Tag Archives: emerging markets

How the world’s cheapest ($35) Android tablet is ‘Made in India’

The new Aakash android tablet has shaken up the tablet industry primarily because of it’s price point: $35. Aimed at students, the tablet is being regarded as a innovative example both in global tablet industry and in the aid industry, where it’s being seen as an alternative to the controversial $100 One Laptop Per Child device. The Aakash tablet is being marketed as a “Made in India” success story in hopes of championing India’s manufacturing industry. In this video Suneet Singh Tuli, CEO of UK-based tablet makers Datawind, speaks about the making of the Aakash and how they managed to keep the manufacturing price so low in India. The Aakash be sold as the DataWind Ubislate as of November 2011.

Spirits giant Diageo outlines Emerging Markets advertising strategy at Cannes

Diageo Chief Marketing Officer Andy Fennell gave attendees of the Cannes Lions International Festival of Creativity today a peek into the drinks giant’s ad strategies in various emerging markets, and also shared his personal outlook on working with agencies.(…)

Diageo has undergone a transformation in the past decade or so, he said, with its advertising direction moving away from translating one big creative idea into different languages to employing wholly different approaches that are relevant to each market. That’s a major turnabout considering that only about a decade ago, it was creating the bulk of its advertising out of London and slapping subtitles at the bottom of ads to translate them into different languages. In China, for example, Diageo is going experiential. Just a few weeks ago it opened up “The House of Walker,” a Shanghai-based building that exhibits the history of Scotch in China and allows visitors to purchase rare and collectible bottles of the liquor. It is also partnering with Chinese filmmaker Jia Zhang Ke and video blogger Han Han to serve as spokespeople for the brand.

To market Johnny Walker Red Label in South Africa, the company is altering its packaging. To reach consumers who might not otherwise be able to afford to purchase the Scotch, the company recently released a specially sized, smaller 200-milliliter bottle.

Mr. Fennell referred to Johnny Walker as Diageo’s “biggest value creator,” with a penetration in nearly 200 countries worldwide. Other brands in the portfolio at Diageo include Captain Morgan rum, Ciroc vodka, Jose Cuervo tequila and Guinness beer.

Yet another unique approach Diageo is using in one of its emerging markets is a soccer-themed game show it’s created in Kenya for which Guinness is the sponsor. Contestants compete in a series of trivia challenges and physical soccer skills for a chance at a cash prize.

Kraft Foods’ 7 step model for focus and winning in emerging markets

Kraft

A few weeks ago, HSM, the company behind the upcoming 2011 World Innovation Forum in New York City hosted a conversation with Sanjay Khosla, President of Kraft Foods’ Developing Markets division. Mr. Khosla leads Kraft’s $13.6 billion businesses in developing markets, specifically the Asia Pacific; Central and Eastern Europe, Middle East and Africa; and Latin America regions. In the last three years, the size of Kraft Foods’ developing markets business has more than doubled with $13.6 billion in annual revenues. If Kraft Foods’ developing markets business was a standalone company, it would be one of the top 10 food companies on the planet. The company’s developing markets business realized nearly 13% revenue growth on average annually and reported operating income growth of more than 34% on average annually (2006 – 2010). During the hou long conversation, Mr. Khosla gave the attendees a rare look inside the company’s strategies in evaluating, and developing new and old products to suit emerging markets. 

He also shared how he put his obsession of “Winning through Focus” into practice to turn Kraft Foods’ underperforming developing markets business into a top tier performer. Mr. Khosla’s “Seven step model to drive growth and win through focus in emerging markets” are:

  1. Discovery: Find out what works
  2. Strategy: Focus through lenses
  3. Vision: Find a simple hook
  4. People: Unleash the Potential
  5. Execution: Clarify and delegate
  6. Organization: Build collaborative networks
  7. Metrics: Manage numbers and tell stories

Here are my notes from the conversation with Kraft Food’s Sanjay Khosla:

  • choose what NOT to do
  • focus on few and do well
  • choose space where company has competitive market
  • choose lenses
  • Kraft chose to focus on 5 categories, 10 brands, and 10 markets in emerging economies
  • 4 yrs ago they looked at acquiring Cadbury and Danone biscuits
  • both brands were doing well in emerging markets
  • Focus to unleash the potential of peop
  • Match company people with priorities
  • Continue reading

China’s growth as global branding geniuses

Media_httpimagesfastc_cdsnq

The world soon will see the ability of the Chinese to absorb new ideas, and fast-track them into the mainstream with accuracy, skill, and speed. In a very short time–despite a rocky start–they have grasped the essence of branding. In fact, their embrace of the fact that branding is a sensory discovery has put them ahead of others in the same industry operating on the other side of the globe….For almost three years, a team of scientists, researchers, anthropologists, and psychologists traveled the world to study the most inspirational and innovative countries in the world. They carefully selected the best features of those countries, focusing on those aspects that could influence the evolution of Chinese brands, shape their innovation process, define their future, and most importantly, serve as a model for their success.

Read more at Fastcompany.com

India’s Dot-Coms Blossoming

India, home to a legion of talented software engineers, has had a surprisingly undeveloped Internet economy: The nation has the lowest Internet penetration rate among major emerging markets and very little online commerce. Now, that’s beginning to change. A host of Indian Internet companies are emerging to offer their take on services that proved big hits in the U.S. and elsewhere. There are firms vying to become India’s version of Amazon.com, Groupon or Expedia, all with the goal of capitalizing on Indians’ growing interest in buying things online.

via WSJ.com

New Business ModelsĀ for Emerging Markets

In the above Harvard Business Review video, Matt Eyring, president of Innosight, explains why disruptive innovation in developing countries means not just tweaking, but instead rethinking, your business.
Right now more than 20,000 multinationals are operating in emerging economies. According to the Economist, Western multinationals expect to find 70% of their future growth there—40% of it in China and India alone. But if the opportunity is huge, so are the obstacles to seizing it. On its 2010 Ease of Doing Business Index, the World Bank ranked China 89th, Brazil 129th, and India 133rd out of 183 countries. Summarizing the bank’s conclusions, the Economist wrote, “The only way that companies can prosper in these markets is to cut costs relentlessly and accept profit margins close to zero.”…What’s often missing from even the savviest of these efforts is a systematic process for re-conceiving the business model.
Some tips:
  • Start in the Middle: Identify unmet needs that can be fulfilled at a profit
  • Offer Unique Benefits for Less: Focus on affordability and access
  • Integrate the (Business) Elements
  • From Blueprint to Operating Business: Testing and implementing the business model blueprint in emerging markets is as much an art as a science

Read more at Harvard Business Review

Innovation shifted to China during global economic downturn

The Huffington Post reports:

As much of the world invested fewer resources in innovation during the global downturn, Chinese firms spent more on innovative efforts, such as R&D and patent and trademark applications, according to a report by a UN agency.

On Wednesday, the World Intellectual Property Organization (WIPO) said that patent applications in China jumped 18.2 percent in 2008 and another 8.5 percent in 2009. Over the same period, ZTE, China’s second-largest telecom equipment maker, boosted R&D spending 44.8 percent.