Case Study: Grants Toothpaste Market Entry Strategy for Malaysia

This case study analyzes the market entry strategy for Grants, an organic toothpaste company, focusing on the Malaysian market. The analysis begins with an overview of Grants' competitive advantages, including its use of Xylitol, natural flavors, and its appeal to health-conscious consumers. The study highlights the reasons for choosing Malaysia, citing high demand for fluoride-free and natural toothpaste. It then explores various market entry strategies, considering environmental and political factors. The proposed mode of entry is a joint venture, due to high investment requirements. The study also identifies key risks, such as supplier and buyer power, substitution threats, and competitive rivalry, and proposes solutions like investment, promotion, and a competitive strategy. Finally, it outlines steps for increasing online sales, promoting the brand, and implementing a low-price and CSR strategy. The case study includes references to relevant academic literature.

Market Entry
Strategy for
‘Grants’

About the Company
It is an organic toothpaste, it is
made of Xylitol, which is extracted
from back trees and known for
preventing cavity. Moreover it uses
natural flavours

Through its competitive strategy
Grants can:
 Generate
greater value for
itself and
shareholders
 Increase sales
 Earn superior
margins as
compared to the
existing rivals in
the target
market

Competitive Advantage for
Grants
Xylitol is used to prevent cavity
Calcium and sodium are used to
keep teeth strong
Natural flavour is created using
mint oil
100% safe for children
Available at low prices

Other Competitive Advantage
Easily available at online stores
as well as supermarkets
No other organic toothpaste
provide so many features within a
reasonably lower price
Free from baking soda and
fluoride
Beneficial to a wide range of
customers- from new born babies
to adults

Country chosen
Malays
iaMalaysia’ herbal product market
has a good Absorption capacity,
it is a growing market.

Reasons to Enter
Malaysian market
Reasons
 There is a huge demand for fluoride
free toothpaste that in Malaysia
There is a huge demand for
toothpaste that makes teeth white but
does not contain harmful whitening
agents or chemical
There is a huge demand in Malaysia
for toothpaste which are safe for babies
Health conscious people Middle
income group uses organic products

Market Entry Strategy

Market Entry Strategy
Market entry strategies:
Environmental factors

Market Entry Strategy
Market entry strategies:
Political factors

Major risks identified in
Malaysian Market
 Suppliers’
power
 Buyers’
power
 Threat of
substitution
 Threats of
new entry
 Competitive
Rivalry

Solutions:
 Huge
investment
 Effective
promotion
 Prudent
competitive
strategy
 Prudent
CSR
strategy