Case Studies of Some Recent Projects
Lifesciences
Identifying Opportunities in the Drug Registration and Reimbursement Approval Process (Mainland China)
End Client: Speciality pharmaceuticals division of a large European MNC
Issue: Our client was facing long delays in the new drug registration and reimbursement approval process in China, and wanted to identify ways of reducing the time-to-market for new products
Solution: Emerging Asia conducted detailed interviews with our client’s regulatory affairs staff in China to learn about specific bottlenecks at various stages of the process. To gain a clear understanding of pain points and how to address them, we mapped the entire drug registration and reimbursement approval process, including all key stakeholders. We interviewed regulators in the depts. responsible for drug registration and reimbursement to understand their attitude to various disease areas., and to identify any attitude or policy changes that may affect our client. We interviewed numerous health care professionals and key opinion leaders within the medical community to understand their attitude and support for various drug categories and therapies when the state drug registration authorities turn to them for expert advice. We also assessed the experience and time optimization methods used by other foreign pharmaceutical companies in to identify best practices.
Result: The client relied on our analysis as a decision support tool on how to optimize their registration process, what new products (which disease areas) would be received favorably by regulators in China, and tactics to get their new products listed as reimbursable drugs.
Threat of Generic Antibiotic Manufacturers
(Mainland China and India)
End Client: Top 10 Global Pharmaceutical Company
Issue: Our client’s key antibiotic drug will lose patent protection in EU and USA in 2009/10 but they have not assessed the competitive landscape. They requested Emerging Asia to assess the threat of generic manufacturers – their identity, progress with GMP certification, production capacity, API suppliers, & distributor relationships in EU and USA
Solution: Using a combination of secondary research and interviews with industry sources, Emerging identified all drug manufacturers in China and India that have the capability and / or certification to manufacture the relevant class of antibiotics. Following that, our consultants conducted over fifty in-depth interviews with contacts within ~15 potential competitors’ organizations. Contacts interviewed included investor relations contacts, PR / marketing contacts, international sales managers, drug registration managers, and production managers of the manufacturers. We reported on manufacturing volume capabilities, establishment of distribution partnerships in the EU and USA, and the latest progress regarding GMP certification and site visits to obtain EU and USA regulatory approval. We also identified key API suppliers, and key actors in the packaging supply chain.
Result: Client is relying on our study to create their counter-strategy for tackling the generic threat.
Due Diligence and Financial Analysis of a Specialty Pharmaceutical Chemicals Manufacturer (Taiwan)
End Client: Category Leader Specialty Chemicals and Pharmaceutical Ingredient Company
Issue: Our client wants to assess the operational structure and manufacturing cost economics of a Taiwanese company considered to be the 3rd largest manufacturer of certain specialty chemicals used in pharmaceuticals and food
Solution: The research target was a relatively small (~US$50 Million) closely held private company with mostly long-term employees. Therefore, identifying relevant contacts within the company or with detailed knowledge of the company was more difficult than usual. Emerging Asia used extensive database searches, credit reports, and contacts with distributors to identify the names and positions of relevant contacts within the target company. Following that, we conducted a number of interviews with contacts within the procurement and manufacturing department to understand raw material cost, production and labor cost; R&D contacts (including R&D partners) to understand levels of investment in product innovation; and sales managers and distributors to understand sales and marketing expenses as well as revenue, margins, and profitability. We also interviewed regulators to understand subsidies offered by the government.
Result: The client has a detailed understanding of financial position and prospects of the target, with an understanding of fixed and variable costs, should production volumes change. They are evaluating partnership / acquisition options.
Implantable Medical Device Market in China
End Client: Global medical devices leader
Issue: Our client wants to evaluate the current and medium term potential of the Mainland China market for certain implantable medical devices so that they can determine the appropriate level of corporate resources to be directed towards entering / expanding into the market.
