ASAE Intnl Conference 2013_ Deep Dive into Emerging Markets

Deep Dive Exploration:

Navigating the Emerging Markets

Thursday May 16, 2013

8:00 a.m. – 10:45 a.m.

Agenda – Part 1

• Agenda

8:00-9:30

Growing Importance of Emerging Markets & Building a Competitive Business Case

Jim Ott Florence Chua Tarnbir Kaur Gina Van Dijk Nikki Walker

Understanding the importance of the leading emerging markets & latest trends

Key global trends underlying business growth Nikki Walker

Brazil Gina Van Dijk

China Florence Chua

Middle East & India Tarnbir Kaur

In depth case study - how to define market potential, build a business case and entry strategy: spotlight on the American College of Physicians (ACP) strategy in India.

Jim Ott Tarnbir Kaur

Agenda – Part 2

• Agenda

9:30-10:30 Working the Business: Different Approaches for Different Markets

Brantlee Underhill Eryn Carter Greg Dummer Nikki Walker

Panel Discussion: Associations representing various strategies in several emerging markets at different stages of maturity will share their experiences

• Growth: defining their growth strategy for different markets

• Operations: identifying the right operational model, and how this affects local staffing and expertise, and HQ operations

• Products & programs: customizing and ensuring local relevance

PMI in Latin America Brantlee Underhill

MDRT in Asia (spotlight on India) Eryn Carter

SLAS in China Greg Dummer

Key global trends underlying business growth in these markets

Nikki Walker, Global Vice President

Association Management & Consulting

MCI Group

3 global trends

• Changing demographics

• Skills shortage

• Education strategies

Changing demographics

• Growth of Middle Class: > 50% of world’s population by 2030 (29% in 2008)

• Massive fluctuation in old & young generations • Mounting pressure on working age “sandwich” generation

Global skills shortage

• One

Ready for Work

10% 25%

34% of employers worldwide are having trouble

filling jobs

73% do not have the talent they need on staff

Manpower 2012

Every industry faces talent challenges

Education strategies

Put in quote about CEO strategy fro mother slides

72% of CEOs state that EDUCATION is

the most critical factor to ensure future success of

their business

United Nations Global Compact CEO Survey 2010

10

Opportunities for US Associations 1. Worldwide ease of access

2. US content as global leader

(Asia, ME, LatAm)

3. Thirst for knowledge/global

standards/certification/best

practices/competitive

advantage

4. Tangible vs intangible

products vs membership

5. Members, customers or

community?

6. One size doesn’t’ fit all;

rules of engagement/ delivery

must change

7. Mission vs margin

8. World’s your oyster: where,

who, why, what?

BRAZIL

Trends, government initiatives and growth

opportunities

Gina Van Dijk, Deputy Managing Director, MCI Brazil

CHINA

Trends, government initiatives and growth

opportunities

Florence Chua

Director, Association Management & Consulting, MCI China

China 12th 5 Year Plan (2011-2015)

Theme: Re-balancing Economic Growth

Primary Goal: Improving People’s Livelihoods

GDP Growth at

7- 8% Domestic

Consumption Oriented

Develop New

Industries

Government

Administrative Reform

CPI Lower than

4%

Strategic Industries/Plans

Advance growth through science and technology

18th CPC National Congress Highlights

1. New leadership to deepen reform

2. Restructure administrative governance

3. Speed up urbanization to reduce disparity

4. Improve accessibility to healthcare and housing

5. Boost domestic consumption

6. Combat against corruption

7. Address environmental pollution

8. Improve food safety

9. Aging population and one-child policy

10. Liberalization of currency and interest rates

Governance Restructuring

Budget Priorities

Healthcare Reform

Immense Need for Energy

Employment/Talent Challenge

Implications

Plan and Persevere

Huge market potential but complicated

Meet market needs

Mature products with strong BOK

Align with China priorities/needs

12th 5-Year Plan Industry 5-Year Plan

INDIA & MIDDLE EAST Trends, government initiatives and growth

opportunities

Tarnbir Kaur, CAE, Director Association Management & Consulting,

MCI Middle East

India WEF Rankings

Focus areas for India’s 5 year plan

Theme: Increased involvement of private sector

Primary Goal: Faster, Inclusive, Sustainable Growth

GDP Growth at

9-9.5%

Education and Skill

Development

Creation of Jobs

Focus on

infrastructure

Health and Women’s

development

Opportunities

“During the Twelfth‐Plan, there is an urgent need to develop a large sector offering short‐cycle qualifications in the form of associate degrees catering to intermediate skills in the higher education space”

Key Growth Sectors

• Retail

• Telecom

• Healthcare

• Education

• FMCG

• BFSI

• Real Estate and Construction

Middle East Region

Source: World Bank

Focus: Gulf States

GDP distribution

Diversification Strategy

Key Focus Sectors in GCC

• Energy

• Utilities and Transport

• Financial Services

• Industrial and Manufacturing

• Healthcare and Education

• Technology

Case Study: American College of Physicians

(ACP) strategy in India. How to define market potential, build a business case

and entry strategy.

