The document summarizes a presentation about global sales and marketing challenges and opportunities for Elsevier. It discusses stagnating growth in core markets and increasing competition. It highlights the importance of expanding into global markets, with growth opportunities in Asia, Latin America, and other regions. The presentation outlines strategies for market penetration like licensing, joint ventures, and developing local publishing expertise and infrastructure. It also discusses the transition from print to electronic platforms and the implications for rethinking marketing approaches.

1. Global Sales and Marketing
PRESENTED BY
John A. Hope Madelene Hyde
VP, Global Sales and Director, Global Marketing
and Medical Education
Marketing Elsevier
Elsevier

2. Agenda
1. Core Market Challenges
2. Global Market Challenges
3. Global Opportunities
4. Evolving Product Platforms
5. Implications for Marketers
6. The Global Launch
2

3. Core Market Challenges
n Stagnation in core business
– Low growth in the core products & core
geographic markets
– Single digit growth in the ELP distribution
business
– Marginal growth in the most mature front
lists (North America & Europe)
– Slowing growth in Journals, particularly in
subscription revenue
3

4. Core Market Challenges
n More, and more diverse and robust non-
traditional competitors
n Book unit sales down across many
publishing industry segments – we’re
fighting over a shrinking pie
n Channel shifts continues (7+ year trend still
accelerating)
4

5. Core Market Challenges
n Pressure for Higher margins and greater
growth shareholders
n Customers want more accessible,
customized, searchable, and current
information
n Just in time, problem solving, search
oriented information – lends itself less to
print 5

6. Global Market Challenges
n Piracy
n Local language competitors
n Regional Pricing pressures
n Inter company squabbles
n Legal and regulatory environments
n Opportunity for Gray Marketeers
6

7. 7

8. Why is globalization so
important to HSD?
The majority of potential customers…
• 90% of the world’s population § 83% of the GPs
• 52% of Health Expenditure § 78% of the Dentists
• 65% of the student market § 72% of the Nurses
Large potential growth…
Asia: 12-17%
US: 5-6% ROW: 18-25%
Latin America:
Europe, Japan, 8
15-20%
Australia: 7-10%

9. Target ranked Languages
& Dialects (Populations)
Languages Speakers Notes
Chinese 952,000,000 Mandarin
English 470,000,000
Spanish 381,000,000
Portuguese 182,000,000
Japanese 126,000,000
French 124,000,000
German 121,000,000
Korean 75,000,000
Chinese 66,000,000 Cantonese
Chinese 65,000,000 Shanghai
Italian 63,000,000
Chinese 50,000,000 Min
Chinese 48,000,000 Hunan 9

10. Target ranked by GDP per
capita
Health GDP US$ 2002
Key expenditure Pop'n
Countries Total ($Billion) per capita (IMF)
Japan 290.0 29447 126.7
United Kingdom 97.0 24700 59.5
Netherlands 30.4 24090 15.9
Germany 313.0 22466 82.2
France 136.0 21982 58.9
Australia 32.5 19136 19.0
Italy 96.6 19127 57.7
Hong Kong 9.9 18500 6.7
Spain 42.6 15323 39.5
Taiwan 14.1 12566 22.2
Korea 13.9 9447 46.9
Mexico 18.9 6335 97.0
Brazil 38.8 3151 166.1
China 45.0 973 1259.1
India 22.7 486 1027.0
Total 1.2 ($Trillion) 3.1 (Billion)
United States 1149.1 37823 272.7
10

11. The Global Context
n In order to succeed companies must
leverage franchise assets in key
global and local markets in ways that
were not possible before.
n In order to maintain leadership and
drive growth, must move from a
US/English Language centred,
distribution business model to a
global/local multi-lingual information
provider. 11

12. Expansion Strategies
Category Countries Potential Strategies
n USA
Mature n Market Share focus
n UK
Must be leader in n Expand Channels
Global & Local n Japan
n Tactical Acquisitions
Growth: 6 to 10% n Western Europe n Localize content
Margin: 18 to 25% n Australia
n Build local S&M
Expansion n Asia (India, Taiwan, infrastructure
Build leadership – Korea)
n Begin building local
Global then Local n Latin America
publishing expertise
Growth: 10 to 15% (Mexico, Brazil, PR)
n Explore tactical
Margin: 15 to 20%
acquisitions
n China
nFocus on developing &
Opportunistic n Middle East managing distribution channels
Drive revenue growth n Latin America
nPenetration pricing
Long term view n East. Europe, Russia
nJoint ventures
Growth: 20% + n South East Asia
nLicense rights, co-publish to
co- 12
Margin: 10 to 15% n South Africa penetrate market & build brand

13. Market Penetration Strategies:
from licensing to local publishing
Own Publishing
Reprints
Acquisition
Adaptations
Versioning
Joint venture
Translations
Own Sales & Marketing Local authored
Distribution
Co-editions
Licensing
Lower Higher
Risk Risk
Investment Investment 13
Return Return

14. Joint Ventures
– Joint ventures are a low risk
vehicle for entry into markets or
segments where you do not have a
position, wish to learn and/or wish
to establish a relationship with a
potential acquisition target
14

15. Back to…
Core Market Challenges
n Pressure for Higher margins and greater
growth shareholders
n Customers want more accessible,
customized, searchable, and current
information
n Just in time, problem solving, search
oriented information – lends itself less to
15
print

16. Migration from Print to
Electronic Platforms
n Panacea?
n Aggregation of print content to
electronic platforms has still not yet
lived up to revenue expectations
n ROI has been elusive
n “Because when it is in print it is mine.”16