Solution: Emerging Asia established the current market size and medium term forecast, as well as market share of the major existing players. Emerging Asia conducted an in-depth study of the market size and growth rates for such devices in China, taking into account myriad factors such as access to healthcare, urban-rural differences, insurance re-imbursement levels, income and savings levels, the availability of qualified medical practitioners to conduct the appropriate surgical procedures, and other relevant issues. Our research also identified some evolving areas, such as on-going changes in government policies relating to buying decisions, and their possible impact on the market.
Emerging Asia’s consultants conducted over sixty in-depth interviews as original, primary research across urban and rural China. Interviewees included hospital administrators, cardiologists, surgeons, medical device manufacturers and distributors, government officials, and independent industry observors and analysts. This was in addition to leveraging any existing on-line secondary research, government reports, journals, etc.
Result: The client will rely on our analysis to determine the level of effort and resources on entering the Chinese market in the near term
Telecommunications
Price Benchmarking for Telecom Infrastructure Network Equipment and Maintenance Services (Asia-wide - Mainland China, India, Indonesia, Malaysia, Thailand)
End Client: Top 5 Global Telecom Equipment Company
Issue: Benchmark market pricing for products and post-warranty maintenance services related to telecom network equipment (e.g., optical, data, wireless). Our client was interested in benchmarking the maintenance service prices in Mainland China, Korea, India, Malaysia, Indonesia, and Thailand of 6 leading global telecom equipment manufacturers.
Solution: Emerging Asia conducted in-depth interviews with maintenance service personnel and sales executives from the benchmark companies to understand maintenance service pricing levels, key drivers and trends. We also interviewed telecom carriers (i.e., customers) for their views on the maintenance service offerings of benchmark companies, and view of prices, service levels and efficiency. Our research also identified some evolving areas, such as on-going changes in government policies relating to buying decisions, and their possible impact on the market.
Emerging Asia’s consultants conducted over fifty in-depth interviews as original, primary research in each of the countries we covered.
Result: The client will rely on our research and analysis to determine the internal allocation of revenue between their product and service groups, and also use our market data for competing with the benchmark companies.
Pricing Strategies for Network Equipment Implementation Services (Mainland China)
End Client: Top 5 Global Telecom Equipment Company
Issue: The network implementation services business represents an increasingly important growth priority for our client. Therefore they would like to understand competitor pricing strategies and customer buying preferences in China.
Solution: Emerging Asia developed a thorough understanding of the telecom industry in China and selected 4 well known competitors. We then conducted in-depth interviews with maintenance service personnel and sales executives from the benchmark companies to understand pricing mechanisms, strategic rationale for pricing, key service drivers and trends. We also interviewed telecom carriers (i.e., customers) for their perceptions of each pricing mechanism, and view of areas to be improved. Based on that, we developed two detailed case studies on the two most common pricing systems in relation to four areas: vendors’ perceptions, customer perceptions, regional variances and technology situations.
Emerging Asia’s consultants conducted over thirty in-depth interviews as original, primary research for this project.
Result: Our studies and analysis enabled our client to identify their pricing gaps with competitors. They relied on our analysis to refine global pricing tactics and improve pricing strategies.
Case Study and Business profile of Top Chinese Messaging and Online Gaming Company (Mainland China)
End Client: Top Global Software and Gaming Company
Issue: In order to look for ways to expand the online gaming platform with other services that help with potential for revenue generation, our client wants to understand the detailed business profile of a top Chinese message and online gaming service provider and form a complete picture of how they acquire, engage and retain customers.
Solution: Emerging Asia’s consultants conducted over thirty in-depth interviews as original, primary research. Interviewees included current employees, former employees (recent departures), partners (service providers, technology partners, etc.) of the target competitor, as well as industry observers and analysts. This was in addition to leveraging any secondary research from on-line secondary research, trade publications and other published sources, company financial statements, national and international press etc. We compiled a very clear view of the organization structure, business models and practices, service features, technologies, and partnerships of the target company.
Result: The client has fresh information from the market about the target company’s detailed profile and business models, which will help them develop customer strategies for their expanding online gaming services.
