Boosting Brand Growth Now In

Emerging Markets

Kurt KesslerKurt Kessler

How can we boost brand growth nowin emerging markets?

• Emerging markets offer attractive growth today

• Globalization forces have pushed to near simultaneous worldwide launches

Situation

• Growth imperative

• Lack of resources

• “Variation” problem

• How can Marketing Research professionals efficiently identify and structure initiatives to boost growth of existing brands in emerging markets –right now?

Key Question

Complications

There are consistent portfolio, product, and internal planning challenges in our industry

Portfolio and Environment Complexity

Product Launch and Patent Loss

Resource Allocation

Organizational Challenges

Our suggested approach is creative and analytical, taking participants in emerging markets out of their normal environment to

create practical solutions to these challenges

The objective is to find profitable incremental sales opportunities over and above current brand spending

Current State Desired State

Rev

enue

s

TimeExisting Plan

Rev

enue

s

Time“Max” Plan

• Profitable upsides• Innovative ideas• Specific action

plans

• Average or slow growth

• Lack of new ideas• Business-as-usual

Desirable features of an approach to resolving these challenges include…

• Provide structures to frame the challenges complemented by light analytics that work but do not overwhelm the process

• Make the identification of growth initiatives an effort outside the day-to-day

• Identify those initiatives with the highest return and develop a feasible action plan

• Build on the current brand planning process

Balance depth and breadth

Inspire creativity

Prioritize resources

Minimize effort

How can we efficiently develop and implement business plans in emerging markets for our cardiovascular portfolio –and deliver on the growth imperative?

• PharmaCo has four cardiovascular brands in markets across the globe

• Asian and Latin American markets have experienced slower growth than hoped

• Organizational elements in place for many of these markets, but resources and expertise are limited

Situation• Global HQ mandates higher growth

targets than can be attained through ‘business as usual’

• Limited time to show progress on the ideas that will drive growth upward

• Need to identify cost effective approaches that can work across the entire region rather than only for single countries

Complications

€€

Though beginning and ending at the regional level, much of the work to create solutions lies at the country level

Country

Guidelines

Local Team Preparation

Initiatives

for Each Product

Portfolio Analysis & Action Plan

Region HQ

Global HQPortfolio Analysis

& Action Plan

Timing was adjusted to have results in hand to complement the annual brand planning process

Within each country and for each brand in the portfolio, we engaged local affiliates in a four step process

Assign responsibilities and resources

to execute

Prioritize limited

resources into the most promising initiatives

Unrestrained imagination of initiatives to capture the

value

Identify additional sources of

upsides and opportunities

INVESTIGATE CREATE EVALUATE PLAN

Market Company

Within each country and for each brand in the portfolio, we engaged local affiliates in a four step process

INVESTIGATE CREATE EVALUATE PLAN

Workshop 1

3 days

Refine

2-4 weeks

Workshop 2

3 days

Country Business

Plan

Affiliate with Support Affiliate

Simple frameworks supported by easy-to-use tools help the teams view their market with a new perspective and identify new opportunities

INVESTIGATEWhere can we find a potential upside?

?

Future

Interaction & Synergies

W

X

Y

V

Z

Indication

Channel

Customer

Patient

LifecycleBrands

Patient Flow AnalysisMarket Influence Map

Stakeholders

Compliance

Our Brand

Pharmaceutical

Diagnosis

Screening

For example, in several markets for one of the brands, the same strategic objectives were identified through a light patient flow analysis

Strategic Objectives

Expand the market through increased diagnosis

Increase treatment with a pharmaceutical

Patients Lost

Leve

rage

Poi

nts

INVESTIGATEPatient Flow Analysis

The next step is to brainstorm initiatives aligned with each strategic objective to seize the opportunity

Prioritized strategicobjectives

Benchmarks & innovativeideas from other

products/countries

Cross-functionaldialogue

FacilitatedBrainstorming

Initiatives for Evaluation

CREATE

CREATE

For example, many country-specific initiatives were identified that aligned with the strategic objectives

Strategic Objective Initiative 1 Initiative 2 Initiative 3…

Expand the market through increased

diagnosis

Public Awareness Campaign

Conduct public awareness campaign regarding the disease prevalence to motivate patients to seek blood

screening and diagnosis

KOL Diagnosis Initiative

Leverage relationships with KOLs to develop educational content / programs and create leadership regarding

disease diagnosis

CVD Long Term StudyConduct long-term study of potential patients not

yet displaying CVD symptoms to identify

common factors / characteristics that lead to CVD among country

population

Increase treatment with a

pharmaceutical

Treatment Guideline Development

Work with government to develop revised

treatment guidelines to encourage earlier

treatment with a drug

Educational CampaignCampaign to prescribers educating as to why and when to move beyond

“diet and exercise” and to a drug in the treatment of

the disease

Clinical ComparisonConduct a retrospective

analysis of in-country patients on our brand vs.

traditional herbal remedies to support use

in more patients

EVALUATE

The evaluation step begins with defining more explicitly the what and how of each initiative

?????

Stakeholders?

StrategicObjective?

TacticalObjective?

Targets?

Upside €?

Cost €?

Next Steps?

EVALUATE

Each initiative is now a more tangible idea to be evaluated and prioritized

Strategic Objective Expand the market through increased diagnosis

Initiative 1 Initiative 2 … Notes

Tactical Objective Drive to seek treatment

Drive to diagnose more

Description Awareness Campaign

KOL Diagnosis Initiative

Target General public Physicians

Upside € €25MM €15MM Use simple models to estimate

Cost € €10MM €2MM Rough estimate to be refined later

Next StepsEvaluate

feasibility with key partners

Medical review on the core

content

EVALUATE

All of the initiatives are ultimately prioritized atthe country level, and later at a regional level

Cumulative increase in NPV(€MM)

Initiative% Return ROI

Initiative Cost (€MM)

For each initiative that passes the evaluation screen, a plan of action is developed

PLANTimeline with Milestones

Executive Consulted Informed Consulted

Marketing Accountable Accountable Accountable

Marketing Research Responsible Responsible Informed

Sales Consulted Informed

Medical Consulted Informed Consulted

Responsibilities

Rolled out through the countries, the region nowhas a set of initiatives to fuel the growth

Country

Initiatives Evaluated

Initiatives Approved

Ecuador2112

Chile2710

Singapore45

Taiwan3212

Hong Kong5721

28

Columbia3715

Argentina2811

Brazil2411

Malaysia3421

China198

Korea6422

Japan2616

The approach can be applied to a wide variety of company situations in emerging markets

Number of Brands

Example: Six brands in one portfolio optimized with a cross functional

50 person team

Example: one brand analyzed across

multiple countries

Example: Two brands in emerging markets

optimized through cross-functional workshops

Analyticdepth

Example: one brand analyzed in depth leveraging

multiple data sources for fine

tuning of the marketing mix

Example: Three brands analyzed across

multiple emerging market countries

leveraging available data to challenge

current investment plan

Several key factors must be managed toensure success

MindsetWe can do it!

ProcessEvents that foster

creativity and balance with practicality

ToolsA fair balance

between simplicity and sophistication

DataAppropriate data

to help make better decisions

DialogueAccess and leverage the

expertise

Each of these are required at a reasonable level –The others cannot compensate if any one is far out of balance