Making The Leap Into Emerging Markets: An Interview With Clorox’s Beth Springer
- Summary
Business development is a process to develop a business in a long term of an organization. For example, company A in Indonesia expand their business out of country which is Malaysia. Before that, business development team doing some research which potential country to expand their business and decide the country. In expansion out of country, Business Development team cooperate with other departments, such as sales, marketing, strategic initiatives, project management, vendor management, cost saving. The relationship between Business Development (BD) team and other department is, First, BD team assessing the market, then sales team target the revenue with their sales strategy. Second, BDteam gives marketing budget, then marketing team doing a promotion. Third, strategic initiative for entering new market and assited by legal and finance team. Fourth, Project Management doing a planning, ie important facility in new market. Fifth, Product Management, doing a verification of the contains in the products. And the last is Vendor Management, handling if new business need extra vendor.
- Abstract
The Clorox company discussed the strategy to expand in Latin America. Clorox company choose in Latin America because the competition doesn’t hard yet and could build capabilities and scale. Thus, many peers expanding there and it will become opportunity for Clorox company. Developing market using acquisition and partnership in order to be fast and competitive. Aside using partnership and acquisition, Clorox use functional practices. There is improvement which most noticeable from more sophisticated selling strategies in emerging markets with the increasing modern trade. The company also set up international development to increasing scale and speed. The difference between emerging customer and traditional customer is based on income, culture, and history. In 100 years running the business, the company learn about managing the volatility, the country risks, getting the right talent, and hearing the aspirations of consumers. Learning from the past, thus, it can succeed in emerging markets.
Reference: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/making-the-leap-into-emerging-markets-an-interview-with-cloroxs-beth-springer