One of the key JGL projects for achieving the strategic objective of internationalization, the project of developing the UK market, has reached its final stage. The first export of Aqua Maris products to the new JGL market was realized during October.
The Aqua Maris product range is the company’s most international brand, but also one of the most successful Croatian export brands, whose export accounts for 98% of its sales. This product range consists of natural preparations based on Adriatic seawater for ear, nose and throat produced in accordance with a strictly controlled pharmaceutical quality. During the last 13 months JGL has developed an entire range of Aqua Maris products for ear, nose and throat care and treatment, and thanks to this brand, the company is the third producer in the world in the nasal saline category.
– The United Kingdom is a market with population of 61 million, seventh according to the sales of OTC segment in the world. JGL’s project of exploring the OTC nasal preparations market, as well as the entire business environment in Great Britain began in January 2011. Based on this, a strategic plan was made for entry on this demanding West European market. During 2011, with the help of consultants, a list of potential partners was compiled, and in-depth analyses of market features were performed – price structure, distribution channels, promotion methods and success or failure factors of brands already present on the market. These preliminary activities were essential for revising our plans and optimising our approach, as well as for negotiation process with potential partners, which was concluded this year, said Anna Maria Donadić, Head of the Aqua Maris programme. She added that the chosen partner on the British market has operated since 1992, and it has extensive experience in launching OTC brands in the segment of natural products. Its work focuses on cooperation with pharmacies, especially independent pharmacies and health food chain stores, with a network of agencies that help them manage the communication with the end customer.
The plan for the first year of implementation is 160,000 packages, with the estimation that already during the third year JGL can reach the sales of EUR 1 million on the UK market. Package communication has been adjusted according to the market research, and Donadić concluded that the company’s aim is to further extend the cooperation to the Republic of Ireland.
JGL currently operates in around forty markets of the world, and out of total revenues that in 2011 amounted to HRK 518 million, as much as HRK 353 million was generated on foreign markets. During the first eight months this year, 67% of JGL’s revenue came from foreign markets, and the forecast is that by the end of this year the export will account for 75% of total revenue. This year, an export growth of 25% compared to the last year is expected.
Since further international expansion is one of the key strategic levers of strategic development, the company’s Strategic Board is currently considering the horizon for the next 5 years, and by 2017 it plans to enter 20 more new markets, with focus on the markets of USA, Brazil, Mexico, Indonesia, Central European countries, Scandinavia, Middle East, Africa and Western Europe.