Transcript InforMedix Marketing Research, Inc.

Emerging Markets and the Role of
Market Research
Steven Fuller
InforMedix Marketing Research, Inc.
2014
InforMedix Marketing Research, Inc. 2014
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Worldwide Experience
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About 30% of our work is conducted outside the US.
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Contacts and expertise are in place in …
• Europe
(UK, Germany, France, Italy, Spain, Nordics, etc.)
• Latin America
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Mexico
Brazil
Argentina
Chile
• Asia
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Japan
China
India
Singapore
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What is an “Emerging Market”?
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An emerging market economy (EME) is defined as an
economy with low to middle per capita income.
• The term was coined in 1981 by Antoine W. Van Agtmael of
the International Finance Corporation of the World Bank.
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EMEs are characterized as transitional, meaning they are in
the process of moving from a closed economy to an open
market economy while building accountability within the
system.
Reem Heakal, August 11, 2009
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What is an “Emerging Market”?
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Emerging markets, also known as emerging economies or
developing countries, are nations that are investing in more
productive capacity. They are moving away from
their traditional economies that have relied on agriculture
and the export of raw materials.
Kimberly Amadeo,
President, WorldMoneyWatch.com
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What is an “Emerging Market”?
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This term is used loosely to describe countries that are
exhibiting increasing growth in purchasing and usage of a
product of interest – and are crossing over from a point
where the market is too small or too difficult to work in, to
one where conducting business there yields a new and
attractive marketplace.
“Emergence” among markets for medical products, supplies
and services is normally associated with
• growth in affluence of the population,
• increasing stability of government structures, and
• policies and attitudes that promote better healthcare than in
the past.
Steve Fuller
InforMedix Marketing Research
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EME Characteristics
1. Lower-than-average per capita income
2. Rapid change to a more industrialized economy
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U.S., Germany, U.K., Japan: 1-2%
Turkey, Russia, Mexico and South Africa: 3-4%
Brazil: 4.5%
China, India: 8%
3. Economic & political risk / volatility
• Higher-than-average return for investors
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Examples ….
BRIC
MSCI Index
Others (HBS)
CIVETS
PINE
Fragile Five
• Brazil, Russia, India, China
• Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India,
Indonesia, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia,
South Africa, South Korea, Taiwan, Thailand, Turkey
• Argentina, Hong Kong, Jordan, Kuwait, Saudi Arabia, Singapore, UAE,
Vietnam
• Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa
• Philippines, Indonesia, Nigeria, Ethiopia
• Brazil, India, Indonesia, South Africa, Turkey
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How are these locations different from
“developed markets”?
Patient age, Disease mix
Healthcare infrastructure
Insurance? Who pays for healthcare?
Role of government
Decision-makers (diagnostics and treatment)
Role of local manufacturers and distributors
Spend level on healthcare
etc.
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How is medical technology adopted in
Emerging Markets?
1. Direct movement of products
from developed markets
High-end
Used/refurbed
Low-end product
In Vivo: The Business and
Medicine Report 2012
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How is medical technology adopted in
Emerging Markets?
2. Low-cost copies by in-country
manufacturers
Low-cost supply chain
Low-cost materials
Low-cost labor (mfg. and
distribution)
Limited regulation & validation
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How is medical technology adopted in
Emerging Markets?
3. Market-specific
innovation
By multi-nationals
By locals
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Multinationals vs. Locals
Medical Device Growth in Emerging Markets (McKinsey & Co.)
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Market Research
Available Information Sources
Off-the Shelf
Reports
Individuals with
Local Expertise
Your
distributors
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Market Research
Formalized Custom Investigations
Learn specifically about opportunities for your own particular
product or service areas
Reduce the risk of acting on information that comes from a
limited viewpoint
More information flows to professional market researchers
Apples-to-apples comparisons between several targeted
markets
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Learn About “the Local System”
Who Does What in this Medical
Marketplace?
Where Does the Money Flow?
• The Role of Company Sales
Representatives
• Patient payments, Insurance,
Government subsidies
• The Role of Distributors
• Payment for Disposables and
Services
• The Role of Hospital / Facility
Administration and
Purchasing
• The Role of the Government
and its Agencies
• Payment for Capital Goods
• Purchase / Lease / Rental
Contract
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Learn About the Medical Device
Marketplace
What Kinds of Facilities Will Be Our
Customers?
• Hospitals
How Does Product Evaluation and
Purchasing Work?
• Purchasing Methods and
Decision Makers
• Physicians
• Non-Hospital Care Sites
• How to Engage with a New
Customer Site
• Other Types of Customers
• Vendor Selection Factors
• Product Selection Factors
• Pricing “Tiers” and Budget
Approvals
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Learn About Unmet Needs
What are the Unmet Needs in this New Market?
• Current Patient Evaluation and Pathways of Care
• Competitive Products and Services in Use
• Key Challenges, Costs, Inefficiencies with current products
• Medical Risks, Reasons for Morbidity and Mortality with current
products
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Learn What Makes Prospects into
Customers
What Else Can We Do to
Facilitate Use and
Purchasing of Our
Products/Services?
What Else Do I Need to
Know About Doing
Business Here?
• Multiproduct Contracting
• Regulatory Environment
• Ancillary Support Services
from Vendors
• Relevant Cultural Issues
• Local Manufacturing
• Attitudes Toward Foreign
(e.g. US) Based Vendors
• Is there a better way?
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InforMedix Experience, Qualitative Research
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China
• In-facility interviews with purchasers and surgeons
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India
• In-office interviews with surgeons
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Mexico
• In facility & in-office with purchasers and surgeons
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Brazil
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In facility & in-office with purchasers and surgeons
Market Research in Worldwide Emerging Healthcare Markets:
Understanding Your Company’s Opportunity
Steven J. Fuller, InforMedix Marketing Research, Inc.
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Market Research
Challenges in Emerging Healthcare Markets
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What is the goal?
• To participate as the market grows?  screen for typical
customers
• To serve the undeveloped parts of the healthcare
system?  screen for unserved customers
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Market Research
Challenges in Emerging Healthcare Markets
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Is there a bias for or against “outsiders”?
• Who should moderate?
• How should assistants be trained?
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Market Research
Challenges in Emerging Healthcare Markets
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How good is the market research infrastructure?
• Planning
• Screening
• Scheduling
• Facilities
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Market Research
Challenges in Emerging Healthcare Markets
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Are we communicating?
• Language
• Terminology
• Product descriptions & usage
• Should we assume they know what we mean?
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Emerging Markets and the Role of
Market Research
Steven Fuller
InforMedix Marketing Research, Inc.
2014
InforMedix Marketing Research, Inc. 2014
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