The document introduces DN Group's Emerging Markets program, which helps companies develop products and services tailored for fast-growing emerging markets. It provides case studies on how companies like Tata and Motorola innovated low-cost products for emerging markets. The program involves research, product reinnovation, implementation support, and aims to achieve low prices through high volumes, minimal features, and utilizing new technologies. It argues this allows companies to continue growing even in economic downturns and benefits both companies and societies in emerging markets.

1. 2011 September EU
Frederick Rickmann
EMERGING
MARKETS

2. Emerging Markets Welcome to a new program which is created to
let companies continue with rapid global
growth in a time of recession in western
markets and in Japan.
The focus of the program is to allow your
company to create products and services better
suited to the societies in the world where
annual growth is still in or around double
figures.
DN is an international design and innovation
company with offices in Denmark and Taiwan.
From this global insight in design and strategy,
we have created this program for major
corporations to continue growth and success.

3. What you get from Charactistic of these markets is that they need
products and services which are quite different
the program from the mainstream ones developed for the
US and EU.
There is also a corporate logic in harnessing
the dynamic of these markets where there is
ample space for your company to thrive and
continue its success even when traditional
markets are in stagnation.
In essence the program consists of:
- Research in your new target markets
- Re-innovation of products and services
- Definition and specification
- Co-development with your inhouse teams
- Implementation and Launch

4. How it works – case 1 Over the past decade, your products have
probably been based on the countries of the
developed world, their standards and practices.
These are not always the right ingredients for
emerging economies. By redefining products
innovatively, a new generation of possibilities
arises.
The Tata Nano was created to make a car
affordable to people who had never owned
one before – especially in India, Tata’s
home market.

5. Tata Nano – case 1 The logic of Emerging Market innovation is that
normal product development is turned partly
on its head. Market volume and sales price are
defined first before product content.
Sales Price
2000 US $
” Good design is when you can’t take more away”
Some of the Nano design’s many cost-reducing
innovations.
3000 US $
The Nano's boot is only accessible from inside
the car, as the rear hatch does not open.
One windscreen wiper instead 2
No power steering
3 nuts on the wheels instead of the usual 4 4000 US $
Only one wing mirror
No radio or CD player The Tata Nano’s standard sales price in
No airbags in base model India is 2,900 US $ in dec. 2010
623cc engine has only 2 cylinders
5000 US $
No air conditioning in base model The European version costs 6,000 US $
The car’s exterior was designed in Italy
6000 US $
Data source: 300 m cars 400 m cars 500 m cars
A.T.Kearneys

6. DN’s designs get B2B for the
Chinese market
B2B Electronics – Hand-held industrial computers are developed
in a competitive market where features rather
Case 2 than actual user needs set the agenda. By
addressing actual needs , costs can be cut to
about 50% and the market increased 3 fold.
Western companies in US and Europe are often One of Motorola’s hand-held
market leaders and compete successfully by barcode scanners
using advanced features to distance themselves
from Asian competition. Asian companies have a
tendency to follow the market leaders rather
than carrying out original research – using
volume production as a price competitive factor.
Markets in India, ASEAN and China of about
triple the present size exist for re-thought hand
held computers
B2B also means Back to Basics

7. Netbooks – case 3 Netbook computers are an ideal example of
design for Emerging Markets. Originally
introduced by Asus this type of no frills
computing had sales of 0.4 m in 2007, 35 m in
2009 and forcasts over 100 m by 2012
The One Laptop Per Child [OLPC] non-profit
project was a similar exercise in creating a basic
computer for emerging nations, but from the top
down. Originally set at 100 US $ per unit, the
project never reached production on a mass
scale – and the price level remained about 200
US $,
Netbook computers reached the same price
levels quicker giving the opportunity for
computing to a wide range of societies.
Due to the low prices, netbooks are also popular
in developed countries

8. Achieving low prices. 1 Research what the users really need at
the most fundamental level.
DN’s 8 Principles 2 Get rid of features which are not needed.
[Ignore what competitors do and be
constructively critical of western practice]
3 Use mass production and high volumes
to reduce prices even more and expand
the potential of the market
4 Export to several markets concurrently
to maximise volumes and reduce prices

9. DN’s 8 Principles 5 Use market volume as the target.
Reduce production costs to an extreme
level to suit the market – but keep healthy
margins.
6 Use the highest hi-tech where costs
allow. New hi tech is usually cheaper than
old low tech. In emerging economies a
whole generation of technology can be
jumped over.
7 Get the cultural content right – but
make it trendy and status enhancing
8 Maximise demand through design
originality and innovative simplicity

10. What you also get As mentioned with netbooks – the developed
markets are also hungry for innovative low cost
from the program products. So by opening up Emerging Markets,
with low cost solutions, the developed
countries in the West also respond with interest
– and appealing market growth.
The program is not only centred on corporate
well-being. Emerging societies are by their
definition emerging from poverty and often
from poor social and economic organisation.
Ethical trading standards and care for the
planet from your company go hand in hand with
progress in these communities.
In addition, the responsible governance of your
own company has a positive knock-on effect in
your own society and local region through
stable employment and engaged staff.

11. A unique opportunity The demand in emerging nations for
responsible no-frills products is large.
for European Sophisticated, intelligent solutions are sought
when the price is right. European and Scandi-
companies to enter navian values are greatly recognised and if
these can be combined with attention to the
new markets needs and economics of the new markets then
significant growth can be achieved
In these markets , where many products and
service are being initiated for the first time to
millions of consumers, there is the obvious
opportunity to introduce new solutions. This is
the chance now for also medium-sized
companies to rapidly establish markets with
their own new presence.
For more inspiration on this aspect contact DN
Group. See the last page.

12. Who on earth is DN? DN Group is an international design and
innovation consultancy .
Some recent DN Clients From our offices in Denmark and Taiwan we
help major international clients as well as
Schneider Electric
local start-up companies to innovate and to
ZyXEL
grow. By building innovative business strategies
Procare International with companies like yours, we deliver market
RTX Telecom success through award-winning design in
products, CBI graphics and branding.
FLSmidth
Tetra Pak Hoyer
The wide variation of market knowledge
NEC experienced together with our clients
DSB partnerships has contributed to our constant
focus on new-thinking at the very edge of
CipherLab
innovation.
Dali Loudspeakers
ADLink Your success becomes our success - especially
through a long term partnership.

13. Emerging Markets The Emerging Markets program is one of DN’s
initiatives to help our clients and other
interested companies to reach new potential.
Emerging Markets – typical program modules
The program is a catalyst for progress in that
1 we co-work by stimulating new thinking and
Mentoring:
Defining the strategic vision
excellence in design and operations in your own
Researching the target markets in-house staffs. The program itself is divided
Strategic value creation
New branding into a tailor-made modules to suit your own
specific requirements and visions.
2
Development and Innovation
Re-innovating products and service
Marketing testing
New thinking starts at the top – not at the
User interface and appeal bottom . So the first modules are mentoring
Co-creation with inhouse marketing + R&D teams
modules with management. Through R&D and
3 marketing the modules take on a more
Implementation
Specifications, definition and aims consultative and guiding content.
Launch
Promotion
Media coverage The bottom line is getting value onto the
market with wide customer – and media appeal

14. Contact one of the below for
more detailed information on
how the DN Emerging Markets
program can help your
company.
DN Aps DN Aps
Mejlgade 50 16F –3
Baghuset 2. 530 Ying Cai Road
8000 Aarhus C Taichung 40360
Denmark Taiwan
www.dngroup.dk www.dngroup.dk
fr@dngroup.dk hwj@dngroup.dk
+45 7022 1012 +886 4 2305 1011