Test

The first A is “applicability”: You have to make sure the product suits the local culture.

The second A is “availability”: You have to make sure you sell in channels that are relevant to the local population. big shopping centers like Wallmarkt or tiny corner stores

The third A is “affordability”: choose which size of a package is good or not, ex: develop countries small size because no frigates

“affinity.” That means you want local employees and local customers to feel close to your brand, and you need to understand how they live

4 A`s strategy

you want to be really sure the growth is going to be there, so you have to look at per capita consumption trends, the macro environment, and the overall state of the category.

Diver-sifying helps mitigate not only the political risks but also the currency risks, which re-quire really adept financial management.

I sometimes say that Heinz used to be a dollar-pound-euro company, but there’s no doubt that in the future it will be dominated by the five R’s: the Brazilian real, the Chinese renminbi, the Indian rupee, the Indonesian rupiah, and the Russian ruble. Those currencies are volatile, but they’re going to be the strongest currencies in the world going forward, because their economies are the strongest.

But generally we focus on the long term. We have learned that to succeed in emerging markets, you need to be risk aware but not risk averse. ex: Indonesia 80 millions – 400 millions

you don’t like something doesn’t mean the local population won’t like it.

We expect more than 20% of our revenues (over $2 billion) to come from emerging markets this year—and more than 30% by 2015. Our U.S. business is around 33%

Despite the cultural differences, we’ve found that customers everywhere are similar in some ways: They all want convenient, high-quality products at good prices.