60 hope hyde
- 1. Global Sales and Marketing PRESENTED BY John A. Hope Madelene Hyde VP, Global Sales and Director, Global Marketing and Medical Education Marketing Elsevier Elsevier
- 2. Agenda 1. Core Market Challenges 2. Global Market Challenges 3. Global Opportunities 4. Evolving Product Platforms 5. Implications for Marketers 6. The Global Launch 2
- 3. Core Market Challenges n Stagnation in core business – Low growth in the core products & core geographic markets – Single digit growth in the ELP distribution business – Marginal growth in the most mature front lists (North America & Europe) – Slowing growth in Journals, particularly in subscription revenue 3
- 4. Core Market Challenges n More, and more diverse and robust non- traditional competitors n Book unit sales down across many publishing industry segments – we’re fighting over a shrinking pie n Channel shifts continues (7+ year trend still accelerating) 4
- 5. Core Market Challenges n Pressure for Higher margins and greater growth shareholders n Customers want more accessible, customized, searchable, and current information n Just in time, problem solving, search oriented information – lends itself less to print 5
- 6. Global Market Challenges n Piracy n Local language competitors n Regional Pricing pressures n Inter company squabbles n Legal and regulatory environments n Opportunity for Gray Marketeers 6
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- 8. Why is globalization so important to HSD? The majority of potential customers… • 90% of the world’s population § 83% of the GPs • 52% of Health Expenditure § 78% of the Dentists • 65% of the student market § 72% of the Nurses Large potential growth… Asia: 12-17% US: 5-6% ROW: 18-25% Latin America: Europe, Japan, 8 15-20% Australia: 7-10%
- 9. Target ranked Languages & Dialects (Populations) Languages Speakers Notes Chinese 952,000,000 Mandarin English 470,000,000 Spanish 381,000,000 Portuguese 182,000,000 Japanese 126,000,000 French 124,000,000 German 121,000,000 Korean 75,000,000 Chinese 66,000,000 Cantonese Chinese 65,000,000 Shanghai Italian 63,000,000 Chinese 50,000,000 Min Chinese 48,000,000 Hunan 9
- 10. Target ranked by GDP per capita Health GDP US$ 2002 Key expenditure Pop'n Countries Total ($Billion) per capita (IMF) Japan 290.0 29447 126.7 United Kingdom 97.0 24700 59.5 Netherlands 30.4 24090 15.9 Germany 313.0 22466 82.2 France 136.0 21982 58.9 Australia 32.5 19136 19.0 Italy 96.6 19127 57.7 Hong Kong 9.9 18500 6.7 Spain 42.6 15323 39.5 Taiwan 14.1 12566 22.2 Korea 13.9 9447 46.9 Mexico 18.9 6335 97.0 Brazil 38.8 3151 166.1 China 45.0 973 1259.1 India 22.7 486 1027.0 Total 1.2 ($Trillion) 3.1 (Billion) United States 1149.1 37823 272.7 10
- 11. The Global Context n In order to succeed companies must leverage franchise assets in key global and local markets in ways that were not possible before. n In order to maintain leadership and drive growth, must move from a US/English Language centred, distribution business model to a global/local multi-lingual information provider. 11
- 12. Expansion Strategies Category Countries Potential Strategies n USA Mature n Market Share focus n UK Must be leader in n Expand Channels Global & Local n Japan n Tactical Acquisitions Growth: 6 to 10% n Western Europe n Localize content Margin: 18 to 25% n Australia n Build local S&M Expansion n Asia (India, Taiwan, infrastructure Build leadership – Korea) n Begin building local Global then Local n Latin America publishing expertise Growth: 10 to 15% (Mexico, Brazil, PR) n Explore tactical Margin: 15 to 20% acquisitions n China nFocus on developing & Opportunistic n Middle East managing distribution channels Drive revenue growth n Latin America nPenetration pricing Long term view n East. Europe, Russia nJoint ventures Growth: 20% + n South East Asia nLicense rights, co-publish to co- 12 Margin: 10 to 15% n South Africa penetrate market & build brand
- 13. Market Penetration Strategies: from licensing to local publishing Own Publishing Reprints Acquisition Adaptations Versioning Joint venture Translations Own Sales & Marketing Local authored Distribution Co-editions Licensing Lower Higher Risk Risk Investment Investment 13 Return Return
- 14. Joint Ventures – Joint ventures are a low risk vehicle for entry into markets or segments where you do not have a position, wish to learn and/or wish to establish a relationship with a potential acquisition target 14
- 15. Back to… Core Market Challenges n Pressure for Higher margins and greater growth shareholders n Customers want more accessible, customized, searchable, and current information n Just in time, problem solving, search oriented information – lends itself less to 15 print
- 16. Migration from Print to Electronic Platforms n Panacea? n Aggregation of print content to electronic platforms has still not yet lived up to revenue expectations n ROI has been elusive n “Because when it is in print it is mine.”16
- 17. What is an e -dition? + = BOOK WEB 17
- 18. What is an e -dition? Purchasing an entitles the customer to: • A copy of the book – the most comprehensive resource that covers the entire field of Ophthalmology in one volume. • The entire image bank online – over 2300 color images downloadable to PowerPoint. • The entire book online – fully searchable text with reference links to PubMed and Medline when applicable. • Weekly content updates written by authors – at least once a week for the life of the edition there will be an update to the text posted online in response to newly published research. 18