James M. Ott, Senior Vice President, International Programs, ACP

Fostering Excellence & Professionalism in

Internal Medicine

A Case Study on Market Entry in India - James M. Ott, Senior Vice President, International Programs, ACP - Tarnbir Kaur, CAE Director, Association Management and

Consulting, MCI group

What is ACP?

Largest medical specialty society in the U.S. with 133,000 total

members.

Membership includes internists, internal medicine subspecialists,

residents and fellows-in-training, and medical students.

Five categories of membership-Medical Students, Associates,

Membership, Fellow and International Physician Affiliate

Key products- Annals, MKSAP® 16, PIER®, ACP Journal wise

and additional Clinical Resources

Mission: to enhance the quality and effectiveness of health care by

fostering excellence and professionalism in the practice of

medicine.

ACP International Membership

2007 through 2012

6,000

7,000

8,000

9,000

10,000

11,000

2007 2008 2009 2010 2011 2012

6,745 6,903

7,590

8,694

9,661 10,152

International Membership

14 International Chapters in Canada, Brazil, Central America, Chile, Colombia, Mexico, Venezuela, Japan, Saudi and South East Asia

Why India? Greater emphasis on

international expansion in ACP

strategic plan

Viewed as untapped source of

membership/product sales

Significant number of domestic

members are physicians of

Indian origin

Some domestic ACP leaders

have ties to India

No need for translations

Why MCI?

Consultant Selection

Began in early 2011

RFP process

Utilized advice from colleagues with other

specialty societies

Looked for broad experience in international

market research, business development,

healthcare, etc.

Internal planning

International Coordinating Committee

(Staff)

Executive Office

Business Unit Leader (Journal Editor,

MKSAP)

Membership and Marketing

International

Key Leaders (Board

Members/Champions)

International Council (Guidance,

Input)

Consultant (Reports to SVP,

International Programs)

ACP Market Analysis Process

•Trends ,PEST Analysis

•Expose Barriers and Challenges

•Opportunities with Public, Private & Academic Sectors

•Customer Segmentation & Background

India Market Profiles-August

2011

•Define Players & Assess SWOT

•Point of Differentiation

•Partner?

Competitive Analysis – Sep

2011 •Market Entry Products

•Alignment of Products to Segments

•Possible Value Gaps

•Core Competencies

Product Audit- Sep 2011

•Define Segments’ Needs, Expectations, Desired Outcomes

•Confirm Any Gaps & Remedies

•80 interviews in total

Customer Outreach -Nov

2011 •Identify – Market Access, Financial Supporters, Service Providers, Content Providers, Community Multipliers, Media, etc.

•Profile, Score & Rank

Partner Analysis

Nov 2011

Kickoff-May 2011

Data Analysis Interviews

Project Plan Review

Recommendations- Dec 2011

Recommendations based on three key outcomes

Key findings 90% of respondents wanted ACP

to increase its presence in India

70% of non-members had heard of

ACP and Annals

80% were not aware they could

join ACP

Majority of ACP members in India

did not find value in local

associations

Respondents felt ACP should not

collaborate closely (or launch) with

local association as it would dilute

their brand equity

Key findings

ACP can fill a gap in the Indian medical community

Focus on improving quality of medical care via recertification and professional development

Medical schools looking for collaborators to improve medical education

Private hospitals seeking to meet global standards for medical tourism

Emphasis on training and development of private hospital staff to retain them

Next step- three year business plan

Local Vision, Mission, Value

Proposition

Growth Strategy Map, Business Model, Success

Metrics

1st Year detailed Goals and year 2-3 high level goals , Revenue Targets, Pricing Strategy, Budget Model &

