Expanding into emerging markets remains a key growth strategy for many life sciences companies. However, many face significant challenges in doing so, including market access elements such as manufacturing, distribution, supply chain planning, pricing, taxation, regulation and talent. Accenture recommends a four-point integrated strategy to overcome these challenges and grow revenues in emerging markets.
Think customer clusters: The importance of submarkets—Each of the emerging markets is a combination of diverse segments with nuances and distinctive features. By finding commonalities in disease patterns and/or in demographic groupings, companies can prioritize submarket attractiveness to help determine where to focus and essentially target opportunities and build/buy capabilities around people, processes and technology with less risk and greater chance of success.
Find cross-border similarities—The concept of “customer clusters” also can help life sciences companies employ strategies that have no borders—that is, appealing to customer groupings across countries and continents. Based on Accenture’s analysis, some of the similarities across markets are not being sufficiently leveraged to create solutions that can move across borders and create more accurate and effective cross-country segments with new areas of demand and growth.
Establish global reach with local relevance—Whether in an urban or rural market, it can be beneficial for companies to “think globally and act locally” to meet the needs of consumers in emerging markets. Although this approach may require tweaking an existing solution or building an entirely new one, it is essential to perform a granular assessment to develop a more customer-centric, localized solution.
Create effective and rapid execution capabilities—The ability to execute initiatives in a timely manner across markets involves two critical capabilities: developing a deep understanding of the customer and an ability to get close to them by leveraging networks and chains of influence; and improving risk management capabilities in order to take well-considered risks to rapidly seize market share.
To learn more about our Research Findings, please read Winning in Emerging Markets to Drive Growth in the Life Sciences Industry