Building & Managing Products for Emerging Markets Ravi Kaushik 12/01/2013

Agenda

• Marketing Functions • Upstream Marketing/Downstream Marketing

• Marketing in Emerging Markets • Similar …. But different…

• New Product Development example • Market Creation ~ driving value

• Q & A • Discussion

Marketing Competencies

Strategic Marketing

Operational Marketing

Product Marketing

Commercialization

Customer Driven

Customer driving

Ensure we understand

what the customer needs

Ensure we develop what the customer

needs

Ensure customers

want what we develop

Ensure customers

buy what we develop

Product Strategy Global Marketing Plan Regional Marketing Plan Plan of Action

Global Product Marketing

Regional Marketing

Marketing Roles & Responsibilities

Market & Industry trends

Market & Competitive product analysis

Customer Needs NPI Business Case

Strategic Product Roadmap

Make vs. Buy (OEM) decision

Product Definition & Design

Part Numbering & Configuration Management

Global List Pricing / Margin analysis

Segmentation, Targeting, Positioning Value Prop.

Clinical Marketing Trials, Research, White Papers

Beta Sites – pilot launch

Product Marketing Plan – Launch

Product Sales & Marketing Guide

Product Training content

Brochure, Spec sheet, Web content

Product Support: Clinical, Technical

Product Quality management (Complaints)

Product Life Cycle management

Regional Marketing Plan – Launch

Follow-up with in Country approvals

Solution Marketing

Channel Marketing

Regional Pricing / Margin management

Direct Marketing / Promotion programs

Advertising placement

Tradeshows & Customer Events programs

Lead Generation

Product & Sales Training delivery

Sales Force Effectiveness

Sales Tools, FAQs

Product Support: high level

Pilot Sites / Reference Sites / Luminary Sites

Competitive tactics analysis

Win/Loss analysis

Installed Base management & mining

Industry Analyst relations

End of Life Customer Communications

Global Product Management Regional / Operational Marketing

Redefining the Bottom of the pyramid

Premium

Mid Tier

Value

Global pyramid Asian pyramid MEA pyramid

25% 40%

50%

What lies beneath… The iceberg pyramid

•Top of the iceberg is total India market

demand now

•Tip of the iceberg is the addressable

market now

•Need to understand available (penetrated) market and un-penetrated potential market

• This is the RURAL UN (DER) SERVED MARKETS which is opportunity for Market Creation

Product Development for BRIC • Un-penetrated market understanding

• No market data, research reports exist

• Need to understand customer needs – observational research and interviews

• Market Research by “rural immersion”

• Market creation with innovative solutions • SST principle (rugged, reliable, easy to use, easy to

clean, maintain, affordable)

• Proving solutions locally

• Need local successes and customer testimonials

Product Development for BRIC… . • Partnerships

• User needs understanding & insights through partnerships in BOP spaces

• Partners helping innovate and accelerate new product development (Govt & Private)

• Designing complete offerings “end to end” for sustainable results

• Think about service, reach, distribution etc.

Marketing Learnings

• Gain customer input early and often • Experiment & learn before convergence • Measure against successful benchmarks

Core Activity

Identify key

customer, market

& their needs to

generate insights

Test , and prioritize

multiple

customer

value

propositions

Quickly build and

test just-

good-enough

working models

Determine viability and

scalability through

small scale

in-market

tests

What customers want …

Understanding the Indian customer mindset …

Ru

ral

Urb

an

& S

em

i U

rba

n

15

Ma

jor

Cit

ies

More than one India … with unique needs

Academic

Tier I : Private

Tier 2 & 3 Private

District Hospital

CHC 740 M Population

50,000 Doctors

Government / NGO / Pvt Focus

200 M Population

150,000 Doctors

Emerging HealthCare Market

India # 1

85 M Population

400,000 Doctors

Multinational players ~40% Share

India # 2

India # 3

PHC

P

rem

ium

&

Lea

de

rsh

ip

M

id &

Va

lue

Su

pe

r va

lue

&

BO

P

Well addressed & understood

Current GE Play

Emerging Market Target Underserved

Warmer adoption line

India Neonatal Landscape

Small town Mom & Pop clinics (Tier

3,4,5) 15K

Private clinics

(Tier 1,2)

Govt District State

hospitals

Govt Bulbholders (PHC, CHC) 30K

Home birth line

Lullaby

Health Sub Center 145K

&

Skilled Birth Attendants (ASHA)

70K

GE

Primary Health Infant Care

Product portfolio

Eg. Warmers

50,000

warmers

needed !!

35%

home births

Customer Problem (emerging markets)

–CLINICAL EFFICACY • Warm up time, uniformity,

intensity, temp control, alarms

• Overall time spent in NICU

–COST (TCO): • Initial Cost too high*

• High Operation (electricity) & Maintenance (repair) costs

• Consumable costs

–EASE of USE: • Delicate, bulky (not robust &

reliable) or easy to use

• Breaks down frequently & not easy to clean/maintain Competitive warmers and Phototherapy currently serving this market (such as the

one shown) frequently break down & are discarded

Also, multiple babies are treated and light bulbs used as warmers some places.

Equipment not appropriately designed

$ $$ $$$ $$$$

Traditional portfolio differentiation: price vs.

features

Fe

atu

res

Price

cost = functionality, quality

GAP

“Just what’s needed”

ICFC differentiation: meets basic rqmts; innovates

along new axes

Focus on sustainability

User-friendly simplicity

Modular serviceability

Portability

Few / no consumables

Rugged reliability

Extreme affordability

Protracted power

Frugal Engineering

Complexity

Cost

Durability

Maternal Infant Care

Tray Tilt Mechanism …

From Car Seat Recliner

Next Gen Warmer

Smaller heating element

Innovative reflector for uniform heat distribution

LEDs Vs CFLs

Optimal Wavelength for 28%

faster Bilirubin breakdown

50x Longer Life

80% lesser power

consumption

Going global with

Performance products Lullaby Warmer

• Sold 2000+ units since launch in 2009 • Sold in 65+ countries

• Europe, EAGM, LATAM, APAC, India

Lullaby LED PT • Sold 1500+ units since launch in 2011 • Sold in 15+ countries

• Europe, EAGM, LATAM, APAC, India

Examples of Reverse Innovation

LED PT in India

Launched in late 2011 800+ units sold in India, Sri Lanka, Bangladesh 800+ sold Rest of the World – Europe, LatAM, APAC, EAGM

Smart Commercial Solutions

Custom Power supply to Mobile Charger

GE printer to Bus ticket printer

ASIC DSP module and application to single CPU

Frugal… is not low tech

• Off-the-shelf solutions

• Reduction in number of parts

• Integration and Modular Assembly

Integration and Optimization

If you do not start ,

you will never reach your goal!

Find the 3 buttons that people need in your product…..

Q & A Discussion