Building & Managing Productsfor Emerging MarketsRavi Kaushik12/01/2013
Agenda• Marketing Functions • Upstream Marketing/Downstream Marketing• Marketing in Emerging Markets • Similar …. But different…• New Product Development example • Market Creation ~ driving value• Q&A • Discussion
Marketing Competencies Strategic Product Operational Commercialization Marketing Marketing MarketingCustomer DrivenGlobal Product Marketing Ensure we Ensure we Ensure Ensure understand develop what customers customers what the the customer want what we buy what wecustomer needs needs develop develop Customer driving Regional Marketing Product Strategy Global Marketing Plan Regional Marketing Plan Plan of Action
Marketing Roles & Responsibilities Global Product Management Regional / Operational MarketingMarket & Industry trends Regional Marketing Plan – LaunchMarket & Competitive product analysis Follow-up with in Country approvalsCustomer Needs NPI Business Case Solution MarketingStrategic Product Roadmap Channel MarketingMake vs. Buy (OEM) decision Regional Pricing / Margin managementProduct Definition & Design Direct Marketing / Promotion programsPart Numbering & Configuration Management Advertising placementGlobal List Pricing / Margin analysis Tradeshows & Customer Events programsSegmentation, Targeting, Positioning Value Prop. Lead GenerationClinical Marketing Trials, Research, White Papers Product & Sales Training deliveryBeta Sites – pilot launch Sales Force EffectivenessProduct Marketing Plan – Launch Sales Tools, FAQsProduct Sales & Marketing Guide Product Support: high levelProduct Training content Pilot Sites / Reference Sites / Luminary SitesBrochure, Spec sheet, Web content Competitive tactics analysisProduct Support: Clinical, Technical Win/Loss analysisProduct Quality management (Complaints) Installed Base management & miningProduct Life Cycle management Industry Analyst relations End of Life Customer Communications
Premium 50% Mid Tier 40% Value 25% MEA pyramid Global pyramid Asian pyramidRedefining the Bottom of the pyramid
What lies beneath… The iceberg pyramid •Top of the iceberg is total India market demand now •Tip of the iceberg is the addressable market now •Need to understand available (penetrated) market and un-penetrated potential market • This is the RURAL UN (DER) SERVED MARKETS which is opportunity for Market Creation
Product Development for BRIC• Un-penetrated market understanding • No market data, research reports exist • Need to understand customer needs – observational research and interviews • Market Research by “rural immersion”• Market creation with innovative solutions • SST principle (rugged, reliable, easy to use, easy to clean, maintain, affordable)• Proving solutions locally • Need local successes and customer testimonials
Product Development for BRIC… .• Partnerships • User needs understanding & insights through partnerships in BOP spaces • Partners helping innovate and accelerate new product development (Govt & Private)• Designing complete offerings “end to end” for sustainable results • Think about service, reach, distribution etc.
Marketing Learnings • Gain customer input early and often • Experiment & learn before convergence • Measure against successful benchmarks Test , and Determine prioritize Quickly build and viability and Identify key scalability multiple test just- customer, market through Core Activity customer good-enough & their needs to working small scale generate insights value in-market models propositions tests
More than one India … with unique needs Current GE Play Well addressed & India # 1 Leadership understood15 Major Cities Premium & Academic 85 M Population Tier I : Private 400,000 Doctors Multinational players ~40% Share Emerging Market Target India # 2 UnderservedUrban & Semi Urban Tier 2 & 3 Private 200 M Population Mid & Value 150,000 Doctors District Hospital Emerging HealthCare Market India # 3 CHC Super value & Rural BOP 740 M Population PHC 50,000 Doctors Government / NGO / Pvt Focus
India Neonatal Landscape GE Lullaby Govt Private District clinics State (Tier 1,2) Primary hospitals Health Small town Infant Mom & Pop Care Warmer clinics (Tier 3,4,5) Product adoption line 15K portfolio Govt Bulbholders Eg. (PHC, CHC) 30K Warmers 50,000 warmers needed !! Home birth line Health Sub Center 145K & Skilled Birth Attendants 35% (ASHA) home 70K births
Customer Problem (emerging markets) Equipment not appropriately designed–CLINICAL EFFICACY• Warm up time, uniformity, intensity, temp control, alarms• Overall time spent in NICU–COST (TCO):• Initial Cost too high*• High Operation (electricity) & Maintenance (repair) costs• Consumable costs–EASE of USE:• Delicate, bulky (not robust & reliable) or easy to use• Breaks down frequently & not easy to clean/maintain Competitive warmers and Phototherapy currently serving this market (such as the one shown) frequently break down & are discarded Also, multiple babies are treated and light bulbs used as warmers some places.
“Just what’s needed” Traditional portfolio ICFC differentiation: meetsdifferentiation: price vs. basic rqmts; innovates features along new axes Rugged reliability Modular serviceabilityFeatures User-friendly simplicity Few / no consumables GAP Extreme affordability $ $$ $$$ $$$$ Portability Price Protracted power cost = Focus on functionality, quality sustainability
Maternal Infant Care Tray Tilt Mechanism … From Car Seat Recliner LEDs Vs CFLs Optimal Wavelength for 28% faster Bilirubin breakdown 50x Longer Life 80% lesser power consumption Next Gen Warmer Smaller heating element Innovative reflector for uniform heat distribution
Going global withPerformance productsLullaby Warmer• Sold 2000+ units since launch in 2009• Sold in 65+ countries • Europe, EAGM, LATAM, APAC, IndiaLullaby LED PT• Sold 1500+ units since launch in 2011• Sold in 15+ countries • Europe, EAGM, LATAM, APAC, IndiaExamples of Reverse Innovation
LED PT in India Launched in late 2011 800+ units sold in India, Sri Lanka, Bangladesh 800+ sold Rest of the World – Europe, LatAM, APAC, EAGM
Smart Commercial Solutions GE printer to Bus ticket printer Custom Power supply to Mobile Charger ASIC DSP module and application to single CPU Frugal… is not low tech
Integration and Optimization • Off-the-shelf solutions • Reduction in number of parts • Integration and Modular Assembly
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