Global brands can no longer rely on a one-size-fits-all approach in emerging markets and must tailor their strategies to specific city clusters. Each emerging market has unique consumer preferences and behaviors that require adapting products, distribution, and marketing on localized levels. Companies need insights into customer needs in different clusters to develop winning products and seize growth opportunities presented by diverse emerging markets like China, India, and Brazil.

1. STRATEGIC MARKETING
Emerging market
&
Global vs Local

2. Introduction
• Developing winning products for emerging markets,
Written by Sauri Gudlavaletti, Shivanshu Gupta &
Ananth Narayanan, in May 2013
(McKinsey&Company)
• Is your emerging-market strategy local enough?
• The diversity and dynamism of China, India, and Brazil defy any one-
size-fits-all approach. But by targeting city clusters within them,
companies can seize growth opportunities,
• Written by Yuval Atsmon, Ari Kertesz & Ireena Vittal,
in April 2011 (McKinsey&Company)

3. Introduction
• Big changes in fast-changing emerging markets
• Death of the one-size-fits-all approach
• Importance of submarkets
• New need to adapt products and strategy on a
global basis
• Two main drivers: rapidity and variability

4. First article: Developing winning
products for emerging markets
• Customers are price conscious and demanding,
they want the same product quality than
developed countries
• Fast-changing needs in emerging markets

5. First article: Developing winning
products for emerging markets
• Need to change the global business approach by
mixing traditional tools and new mind-set
• « Design to value »

6. First article: Developing winning
products for emerging markets
• 3 methods:
• Organising workshops to generate insights (collision
workshops, brainstorming, customer feedbacks…)
• Restart from the original idea and adapt every aspects
to a specific market
• Gain money on design manufacturing

7. In Brief
• A lot of examples to demonstrate that traditional
approaches are not efficient anymore.
• Global brands need to shake their thinking to
modify the way they design, develop and
manufacture products.

8. Second article: Is your emerging-
market strategy local enough?
• Economy has shifted
• In 15 years, 57% of the 1 billion household earning
greater than $20 000 will be in the developing world.
• Global brands need to change their strategy so as
to fit this evolution.

9. Second article: Is your emerging-
market strategy local enough?
• Country level strategy isn’t strong enough
• Focus on cluster size and not city size
• China example

10. Second article: Is your emerging-
market strategy local enough?
• The importance of WOM & Networking vs
advertising: limited reach of national media
>

11. Second article: Is your emerging-
market strategy local enough?
• No extrapolation on global patterns > Everything is
different everytime
• Generalities can’t exist anymore.
• China TV use/ coverage

12. Second article: Is your emerging-
market strategy local enough?
• More interest in poor household > High growth
potential in mass market products
• Sao Paulo vs Northeast region of Brazil

13. Second article: Is your emerging-
market strategy local enough?
• Rich people / Big city =
saturated market > Focus
on developing premium
products

14. In Brief
1 size fits all
model is
over
Need to tailor strategy according to
competitive intensity/ product growth
rate, consumer preferences and retail
channels.

15. LINKAGES
• It isn’t enough to develop a country-level strategy ;
companies need to focus on local specificities

16. LINKAGES
• Need to understand that each emerging market is
different

17. LINKAGES
• Need to know well the target and be attentive to
behavioral evolution

18. LINKAGES
• Adapt the product and the distribution to these
specific markets

19. LINKAGES
• Must be quick and flexible to succeed

20. PERSONAL CRITICS
• Doubting that this strategy can bring a ROI enough
regarding to what is going to be spend for each
cluster

21. PERSONAL CRITICS
• Complicated to get to know well each different
target (costs of surveys)

22. PERSONAL CRITICS
• Wondering if multinationals companies can be so
flexible (instant reactivity vs hierarchic staticity)

23. PERSONAL CRITICS
• Wish we could know more about others sectors or
type of companies than those mentioned in the
articles

24. RECOMMENDATIONS
• Should try it only on one emerging market at the time
and on a small number of clusters
• Clusters strategy must be part of a more global strategy
• Must measure closely results and ROI
• Adapt the production to reduce the cost without
minimizing the quality
• Do not forget that some people inside the clusters want
the same quality than people in developped market

25. • THANK YOU FOR YOUR ATTENTION!