How to Build "Value" in Emerging Markets
Posted by Jay Gronlund on Wed, Feb 10, 2010 @ 10:38 AM
By Jay Gronlund, Global Partners Principle
Recognizing the daunting challenges for sustaining profitable growth in the future, many companies are increasingly focusing on emerging countries, which represent a high potential opportunity to increase revenues from existing brands. As an example of seeking a fresh perspective for this opportunity, a leading pharmaceutical company recently invited me to conduct a workshop on how to revitalize their core business in developing countries - e.g. in Latin America, Middle East, Central/Eastern Europe and Southeast Asia. Although each country is different in many ways, culturally, economically, politically and regulatory, all participants nevertheless shared the same central challenge: how to improve their product/brand value in view of an entirely different world ahead, especially with the growth of lower price generics and fewer resources available to them.
This situation is common to so many companies today that seek a new paradigm for growth. The current recession has forced managers to become more efficient, or to "do more with less". The old model for building a business primarily through blockbuster product innovations will not be enough in the future. Whether it is a healthcare item, an electronics product, or a B2B service, the challenge of building extraordinary value for products and businesses will be more complex and demanding. This task will require a complete re-assessment of the market and how to position an organization's strengths - in particular, a re-orientation from functional to emotional benefits (e.g. trust and comfort), from product to customer focus, and from established to emerging markets.
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Jay Gronlund is a Principal at Global Partners who focuses in the areas of brand development, new product launch and marketing in emerging economies, Jay has been an Adjunct Professor at NYU since 1999, teaching a course on "Positioning and Brand Development". He has also written many articles on different international themes, as well as a book on Branding in the Over-the-Counter pharmaceutical industry. For more information, interested readers can contact Jay at jgronlund@globalpartnersinc.com