Sales Strategy for Asia-Pacific Expansion for Software / Internet / Technology company

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Comprehensive presentation on sales strategy for software / SaaS / internet / technology company for global expansion into Asia-Pacific from experienced veteran.

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Sales Strategy for Asia-Pacific Expansion for Software / Internet / Technology company

  1. 1. Customer and Revenue Acquisition in Asia-Pacific Jeremy Geiger [email_address] / [email_address] Twitter: @RTMAsia / @AsiaParagon www.LinkedIn.com/in/ JeremyG www.RTMAsia.com
  2. 2. Agenda <ul><li>Background </li></ul><ul><li>Asia-Pacific expansion. When? </li></ul><ul><li>Country-Specific Considerations </li></ul><ul><ul><li>Business Development </li></ul></ul><ul><ul><li>Product, Localization & Support </li></ul></ul><ul><li>Go-To-Market Investment & Requirements </li></ul><ul><li>AP Revenue in relation to global revenue </li></ul>
  3. 3. Who Am I? <ul><li>Living in Asia-Pacific for 15 years </li></ul><ul><ul><li>Tokyo, Seoul, HongKong, Singapore, Bangkok </li></ul></ul><ul><ul><li>Business expansion in Japan, Korea, China, HongKong, Singapore, Thailand, Philippines, Malaysia, Australia, India, NZ </li></ul></ul><ul><li>Started-up 15 new country branch operations </li></ul><ul><ul><li>Enterprise software for supply chain, ERP, BI, CRM, BPM, 3D visualization </li></ul></ul><ul><ul><li>$65M revenue, 30+ partnerships, 50-150% annual growth </li></ul></ul><ul><li>EMBA, Kellogg School Mgmt program @Sasin in Asia </li></ul><ul><li>Currently work with US software, SaaS, internet & consumer electronics companies as part of RTM Asia </li></ul>
  4. 4. Who is RTM Asia? <ul><li>80 successful local Asia-Pacific Business Executives </li></ul><ul><li>Working with technology start-ups: </li></ul><ul><ul><li>Consumer/Enterprise software, internet and hardware </li></ul></ul><ul><ul><li>Who have the challenge of expanding internationally </li></ul></ul><ul><li>RTM Asia creates new market opportunities in AP </li></ul><ul><ul><li>Market analysis and go-to-market plan for key Asian markets </li></ul></ul><ul><ul><li>Accelerate growth & profitability </li></ul></ul><ul><ul><li>Create new business models in Asia to drive incremental upside </li></ul></ul><ul><li>Minimizing effort, investment & learning curve from HQ </li></ul>
  5. 5. RTM Asia Client List
  6. 6. Agenda <ul><li>Background </li></ul><ul><li>Asia-Pacific expansion. When? </li></ul><ul><li>Country-Specific Considerations </li></ul><ul><ul><li>Business Development </li></ul></ul><ul><ul><li>Product, Localization & Support </li></ul></ul><ul><li>Go-To-Market Investment & Requirements </li></ul><ul><li>AP Revenue in relation to global revenue </li></ul>
  7. 7. WHEN to consider Asia-Pacific expansion? <ul><li>Customer is pulling you </li></ul><ul><ul><li>Enterprise: Customer is asking you to support product in AP </li></ul></ul><ul><ul><li>Consumer: Significant swell of new users in AP country </li></ul></ul><ul><li>Strong growth, publicity and customer references in US </li></ul><ul><li>Potential partner/reseller from AP approaches you </li></ul><ul><li>Market potential is unusually high in Asia-Pacific </li></ul><ul><ul><li>Automotive, Aerospace, Manufacturing, etc. </li></ul></ul><ul><li>Capital available </li></ul>
  8. 8. WHEN to consider Asia-Pacific expansion? <ul><li>Typically stage </li></ul><ul><ul><li>$5M-$10M annual revenue for (enterprise) software vendors </li></ul></ul><ul><ul><li>Initial contact from potential AP prospect and/or reseller </li></ul></ul><ul><li>Typical reasons </li></ul><ul><ul><li>Revenue (to increase profit or funds for R&D spend) </li></ul></ul><ul><ul><li>Become a Global player (with international references) </li></ul></ul><ul><ul><li>Company valuation (global revenue potential increases valuation) </li></ul></ul>
