Help Getting New Products to Market

02

We need to get product into a brand new market

What a great challenge. A new market is opening up, the sales organisation had already committed significant funds and was busily setting up a sales network but we had no physical route to market.
What problem where we trying to solve?

With sales of 100k units pa planned we needed to set up a shipping route, landing port and haulage network to deliver cars across Russia

Why did we have this problem?

Sales where expanding, product was hot and the existing grey market had proved to have good volumes. The problem was that we had no port of entry and no partnerships with hauliers that had the scale or the local knowledge to deliver that volume of cars.

The solution

We needed to find a partner that could not only distribute a high volume of product but could also set up a port of entry capable of dealing with pre delivery preparation, efficient loading of trucks and deal with customs authorities. We found a partner that had the scale and connections through a process of market research – including multiple visits to Russia, meetings with the authorities and local business leaders. In addition we needed to get our shipping partner to procure a vessel that could still delivery through the winter (ice class vessels are not as common as you think they are)

So what?

We opened the first new vehicle port of entry in St Petersburg. We agreed a cost per truck rate and navigated our way through the complexities of Russian customs. In the first year of operation we imported circa 100k new vehicles and managed a 98% OTIF result.
How hard was it, really?

Completely new market and virtually no local knowledge in the team meant a steep learning curve. This learning was not only the mechanical aspects of physically & transactionaly importing product into another country but also, probably more importantly, the cultural aspects of dealing with people form a country that was in in its infancy from a political / economic point of view.

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