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Harvard Case - Disrupting Dengue with an Emerging Markets Launch Strategy

"Disrupting Dengue with an Emerging Markets Launch Strategy" Harvard business case study is written by Stephen E. Chick, Ridhima Aggarwal. It deals with the challenges in the field of General Management. The case study is 25 page(s) long and it was first published on : Sep 26, 2016

At Fern Fort University, we recommend that Mosqito implement a phased approach to launching its innovative mosquito trap in emerging markets, prioritizing India as the initial target. This strategy will leverage the company's core competencies in technology and innovation, while addressing the significant public health challenge of dengue fever in India.

2. Background

The case study focuses on Mosqito, a company developing an innovative mosquito trap that utilizes a combination of light, heat, and pheromones to attract and trap mosquitos. The company is seeking to expand its operations into emerging markets, specifically India, where dengue fever is a significant public health concern. The case highlights the challenges and opportunities associated with entering a new market, including regulatory hurdles, cultural differences, and the need to build trust and credibility with potential customers.

The main protagonists are:

  • Dr. Amit Sharma: Founder and CEO of Mosqito, driven by a passion to combat dengue and a belief in the potential of his technology.
  • Mr. Rajesh Kumar: Head of Operations at Mosqito, responsible for overseeing the company's manufacturing and distribution processes.
  • Ms. Priya Singh: Head of Marketing at Mosqito, tasked with developing a marketing strategy that resonates with the Indian market.

3. Analysis of the Case Study

Strategic Framework: This case study can be analyzed using a combination of frameworks, including:

  • Porter's Five Forces: Analyzing the competitive landscape in the Indian mosquito control market reveals high threat from existing competitors, low threat from new entrants due to regulatory hurdles, moderate bargaining power of buyers, and low bargaining power of suppliers.
  • SWOT Analysis: Mosqito possesses strengths in its innovative technology and strong commitment to social impact. However, it faces weaknesses in limited market experience in emerging markets, and potential challenges in navigating regulatory and cultural landscapes. Opportunities lie in the vast market potential in India and the growing awareness of dengue prevention. Threats include competition from established players and potential resistance to adopting new technologies.
  • Ansoff Matrix: Mosqito is pursuing a market development strategy by entering a new market (India) with its existing product (mosquito trap).

Key Considerations:

  • Market Size and Growth: India presents a significant market opportunity due to its large population and high prevalence of dengue fever.
  • Regulatory Environment: Navigating India's regulatory landscape for medical devices is crucial. Mosqito must ensure compliance with local standards and obtain necessary approvals.
  • Cultural Sensitivity: Understanding Indian consumer preferences and tailoring marketing messages accordingly is essential.
  • Distribution Channels: Establishing effective distribution channels, including partnerships with local retailers and healthcare providers, is critical for market penetration.
  • Pricing Strategy: Determining an appropriate price point that balances affordability and profitability is crucial.

4. Recommendations

Phased Approach to Market Entry:

Phase 1: Pilot Launch in Select Cities (6-12 months):

  • Target Cities: Focus on urban areas with high dengue prevalence and strong infrastructure (e.g., Delhi, Mumbai, Bangalore).
  • Partnerships: Collaborate with local NGOs, healthcare institutions, and government agencies to build trust and credibility.
  • Pilot Production: Establish a small-scale manufacturing facility in India to ensure local production and address regulatory requirements.
  • Marketing: Utilize a mix of digital marketing, social media campaigns, and targeted outreach to healthcare professionals and community leaders.
  • Data Collection: Track sales, customer feedback, and dengue prevalence data to inform future strategy.

Phase 2: Expansion to Additional Cities (12-18 months):

  • Scale Up Production: Expand manufacturing capacity based on pilot program results.
  • Distribution Network: Develop a robust distribution network, including partnerships with local retailers and wholesalers.
  • Marketing Expansion: Increase marketing efforts, including television advertising, print media, and community events.
  • Product Development: Explore opportunities for product customization and innovation to meet specific needs of the Indian market.