  9. 9. Agenda <ul><li>Background </li></ul><ul><li>Asia-Pacific expansion. When? </li></ul><ul><li>Country-Specific Considerations </li></ul><ul><ul><li>Business Development </li></ul></ul><ul><ul><li>Product, Localization & Support </li></ul></ul><ul><li>Go-To-Market Investment & Requirements </li></ul><ul><li>AP Revenue in relation to global revenue </li></ul>
  10. 10. DIFFERENCES and considerations among AP countries *Note: ROUGH Generalization. Highly dependent on product, market, industry, etc. Size of Market Early Adopters? Unit Price Risks Most Typical Sequence Aust/NZ 1 Japan 2 China 3 Singapore/HK 4 Korea 5 India 6 Thai/Malay/ Indo/Phil 7
  11. 11. Sample Asia-Pacific Expansion Timeline Months Aggressive 0 6 12 18 24 Conservative 0 12 24 36 48 Aust/NZ Japan China Singapore and/or HK Korea India Thai/Malay/ Indo/Phil
  12. 12. Agenda <ul><li>Background </li></ul><ul><li>Asia-Pacific expansion. When? </li></ul><ul><li>Country-Specific Considerations </li></ul><ul><ul><li>Business Development </li></ul></ul><ul><ul><li>Product, Localization & Support </li></ul></ul><ul><li>Go-To-Market Investment & Requirements </li></ul><ul><li>AP Revenue in relation to global revenue </li></ul>
  13. 13. Difference among AP countries: Product *Note: ROUGH Generalization. Highly dependent on product, market, industry, etc. Need for Localization Expected Product Maturity Need for Customization Aust/NZ Japan China Singapore/HK Korea India Thai/Malay/ Indo/Phil
  14. 14. Difference among AP countries: Support & Presence *Note: ROUGH Generalization. Highly dependent on product, market, industry, etc. Support Volume Local Presence (Partner or Direct) Channel Partner Network Depth Vendor Direct Presence Required Aust/NZ Single Japan Double China Double Singapore/HK Single Korea Parallel India Single Thai/Malay/ Indo/Phil Single
  15. 15. Levels of Localization for Sales <ul><li>Level 0 </li></ul><ul><ul><li>Marketing Materials </li></ul></ul><ul><li>Level 1 </li></ul><ul><ul><li>Product Documentation </li></ul></ul><ul><li>Level 2 </li></ul><ul><ul><li>Access files with local language names </li></ul></ul><ul><li>Level 3 </li></ul><ul><ul><li>User input in local language/formats </li></ul></ul><ul><li>Level 4 </li></ul><ul><ul><li>User interface </li></ul></ul><ul><li>Etc. </li></ul>
  16. 16. Agenda <ul><li>Background </li></ul><ul><li>Asia-Pacific expansion. When? </li></ul><ul><li>Country-Specific Considerations </li></ul><ul><ul><li>Business Development </li></ul></ul><ul><ul><li>Product, Localization & Support </li></ul></ul><ul><li>Go-To-Market Investment & Requirements </li></ul><ul><li>AP Revenue in relation to global revenue </li></ul>
  17. 17. Partner Approach <ul><li>Most countries in Asia-Pacific require a partner-centric approach </li></ul><ul><li>Types of partnerships </li></ul><ul><ul><li>Strategic Partner with investment (Majority, JV, Minority) </li></ul></ul><ul><ul><li>Strategic Partner without investment </li></ul></ul><ul><ul><li>Master Distributor </li></ul></ul><ul><ul><li>Alliance Partner </li></ul></ul><ul><ul><li>Resellers </li></ul></ul>
  18. 18. Go-To-Market Requirements <ul><li>$500k - $1M investment per country, in the 1 st year </li></ul><ul><li>Target break-even in 12-18 months (with no/minimal royalties to HQ) </li></ul><ul><li>Need top Pre-Sales person support </li></ul><ul><li>Invest in Strategic top-down market analysis rather than signing first reseller that knocks on your door </li></ul><ul><li>Need localized product unless targeting highly specialized technical/management positions </li></ul><ul><li>Country/Regional Manager should have relevant experience doing strategic deals </li></ul>
