The emerging world has witnessed growth rates that far exceed those of the developed world. Clearly the global balance is shifting in their favor. While many people have previously forecasted this shift, two recent trends appear to have added strength to this prediction: the BRIC (Brazil, Russia, India and China) economies have had impact sooner than expected and China and India are dominating the BRIC story.
Executives worldwide are responding aggressively to this changing market dynamic. An Accenture study of CXOs across Europe and the United States (2006) identified globalization as one of the key planks of corporate strategy in the 21st century. The term ?globalization? has come to imply far more than far-ranging export activity or overseas research centers. Increasingly, it is associated with core revenue-building activities such as sales, marketing and manufacturing.
An Accenture study of C-level executives in communication and high-tech companies reveals that customer-facing roles are the most important in the corporate globalization effort. For companies to succeed in such roles, it is imperative that business leaders understand the sales context in these markets.
As customer-facing roles become more important, more is expected of sales organizations. However, the selling process in emerging markets often differs markedly from the sales methods typical in the developed world. Four factors are relevant:
? business environments are not yet mature - immaturity of these business environments makes it challenging to do business successfully;
? growth rates can skew goals - customer retention can take a back seat while all the focus shifts to acquiring new customers;
? there are a myriad of low-income buyers and small businesses that offer huge potential but are often geographically dispersed (and thus difficult to reach); and
? there are markets within markets within markets - to serve large, diverse markets such as China and India, a broad-based sales network is necessary.
The answers to these challenges depend on many internal and external factors but we have found several underlying themes common to most successful companies:
? emerging markets tend to require an operating style that is personal rather than process driven;
Additional, even superfluous manpower may bring about the ?personal touch? that produces the extra dollar of profit. A strong collaborative approach is also seen in the way that corporations deal with competition or develop and leverage strong local networks.
? they select the sales channels that suit each market best;
Corporations often struggle to find the right balance between direct and indirect routes to market. Establishing a direct sales organization demonstrates a company's commitment level to governments and to large corporations in emerging markets. Customers also tend to want to receive service from the company itself rather than partners.
However, setting up a direct sales force to reach an entire market may prove to be quite costly and time consuming. Given the size and dispersed nature of markets such as India and China, leveraging indirect channels is often the most cost-effective and timely way to reach large numbers of customers.
? they find smart ways to reach low-income customers;
Companies need to develop solutions that appeal to low-income customers and small businesses in geographically dispersed locations. These solutions may involve developing a strong rural sales structure.
and
? they strive for the right mix of local and global processes.
Experience shows that the most successful answer tends to be a blended approach of local and global processes. We have found the most important areas to ?localize? are the distribution channels themselves. Leveraging ?global standards? for many of the back office procedures, sales methodologies and supporting technologies, on the other hand, has been proven to be very effective in providing some needed structure and operating efficiencies to these fast-growing markets.
Success in emerging markets is rapidly becoming a critical success factor for global companies. The core challenge is to grow in a cost-effective and profitable way given the vast size of the markets, the differing economic and infrastructure capacities, and the variations in the markets? cultures and customs.
Business In Emerging Markets
Jack Rouse Associates (JRA) celebrates its 20th anniversary this year. The group of designers, writers, producers and project managers based in Cincinnati, Ohio, named by the Wall Street Journal as "one of the world's more prominent design firms", promotes its ability to conceive, visualise and realise exceptional experiences for museums, corporations and entertainment clients worldwide.
As part of this global ambition, JRA is proactively developing business in the emerging markets and has been involved with a number of recent high profile projects:
? HarborLand, Ningbo, China - This new theme park, part of an urban development in Ningbo, China, opened in Feb 2006 with a master plan and design created by JRA. As a first step in the master planning and design process, JRA created a fairy tale story around which the park is being developed. The story is inspired by the Phoenix, the mythological firebird and a symbol of happiness in Chinese culture.
? Guangdong Science Center, Guangzhou, China - JRA provided overall exhibit design for the children's portion of this 450,000 sq ft science centre, set up in Guangzhou in 2007.
