Chemical Ingredients Market Potential Validation
Client
Providing market potential validation for an Egyptian multinational company to confirm product demands and market potential in the GCC.
Issue
Our client, a leading Egyptian multinational company, needed to understand a comprehensive analysis of its chemical ingredients used in the pharmacy and cosmetics industry. The analysis included the demand for products in the market, competition, size, and price positioning. As the client’s factory producing specialized chemical ingredients had incurred losses, it needed to make a critical decision: producing chemical products with higher value and investing in the production tool, restructuring its production, or shutting down the facility.
Solution
YCP Solidiance evaluated and validated the demand as well as the sales potential of two specialized chemical products across five markets. We provided the client with clear insight into the price and utility of the ingredients in both industries. Notable factors the client pondered to market in the GCC were not critical for customers and the client could not assure to win the competition.
Approach
Our consultants conducted extensive research with all interested parties on the value chain including the regulatory bodies, distributors, market players, and customers. We also conducted more than 130 interviews to get a clear insight into supply and demand in the market. With a comprehensive analysis of market size and selling price, we were able to assess the client’s possible sales in order to help them make a critical decision.
Engagement ROI
YCP Solidiance provided detailed market potential validation that allowed the client to conclude that two specialized chemical ingredients had negative potential in the GCC market. Producing these products would have been useless. The client decided to restructure the production and produce chemical ingredients with higher-value for Egypt where the market potential was high.