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REIMAGINING GO-TO-MARKET

STRATEGIES AFTER THE


PANDEMIC
By Abheek Singhi, Namit Puri, and Amit Mittal

T he coronavirus pandemic has


hampered companies’ go-to-market
strategies everywhere, but nowhere has the
We recommend that companies rethinking
their go-to-market plans in emerging markets
adopt a two-phase approach. The first in-
disruption been more severe than in volves the immediate response—what to do
emerging markets. now, with lockdowns persisting in many plac-
es. The second is what to do once the new re-
Even in good times, selling in many mar- ality sets in and businesses start to rebound.
kets in Africa, Asia, and Latin America can
be challenging—and these aren’t good As part of their immediate response, most
times. The requirements of social distanc- B2C and B2B companies that sell through
ing have introduced a new complication in retailers have already set up commercial
markets that already had low visibility (be- war rooms with dedicated cross-functional
cause of data limitations), fragmented front teams headed by senior leadership. In ad-
ends, and last-mile execution issues (be- dition, they have taken steps to help their
cause of talent and attrition challenges). channel partners rebound quickly. But in
providing such support, companies have
Once the crisis has receded enough for had to make some tough decisions on the
businesses to start bouncing back, emerg- basis of their own liquidity positions, appe-
ing markets will experience a reset in de- tites for risk, and competitive positions.
mand. However, in our view, there will also Companies have also created minimum vi-
be a dramatic change in the shape of de- able products that use digital technology to
mand on the front line. COVID-19 has al- make their underlying processes more effi-
ready significantly disrupted sales teams’ cient and effective.
traditional activities. There are many un-
knowns ahead, but one certainty is that go-
to-market approaches must fundamentally Imperatives for the Rebound
change. Phase
Preparing for the rebound requires a differ- engage with their retailers—allowing retail-
ent mindset. We see five imperatives in the ers to directly place their own orders on-
rebound phase. (See Exhibit 1.) line, for instance. (See Exhibit 2.)

Reimagine the sales process. COVID-19 Rethink the distribution model. The
has accelerated the ongoing process of the pandemic is compounding subscale distrib-
digitization of sales. At this point, we utors’ growth challenges with higher costs
advocate a zero-based approach—looking of working capital and unfavorable eco-
at every sales role and activity to find nomics. Data clearly shows that bigger
opportunities for digital automation or distributors grow faster and invest more in
augmentation. BCG’s recent global survey their businesses than smaller ones do.
of companies in a variety of industries
found that roughly 80% of companies are Once they get through this period of short-
actively exploring ways to shift their term distributor support, companies need
go-to-market strategies away from in- to evaluate the scale, architecture, and pro-
person channels and toward digital ones. file of these partners. They also need to
critically evaluate the role of the tradition-
Companies must reimagine the entire sales al distributor.
process and answer the following ques-
tions: Companies need to reassess how well their
distributors are handling multiple activi-
•• Are these activities really needed? ties—such as servicing and breaking bulk,
secondary execution, retailer credit, collec-
•• Is there a way to handle them digitally tions, and local compliance—and whether
so they become more efficient and other players in the ecosystem could do
effective? the work more effectively. There are clear-
ly many inefficiencies in the way distribu-
•• Could existing solutions or partners tors carry out their business today—often
help with the reimagination process? relating to deliveries or order-taking at the
fragmented front end. Companies also
In our view, the answer to all three is a re- need to completely rethink the payout
sounding yes. Beyond the digitization of structures for distributors, taking into ac-
sales roles, companies may look to directly count the role they want each distributor

Exhibit 1 | Selling in Emerging Markets During and After the COVID-19 Pandemic

Respond Rebound

WHAT TO DO DURING A COVID- SHUTDOWN WHAT TO DO WHEN RESTRICTIONS EASE


Set up a commercial war room Reimagine your sales process all along the hierarchy
Monitor sales and liquidity and be willing to Look for opportunities to deploy digital technologies more quickly
reprioritize quickly; adjust service-level agreements
Rethink the distribution model
Enable non-contact selling Figure out how distributors’ roles should change and whether you can make
This approach includes telephone calls, app-based distributor payments more strategically
ordering, and digital catalogs Use consolidation to achieve scale

Support channel partner needs Pivot to win in e-commerce


Pricing adjustments and more flexible credit terms Change your strategy (including for products) as necessary to promote
can help here online sales

Focus on supply chain readiness Optimize front-end sales


Assess your local partners and supply channel to Recognize where your priorities are and don’t hesitate to make differential
anticipate any disruptions investments

Strengthen teams to remain productive Explore digital partnerships


Use training, business planning and analytics to Look for data aggregators that already have a large retailer base
keep your sales teams productive Consider financial technology companies for distributor credit

Source: BCG analysis.

Boston Consulting Group | Reimagining Go-to-Market Strategies After the Pandemic  2


Exhibit 2 | Potential to Digitize Different Sales Activities in Emerging Markets

ROLES

Category Activities DSR SO ASM Potential to digitize activity


New retail outlet identification
Outlet segmentation Generally digitized today
Retail Product demo
extraction Scheme communication
Order fulfillment
Merchandizing assessment
Secondary-order taking

Order Order recommendation


to cash Collection outreach
Cash collection

Sales team Sales training


management Sales review
Distributor Channel financing
management Distributor engagement

Major role today Minor role today No role today

Source: BCG analysis.