Semiconductor and Electronic Assembly Manufacturing Equipment
End Client: Global Industrial Conglomerate / Holding Company
Issue: Our client is considering an acquisition of a company that manufactured equipment used during semiconductor assembly and electronics assembly and wants thorough market due diligence on the target company
Solution: Emerging Asia collected customer and market insights from Mainland China, Taiwan, Hong Kong, and India to evaluate the market position of the target company, how widely its products are used, and to identify any 'surprises.' We provided a more pessimistic view of the current and expected market prospects for the target company than was previously considered by our client. Our research also identified some evolving areas, such as near term changes in technology or standards that may impact customer decisions or render certain technology obsolete, and their possible impact on the target company
Emerging Asia’s consultants conducted over 100 in-depth interviews as original, primary research across all the geographies. Interviewees included engineers and equipment purchasing managers at leading semiconductor, PCB and electronics assembly OEMs and contract manufacturers, as well as distributors and independent industry observors and analysts. This was in addition to leveraging any existing on-line secondary research, government reports, journals, etc.
Result: The client will rely on our analysis to decide whether or not to continue with the acquisition, and to adjust the offer price
Consumer Products
Financial Benchmarking and Strategy Analysis of 3 top Beauty Care Brands (Asia-wide)
End Client: Top Asian Beauty Care Company
Brief: Our client wanted to assess the detailed comparative position of one of its key brands against what were perceived to be faster growing and more innovative competitors
Solution: Emerging Asia conducted an end-to-end value chain analysis including R&D and innovation strategy and investment, manufacturing costs (including raw material, packaging, labor, etc.), transportation and logistics, advertising and media campaigns, marketing & sales, and in-store selling techniques to win customers. We benchmarked competitors’ strategy as well as tactical steps they are taking for greater operational efficiency and better business performance. We also conducted an extensive documentation and analysis of the client’s own brand operations and the drivers for their success in their home market. Through a mix of quantitative and qualitative analysis, by conducting a sensitivity and value driver analysis Emerging Asia also demonstrated how commercial decisions and operational drivers impacted brand cost structure and profitability.
Result: Our analysis and recommendations enabled our client to set planning targets to gain share during the next fiscal year in some markets, and in others they decided to scale back their investment. The brand will see a partial overhaul to enable it to compete more effectively.
Define a Market Entry Strategy for Japanese "Cute" Apparel (Mainland China)
End-Client: a major Japanese "cute" or "kawaii" style apparel brand
Brief: Identifying key features and consumption patterns of Japanese "cute" style apparel in order to advise the client on entry parameters such as market size, pricing, retail locations, core consumer targets, competitive landscape and best practices, etc.
Solution: Emerging Asia focused its extensive research in Beijing, Shanghai and Chengdu to determine the current market size and consumption patterns, specifically consumers' typical budget for such products, segmented by age and income brackets.
Emerging Asia conducted a thorough analysis on all aspects that must be taken into account when entering a retail market. Our consultants also evaluated the business model of key competitors and documented their best practices, determined product pricing, and identified appropriate locations for retail outlets within each city.
Our primary research findings were backed on an extensive quantitative survey across cities and supported by interviews of opinion leaders within this market. Retail store managers, fashion designers, and fashion magazine editors-in-chief, shared their insights about consumer tastes and preferences as well as future trends. In addition, we conducted a phone and web-based consumer survey in order to get a wider cross-section of consumer insights.
Result: Our recommendations were presented at the company's annual board meeting, and management relied on our recommendations as a key decision support tool to enter the Chinese market. With due preparation, we helped the client gain rapid consumer acceptance and market share.
Other Sectors
Water Treatment Chemicals Customer Analysis (Mainland China, Taiwan, Australia, India, Malaysia and Singapore)
End Client: Specialty Chemicals Sector Leader
Issue: Our client would like to understand their customer needs (met, and unmet) in five key verticals such as Extraction/Mining, Refining, Chemical, Municipal, and Food & Beverage. The scope also entails high level analysis of key competitors.
