Emerging markets have their own special challenges, with unique cultures, lifestyles, and attitudes. Finding the right combination of global brand consistency and local customization is a challenge for each new market entered. This report presents a series of case studies describing new product launches in emerging markets that failed to thrive, together with an analysis of what went wrong.
- Understand some of the unique challenges of launching new products in emerging markets.
- Gain insight into the errors that led to new product failures in emerging markets, in order to avoid repeating these mistakes.
- Assess strategies used by global brands to adapt their products and marketing messages for emerging markets.
- Benefit from a careful consideration of the criteria needed for a successful product launch in an emerging market.
- Learn how cross-country differences in education levels, cultural beliefs, and other localized factors can make consumers reject a product.
- What are five major reasons for new product failure in emerging markets?
- What marketing strategies can be employed to introduce emerging market consumers to a new category of product?
- How do marketers need to think differently about new product pricing in emerging markets versus developed markets?
- How can innovation managers preserve a consistent brand identify globally and still address the unique needs of new and emerging markets?
- What are some common obstacles for new product launches in emerging markets that are not typically faced in developed markets?
A compelling value proposition is important for all new products. This is particularly true in emerging markets, where greater challenges exist. Product benefits you might assume are universally valued, such as time-savings and convenience, may not be as appreciated in an emerging market where labor is cheaper and disposable income is lower.
When setting price points, look at the lowest and highest priced products available in the market. Adjust the product and package size to fit into an affordable price point. Be sensitive to very small differences in price - both in the absolute price of the new product and versus competition - because emerging market consumers typically are.
Translate technical advantages into words and images that make an emotional and personal connection. For example, Yakult's lactobacilli biotechnology may offer superior moisturizing, but Brazilian women didn't relate to such technical details; they just want to look and feel more beautiful.