Note: DSR = dealer sales representative; SO = sales office; ASM = area sales manager.

to play and linking payouts to perfor- of COVID-19, and it isn’t the first time that
mance. a health crisis has caused consumers to
shop differently: there was significant and
The rise of B2B e-commerce players in sustained growth in e-commerce after the
emerging markets has been driven by the SARS outbreak in China.
belief that technology can make some as-
pects of distribution more efficient for both Companies should use this opportunity to
the companies trying to sell products and develop their e-commerce 2.0 business
their retailers. This is undoubtedly true. strategies. Many leading companies are al-
However, the use of B2B e-commerce plat- ready planning to grow their e-commerce
forms will force companies to think businesses, including for products such as
through a number of business model is- building materials and tires, which retailers
sues, such as: used to sell to in-store customers directly.
Product assortment and packaging, digital
•• How do we manage the inevitable marketing, merchandising, and customer
conflicts with distributors? service are among the areas in which com-
panies must develop capabilities to succeed
•• Should we create our own B2B e-com- in e-commerce in emerging markets. (See
merce platform or should we partner? Exhibit 3.)

•• How do we change our team and Optimize front-end sales spending. Com-
functions (including trade marketing panies have traditionally devoted a high
and sales) once we start using such share (from 20% to 30%) of the gap be-
platforms? tween consumer price and net revenue to
channel trade spend. COVID-19 creates an
•• Who handles the jobs of core activation imperative for companies to optimize their
and demand generation? highly fragmented, often mismanaged,
trade investments. They can do this by
Pivot to win in e-commerce. BCG’s recent taking the following actions:
consumer research shows a systemic shift
toward e-commerce. This shift isn’t surpris- •• Allocate trade investments differen-
ing, given the highly transmissible nature tially to win in priority spaces. The

Boston Consulting Group | Reimagining Go-to-Market Strategies After the Pandemic  3


Exhibit 3 | Prerequisites for Successful E-Commerce

Assortment and packaging Digital marketing in site Customer service


Product and SKU efficiency Overall marketing and media mix Knowledge and standard-response base
Product differentiation Banner variety on seller’s own website Chatbot management
Bundle and packaging variety (by occasion) Search engine management
Advanced assortment planning

Pricing and promotion Digital marketing through social media Logistics and supply chain
Online and offline pricing coordination Social media variety Route-to-market simplicity and
Promotion planning and adaption Management of key opinion leaders fulfillment model
Advanced pricing and promotion analytics and influencers Distributors that work exclusively in the
Management of reviews online channel
Advanced demand forecasting

Platform strategy and collaboration Segmentation and CRM Organization


Platform strategy and positioning Consumer profiling and segmentation Organization setup
Overall platform collaboration Personalized CRM Roles and responsibilities
(commercial, media, and data partnership) Vendor collaboration model

Source: BCG analysis.


Note: CRM = customer relationship management.

idea here is to prioritize spends across points and free up capital for investments
SKUs and to analyze affordability, in disruptive opportunities.
brand strength, market share, and
competition on the basis of location. Explore digital partnerships. To address
customers’ expectations and new behav-
•• Enhance effectiveness of trade iors in the aftermath of the pandemic, a
spends. Companies must take a go-to-market approach that leverages
granular view of trade spend bench- digital technology is critical. Companies
marks across their industry in order to should creatively and carefully assess
both define their starting points and partnerships with logistics and delivery
identify areas of opportunity. Compa- providers, with B2C and B2B e-commerce
nies must clearly define output mea- businesses, with technology providers, and
sures for their spend objectives—an with companies in the broader ecosystem
increase in market share, absolute sales, to unlock value through disruptive ideas.
or weighted reach. The effectiveness of (In a recent effort, we identified 20 use
these spends should be clearly tracked cases that could unlock significant value;
with a dashboard; returns on invest- many of them would require partnerships
ments should be measured and en- with traditional and unconventional
hanced through analytics. players.) With reduced budgets and in-
creasing cost pressures, strategic partner-
•• Plug leakages. Our analysis across ships with other companies can be benefi-
multiple clients suggests that as much cial to all parties. Companies should be
as 20% of trade spends is wasted asking themselves what to build, what to
through leakages. These leakages can partner on, and what to acquire.
be plugged by the effective use of
technology including analytical rules to
ensure the correct classification of Preparing for an Uncertain
different retail segments. Future
There is limited certainty about the imme-
A structured approach can help companies diate economic future in emerging mar-
reduce the cost to serve by 200 to 300 basis kets. The recovery, when it comes, will like-

Boston Consulting Group | Reimagining Go-to-Market Strategies After the Pandemic  4


ly proceed at different speeds in different to-market plans. They must, therefore, be-
places. come more effective in how they respond
to evolving consumer and customer needs,
Responding quickly to unique and unusual in navigating the competitive landscape,
market demands, building momentum ear- and in controlling the costs of doing busi-
ly through quick wins, and demonstrating ness. Nimble organizations that can inno-
early success will be critical for sustained vate and adapt digitally will be the ones
performance. The crisis is forcing compa- that shape the new reality.
nies to make structural changes in their go-

About the Authors


Abheek Singhi is a managing director and senior partner in the Mumbai office of Boston Consulting
Group. You may contact him by email at singhi.abheek@bcg.com.

Namit Puri is a managing director and partner in the firm’s New Delhi office. He leads BCG’s global work
in go-to-market strategies in emerging markets. You may contact him by email at puri.namit@bcg.com.

Amit Mittal is an associate director in BCG’s New Delhi office. He is an expert on go-to-market strategies.
You may contact him by email at mittal.amit@bcg.com.

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