Transcript GB9_Ex
Global Business #8 June 10, 2013 Dept of Technology Management for Innovation (TMI), Graduate School of Engineering Professor Kazuyuki Motohashi 工学系研究科 技術経営戦略学専攻教授 元橋一之 http://www.mo.t.u-tokyo.ac.jp Feedback : HCMC case Q2 • Not what have happened, but what would be expected at the timing of divorce. Q3 • Strategy: what you do and what you don’t. And, why? (SWOT, 5 force, etc) • Product, service, region ...? Q4 • Data in the case material • Construction machinery specific story • Fair assessments Today’s Class • • • • What is marketing, why important? Marketing strategy planning steps 4P: Product, Price, Place and Promotion Marketing for emerging economies: China, India • Bottom of the Pyramid (BOP) Business Marketing and Sales Marketing Sales New customers, potential customer needs Forward looking (for new product, services) Market analysis for value creation Involves whole process of marketing strategy Existing customers Existing products Actions (Eigyo), and sales force management Focus on “Promotion” in marketing 4P Strategic Marketing Planning Market Analysis and Identifying Opportunities (SWOT analysis) Market Segmentation Identifying target market and product (service) positioning Marketing Mix (4P) and Execution Ansoff’s Product and Market Growth Matrix Global Business Context: CAGE and AAA framework Example of Market Segmentation Target Segment Identification Marketing’s 4P Product Price To what extent you can be a price setter, instead of price taker ? Place (Channel) Promotion (AIDMA) Changing to AISAS in Internet Era Promotion tools (in detail) Promotion in global business Some caveats • Regulations over promotion activities: such as whether you can do “comparative advertising” • Terminology in foreign language • Brand creation (difference in customer’s perception) • Importance of local ad agency • Lack of product knowledge at local distributors Marketing mix by product life cycle Market potential of China and India Middle Class = Volume zone • Profit=gross margin * sales volume (size of market and competition) • Difference between durable and consumption goods, customer preference? Average household income by decile (2010, US$) Premium Market Another concept of price: PPP • Concept of PPP（Purchasing Power Parity) • Big Mac price by Economist magazine US: 4.07 $, China: 14.7 RMB=2.27 US$ (▲44%) 2005 China India Japan USA PPP 42 33 118 100 2010 /US$ 8.19 44.1 110 1 PPP 53 44 144 100 /US$ 6.71 44.7 80.5 1 Premium or good enough? Relevance for premium market (enough volume, brand image, quality requirement by customers ….) Good enough products and services are OK (saturated value proposition curve, commoditization …) Strong competitive position against local competitors Stay-in and focus on premium market Risk of innovator’s dilemma, prepare for good enough market strategy, local partnership (but risk of cannibalization) Local competitors’ catching up Further development and product differentiation by non-technical factors such as investing-in brand, safety and eco-friendly Give up this market and go another place? Local partnership with local autonomous management (a kind of portfolio investment) Adapted from “The Battle for China’s Good-Enough Market” by Gadiesh, Leung and Vestring, HBR September 2007 Destructive Innovation Technology Speed＞Customer’s Requirement Speed 21 Knowing local market: two way interactions • Sensor function at local (B to C): Panasonic’s life style research institute in China and India (understand consumer’s life-style in less developed area) • Local partnership as a door to new customer (B to B, B to G): Hitachi’s joint venture with LG group for water business • “Finding great ideas in emerging market”: finding unforseeable use, arbitrage strategy for ideas: Intel’s emerging market project (use of PC for social tool-> netbook (ultra) book concept) • More to be discussed in the global R&D session! BOP(Bottom of the Pyramid) Over 20,000 US$ 75 mil. -100 mil. 150 mil.-1,750 mil. 1500～20,000 US$ 1500US$ and under 4,000 mil. （出典）The fortune at the bottom of the pyramid (C.K. Praharad) BOP’s Business Chance （出典）The fortune at the bottom of the pyramid (C.K. Praharad) Example: ICICI’s micro payment （出典）The fortune at the bottom of the pyramid (C.K. Praharad)