Download Old Global Marketing Structure - The University of Texas at Arlington

Global Marketing and Research and Development
University of Texas at Arlington
November 17th, 2010
Agenda
The Need for Global Marketing
 Evolution of Alcon Global Marketing
– How has it changed
– Why has it changed
 Current Role of Alcon Regional Marketing
 Current Role of Alcon Global Marketing
 Alcon Global Advertising
 Push vs. Pull Strategy
 Alcon Integration of Marketing, R&D and Manufacturing

The Need for Global Marketing
Alcon Geographic Sales Breakdown
United States
2000
International
2010*
54.9%
47.8%
52.2%
45.1%
* YTD - Q3, 2010
Global Reach
• 5 Research Centers
• 14 Manufacturing Plants
• 75+Operating Companies
• 72 Countries with Physician Training Centers
• 14,500 Employees
Alcon Headquarter Office
Alcon Research Facility
Alcon Manufacturing Plant
Alcon Operating Company
Old Global Marketing Function
Research &
Development
Product Development
Global,
Regional and
Affiliate
Marketing
Brand Development &
Promotion
Old Global Marketing Structure
U.S.
U.S.
Product
Manager
Japan
EURMEA
LACAR
International
Product
Manager
Affiliate Product Managers
CAFE
Old Global Marketing Structure
U.S.
Japan
EURMEA
LACAR
Global Marketing Director
U.S.
Product
Manager
International
Product
Manager
Affiliate Product Managers
CAFE
New Global Marketing Structure - Strategic Brand Building
•
•
•
•
•
•
•
GMC
Global Marketing
Group
U.S.
JAPAN
EURMEA
Strategic Brand Planning
Market Research
Commercial Contact for Product Development
Commercial Contact for Medical Affairs
Global Position & Campaign Creation
Global Communication Platform
Global KOLs
LACAR
75+ Legal Entities / Affiliates Brand Managers
• Region execution of Global Strategy
• Affiliate oversight
• Regional KOLs
• Local Execution of Global Plan
• Regional Phase IV
• In country share development
CAFE
Current Global Marketing Function
Regional
Marketing
Business
Development
Research &
Development
Global
Marketing
Manufacturing
Finance
Medical
Affairs
R&D Alliances
Legal
Role of 2010 Regional Marketing Teams



Regional Marketing Plans
– Global Messaging Compliance
– Objective
– Strategy
– Critical Success Factors
– Targeting
– Demand Model
– Market Research
– Tactics
Resource Allocation
Compliance / Regulatory
Role of 2010 Regional Marketing Teams
Speaker Development Meetings
 KOL Management
 Promotional Meetings
 Educational Meetings
 Promotional Articles
 Advertisement Placement
 Sales Meeting Execution
 Field Visitations
 Message Management
 Share of Voice Management

Role of 2010 Regional Marketing Teams
Forecasting
– Regional development opportunities
– Finance
– Manufacturing
 Provides regional input on acquisitions and portfolio planning
 Pricing (within Global Guidelines)
 Oversees affiliate activities and pricing
 Regional training needs and capabilities

Role of Global Marketing
Portfolio Management
Licensing
opportunities
Acquisition
Targets
Internal
Development
Projects
Increasing eNPV
Role of Global Marketing
Managing Portfolio Strategy
 Strategic Planning Process
 Global Reimbursement Strategy
 Global Advisory Boards
 Global Market Intelligence Requirements
 Global Phase IV Plan
 Global Meeting Execution
 Global Field Visits & Market Support
 Brand Resource Binders

Alcon Corporate Governance
Global
Marketing
Committee
Project
Review
Meeting
Portfolio
Management
Committee
Global Advertising?
Standardization of Advertising

For:
– Economic Advantage – Economies of Scale
– Creative Talent / Execution Concern
– Global Brand Names

Against:
– Cultural Diversity
– Regulatory Concerns
Barriers to International Communication

Cultural barriers
– Pepsi (SE Asia)
• Changed the color of vending machines from royal blue to light blue
• Light blue is associated with death and mourning in SE Asia

Source and Country of Origin Effects
– Quality Perception (e.g. Japan)
– Nationalism
International Marketing Mistakes

Parker Pens (Mexico)
– “It won’t leak in your pocket and embarrass you”
– Used embarazer (to impregnate) for emabarass
– Translation: It won’t leak in your pocket and make you pregnant

Coors (Spain)
– “Turn it loose”
– Translation: Suffer from diarrhea

Pepsi (China)
– “Pepsi brings you back to life”
– Translation: Pepsi brings your ancestors back from the grave
AZARGA Case Study
Alcon Branding Process (ABP)
GMC approval
of positioning
options to be
tested
1
2
Identify
Product
Benefits
Develop
Positioning
Statement
Options
Global
Positioning
Research
Incl. feedback
from Regions &
approval from
VP, Mktg
Incl. approval
from Director,
GMI on Market
Selection
VALIDATE
Background
Research
(Obtain
background
research from
R&D, GMI, etc)
Background
Phase
VALIDATE
Positioning Phase
GMC approval of
final positioning
and FOC
Creative
Brief
Approval
Meeting
GMC approval of
recommended
concept
3
4
5
VALIDATE
Create
Brand
Positioning
Document
Develop
Creative Brief
Generate
Core
Campaign
Ideas
Global
Concept
Devt.
Research
Incl. feedback Incl. approval
from Regions & from Director,
approval from GMI on Market
Selection
VP, Mktg
Concepting Phase
~40 weeks
6
7
Develop
Message
Platform
(addtl
message
testing as
needed)
Adapt
Global
Binder for
Regional
Execution
Execution
Phase
Local Flexibility
Examples of Regional Support / Flexibility
Products
 KYNEX® – Korea
 VIGADEXA® – Latin America
 CIPRODEX® Otic & PATANASE® – U.S.
Local Execution
 Regulatory Claims
 Targeting
 Packaging Needs
Push vs. Pull Strategies
Pull Strategy
Mass Media
Advertising
Push Strategy
Personal Selling
Factors to Consider:
Consumer Sophistication
Ability to Reach Audience
Channel length
Media Availability
Push vs. Pull

Push
– Industrial or Complex
products
– Distribution Channels are
short
– Limited Advertising
Media

Pull
– Consumer products
– Distribution Channels are
long
– Sufficient Advertising Media
Integration of Marketing, R&D and Manufacturing
Research & Development

Cross-functional Integration of Project Teams Helps Insure:
– Project development projects are driven by customer
needs
– New products are designed with manufacturing in mind
– Development costs are kept in check
– Time to market is minimized
Target Project Profile
Project Code
22-XXXX
Specialty
Anti-Inflammatory
Pharmaceutics
Aspiration for
value
proposition at
launch:
Base Case:
Indication and
Usage:
Patient
Profile/Target
Population:
Dosage and
Administration:
Upside Case/Aspirational Case:
High Performing Cross Functional Teams




“Heavyweight” Project Manager
– high status within the organization
– power and authority required to get financial and human
resources the team needs to succeed.
Should be composed of at least one member from each key
function
The team members should be located in one location if
possible
Should have a clear plan and clear goals
– Developmental milestones and budgets