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Challenges of Establishing SAM in Emerging Markets

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Highlight leading practices in channel design and management, and includes anecdotes that strategic account managers can learn from as they evaluate how to gain leverage through their channels.

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Challenges of Establishing SAM in Emerging Markets

  1. 1. 1 May 5 and 6, 2015 Challenges of Establishing SAM in Emerging Markets
  2. 2. 2
  3. 3. 23. Challenges of Establishing SAM in Emerging Markets May 5, 2015 at 2:30pm May 6, 2015 at 11:30am Speaker: David Hartman, Principal, Blue Canyon Partners 3
  4. 4. Crisis = Opportunity + Danger…even if  it’s a bad translation :  Strategic Accounts rely on  you even more in emerging markets and  this is a chance to show true  partnership. :  Strategic Accounts’ needs may  present much more of a challenge in an  emerging market.  You can’t afford to  disappoint them. The Challenges of  Emerging Markets 4 Lessons Learned When China Was  an Emerging Market
  5. 5. 5 Opportunity: Being a  Partner in Success • Your Strategic Account may have few other  options • The market is too small and immature for other  global players • Local competitors are responding to local  demands for “good enough” offerings, often  copies and always cost‐focused • High‐end service may not even be in the local  competitors’ vocabulary • Proves you are the partner that is there for them  when needed • Gives you a chance to gain a foothold in  emerging markets, with a solid customer
  6. 6. 6 Danger: What is Different for  Your Customer? • Different end market needs to be met • Different competitors to face • Different institutions, leaving gaps in  Service
  7. 7. Different End Market Needs to be  Met by Your Customer 7 • Being a B2B partner means supporting your customer in meeting the customers’  customers needs • When your customers were moving to establish a cost‐effective platform for  serving the same global customers, this was easy. • Once emerging market sales become a growth target, your Strategic Account  needs your understanding of his challenges in the market. • Emerging markets End Customers often seek faster, simpler, and less expensive  solutions SupplierSupplier Strategic AccountStrategic Account Customer’s  Customers Customer’s  Customers Global SupplierGlobal Supplier Global Strategic  Account Global Strategic  Account Customer’s Global  Customers Customer’s Global  Customers Global SupplierGlobal Supplier Global Strategic  Account Global Strategic  Account Customer’s Local  Customers Customer’s Local  Customers
  8. 8. 8 Different Market Needs to be Met: Faster, Simpler, and Less Expensive
  9. 9. 9 Different Competitors Faced by  Your Customer Competitors that “live by their wits” Nimble and unafraid. “Try things” and see what works “Do their beta testing in people’s homes or  factories” Competitors that are less interested in raising  the bar on product features and quality Borrow ideas from the market Offer “good enough” products at a much lower price
  10. 10. Danger:  Gaps in Service 10 • Channel roles are different – Mature markets:  Experienced dealers, value‐added  resellers, system integrators, etc., offering configuration, training, and after‐sale service – Emerging markets: Lack of trust may lead to complex relationship‐based  channels, offering little value‐added, other than reliable delivery and  payment.   • Machine tools, factory automation, and hardware may all be sold at  glorified street malls. • Emerging markets take time to support an aftermarket – When products are very new, there is little aftermarket demand, and no  providers have invested in service skills SupplierSupplier Strategic AccountStrategic Account Customer’s Customer Customer’s Customer VARVAR Local SupplierLocal Supplier Tier 1  Distributor Tier 1  Distributor Middle Tier  Distributor(s) Middle Tier  Distributor(s) Final Tier  Distributor Final Tier  Distributor Customer’s Customer Customer’s Customer VAR CustomerCustomer
  11. 11. Review: Customer‐Supplier Views  and Interactions 11 Position Promote Sell Make &  Inventory Logistics Support Supplier Point of View & Experience Create the promise Deliver the promise Discover Evaluate Buy Access Use Get  Support Customer Point of View & Experience What is your promise? How will I receive the promise?
  12. 12. Gaps: SAMs Are Front and Center in the Customer‐ Supplier Interaction and Positioned to Detect Gaps 12 R&D Marketing Operations & Supply Chain Quality & Customer Service Legal  /  Finance  /  Human Resources  /   IT    Supplier Point of View & Experience Position Promote Sell Make &  Inventory Logistics Support Create the Promise Deliver the Promise SAMs are at the Center of  Creating and Delivering on the Promise Sales & Channel Support
  13. 13. Filling Gaps:  SAM Organizes the Supplier Organization  and Outside Resources 13 Marketing Create the Promise Operations & Supply Chain Quality & Customer Service Legal  /  Finance  /  Human Resources  /   IT    Position Promote Sell Make &  Inventory Logistics Support Supplier Point of View & Experience Deliver the Promise Installation,  Commissioning Installation,  Commissioning R&D Sales & Channel Support Solutions,     Configuration Solutions,     Configuration After‐Sale Service  and Parts After‐Sale Service  and Parts SAMs are at the Center of  Creating and Delivering on the Promise and Filling  Emerging Market Gaps
  14. 14. 14 How to Be the Best Partner for  Your Strategic Account The same demanding, global  customers as elsewhere
  15. 15. David G. Hartman, Ph.D. dgh@bluecanyonpartners.com @bluecanyonptrs 15

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