Solution: Using a combination of contacts provided by the client, as well as a number of additional contacts (for potential customers) identified by our team, Emerging Asia consultants held over 100 detailed interviews regarding existing use, projected needs, feedback on existing suppliers and opinions about alternate suppliers. We gained valuable insights into purchasing criteria and processes, unmet needs, and service gaps. Besides speaking to procurement managers and business leaders, we also interviewed technical engineers, R&D managers, and quality control inspectors for their views on the quality and effect of the products, and to learn their thoughts on evolving technologies as well as product innovations they would like to see.
Result: Our analysis enabled the client to begin the transition of moving up the value chain by becoming a “process partner” from its former position as a “commodity supplier.” We also identified potential customers, and helped the client adjust their marketing/messaging and service approach with existing customers.
Agrochemicals Market Sizing and Competitor Analysis
(Pakistan, Afghanistan)
End Client: Global Agrochemicals Company
Brief: Our client was considering an investment into agrochemicals operations in Pakistan and Afghanistan, and wanted insights from the key players within the sector to understand the size of the market, trends (focusing on fertilizers but also covering certain pesticides), and the production capacity and distribution networks of other agrochemical companies
Solution: In order to gain a holistic view of this sector, Emerging Asia identified the key players that influence business in both countries. Besides the private sector, there are a number of additional parties involved in agrochemicals, particularly with regard to fertilizers. Emerging Asia’s industry specialists used their extensive contacts to set up meetings with the important decision makers and observers, and then conducted detailed one-on-one interviews (many of them were face-to-face) with over 50 high level contacts, including key executives at the major agrochemical companies, distributors, transportation and logistics companies, trading companies, aid agencies and international development organizations, government, and agriculture research institutes. We compiled a very clear view of the sector, volumes, pricing, etc., and also identified a number of unique challenges with regard to business in South Asia, particularly Afghanistan, and how companies were addressing these challenges.
Result: The client relied on our analysis as a decision support tool to determine their level of investment in this sector. They also used our analysis to create their go-to-market strategy and partnership / distribution plans.
Corporate Credit Card Market in China and Japan
End Client: Leading global financial institution / U.S. strategy consulting firm
Issue: Our client wants to evaluate the current and medium term potential of the corporate credit card market in China and Japan, conduct interviews with potential customers to understand their decision making behaviour and preferences, and conduct a complete "eco-system" analysis of the market leader
Solution: Emerging Asia developed a thorough understanding of the needs and buying behaviour of corporate decision makers relating to financial service vendors. We also assessed the relative use and popularity of different types of products such as cards used primarily for 'T&E' (Travel and Entertainment) purposes vs. those used for corporate purchasing.
Emerging Asia’s consultants conducted over twenty in-depth interviews as original, primary research in each country. Interviewees included senior corporate executives responsible for making decisions about financial services vendors; sales, marketing, and operations employees at major banks and credit card companies, as well as industry observors and analysts. This was in addition to leveraging any existing on-line secondary research, government reports, journals, etc.
Result: The client has fresh information from the market about competitor activity, market dynamics, and tactical sales opportunities with some of the major corporations operating in those markets
Chinese Supplier Identification and Sourcing Strategy
End Client: Canadian real estate and hospitality investment company
Issue: Our client and their subsidiaries had been sourcing furniture and associated products for their hotels domestically. They engaged Emerging Asia to identify alternate suppliers and manufacturers within mainland China that could meet or exceed their quality standards and time constraints.
Solution: Based on an in-depth understanding of our client's needs, specifications, quality standards and other intangibles, Emerging Asia identified a large number of potential suppliers within mainland China, particularly the Shanghai and Jiangsu (Suzhou, Nanjing) region. We then screened each supplier based on further criteria, site visits and factory inspections, and an assessment of their credibility and prior work. Emerging Asia negotiated pricing and delivery schedules, and made recommendations to the client. We also created a supply chain process for delivery of products from the factory to the client's site in Canada, using our network of supply chain specialists, speciality freight forwarders and transportation experts.
Result: Our proposed suppliers and supply chain offered the client a 30% reduction in cost versus sourcing domestically from within Canada.
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