New global partnership increases presence in key emerging markets
Consumer goods partner case study
The client, a major packaged consumer goods company, was looking to further accelerate the global growth of its brands in key emerging markets through an international partnership. KPMG delivered an integrated offering that combined our insight and experience in creating new joint ventures with our in-depth market and industry knowledge and technical specialisms. In less than seven months, the client entered a joint venture partnership that is enabling rapid international expansion of its brands with little to no investment in route-to-market capability.
The client, a major packaged consumer goods company with a developing international business, was looking to inject pace into the global growth of its brands. The intention was to achieve this through an international partnership with a major global group with local market knowledge and route-to-market scale.
Such a partnership would enable them to rapidly grow their presence in key emerging markets with little or no investment in route-to-market capability.
The client called on KPMG in the UK to provide pre-deal support that would combine the client’s strengths in marketing and innovation and the partner’s route-to-market and distribution capabilities across multiple geographies and product categories.
As the client’s strategic advisor, KPMG in the UK provided advice and support throughout the pre-deal partnership creation process. We combined our insight and experience in creating new joint ventures with our in-depth market and industry knowledge and technical specialisms to help the client see beyond their immediate challenges to future opportunities available through partnership. We provided vigorous assessments of markets, categories and potential partners, developed the principles, criteria and rationale for the partnership, and created robust and flexible financial models to appraise options. The team also led the deal process, developing tools, techniques, a vision statement and roadmap to better position the partnership for long-term success.
In less than seven months, the client had assessed its options and confidently selected a partner to enable rapid international expansion of its brands. With KPMG’s help, they had appraised a range of partnering options, and had identified and designed the key principles for how the partnership would work, including key areas of protection they would need in case performance did not meet expectations.
- The client developed a firm understanding of the partnering options available and had the tools to assess each one before deciding on the JV that would best benefit their business’ long-term goals. Additionally, KPMG in the UK helped enhance communications across the client’s management team in order to provide clarity and alignment on the best approach.
- The client seamlessly progressed through the pre-deal process with KPMG member firms providing access to local market knowledge and relationships across multiple geographies. As a result, the client gained an understanding of each market, as well as potential partners, options and rationale.
Insight to Foresight
- Working with our team of forwarding-looking specialists, the client created a vision statement, outlined a value proposition and established degrees of freedom for each party that would ensure a more successful long-term partnership between the client and its new global partner.
Learn more about asking the right questions before setting up a joint venture or alliance.
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