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

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

    • Customer and Revenue Acquisition in Asia-Pacific Jeremy Geiger [email_address] / [email_address] Twitter: @RTMAsia / @AsiaParagon www.LinkedIn.com/in/ JeremyG www.RTMAsia.com
    • Agenda
      • Background
      • Asia-Pacific expansion. When?
      • Country-Specific Considerations
        • Business Development
        • Product, Localization & Support
      • Go-To-Market Investment & Requirements
      • AP Revenue in relation to global revenue
    • Who Am I?
      • Living in Asia-Pacific for 15 years
        • Tokyo, Seoul, HongKong, Singapore, Bangkok
        • Business expansion in Japan, Korea, China, HongKong, Singapore, Thailand, Philippines, Malaysia, Australia, India, NZ
      • Started-up 15 new country branch operations
        • Enterprise software for supply chain, ERP, BI, CRM, BPM, 3D visualization
        • $65M revenue, 30+ partnerships, 50-150% annual growth
      • EMBA, Kellogg School Mgmt program @Sasin in Asia
      • Currently work with US software, SaaS, internet & consumer electronics companies as part of RTM Asia
    • Who is RTM Asia?
      • 80 successful local Asia-Pacific Business Executives
      • Working with technology start-ups:
        • Consumer/Enterprise software, internet and hardware
        • Who have the challenge of expanding internationally
      • RTM Asia creates new market opportunities in AP
        • Market analysis and go-to-market plan for key Asian markets
        • Accelerate growth & profitability
        • Create new business models in Asia to drive incremental upside
      • Minimizing effort, investment & learning curve from HQ
    • RTM Asia Client List
    • Agenda
      • Background
      • Asia-Pacific expansion. When?
      • Country-Specific Considerations
        • Business Development
        • Product, Localization & Support
      • Go-To-Market Investment & Requirements
      • AP Revenue in relation to global revenue
    • WHEN to consider Asia-Pacific expansion?
      • Customer is pulling you
        • Enterprise: Customer is asking you to support product in AP
        • Consumer: Significant swell of new users in AP country
      • Strong growth, publicity and customer references in US
      • Potential partner/reseller from AP approaches you
      • Market potential is unusually high in Asia-Pacific
        • Automotive, Aerospace, Manufacturing, etc.
      • Capital available
    • WHEN to consider Asia-Pacific expansion?
      • Typically stage
        • $5M-$10M annual revenue for (enterprise) software vendors
        • Initial contact from potential AP prospect and/or reseller
      • Typical reasons
        • Revenue (to increase profit or funds for R&D spend)
        • Become a Global player (with international references)
        • Company valuation (global revenue potential increases valuation)
    • Agenda
      • Background
      • Asia-Pacific expansion. When?
      • Country-Specific Considerations
        • Business Development
        • Product, Localization & Support
      • Go-To-Market Investment & Requirements
      • AP Revenue in relation to global revenue
    • 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
    • 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
    • Agenda
      • Background
      • Asia-Pacific expansion. When?
      • Country-Specific Considerations
        • Business Development
        • Product, Localization & Support
      • Go-To-Market Investment & Requirements
      • AP Revenue in relation to global revenue
    • 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
    • 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
    • Levels of Localization for Sales
      • Level 0
        • Marketing Materials
      • Level 1
        • Product Documentation
      • Level 2
        • Access files with local language names
      • Level 3
        • User input in local language/formats
      • Level 4
        • User interface
      • Etc.
    • Agenda
      • Background
      • Asia-Pacific expansion. When?
      • Country-Specific Considerations
        • Business Development
        • Product, Localization & Support
      • Go-To-Market Investment & Requirements
      • AP Revenue in relation to global revenue
    • Partner Approach
      • Most countries in Asia-Pacific require a partner-centric approach
      • Types of partnerships
        • Strategic Partner with investment (Majority, JV, Minority)
        • Strategic Partner without investment
        • Master Distributor
        • Alliance Partner
        • Resellers
    • Go-To-Market Requirements
      • $500k - $1M investment per country, in the 1 st year
      • Target break-even in 12-18 months (with no/minimal royalties to HQ)
      • Need top Pre-Sales person support
      • Invest in Strategic top-down market analysis rather than signing first reseller that knocks on your door
      • Need localized product unless targeting highly specialized technical/management positions
      • Country/Regional Manager should have relevant experience doing strategic deals
    • Go-To-Market Short-Cuts
      • Using knowledgeable 3 rd parties that can get appointments with the most strategic partners/customers can have significant impact
        • 3 month Strategic Go-To-Market Analysis
        • Operate your branch operation without capital expenditure
        • Raise capital from local strategic investors
        • Get paid, mainly on results
    • Investment & ROI Expectations
      • Go-to-market can be achieved with different levels of involvement & investment:
        • High : Direct hire, open offices, local regulations ($750k/country)
        • Medium: Country heads, virtual offices, partners
      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
    • Agenda
      • Background
      • Asia-Pacific expansion. When?
      • Country-Specific Considerations
        • Business Development
        • Product, Localization & Support
      • Go-To-Market Investment & Requirements
      • AP Revenue in relation to global revenue
    • AP REVENUE in relation to global revenue?
      • AP is typically 10-50% of global revenue
      • Median 20-25%
      • Traditionally, almost 50% of AP revenue from Japan
      • In future, China’s share will increase
    • AP REVENUE in relation to global revenue?
      • Much of US tech company’s growth is fueled by international expansion. Ex.: In 2008:
        • Oracle Overseas sales +22% vs. US +2%
        • Cisco Overseas sales +20% vs. US -8%
        • Google Overseas sales +40% vs. US +22%
        • eBay Overseas sales +16% vs. US +5%
        • Apple Overseas sales +29% vs. US +20%
        • Sun Overseas sales -2% vs. US 10%
    • Summary
    • SUMMARY: For Business Development / Marketing
      • There is global demand for useful solutions
      • Global expansion improves company revenue, profitability, valuation and company credibility
      • Each country in Asia-Pacific is different and requires a different approach
      • There are different strategies for Go-to-market depending on investment & bandwidth available
      • Do your homework and involve knowledgeable people
    • SUMMARY: For Localization People
      • Asia-Pacific can not be treated as 1 group of users. Each country will have unique users & needs
      • Invest upfront in proper technology and processes because once Asian market expansion starts, it is likely to expand rapidly to other countries
      • The structure of the sales, support and training teams will be different and more complex than in the US
      • Customer demand will drive localization needs
    • Thank You. Questions? Jeremy Geiger [email_address] / [email_address] Twitter: @RTMAsia / @AsiaParagon www.LinkedIn.com/in/ JeremyG www.RTMAsia.com