- 19. What are the implications for Marketing? § Value proposition is changing. We’re moving from and “arms length” relationship with customers to closer, on-going relationship via licensing and online. § Direct relationships with the customer for the life of the product. (Hopefully!) 19
- 20. 20th Century Book Marketing n Focused primarily on the road ahead 20
- 21. 20th Century Book Marketing n Planning started 6 to 12 months ahead n Created Marketing Plan (MP) n Executed MP for 12+ months after pub. n Ran periodic back list promotions for 2-3 years n Primarily looking forward 21
- 22. “Rear View Mirror” Marketing n Focusing forward, as well on past (current) customer interactions n Publishing customer transactions are no longer singular events at an arm’s length n We now have the opportunity and obligation to manage an on-going relationship with our customers 22
- 23. “Rear View Mirror” Marketing n Not to be confused with “back seat marketing” or “Monday morning quarterback” Marketing 23
- 24. “Rear View Mirror” Marketing n Change in mind set, planning, systems, procedures n We now have the opportunity and obligation to manage an on-going, weekly dialogue with our relationship with our customers n We had better get it right, or we will lose them 24
- 25. 21st Century Asynchronous Marketing n On-line companion products, change the model n Internal systems, planning, procedures, and mind set n Perpetual front list mentality n Great opportunities for market research 25
- 26. Goals - Global Launch Program •Global Product Team: select team to champion product launch •Product Plan: release strategy, Global Forecast generated and signed off adaptations, translations, version, platforms, pricing, licensing, reprints Global P&L generated and singed off •Global Marketing Strategy: promotions, positioning, conference launch, Opinion Regional Marketing: implementation, Leader targets, Author tours dates, tactics •Global Selling Strategy: channel plans, Regional Selling Strategy: channel, country targets, distribution plan, implementation, training, targets agencies, product training Feedback loop & monitoring 26
- 27. Goals - Global Launch Program (Concept) n Greater strategic integration n Collaborative planning across all markets n Constant communication - editorial (tech and print), marketing, sales, production, Local Language Publishing team 27
- 28. Goals - Global Launch Program (Concept) n An honest financial assessment of the product (historical and future) n A Global P&L n Understanding market realities and needs through research and empirically based conclusions 28
- 29. Goals - Global Launch Program (Concept) n Greater strategic integration n Understanding market realities and needs through research and empirically based conclusions n Post Launch - Constant feedback as to the success of the message and the campaign so we can alter and adjust tactics during the sales process. 29
- 30. Global Launch Program Criteria n Reserved for products that will undergo a major strategic shift or innovation in content, format, or one that has other unique aspects that warrant the significant investment of resources (capital and time) that a global launch entails. – Substantial growth of revenue as a result. – Substantial growth of market share. – New product launch. n A rational risk assessment should show that the extra effort will have a substantial affect towards reaching or exceeding the financial goals of the product. 30
- 31. A Global P&L perspective is a requirement for a global company $000s US Portugese N. Eur. Australia Spanish Indian Global Trans. dist. adapt. Trans. reprint Net price 70.0 28.0 70.0 38.0 32.0 15.0 51.40 Units 50.0 10.0 5.0 10.0 15.0 10.0 100.0 Sales 3500.0 280.0 350.0 380.0 480.0 150.0 5140.0 PP&B 490.0 39.2 175.0 68.4 72.0 37.5 882.1 Plant 525.0 42.0 57.0 72.0 3.0 699.0 Royalty 350.0 28.0 30.0 38.0 57.6 15.0 518.6 Obsolescence 70.0 5.6 7.0 7.6 9.6 99.8 COGS 1435.0 114.8 212.0 171.0 211.2 55.5 2199.5 Gross margin 2065.0 165.2 115.5 209.0 268.8 94.5 2918.0 Gross margin % 59% 59% 33% 55% 56% 63% 58% 31
- 32. Global Launch – A Case Study n Gray’s Anatomy: One of the most famous brands in Medical publishing, but weighed down with problems… – Branding Issues – Inertia in the Market – Internal Inertia – Pricing and Distribution 32
- 33. Branding The Gray’s name represents excellence, quality and tradition 33
- 34. Inertia In The Market n Who still wants a big reference book in Anatomy? – Exactly who is our market and what do they need? – One answer… 34
- 35. Internal Inertia n An asset that everyone took for granted but no-one really knew what to do with n No one knew who was buying Gray’s and it was misunderstood n Global Launch + Market Research = Clearer understanding and renewed enthusiasm! 35
- 36. Improved Product… n New organization in line with what our targeted audience want and need n New emphasis on Clinical Practice n An e-dition moving Gray’s from a nice- to-have to a need-to-have product n Internal buzz 36
- 37. Pricing and Distribution n Old pricing model had to be thrown out of the window n Need to ensure stock available around the world simultaneously – In format that suits the market – At a price that suits the market 37
- 38. Conclusion n Thank you n Questions? 38