US Based Medical Footwear Manufacturer Used Outsourcing Model to Cut Market Research (Market Entry) Cost

The Client

The client is footwear major, based in the US. They had established themselves as a leading player in manufacturing specialized footwear like those for medical cases like people suffering from diabetes, arthritis or some other foot trauma. Their shoes are equally popular with people needing comfortable, long-lasting shoes.

The Project

The client had established their presence in the US and China. They were now looking for a worldwide presence and had decided to start with South Africa. The client wanted to conduct some market research before foraying into the South African market. They contacted Back Office Pro for this purpose.

The Challenge

The challenge before us lay in understanding what the client required and then incorporating their input on product and pricing into the overall analysis. The final output had to be not just excellent, but also a practical review of effective marketing strategies. All this had to be finished within 15 working days. The 23 cities that we had to cover were:

  • Gauteng
  • Johannesburg
  • Kwazulu Natal North Coast
  • Western Cape
  • Benoni
  • Pretoria
  • Carletonville
  • Krugersdorp
  • Midrand
  • Alberton
  • Soweto
  • Durban
  • East London
  • Kimberly
  • Klerksdorp
  • Mhulzi
  • Port Elizabeth
  • Cape Town
  • Paarl
  • Kwazulu Natal
  • Bloemfontein

The Back Office Pro Solution

Hitting upon the best strategy to infiltrate a new market is a daunting task. Certain factors had to be considered. These were:

  • Entry objective: Deciding on the initial method, such as acquiring a considerable market share in a very short span of time.
  • Lack of faith: Customers are generally hesitant to try new products as they are yet to develop faith in it.
  • Life-cycle: When new products are introduced in a market, those entering towards the early stages of its lifecycle, have a greater chance of success.
  • Competition: A new entrant is bound to face tough competition when entering a new market. If there are already too many competitors and the supply far exceeds the demand, a call may have to be taken on whether it is wise to enter the market at all.
  • Deciding on a strategy: There are a number of marketing strategies that a firm can adopt for a new market. The foremost is the broad-front strategy. This highly aggressive method utilizes all tools across all market segments. Another strategy is the focused entry strategy where a much targeted market is defined for a highly concentrated entry. One can also go for the guerrilla approach, which is a sort of broad-front market entry in a non-aggressive manner. It makes use of low resources for those market positions that show the most potential.


The Results

The client expressed happiness and satisfaction over the pace, direction, time and attention paid to the project. The client was able to derive many benefits from our research, evolving strategies that included:

  • Technical innovation
  • Product adaptation
  • Ensuring availability and security
  • Optimum pricing
  • Customization with local conformity

The client not only uses the manual resources, such as doctors, stockists and agents recommended by us, but also incorporated our pricing strategy across various parts of Africa.