? Restless Planet, Dubailand, Dubai, UAE - Projected to open in 2008, Restless Planet will blend entertainment and natural history experiences in a first-of-its-kind destination. JRA is currently managing the overall design and production of Restless Planet, including development and oversight of all attractions and media. It is being linked with the Mall of Arabia, which is currently the largest mall under construction in the world. Working with London's Natural History Museum, and other experts, the team is developing a synergy of architecture and experiences that take guests on "the world's ultimate theme ride back into the mists of time," enabling them to explore Earth as it was millions of years ago. From rides that plunge visitors into the world of giant sauropods and terrifying raptors to special zones exploring the prehistoric past and links to the latest discoveries, Restless Planet will combine breathtaking theme park experiences, enhanced by dramatic lighting and audiovisual effects, with cutting-edge educational content.
? Al Kaheel Park, Dubai, UAE - When completed, Al Kaheel Park will become the most comprehensive equine tourist attraction ever built. It will extend over almost 9.1 million square feet of preserved desert landscape. The mixed-use development will have real estate and commercial components. JRA has been hired as part of the consultant team and will provide attraction planning and design for the complex. Al Kaheel will be an educational theme park and working horse farm dedicated to man's relationship with the horse.
? Ferrari Theme Park, Abu Dhabi, UAE - Built around the legendary Italian company, the theme park will consist of family rides, driving school and virtual simulations as well as retail merchandising. JRA is providing design and co-ordination.
Keith James, President, JRA, has been at the center of cutting-edge projects within the themed entertainment industry for more than 30 years and has been instrumental in opening new markets in India, the Pacific Rim and Eastern Europe for JRA. talked to him about JRA's approach to developing business in the emerging markets and asked him to reflect on JRA's 20 years in the business:
Which markets are you targeting?
"Right now we are focusing on museums, theme parks and attractions, halls of fame, corporate visitor centres and sports venue interactive zones. Geographically we are looking to the Middle East, China, Russia and when the occasion arises, the USA. We simply go where the work is."
How are you developing your business?
"We have an ongoing marketing effort that includes tradeshows, advertising, PR the Web site, referrals and our relationship with current and past clients but more importantly our closely-knit industry results in numerous referrals from friends and other companies.
We are always sensitive to the culture of the countries we pursue. We meet clients, endeavour to understand their needs and satisfy those needs. As a company we are client sensitive instead of JRA sensitive. Luckily the approach works both ways for the USA and foreign countries."
Do you structure work proposals differently from country to country?
"Each proposal depends upon the client needs rather than what country it is from. Again, the differences between HarborLand and Restless Planet are determined by the client's relationship with qualified local buyers and requirements of the project itself. Either way, we always work closely with people the client assigns to us."
How do emerging markets' requirements differ from the North America?
"We look closely at the culture and maintain a sensitivity to the culture that's local to the project. For example, in some countries there's less emphasis on thrill rides than in the US. Typically there is an independent market analysis that helps us determine the program mix. Food and menus are always different."
Are there any lessons you've learned from working in these new markets? Any surprises?
"One thing learned is that universally people want to have a good time in a clean and safe environment. With new markets we recognize it's important to understand the culture of the region socially and business wise. We always develop a product jointly with the client. Collaboration is a MUST.
Speed in the Middle East to establish business is a challenge more than a surprise. Some areas of the world are trying to skip generations and land squarely in the 21st Century and when this happens, you have to be careful not to lose the established foundation of experience when you make that leap. After all, these are businesses that need to be successful."
What have been the key changes in the Industry over the last 20 years? How JRA has responded and what changes do you foresee in the future?
"Technology has grown in leaps and bounds. However, one on one experiences in our projects are still important and we have to make sure people have a personal relationship with the message. As our CEO, Jack, once said, "the first interactive was two people talking," and we have to make sure we don't lose sight of that in our technology. The blending of our industries of sports, museums, theme parks and corporate visitor centres are a notable change. 20 years ago museums would not have talked to theme park people and now those lines between them have gone away. Now they are able to learn from each other and explore areas they might not have looked at before from the audience perspective.
We always emphasise the people in business and the audience itself."
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Kevin Bandy has sinced written about articles on various topics from Marriage, Web Development and Partnerships. Accenture's Electronics & High-tech industry group offers management consulting, technology-strategy and implementation services to all segments of this exceptionally dynamic industry. Read the full article on. Kevin Bandy's top article generates over 22200 views. to your Favourites.
Csd has sinced written about articles on various topics from . URL: Author Name: Charles Read Author Bio-data: Runs Blooloop.com, the dedicated web site for the World's Amusement Park, Theme Park, FEC and Water. Csd's top article generates over 1600 views. to your Favourites.
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