidates the client could effectually meet with the only suitable pre-screened partners. Once a partner was selected, we negotiated the alliance agreements on behalf of the client under local business culture norms and in the local language. With agreements in place, we subsequently engaged in the market development phase to support the initial partner efforts in the region, helping sustain continuity and increase the likelihood of success in Brazil.
Throughout this process, our support help to limit the demands of on our client’s time and resources, particularly when compared to the full-time effort and resource allocated to their foray into China.
The quality of local partners selected for the client enabled substantial market in-roads to take place for early on in the program. Coupled to such high-grade partners, applying a tried methodology customized to the organization and fully supporting the early stages of market development provided key prospective market opportunities and in-region brand-building opportunities to flourish. Continued support included representing the organization in crucial meetings where such a presence was instrumental in helping to advance critical relationships in the region. This support and interaction (within local business culture norms and in the local language) helped to improve the partners’ autonomy in handling opportunities in Brazil on behalf of our client.
For more information on this topic, or to learn how Baker Tilly global market development specialists can help, contact our team.