Project Background

Flavors and fragrances are chemicals or natural substances that are used in consumer products such as food, beverages, beauty and personal care to increase or change their flavor and taste. The flavor and fragrance industry is a global market. Shangpu Consulting Company (hereinafter referred to as Shangpu) is an internationally renowned company specializing in consulting services in the fields of strategy, management, and information technology. It has rich industry experience and professional team to provide customers in all walks of life around the world with high-quality solutions. Shangpu has been doing business in China for many years, serving many well-known enterprises, and has accumulated a good reputation and reputation.

Customer pain points

A well-known European flavor and fragrance manufacturer (hereinafter referred to as the customer) is a multinational company with a history of 100 years. It mainly produces and sells synthetic spices and natural spices. Its products are widely used in food, beverage, beauty and personal care fields. Customers have a high market share and brand influence in developed markets such as Europe and North America, but their development in emerging markets such as Asia is relatively lagging, facing fierce competition and growth pressure.

Customers want to enter the Chinese market, explore new growth points and enhance global competitiveness. However, clients lack in-depth understanding and effective strategic planning of the Chinese market, and need to seek professional consulting services to help them analyze the opportunities and challenges of the Chinese market, formulate appropriate market entry strategies, and provide implementation support.

Project Purpose

In April 2023, Champ was commissioned by the client to conduct a three-month market entry strategy consulting project to help the client achieve the following objectives:

Assess the scale, structure, trend, demand and competitive landscape of China's flavor and fragrance market;

Identify the customer's target market segments, target customer groups, differentiation advantages, etc. in the Chinese market;

Formulate the entry mode, pricing strategy, channel strategy and marketing strategy of customers in the Chinese market;

Provide advice on the organizational structure, human resources, laws and regulations of the Chinese market;

Predict the customer's financial indicators such as revenue, cost and profit in the Chinese market, and conduct risk analysis.

Research object

To accomplish the project's objectives, Champ used a variety of research methods, including:

Literature analysis: collect and analyze relevant industry reports, policy documents, statistical data, professional journals, news media, etc., and obtain macro information and industry trends of China's flavor and fragrance market;

Online survey: designed and distributed online questionnaires for potential consumers in China's flavor and fragrance market, collected data on consumers' basic information, consumption habits, purchase preferences, brand awareness, etc., and collected 1000 valid samples;

In-depth interviews: Invited relevant stakeholders in the Chinese flavor and fragrance market, including industry experts, industry associations, competitors, downstream customers, distributors, etc., to conduct face-to-face or telephone in-depth interviews to understand the opportunities and opportunities of the Chinese flavor and fragrance market. Challenges, as well as the competitive advantages and disadvantages of customers in the Chinese market, conducted a total of 30 interviews;

On-the-spot investigation: arranged the project team of Shangpu and customers, conducted on-the-spot investigation on some key cities and regions of China's flavor and fragrance market, observed and experienced the supply and demand situation, consumption environment, competition pattern, etc. of China's flavor and fragrance market, and inspected 10 cities and regions.

Project Content

Based on the results of the survey, Champ provided the following advisory reports to the client:

Analysis of the market demand for flavors and fragrances in China: an analysis of the overall demand and segmented demand for flavors and fragrances in China, as well as the main factors affecting the change in demand;

Analysis of the supply of China's flavor and fragrance market: an analysis of the overall supply and subdivision supply of China's flavor and fragrance market, as well as the main factors affecting supply changes;

Competition analysis of China's flavor and fragrance market: analysis of the competitive landscape of China's flavor and fragrance market, the profile of competitors, strengths, weaknesses, strategies, etc;

Analysis of opportunities and challenges in China's flavor and fragrance market: Analysis of opportunities and challenges faced by customers in China's flavor and fragrance market, as well as coping strategies;

Customer's target positioning in China's flavor and fragrance market: determine the customer's target market segments, target customer groups, differentiation advantages, etc. in China's flavor and fragrance market;

The entry strategy of customers in China's flavor and fragrance market: formulated the entry mode, pricing strategy, channel strategy and marketing strategy of customers in China's flavor and fragrance market;

Suggestions on the organizational structure of the customer in China's flavor and fragrance market: suggestions on the organizational structure design and human resource allocation for the customer to set up a subsidiary or representative office in China are provided;

Customer's legal and regulatory advice in China's flavor and fragrance market: provides the legal and regulatory requirements and precautions that customers need to comply with when engaging in flavor and fragrance business in China;

Customer's financial forecast and risk analysis in China's flavor and fragrance market: forecast the customer's revenue, cost, profit and other financial indicators in China's flavor and fragrance market, and conducted sensitivity analysis and risk assessment;

Project implementation plan and support: formulated the project implementation plan and schedule of the customer in the Chinese flavor and fragrance market, and provided the follow-up support service of Champ.

Project Value

Through Champ's professional consulting services, clients receive the following values:

Customers have a comprehensive, in-depth and accurate understanding of China's flavor and fragrance market, which provides a reliable basis for their strategic decision-making;

Customers have determined their target positioning and differentiation advantages in China's flavor and fragrance market, laying a foundation for them to build brand image and enhance market competitiveness;

The client has developed a suitable market entry strategy and marketing strategy, which provides an effective way to expand the Chinese market and increase revenue;

The client has received professional advice on organizational structure, human resources, laws and regulations, etc., which provides a guarantee for the smooth development of business in China and the avoidance of risks;

Clients are provided with financial forecasts and risk analysis, which provide a reference for them to evaluate investment returns and control costs;

The customer received follow-up support services from Champ to assist them in implementing the project and resolving issues.

Through this project, Shangpu demonstrated its professional ability and rich experience in the field of market entry consulting, provided customers with high-quality solutions, won the trust and satisfaction of customers, and also established a good reputation and influence for Shangpu in the flavor and fragrance industry, and brought more potential customers and cooperation opportunities for Shangpu.