Using Innovative Tech to Win in New Markets
In emerging markets, consumer goods (CG) companies need to be creative in solving business challenges. These new markets are fundamentally different and require unique strategies and mind-sets.
That is why during a recent CGT web seminar, Suresh Bharadwaj of TradeEdge, shared several case studies that demonstrate how to successfully manage to overcome obstacles around data acquisition, distributor relationships, data integration, and even tracking coolers used to store products at the right temperature at retail. The challenges in emerging markets are unique, but with innovative solutions, CG companies can achieve success while expanding into new markets.
Before diving into the various types of innovative technologies, first it’s important to look at emerging market opportunities such as faster growing GDPs, high contact frequency (DSD), ability to implement plans with speed, no influence over outlet order fill rates or service levels and 20 million retail outlets. During the web event it was reported that:
- 70% of respondents from a CGT Custom Research said that less than 10% of their revenue comes from emerging markets. But, of those that reported that 26% to 50% of their revenues come from emerging markets, all are companies over $2 billion in size.
- We expect these numbers to change as more companies invest in these new geographies: 57% of companies over $10 billion plan to pursue growth opportunities in emerging markets in less than 12 months.
- 61% have direct operations in emerging markets.
- 27% use a distributor network in emerging markets while an additional 18% use a combination of distributor network and direct to retail.
- Of companies operating in more than 50 markets, 75% allow individual markets to operate within prescribed global technology frameworks
Visual ordering, self-service through SMS, and Vizi coolers are just some of the innovative tools that CG companies are employing to counter the lack of infrastructure, dearth of skilled labor and unfriendly environmental conditions.
To hear how a leading beverage company and consumer packaged goods company managed to use these cutting-edge types of technology to their advantage during the full web seminar, click here.
That is why during a recent CGT web seminar, Suresh Bharadwaj of TradeEdge, shared several case studies that demonstrate how to successfully manage to overcome obstacles around data acquisition, distributor relationships, data integration, and even tracking coolers used to store products at the right temperature at retail. The challenges in emerging markets are unique, but with innovative solutions, CG companies can achieve success while expanding into new markets.
Before diving into the various types of innovative technologies, first it’s important to look at emerging market opportunities such as faster growing GDPs, high contact frequency (DSD), ability to implement plans with speed, no influence over outlet order fill rates or service levels and 20 million retail outlets. During the web event it was reported that:
- 70% of respondents from a CGT Custom Research said that less than 10% of their revenue comes from emerging markets. But, of those that reported that 26% to 50% of their revenues come from emerging markets, all are companies over $2 billion in size.
- We expect these numbers to change as more companies invest in these new geographies: 57% of companies over $10 billion plan to pursue growth opportunities in emerging markets in less than 12 months.
- 61% have direct operations in emerging markets.
- 27% use a distributor network in emerging markets while an additional 18% use a combination of distributor network and direct to retail.
- Of companies operating in more than 50 markets, 75% allow individual markets to operate within prescribed global technology frameworks
Visual ordering, self-service through SMS, and Vizi coolers are just some of the innovative tools that CG companies are employing to counter the lack of infrastructure, dearth of skilled labor and unfriendly environmental conditions.
To hear how a leading beverage company and consumer packaged goods company managed to use these cutting-edge types of technology to their advantage during the full web seminar, click here.