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University of Texas at Arlington

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Presentation on theme: "University of Texas at Arlington"— Presentation transcript:

1 University of Texas at Arlington
ALL Global Marketing and Research and Development University of Texas at Arlington November 17th, 2010

2 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

3 The Need for Global Marketing Alcon Geographic Sales Breakdown
United States International 2000 2010* The extent of our global reach is reflected in the breakdown of our sales by geography. While the US is still our largest market, International sales account for almost half of Alcon’s global sales. In the surgical product arena, international actually contributes more than 50% of the sales volume. * YTD - Q3, 2010

4 Global Reach Describe the operations
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 Describe the operations Unparalleled scope and reach to all areas of the globe. Importance of direct sales and marketing

5 Old Global Marketing Function
Research & Development Global, Regional and Affiliate Marketing Product Development Brand Development & Promotion

6 Old Global Marketing Structure
U.S. Japan EURMEA LACAR CAFE U.S. Product Manager International Product Manager Affiliate Product Managers

7 Old Global Marketing Structure
U.S. Japan EURMEA LACAR CAFE Global Marketing Director U.S. Product Manager International Product Manager Affiliate Product Managers

8 New Global Marketing Structure - Strategic Brand Building
Group GMC Strategic Brand Planning Market Research Commercial Contact for Product Development Commercial Contact for Medical Affairs Global Position & Campaign Creation Global Communication Platform Global KOLs U.S. JAPAN EURMEA LACAR CAFE 75+ Legal Entities / Affiliates Brand Managers Region execution of Global Strategy Regional KOLs Regional Phase IV Affiliate oversight Local Execution of Global Plan In country share development

9 Current Global Marketing Function
Regional Marketing Research & Development Medical Affairs R&D Alliances Legal Finance Manufacturing Business Development

10 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 List of responsibilities of Regional Marketing

11 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 List of responsibilities of Regional Marketing

12 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 List of responsibilities of Regional Marketing

13 Role of Global Marketing Portfolio Management
Increasing eNPV Internal Development Projects Acquisition Targets Licensing opportunities One of the key performance indicators for Global Marketing (as well as the Therapeutic Unit Heads in R&D) is the management and growth of the estimated Net Present Value of the portfolio. This includes internal development projects as well as successful licensing of early stage compounds and technology and the acquisition of external products and opportunities. As projects are advanced through the R&D stage gate model, their likelihood of approval (or probability of success increases). This equates into an increase in the estimated Net Present Value for the portfolio. and

14 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 List of responsibilities of Global Marketing

15 Alcon Corporate Governance
Project Review Meeting Portfolio Management Committee Global Marketing Committee Within the past 2 years, Alcon has instituted a Corporate Governance Process. It is important for all of us to understand the process and how decisions are made within the organization. The Portfolio Review Meeting (PRM) is an R&D led meeting that assesses the science supporting each project and makes decisions as to whether a project should advance to the next stage in the stage gate model. The Global Marketing Committee (GMC) reviews and endorses marketing and commercial decisions. The combined effort of PRM (Science) and GMC (Commercial) are presented to the ELT at the Portfolio Management Committee meeting who makes “investment” decision. Examples of this are to move projects from Exploratory B into confirmatory or review the Technical assessment (including R&D & Legal) and the commercial valuation for an external acquisition target.

16 Global Advertising?

17 Standardization of Advertising
For: Economic Advantage – Economies of Scale Creative Talent / Execution Concern Global Brand Names Against: Cultural Diversity Regulatory Concerns

18 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

19 International Marketing Mistakes
Parker Pens (Mexico) “It won’t leak in your pocket and embarrass you” Used embarazer (to impregnate) for emabarass Translation: Coors (Spain) “Turn it loose” Pepsi (China) “Pepsi brings you back to life” It won’t leak in your pocket and make you pregnant Suffer from diarrhea Pepsi brings your ancestors back from the grave

20 AZARGA Case Study

21 Alcon Branding Process (ABP)
GMC approval of positioning options to be tested Creative Brief Approval Meeting GMC approval of final positioning and FOC GMC approval of recommended concept VALIDATE 1 2 3 4 5 6 7 Background Research (Obtain background research from R&D, GMI, etc) Identify Product Benefits Develop Positioning Statement Options Global Positioning Research Create Brand Positioning Document Develop Creative Brief Generate Core Campaign Ideas Global Concept Devt. Research Develop Message Platform (addtl message testing as needed) Adapt Global Binder for Regional Execution Incl. feedback from Regions & approval from VP, Mktg Incl. approval from Director, GMI on Market Selection Incl. feedback from Regions & approval from VP, Mktg Incl. approval from Director, GMI on Market Selection ALEX - Please use hidden slides (4-5) to talk to this slide. Background Phase Positioning Phase Concepting Phase Execution Phase ~40 weeks

22 Local Flexibility

23 Examples of Regional Support / Flexibility
Products KYNEX® – Korea VIGADEXA® – Latin America CIPRODEX® Otic & PATANASE® – U.S. Local Execution Regulatory Claims Targeting Packaging Needs

24 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

25 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

26 Integration of Marketing, R&D and Manufacturing

27 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

28 Target Project Profile
Project Code 22-XXXX Specialty Pharmaceutics Anti-Inflammatory Aspiration for value proposition at launch: Base Case: Upside Case/Aspirational Case: Indication and Usage: Patient Profile/Target Population: Dosage and Administration:

29 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


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