There are key differences in marketing strategies between developing and developed markets. In developing markets, companies must adapt to local conditions like infrastructure challenges, income levels below $2/day, inefficient distribution networks, and volatile currencies. Successful companies in developing markets understand the local culture and languages, tailor affordable products to local needs, and find innovative solutions to distribution problems. The main developing markets discussed are BRICS countries (Brazil, Russia, India, China, South Africa), Indonesia, and West Africa, which provide significant revenue opportunities for multinational companies.

1. What are the differencesWhat are the differences
between Marketing in abetween Marketing in a
developing and developeddeveloping and developed
markets?markets?

2. Possibilities in developing markets
% revenue from developing markets
Local Dynamos
Developing markets
BRICS
Indonesia and South Africa

3. Grameenphone
Colgate pamolive
Corporacion GEO

4. DEVELOPIN
COUNTRIE
DEVELOPED
COUNTRIES

5. Local DynamoLocal Dynamo
• They prosper in home marketsThey prosper in home markets

6. Stretching the
limits with
NOKIA
2 RS SATCHES BY
UNILEVER
“KIRANA ” STORES

7. Pepsico, Kellogg’s ear 5-15% of their revenue from developing markets.Pepsico, Kellogg’s ear 5-15% of their revenue from developing markets.
Kraft Foods earn over 25% of their revenue from developing marketsKraft Foods earn over 25% of their revenue from developing markets
Nestle estimates over $1 Billion sales from developing markets.Nestle estimates over $1 Billion sales from developing markets.

8. KEY DEVELOPINGKEY DEVELOPING
MARKETSMARKETS
MARKETSMARKETS

10. BRICSBRICS

11. BRAZIL
• 87% LOW INCOME
GROUPS
• Was the world’s second
fastest growing economy
• 25% earn <$2/day

12. CUSTO BRASILCUSTO BRASIL
COSTLY TRANSPORTATIONCOSTLY TRANSPORTATION
UNLOADING IS TWICE AS COSTLY AS INDIAUNLOADING IS TWICE AS COSTLY AS INDIA

13. PRICE REDUCTION:
BONO COOKIES
NATIVE NAMES:
UNILEVER’S ALA

14. RUSSIARUSSIA

15. PROS CONS
Largest exporter of natural
gas,oil, and steel.
Growing middle class and
their salaries
Income $700/million
1. Poor infrastructure
2. Dwindling workforce

16. CHINACHINA
700 MILLION LIVES IN SMALL COMMUNITIES700 MILLION LIVES IN SMALL COMMUNITIES
Demand higher quality productsDemand higher quality products

17. IndonesiaIndonesia

18. • Third fastest growing
economy
• 6th most active country on
microblogging site
• 14,000 islands, hot and
humid climate leads to
inefficient distribution

19. South AfricaSouth AfricaChallengesChallenges
Bad roads, electricityBad roads, electricity
Volatile currencyVolatile currency
War, famine, AIDSWar, famine, AIDS

20. MTN BUILT THE FIRST SOLAR PAYPHONEMTN BUILT THE FIRST SOLAR PAYPHONE