Teaching objectives are as follows: students need to understand the critical choices involved in introducing a product into a new market, including but not limited to the macroeconomic context, the target consumer segment, the positioning of the product, distribution channels, pricing and promotion strategy. Students must learn to appreciate the importance of anticipating the reaction of incumbents, and how such reactions may determine the success or failure of a new product entry into the market. Students develop skills to analyze complementarities between different distribution channels and understand how investments in developing one channel can result in positive or negative consequences in other channels.
How can health products such as multivitamins and other nutritional supplements make headway into emerging markets that are moving up the ranks of middle-income economies? This case study investigates the case of Thailand, a country that in the early 1990s registered a per capita income comparable to Vietnam and Laos and Cambodia today. It illustrates, through the real experience of Pat – an executive of a local subsidiary of an American multinational pharmaceutical company – how a new entrant exploited the rapidly changing economic and retailing environment to become a successful player in an important and growing segment of consumer products.
Complexity Academic Level
This case is suitable for master’s degree students or short-course executives.
Teaching Notes are available for educators only.
CSS 11: Strategy.
Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.
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