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

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Presentation on theme: "Global Marketing and Research and Development University of Texas at Arlington November 17 th, 2010."— Presentation transcript:

1 Global Marketing and Research and Development University of Texas at Arlington November 17 th, 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 * YTD - Q3, 2010

4 5 Research Centers 14 Manufacturing Plants 75+Operating Companies 72 Countries with Physician Training Centers 14,500 Employees 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 Global Reach

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

6 Old Global Marketing Structure U.S. Product Manager International Product Manager U.S.JapanEURMEALACARCAFE Affiliate Product Managers

7 Old Global Marketing Structure U.S. Product Manager U.S.JapanEURMEALACARCAFE International Product Manager Affiliate Product Managers Global Marketing Director

8 New Global Marketing Structure - Strategic Brand Building Global Marketing Group Global Marketing Group U.S. JAPAN EURMEA LACAR CAFE Strategic Brand Planning Market Research Commercial Contact for Product Development Commercial Contact for Medical Affairs Global Position & Campaign Creation Global Communication Platform Global KOLs 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 GMC

9 Current Global Marketing Function Global Marketing Regional Marketing Research & Development Medical Affairs R&D AlliancesLegalFinanceManufacturing 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

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

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

13 Role of Global Marketing Portfolio Management Increasing eNPV Internal Development Projects Acquisition Targets Licensing opportunities

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

15 Alcon Corporate Governance Project Review Meeting Portfolio Management Committee Global Marketing Committee

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” –Translation:  Pepsi (China) –“Pepsi brings you back to life” –Translation: Suffer from diarrhea It won’t leak in your pocket and make you pregnant Pepsi brings your ancestors back from the grave

20 AZARGA Case Study

21 VALIDATE 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 Background Phase Positioning PhaseConcepting PhaseExecution Phase GMC approval of positioning options to be tested GMC approval of recommended concept Creative Brief Approval Meeting GMC approval of final positioning and FOC Alcon Branding Process (ABP) Incl. feedback from Regions & approval from VP, Mktg Incl. approval from Director, GMI on Market Selection Incl. feedback from Regions & approval from VP, Mktg ~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 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: Target Project Profile

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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