InforMedix Marketing Research, Inc. 20141 Emerging Markets and the Role of Market Research Steven...

InforMedix Marketing Research, Inc. 2014 1

Emerging Markets and the Role of Market Research

Steven FullerInforMedix Marketing Research, Inc.

2014

Worldwide Experience

About 30% of our work is conducted outside the US.

Contacts and expertise are in place in …

• Europe (UK, Germany, France, Italy, Spain, Nordics, etc.)

• Latin America Mexico Brazil Argentina Chile


• Asia Japan China India Singapore

What is an “Emerging Market”?

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.

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

http://www.investopedia.com/contributors/80

http://www.investopedia.com/contributors/80


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

http://worldmoneywatch.com/


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

EME Characteristics

1. Lower-than-average per capita income

2. Rapid change to a more industrialized economy• 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


Examples ….

BRIC• Brazil, Russia, India, China

MSCI Index

• Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand, Turkey

Others (HBS)

• Argentina, Hong Kong, Jordan, Kuwait, Saudi Arabia, Singapore, UAE, Vietnam

CIVETS• Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa

PINE• Philippines, Indonesia, Nigeria, Ethiopia

Fragile Five

• Brazil, India, Indonesia, South Africa, Turkey


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.


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


2. Low-cost copies by in-country manufacturers

Low-cost supply chain

Low-cost materials

Low-cost labor (mfg. and distribution)

Limited regulation & validation



3. Market-specific innovation

By multi-nationals

By locals


Multinationals vs. LocalsMedical Device Growth in Emerging Markets (McKinsey & Co.)


Market ResearchAvailable Information Sources

Off-the Shelf Reports

Individuals with Local Expertise

Your distributors


Market ResearchFormalized 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


Learn About “the Local System”

Who Does What in this Medical Marketplace?

• The Role of Company Sales Representatives

• The Role of Distributors

• The Role of Hospital / Facility Administration and Purchasing

• The Role of the Government and its Agencies

Where Does the Money Flow?

• Patient payments, Insurance, Government subsidies

• Payment for Disposables and Services

• Payment for Capital Goods

• Purchase / Lease / Rental Contract


Learn About the Medical Device Marketplace

What Kinds of Facilities Will Be Our Customers?

• Hospitals

• Physicians

• Non-Hospital Care Sites

• Other Types of Customers

How Does Product Evaluation and Purchasing Work?

• Purchasing Methods and Decision Makers

• How to Engage with a New Customer Site

• Vendor Selection Factors

• Product Selection Factors

• Pricing “Tiers” and Budget Approvals


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


Learn What Makes Prospects into Customers

What Else Can We Do to Facilitate Use and Purchasing of Our Products/Services?

• Multiproduct Contracting

• Ancillary Support Services from Vendors

• Local Manufacturing

• Is there a better way?

What Else Do I Need to Know About Doing Business

Here?

• Regulatory Environment

• Relevant Cultural Issues

• Attitudes Toward Foreign (e.g. US) Based Vendors


InforMedix Experience, Qualitative Research China

• In-facility interviews with purchasers and surgeons

India• In-office interviews with surgeons

Mexico• In facility & in-office with purchasers and surgeons

Brazil 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.

Market Research Challenges in Emerging Healthcare Markets

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



Is there a bias for or against “outsiders”?

• Who should moderate?

• How should assistants be trained?



How good is the market research infrastructure?

• Planning

• Screening

• Scheduling

• Facilities



Are we communicating?

• Language

• Terminology

• Product descriptions & usage

• Should we assume they know what we mean?



Emerging Markets and the Role of Market Research

Steven FullerInforMedix Marketing Research, Inc.

2014

InforMedix Marketing Research, Inc. 20141 Emerging Markets and the Role of Market Research Steven...

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