DIBYANSU KUMAR AND JOEL SHYJU ELAVUNKAL

ST. XAVIER'S COLLEGE (AUTONOMOUS), KOLKATA

 MARKET ENTRY STRATEGY

Introduction:
Our Delhi-based client is a direct competitor of reCharkha, a company that
upcycles plastic waste into lifestyle products. Our client is fully equipped to
produce similar goods (but at a 30% lower price) for the corporate gifting market,
selling exclusively through the B2B channel.

MARKET ANALYSIS(GUESSTIMATE):
The corporate gifting market in India is estimated to be valued at Rs. 12,000
crores,
Since the market for corporate gift items made from recycled plastic waste is a
subset of the total corporate gifting market, we can assume it to be worth around
10% of it.
Although the demand for sustainable gifts will only surge in the near future, the
corporate gifting market is currently dominated by products with no clear
sustainable alternative, such as chocolates, snacks, headphones, stationery and
even vacations.
Therefore, our client’s Total Available Market can be guesstimated to be worth Rs.
1200 crores, based on our assumptions and the information available.
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SWOT ANALYSIS
reCharkha Our Client
• Established brand
• 30% lower price than
• Strong media presence reCharkha has been in the corporate gifting
competitor
Strengths • Known for its high-quality market for a few years now, having
• Equally good product quality
products, even successfully specialized in upcycling plastic
• Second mover advantage
internationally waste into high-quality lifestyle products. It
• Higher price than has customers across India, although it is
• Unknown brand as of now
competitor yet to sell a bulk order to a well-known
Weaknesses • Inexperienced in the
• Yet to attract a big-name client — an IT company, for example. Such a
corporate gifting market
customer customer would not only have elevated its
• Expanding production • Capturing market share using recognizability but also its revenue, which is
• Using current contacts to the lower price precisely what our client must try to achieve.
Opportunities gain more customers • Can specialize in bulk orders
• Marketing campaigns for since they only sell through In the long term, our client can also strive
individual customers B2B channel towards tapping into international markets,
which reCharkha has already accomplished.
• Competition from new • Competition from established
entrants brands
Threats
• Unforeseen government • Unforeseen government
regulations regulations

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INDUSTRY ANALYSIS
The table below includes the shortlisted industries, the estimated growth rates, along with pain points, motivations and behaviors:

AVERAGE GROWTH RATE

INDUSTRY PAIN POINT MOTIVATION BEHAVIORS
EMPLOYEE BASE (FY22)
Environmental consciousness, Researches products
Need for sustainable alternatives and
Technology 1000 + 11% High costs of eco-friendly products
Corporate social online, Values innovation
responsibility and quality

Attends industry events,

Client demands for sustainability and Competitive advantage,
Consulting 500 + 6% Need for unique corporate gifts Improved customer relations
Values professionalism
and presentation

Collaborates with
Increased efficiency,
Financial Pressure to reduce waste and Need sustainability experts,
Institutions
500 + 14% for cost-effective solutions
Corporate social
Values long-term
responsibility
partnerships

Increased demand for sustainable Collaborates with eco-

Brand reputation,
FMCG 500 + 5% products and Pressure to meet CSR
Competitive advantage
friendly vendors, Values
goals quality and affordability

Collaborates with
Regulatory requirements for Corporate social
sustainability experts,
Pharmaceutical 500 + 8% sustainable products and Need for responsibility, Improved
Values innovation and
eco-friendly packaging customer relations
quality

Increased demand for sustainable Environmental consciousness,

Educational Attends sustainability
Institutions 1000 + 14% solutions and Need for unique Improved student
events, Values creativity
corporate gifts engagement
SHORTLISTED COMPANIES
Criteria Weightage Description
Company size 3 Larger companies may have greater budgets for corporate gifting.

Companies in target industries are more likely to be interested in eco-

Industry 2
friendly products.

Corporate social responsibility (CSR) Companies with strong CSR initiatives are more likely to prioritize
2
initiatives sustainable practices.

Geographical proximity 1 Companies located closer to the client may have lower shipping costs.

