The Challenge

Marap GMBh, an Austrian based food processing company specialising in organic foods, wanted to enter the UK market but had no idea how to approach it. It didn’t understand the market, the mechanisms for entry, and the rules of engagement, which are complex and very diverse. Marap also didn’t know if their products were suitable to English tastes and lifestyles. They needed a low cost business model to assess and then capitalise on any market opportunities.

The Solution

Ibd Adviser, David Jack, carried out market research in the UK to evaluate the potential for trading. This involved a blanket audit of many organic food sales channels (very much a niche sector in the UK) checking pricing, gap analysis, technical offer and positioning of similar goods. It also involved an evaluation of the client’s products. David and his team then hosted an exhibition focusing on this particular sector of the food market in the UK to gain more widespread feedback regarding the acceptability of the client’s range.

Implementation

Following positive feedback from the exhibition and a number of presentations made to key decision makers in the industry, we anglicised the European packaging and also the recipes to fit the market for more convenient ‘lifestyle shopping’ in the UK. We also devised English brand names for use in all English-speaking countries. The product range was then presented to various wholesalers and retailers along with a two-year marketing programme.

We established UK warehousing and logistics to fulfil deliveries to every conceivable purchasing channel, from homes via web sales, to major food multiple distribution depots. We helped design the English version of the website and arranged for a SEO (Search Engine Optimisation) application to make the products easier to find.

Achievements

The client now has a significant business in the UK, all arranged by David Jack and his team of specialists. They act as the UK business centre for this Austrian company, managing the logistics, marketing and sales. Distribution of product, some 50 lines growing to 70 in 2011, is now national and is destined generate well over £1m in the first full year of trading.

The exercise in the UK has delivered substantial sales growth for Marap, not only in English speaking markets such as the USA, but also in Europe, as many countries bought into the more convenient recipe ideas that were devised for the client. All this was achieved without Marap having to directly employ a single person based in the UK.

Case study provided by David Jack, ibd Adviser.