Phase 3: National Expansion (18-24 months):

  • National Distribution: Establish a nationwide distribution network, leveraging existing partnerships and building new relationships.
  • Brand Building: Invest in national advertising campaigns to build brand awareness and recognition.
  • Corporate Social Responsibility: Engage in social initiatives to combat dengue and promote public health awareness.

5. Basis of Recommendations

This phased approach aligns with Mosqito's core competencies in technology and innovation, while addressing the specific challenges of the Indian market. It prioritizes building trust and credibility, leveraging local partnerships, and collecting valuable data to inform future strategy.

Key Considerations:

  • Core Competencies: The phased approach leverages Mosqito's expertise in technology and innovation, while allowing for adaptation to the Indian market.
  • External Customers: The strategy focuses on understanding the needs of Indian consumers and tailoring marketing messages accordingly.
  • Internal Clients: The phased approach allows for collaboration and knowledge sharing among different departments within Mosqito.
  • Competitors: The strategy acknowledges the presence of competitors and emphasizes building a strong brand and differentiation through innovation.
  • Attractiveness: The phased approach allows for gradual investment and risk mitigation, while maximizing the potential for growth and profitability.

6. Conclusion

By adopting a phased approach and prioritizing India as its initial target market, Mosqito can effectively disrupt the dengue control market in emerging economies. This strategy will leverage the company's core competencies, address the significant public health challenge of dengue fever, and position Mosqito for long-term growth and success.

7. Discussion

Alternatives:

  • Immediate National Launch: This approach carries higher risk but could potentially capture market share quickly.
  • Focus on Rural Areas: This strategy could address a significant need but requires a different approach to distribution and marketing.

Risks:

  • Regulatory Delays: Delays in obtaining regulatory approvals could impact market entry timeline.
  • Cultural Barriers: Misunderstanding cultural norms and preferences could hinder marketing efforts.
  • Competition: Existing players may aggressively counter Mosqito's entry into the market.

Key Assumptions:

  • Mosqito's technology is effective in controlling dengue mosquitos in the Indian context.
  • The Indian government will be supportive of innovative solutions to combat dengue.
  • Mosqito can secure necessary funding and resources to implement the phased approach.

8. Next Steps

Timeline:

  • Month 1-3: Conduct market research and feasibility study, finalize regulatory strategy, and identify potential partners.
  • Month 4-6: Establish pilot production facility, develop marketing materials, and secure funding.
  • Month 7-9: Launch pilot program in select cities, collect data, and analyze results.
  • Month 10-12: Expand production and distribution network, adjust marketing strategy based on pilot program findings.
  • Month 13-18: Continue expansion to additional cities, build brand awareness, and engage in corporate social responsibility initiatives.
  • Month 19-24: Implement national expansion strategy, establish a robust distribution network, and solidify Mosqito's position as a leading player in the dengue control market.

Key Milestones:

  • Secure regulatory approvals for the mosquito trap.
  • Establish partnerships with local NGOs, healthcare institutions, and government agencies.
  • Launch successful pilot program in select cities.
  • Achieve profitable sales in the Indian market.
  • Build a strong brand and reputation for innovation and social impact.

By taking these steps, Mosqito can successfully disrupt the dengue control market in emerging economies, making a significant impact on public health and achieving sustainable growth.

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Case Description

Sanofi Pasteur's newly approved dengue vaccine, Dengvaxia, was unusual in that it was launched in the Philippines and other at-risk countries. By choosing to "flip the model" - launch in an emerging market setting as opposed to developed markets - it had to overcome various obstacles across the value chain, from registration to financing to supply. The company spent 20 years and invested $1.7 billion to develop Dengvaxia, taking several high-risk decisions and making trade-offs along the way. The case highlights the stakeholder interdependencies and uncertainties that remained as the vaccine implementation programme crept closer. If successfully resolved, it could potentially offer a blueprint for others.

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