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Alrick Barwa
K Sudheer
Archana NegiParul Claret
R Maheswaran
Heinz -Emerging Markets
Strategy
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Acquisitions led Strategy
Commitment to Emerging Markets
Country Diversification
Strategy Execution is Based on Four As
Applicability, Availability, Affordability, Affinity
Heinz In Emerging Markets
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Four As
Applicability
Availability
Affordability
Affinity
What itMeans
CustomersNeeds &
Tastes
ChannelDifferences
PriceSensitivity
Creating anEmotionalconnect
Four As explained
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Attention toRegulations
Scoping &
DemandEstimation
Local
Sourcing
Local MarketDynamics
Customizati
on
Branding
Model for Emerging Markets
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Every country presents businesses with its own set ofcomplex
rules and
regulations.
Many rules are shaped more by politics than by economics
When entering an emerging market, its essential to focusfirst on
the regulations that affect overall strategy
Why Be Attentive To Regulations
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Scoping begins with understand the changingtrends in emerging
markets Helps inunderstanding Demand
Why Scoping is Important
1990 20120%
20%
40%
60%
80%
100%
120%
61%
25%
8%
7%
11%
28%
4%
8%
4%
13%
12%19%
Changing Consumption PatternsSource- Economic Intelligence
Report
Others
Leisure
Health
Transportatio
n
Clothing
Food
Years
Percentage Expenditure
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Entering an emerging market without a plan forlocalized content
may lead to failure
The cost of engineering and manufacturing goodsin developed
markets will be too high to be pricecompetitive
Cost structure and revenue structure wont produceadequate
profits if a common currency is notemployed to link them.
Why Need Localized Sourcing..
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A markets local dynamics include culture, language,lifestyle,
economic buying power, infrastructure, andmany other factors.
Dynamics combine to produce a unique set ofdemand-side
characteristics for each country orregion
Companies must design their products with thesedifferences in
mind. In some cases a mere cosmeticchange or a modest repositioning
could be sufficient
Why Understand Local MarketDynamics
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What works well in one market may wellflop in another.
A failure to respect productcustomization results in products
thatcustomers wont buy
Only a brand can succeed with aproduct thats exactly the same
aroundthe world
Why Customize to Local Needs
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Buyers in emerging markets are unfamiliar with manycompanies and
products in the developed world
The lack of familiarity offers a chance to shapebrand images
from scratch, including brands thatare well known elsewhere
Even brands that are well known in emerging marketsrequire
special attention. The brand might meansomething entirely different
than it does in Europe orthe U.S
Why Branding is Important
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Economic Intelligence Unit
Heinz- Emerging Markets
Krishna Palepu Transcripts
References
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Thank You ForListening
