Lessons Learned. Developing Markets. Monday, May 6, 13

Transcription

1 Lessons Learned Developing Markets

2 Why 35 million people live in Canada, 7 billion live outside The markets have not been fully developed = OPPORTUNITY Self satisfaction in developing markets, consumers and teams Change happens faster = more opportunity Cost of entry is significantly lower

3 Lessons Learned As an executive for 30 yrs And as a son of an executive Techniques may be different over time and across industries but principles are the same

4 Lesson #1: Developing markets are volatile but Need to manage through good and bad times Even the best / most experienced make mistakes Need to be resilient because the rewards are very big after the storm has blown over Learning: At the end of the day Consumers keep living and societies always progess

5 Lesson #2: Easier to reach Consumers Media is far less expensive Media options are more concentrated Less competition for their attention vs Consumers in Developed markets Developing Consumers get excited about about a new shower gel.

6 Lesson #3: Cost of entry is lower Media costs are significantly lower Office space is less expensive Great talent at significantly lower costs Less regulated markets

7 Lesson #4: You have more Control of your own destiny Fact: One of the core differences between developed and developing is the number of retails. You are not at the mercy of a powerful retailer. Developed markets have a Powerful concentrated trade. Usually Less Regulated

8 Lesson #5: Distribution is the name of the game Definition of Developing country (less concentrated trade) Execute the ANT ARMY... Distribution army that seeds your power SKUs and Teach merchants to love them Develop a product portfolio that will succeed in Mom and Pop stores Design merchandising tools and materials for the mom and pop retailer

9 Lesson #6: Think of Selling Affordable Luxuries Not about selling cheap but providing affordable luxuries Body Wash is an Affordable Luxury You need to understand how emerging consumers define affordable luxuries and how they perceive value. (very different from Canadians)

10 Key success Factors Build great teams on the ground Distribution is the name of the game Build distribution partnerships Stay true to your values

11 Must Do s Get to know your Consumer (very different from you) Understand your customer needs Build a Brand equity with Consumers Build a strong reputation with the trade, the community

12 Watch Outs Be careful with exclusive import distributors Watch your customers credit Understand hyper-inflationary best practices Understand where FX might be going

13 Many Success Stories

14 Canadian Success Story In Africa 3 weeks ago Canadian Entrepreneur Built a very successful Business in Africa Started Small Survived the hard time Fast Growing Expanded across Africa Has a great team on the ground Could potentially double his business this year

15 Consumer Goods Example Unilever Boys Started small consumer business in Colombia ( Soup Cubes then popsicles) Today has a market value of 1.5 billion doing business across the Andean Countries Success: Great products with Awesome Distribution.

16 Going Global is easier than you think The opportunity is Huge And the personal satisfaction is very rewarding

17 Thank You