17. What is an e -dition?
+ =
BOOK WEB
17

18. What is an e -dition?
Purchasing an entitles the customer to:
• A copy of the book – the most comprehensive resource that
covers the entire field of Ophthalmology in one volume.
• The entire image bank online – over 2300 color images
downloadable to PowerPoint.
• The entire book online – fully searchable text with reference
links to PubMed and Medline when applicable.
• Weekly content updates written by authors –
at least once a week for the life of the edition there will be an update to
the text posted online in response to newly published research.
18

19. What are the implications
for Marketing?
§ Value proposition is changing. We’re moving from
and “arms length” relationship with customers to
closer, on-going relationship via licensing and online.
§ Direct relationships with the customer for the life of
the product. (Hopefully!)
19

20. 20th Century Book
Marketing
n Focused primarily on the road ahead
20

21. 20th Century Book
Marketing
n Planning started 6 to 12 months ahead
n Created Marketing Plan (MP)
n Executed MP for 12+ months after
pub.
n Ran periodic back list promotions for
2-3 years
n Primarily looking forward 21

22. “Rear View Mirror”
Marketing
n Focusing forward, as well on past
(current) customer interactions
n Publishing customer transactions are no
longer singular events at an arm’s length
n We now have the opportunity and
obligation to manage an on-going
relationship with our customers
22

23. “Rear View Mirror”
Marketing
n Not to be confused with “back seat
marketing” or “Monday morning
quarterback” Marketing
23

24. “Rear View Mirror”
Marketing
n Change in mind set, planning,
systems, procedures
n We now have the opportunity and
obligation to manage an on-going,
weekly dialogue with our relationship
with our customers
n We had better get it right, or we will
lose them
24

25. 21st Century
Asynchronous Marketing
n On-line companion products, change the
model
n Internal systems, planning, procedures,
and mind set
n Perpetual front
list mentality
n Great opportunities
for market research
25

26. Goals - Global Launch Program
•Global Product Team: select
team to champion product launch
•Product Plan: release strategy, Global Forecast generated and signed off
adaptations, translations, version,
platforms, pricing, licensing, reprints Global P&L generated and singed off
•Global Marketing Strategy: promotions,
positioning, conference launch, Opinion Regional Marketing: implementation,
Leader targets, Author tours dates, tactics
•Global Selling Strategy: channel plans, Regional Selling Strategy:
channel, country targets, distribution plan, implementation, training, targets
agencies, product training
Feedback loop & monitoring
26

27. Goals - Global Launch
Program (Concept)
n Greater strategic integration
n Collaborative planning across all markets
n Constant communication - editorial (tech
and print), marketing, sales, production,
Local Language Publishing team
27

28. Goals - Global Launch
Program (Concept)
n An honest financial assessment of the
product (historical and future)
n A Global P&L
n Understanding market realities and
needs through research and empirically
based conclusions
28

29. Goals - Global Launch
Program (Concept)
n Greater strategic integration
n Understanding market realities and
needs through research and
empirically based conclusions
n Post Launch - Constant feedback as
to the success of the message and
the campaign so we can alter and
adjust tactics during the sales process. 29

30. Global Launch Program
Criteria
n Reserved for products that will undergo a major
strategic shift or innovation in content, format,
or one that has other unique aspects that
warrant the significant investment of resources
(capital and time) that a global launch entails.
– Substantial growth of revenue as a result.
– Substantial growth of market share.
– New product launch.
n A rational risk assessment should show that the
extra effort will have a substantial affect
towards reaching or exceeding the financial
goals of the product. 30

31. A Global P&L perspective is a
requirement for a global company
$000s US Portugese N. Eur. Australia Spanish Indian Global
Trans. dist. adapt. Trans. reprint
Net price 70.0 28.0 70.0 38.0 32.0 15.0 51.40
Units 50.0 10.0 5.0 10.0 15.0 10.0 100.0
Sales 3500.0 280.0 350.0 380.0 480.0 150.0 5140.0
PP&B 490.0 39.2 175.0 68.4 72.0 37.5 882.1
Plant 525.0 42.0 57.0 72.0 3.0 699.0
Royalty 350.0 28.0 30.0 38.0 57.6 15.0 518.6
Obsolescence 70.0 5.6 7.0 7.6 9.6 99.8
COGS 1435.0 114.8 212.0 171.0 211.2 55.5 2199.5
Gross margin 2065.0 165.2 115.5 209.0 268.8 94.5 2918.0
Gross margin % 59% 59% 33% 55% 56% 63% 58%
31

32. Global Launch – A Case Study
n Gray’s Anatomy: One of the most
famous brands in Medical publishing,
but weighed down with problems…
– Branding Issues
– Inertia in the Market
– Internal Inertia
– Pricing and Distribution
32

33. Branding
The Gray’s name represents excellence,
quality and tradition
33

34. Inertia In The Market
n Who still wants a big reference book in
Anatomy?
– Exactly who is our market and what do
they need?
– One answer…
34

35. Internal Inertia
n An asset that everyone took for
granted but no-one really knew what
to do with
n No one knew who was buying Gray’s
and it was misunderstood
n Global Launch + Market Research =
Clearer understanding and renewed
enthusiasm!
35

36. Improved Product…
n New organization in line with what our
targeted audience want and need
n New emphasis on Clinical Practice
n An e-dition moving Gray’s from a nice-
to-have to a need-to-have product
n Internal buzz
36

37. Pricing and Distribution
n Old pricing model had to be thrown
out of the window
n Need to ensure stock available around
the world simultaneously
– In format that suits the market
– At a price that suits the market
37

38. Conclusion
n Thank you
n Questions?
38