Rational
While entering the Indian BoP market, there are six key entrance strategies that Lunapads’ managers have at their disposal. These choices are exporting, foreign direct investment, joint ventures, licensing, franchising, or strategic alliances. After analyzing the company’s objectives, and the unique characteristics of the BoP market, the most efficient and effective mode of entry would be exporting. There are various methods of exporting which include direct, indirect, or setting up an online distribution channel. An appropriate form of exporting would be direct.
In India, these sanitation products are not offered in general supermarkets. Those who can afford to buy disposable pads typically obtain them through an over the phone ordering service (Payaud, 2013). Those who cannot afford sanitary menstruation products await government helping to obtain them. In both scenarios, this is done both discretely and by the women in the households. This limits the liberty that Lunapads has with entering the market. Because they won’t be able to set up a physical store to bring brand awareness, Lunapads must rely on other tactics and strategies to reach the consumer. This eliminates the possibility of FDI. Furthermore, a joint venture would hinder the influence of the Canadian firm, as well as limit the social message behind Lunapads. Because Lunapads is heavily driven by social awareness and promoting women empowerment, having complete control over their platform is curtail. Failure to find a partner who shares those values would be detrimental to the brand.
By directly exporting the reusable pads to the Indian women, it eliminates a substantial amount of the concerns managers might have regarding entering the Indian Market. It also allows Lunapads to scale back on costs, which is essential for operating in the BoP
Mode of Entry
Lunapads will be entering the BoP in India using a direct exporting strategy. Because an expansion of this size would be new to Lunapads, choosing a mode of entry that can facilitate the high levels of distribution demanded, while also gaining a loyal consumer base at a minimized cost would be vital to the longevity of the company. Lunapads would be entering a market that is more discrete, therefore the strategies used must be flexible and easily adaptable to the Indian market.
LUNALIFE
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Mode of Entry