Prior partnerships with sustainable Companies that have partnered with eco-friendly brands in the past may
2
brands be more receptive to the client's products.

The following organizations are being shortlisted for targeting based on the criteria and weightage in the table above:
PRODUCT ANALYSIS
The companies we are targeting predominantly employ white-collar
workers, most of whom regularly interact with laptops and attend
meetings, where they may write down notes. Such employees may also
indulge in social gatherings outside of work, making wine bottle holders
an excellent companion. Laptop sleeves and backpacks are the largest
of all our products.
By extension, it will be the most expensive ones, hence generating the
most revenue. Huge amounts of plastic waste will be required to create
these products, resulting in more plastic waste upcycled and more
hours of work generated for our client’s employees.
Taking the results of our above analysis into consideration, the products
that our client must stock up on are:
• Laptop sleeves
• Backpacks (with a laptop compartment)
• Pencil pouch
• Diary cover
• Wine bottle holders
In addition to these, when our client meets potential customers, they
can take in their valuable inputs on a new range of products that can be
developed, and whether the current collection can be improved.
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 CUSTOMER ACQUSITION STRATEGY
MARKETING AUTOMATION A/B TEST
Marketing automation technologies may assist the client The client may determine the most successful techniques
in generating and qualifying leads, personalizing to cut customer acquisition expenses and enhance
communication, automating sales follow-up, and conversions by testing multiple factors like as message,
increasing customer retention. HubSpot, Marketo, and visuals, and calls to action. This may be accomplished with
Pardot are popular tools. Marketing automation may a variety of technologies, including Google Optimize,
save time, boost customer interaction, and raise the
Optimizely, and VWO.
likelihood of a sale.

STRATEGIC PARTNERSHIP INDUSTRY EVENTS

Eco-friendly organizations, corporate gifting companies, Attending industry events such as trade shows, conferences
online marketplaces, and corporate social responsibility and exhibitions is a great way for your client to reduce
(CSR) departments are all potential partners for lowering customer acquisition cost. These events provide an
our client's customer acquisition cost (CAC). These opportunity for our client to showcase their products to
collaborations can help your client's eco-friendly products potential customers and network with industry
reach a wider audience and potentially improve sales. professionals.

LINKEDIN CAMPAIGNS
LinkedIn campaigns can be an excellent approach to lower CAC and save your client time. LinkedIn advertisements may
help your client reach their desired audience by targeting specific industries, job titles, and locations. Furthermore,
LinkedIn provides a variety of advertisement types such as Sponsored Content, Sponsored InMail, and Text Ads that may be
tailored to specific goals such as lead generation or brand exposure.
SUCCESS METRICS
Metric Target Description

This metric measures the total revenue generated by the client through
Sales Revenue INR 20,000 per month
corporate gifting sales.

Customer Acquisition This metric measures the cost of acquiring a new corporate gifting
INR 500 per customer
Cost (CAC) customer.

This metric measures the percentage of leads that convert into paying
Conversion Rate 10%
customers.

Customer Lifetime This metric measures the total value a customer will bring to the client
INR 10,000
Value (CLTV) over their lifetime.

Return on Investment This metric measures the return on investment for the client's
1.5x
(ROI) marketing and sales efforts.

Note: These success indicators and targets set clear objectives for the client to work towards and track their progress. These
parameters should be monitored and adjusted on a regular basis to ensure the client's success in the respective segment.
REFERENCES
• https://eyantra.com/pages/the-corporate-gifting-and-trends-report-2022
• https://economictimes.indiatimes.com/news/company/corporate-trends/sustainability-is-the-theme-for-corporate-gifting-
across-india-inc-this-diwali/articleshow/95039971.cms?from=mdr
• https://www.recharkha.org/collections
• https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/beating-the-odds-in-market-entry#/
• https://hubsell.com/insights/how-to-lower-your-b2b-customer-acquisition-costs/
• https://www.forbes.com/sites/forbescoachescouncil/2021/11/15/14-effective-strategies-to-cut-the-costs-of-customer-
acquisition/?sh=682435272a1b

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