challenges of establishing sam in emerging markets
TRANSCRIPT
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May 5 and 6, 2015
Challenges of Establishing SAMin Emerging Markets
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23. Challenges of Establishing SAM in Emerging Markets
May 5, 2015 at 2:30pm May 6, 2015 at 11:30am
Speaker: David Hartman, Principal, Blue Canyon Partners
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Crisis = Opportunity + Danger…even if it’s a bad translation
: Strategic Accounts rely on you even more in emerging markets and this is a chance to show true partnership.
: Strategic Accounts’ needs may present much more of a challenge in an emerging market. You can’t afford to disappoint them.
The Challenges of Emerging Markets
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Lessons Learned When China Was an Emerging Market
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Opportunity: Being a Partner in Success
• Your Strategic Account may have few other options
• The market is too small and immature for other global players
• Local competitors are responding to local demands for “good enough” offerings, often copies and always cost‐focused
• High‐end service may not even be in the local competitors’ vocabulary
• Proves you are the partner that is there for them when needed
• Gives you a chance to gain a foothold in emerging markets, with a solid customer
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Danger: What is Different for Your Customer?
• Different end market needs to be met
• Different competitors to face
• Different institutions, leaving gaps in Service
Different End Market Needs to be Met by Your Customer
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• Being a B2B partner means supporting your customer in meeting the customers’ customers needs
• When your customers were moving to establish a cost‐effective platform for serving the same global customers, this was easy.
• Once emerging market sales become a growth target, your Strategic Account needs your understanding of his challenges in the market.
• Emerging markets End Customers often seek faster, simpler, and less expensive solutions
SupplierSupplier Strategic AccountStrategic Account Customer’s CustomersCustomer’s Customers
Global SupplierGlobal Supplier Global Strategic Account
Global Strategic Account
Customer’s Global Customers
Customer’s Global Customers
Global SupplierGlobal Supplier Global Strategic Account
Global Strategic Account
Customer’s Local Customers
Customer’s Local Customers
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Different Market Needs to be Met:Faster, Simpler, and Less Expensive
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Different Competitors Faced by Your Customer
Competitors that “live by their wits”Nimble and unafraid.
“Try things” and see what works
“Do their beta testing in people’s homes or factories”
Competitors that are less interested in raising the bar on product features and quality
Borrow ideas from the market
Offer “good enough” productsat a much lower price
Danger: Gaps in Service
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• Channel roles are different
– Mature markets: Experienced dealers, value‐added resellers, system integrators, etc., offering configuration,training, and after‐sale service
– Emerging markets: Lack of trust may lead to complex relationship‐based channels, offering little value‐added, other than reliable delivery and payment.
• Machine tools, factory automation, and hardware may all be sold at glorified street malls.
• Emerging markets take time to support an aftermarket
– When products are very new, there is little aftermarket demand, and no providers have invested in service skills
SupplierSupplier Strategic AccountStrategic Account Customer’sCustomerCustomer’sCustomer
VARVAR
Local SupplierLocal Supplier Tier 1 Distributor
Tier 1 Distributor
Middle Tier Distributor(s)Middle Tier Distributor(s)
Final Tier DistributorFinal Tier Distributor
Customer’sCustomerCustomer’sCustomer
VAR CustomerCustomer
Review: Customer‐Supplier Views and Interactions
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Position Promote Sell Make & Inventory Logistics Support
Supplier Point of View & Experience
Create the promise Deliver the promise
Discover Evaluate Buy Access Use Get Support
Customer Point of View & Experience
What is your promise? How will I receive the promise?
Gaps: SAMs Are Front and Center in the Customer‐Supplier Interaction and Positioned to Detect Gaps
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R&D
Marketing
Operations & Supply Chain
Quality & Customer Service
Legal / Finance / Human Resources / IT
Supplier Point of View & Experience
Position Promote Sell Make & Inventory Logistics Support
Create the Promise Deliver the Promise
SAMs are at the Center of Creating and Delivering on the Promise
Sales & Channel Support
Filling Gaps: SAM Organizes the Supplier Organization and Outside Resources
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Marketing
Create the Promise
Operations & Supply Chain
Quality & Customer Service
Legal / Finance / Human Resources / IT
Position Promote Sell Make & Inventory Logistics Support
Supplier Point of View & Experience
Deliver the Promise
Installatio
n,
Commission
ing
Installatio
n,
Commission
ing
R&D
Sales & Channel SupportSolutio
ns,
Configuration
Solutio
ns,
Configuration
After‐Sale Service
and Pa
rts
After‐Sale Service
and Pa
rts
SAMs are at the Center of Creating and Delivering on the Promise and Filling
Emerging Market Gaps
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How to Be the Best Partner for Your Strategic Account
The same demanding, global customers as elsewhere