  19. 19. Go-To-Market Short-Cuts <ul><li>Using knowledgeable 3 rd parties that can get appointments with the most strategic partners/customers can have significant impact </li></ul><ul><ul><li>3 month Strategic Go-To-Market Analysis </li></ul></ul><ul><ul><li>Operate your branch operation without capital expenditure </li></ul></ul><ul><ul><li>Raise capital from local strategic investors </li></ul></ul><ul><ul><li>Get paid, mainly on results </li></ul></ul>
  20. 20. Investment & ROI Expectations <ul><li>Go-to-market can be achieved with different levels of involvement & investment: </li></ul><ul><ul><li>High : Direct hire, open offices, local regulations ($750k/country) </li></ul></ul><ul><ul><li>Medium: Country heads, virtual offices, partners </li></ul></ul>Note: Option to start with 3 rd party accelerator and then move to Big Bang or Strategic Investor once market traction Year 1 Investment per country Entity Employees Offices 1 st Year Target ROI Year 2-3 Profit Potential Long-Term Profit Potential Big Bang $500k - $1M 100% owned subsidiary Direct hires Rented 0% Med High Strategic Investor $250 - $500k Majority-owned subsidiary Direct hires Rented 250% High Med 3 rd party Accelerator $100 - $400k None Provided by 3 rd party Provided by 3 rd party 150% Med Low-Med Remote Partner Mgmt $100 - $300k None None None 0% Low Low
  21. 21. Agenda <ul><li>Background </li></ul><ul><li>Asia-Pacific expansion. When? </li></ul><ul><li>Country-Specific Considerations </li></ul><ul><ul><li>Business Development </li></ul></ul><ul><ul><li>Product, Localization & Support </li></ul></ul><ul><li>Go-To-Market Investment & Requirements </li></ul><ul><li>AP Revenue in relation to global revenue </li></ul>
  22. 22. AP REVENUE in relation to global revenue? <ul><li>AP is typically 10-50% of global revenue </li></ul><ul><li>Median 20-25% </li></ul><ul><li>Traditionally, almost 50% of AP revenue from Japan </li></ul><ul><li>In future, China’s share will increase </li></ul>
  23. 23. AP REVENUE in relation to global revenue? <ul><li>Much of US tech company’s growth is fueled by international expansion. Ex.: In 2008: </li></ul><ul><ul><li>Oracle Overseas sales +22% vs. US +2% </li></ul></ul><ul><ul><li>Cisco Overseas sales +20% vs. US -8% </li></ul></ul><ul><ul><li>Google Overseas sales +40% vs. US +22% </li></ul></ul><ul><ul><li>eBay Overseas sales +16% vs. US +5% </li></ul></ul><ul><ul><li>Apple Overseas sales +29% vs. US +20% </li></ul></ul><ul><ul><li>Sun Overseas sales -2% vs. US 10% </li></ul></ul>
  24. 24. Summary
  25. 25. SUMMARY: For Business Development / Marketing <ul><li>There is global demand for useful solutions </li></ul><ul><li>Global expansion improves company revenue, profitability, valuation and company credibility </li></ul><ul><li>Each country in Asia-Pacific is different and requires a different approach </li></ul><ul><li>There are different strategies for Go-to-market depending on investment & bandwidth available </li></ul><ul><li>Do your homework and involve knowledgeable people </li></ul>
  26. 26. SUMMARY: For Localization People <ul><li>Asia-Pacific can not be treated as 1 group of users. Each country will have unique users & needs </li></ul><ul><li>Invest upfront in proper technology and processes because once Asian market expansion starts, it is likely to expand rapidly to other countries </li></ul><ul><li>The structure of the sales, support and training teams will be different and more complex than in the US </li></ul><ul><li>Customer demand will drive localization needs </li></ul>
  27. 27. Thank You. Questions? Jeremy Geiger [email_address] / [email_address] Twitter: @RTMAsia / @AsiaParagon www.LinkedIn.com/in/ JeremyG www.RTMAsia.com

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