Assumptions 1st Year Product Strategy

Foreign MNC’s, Local Companies,

& Universities Ongoing Product

Development

Infrastructure Business License,

Back Office, Business Units,

Partner Strategy

1st Year Program - Market Access Demand Build

Customer Acquisition Branding,

MARCOM Sales Growth

3 year Business Plan for ACP

Proposed Strategy

ACP India 3 year plan

Brand building

Gaining Acceptance

Building Engagement

Year 1- cost and results

Visibility for ACP

ACP India Website

Outreach to all stakeholders and multipliers

ACP Membership offered in INR

Road shows in Delhi and Mumbai: September 2012 and February 2013

Marketing, Communications, PR and social media plans

Identify Volunteers for Chapter formation activities

ACP India launch event: December 2013

ACP has applied for CME credits for events/courses

Budget

Consultant

– Staffing &

infrastructure

– Marketing,

communications, PR

– Outreach: events,

road-shows

ACP

– Travel for speakers

and staff

Membership in India

June 2011 March 2013

Masters 1 1

Fellows 56 63

Members 35 54

Associates 6 1

Students 81 71

Honorary Fellows

8 9

Physician Affiliate

0 3

Total 187 202

Challenges encountered

Transacting business in Rupees

“Behind the scenes” logistics, technical solutions

Communications with members, non-members

$100 USD for lifetime membership in Association of Physicians of India (API)

Rethinking the chapter structure

Repackaging existing products, dues

“Stay the course” – Three year plan, leadership looking for results

What have we learned so far?

Interest in ACP very high

Internal Medicine Leaders welcome

us in India

There are many opportunities for

collaboration with associations and

hospitals

Price sensitivity greater than

expected

Importance of being locally relevant

Be prepared to repackage existing

products and services

Be patient! Think long-term….

Enjoy the journey!

Questions?

Agenda – Part 2

• Agenda

9:30-10:30 Working the Business: Different Approaches for Different Markets

Brantlee Underhill Eryn Carter Greg Dummer Nikki Walker

Panel Discussion: Associations representing various strategies in several emerging markets at different stages of maturity will share their experiences

• Growth: defining their growth strategy for different markets

• Operations: identifying the right operational model, and how this affects local staffing and expertise, and HQ operations

• Products & programs: customizing and ensuring local relevance

PMI in Latin America Brantlee Underhill

MDRT in Asia (spotlight on India) Eryn Carter

SLAS in China Greg Dummer

PMI

Brantlee Underhill

Director, Membership and Communities

Project Management Institute

Project Management Institute (PMI)

• Worldwide advocate for project management profession

• 700,000 members, certification and credential holders and volunteers

• Library of globally recognized standards

• Extensive academic and market research programs, chapters, communities of practice, and professional development opportunities

• Headquartered in Newtown Square, PA (USA); offices and staff in India, China, Washington DC, Brussels, Dubai, Argentina, Brazil, Seattle, Singapore

Focus on Latin America

Consistently fastest growing region for

membership

• 2009: Market research identified locally

specific needs

– Build on strengths and reinforce vulnerable

areas

• 2012: Review/Lessons Learned

• 2013: Invest to grow and maintain momentum

in region

MDRT

Eryn Carter, CAE

Director, Global Markets Million Dollar Round Table

MDRT - Overview

• Professional association of life insurance

agents and financial advisors

• 38,000 members in 69 countries

• 73% outside the U.S.; 67% in Asia

• U.S headquarters with offices in Singapore,

China, and India; consultants in Mexico

STRATEGIC PRIORITIES

Global Communications Network

Risk Management

Regional Meetings

Market Research

Leadership Development

Segmentation and Expansion

SLAS

Greg Dummer, CAE

Chief Executive Officer

Society for Laboratory Automation and Screening

Society for Laboratory Automation and

Screening (SLAS)

SLAS China Operations

• Analyze potential partners

• Develop local relationships

• Identifying and supporting program committee

• Establishing Asia Council

• Local conference team (sales and marketing included)

• Better management of processes e.g. taxation

• Local customer service/membership support

• Emerging market pricing

• Phone surveys

Membership Conference &

Exhibition

Local Relationships

Volunteers

Panel Discussion

Q & A

Thank You

Contact Information

James M. Ott

Senior Vice President, International Programs

American College of Physicians

jott@mail.acponline.org

+ 1.215-351-2535

Brantlee Underhill

Director, Membership and Communities

Project Management Institute

Brantlee.Underhill@pmi.org

+1.610.356.4600

Eryn Carter, CAE

Director, Global Markets

Million Dollar Round Table

ecarter@mdrt.org

+1 847.692.6378

Greg Dummer, CAE

Chief Executive Officer

Society for Laboratory

Automation and Screening

gdummer@slas.org

+1.630.256.SLAS, ext. 100

Contact Information

Nikki Walker

Global Vice President

Association Management &

Consulting

MCI Group

Nikki.walker@mci-group.com

Gina Van Dijk

Deputy Managing Director

MCI Brazil

Gina.VanDijk@mci-

group.com

Florence Chua

Director, Association

Management & Consulting.

MCI China

Florence.chua@mci-

group.com

Tarnbir Kaur, CAE

Director, Association

Management & Consulting.

MCI Middle East

Tarnbir.kaur@mci-group.com