INTERNATIONAL MARKET RESEARCH
The New Horizons
Warsaw, October 17, 2003
Market Research: ADDS VALUE TO BUSINESS AND SOCIETY
• CONNECTS DEMAND & SUPPLY
– TRANSPARENCY
– EFFECTIVENESS
– EFFICIENCY
• CONTRIBUTES SOCIAL/OPINION INSIGHT TO QUALITY OF SOCIETY
The Market Research
Profession
SCIENTIFIC ROOTS …..MARKETING RESEARCH BECAME AN INDUSTRY
In 2002
• GROWTH OF WORLD MARKET TOWARDS USD 17 BILLION (EURO 18 )
• EUROPE : USD 6.3 BILLION (EURO 7.3)
• POLAND : USD 81 MILLION (EURO 86 )
• EMERGING EXTERNAL CHALLENGES
The Market Research Industry
EXTERNAL DYNAMICS DRIVE CHANGE
• INTERNATIONALISATION
• ICT/TECHNOLOGY
• DIFFERENT REQUIREMENTS
• NEW ENTRANTS/COMPETITORS
• LEGISLATIVE PRESSURE
The Market Research
Industry
TRANSFORMATION WITHIN THE INDUSTRY
• Changing hands : take overs /acquisitions (concentration)• Shifts within data collection methods
(mail /phone – down; direct registration /online-up)• Widening scope: combination/ integration of information
(re-packaging)• Increasing focus : data capture and decision making support• Growing opportunities: bundling/interpretation• Renaissance of the client side
Renaissance of the Client Side?
…radical improvements will be increasingly demand driven (“demand pull”)
• 1000 top clients already spend 80%
• 65% of their budgets go to 25 companies
• For “Best Solutions” they will not wait for a top-provider (in-house, outside, new entrants)
…pressure to adapt current MR business model
Future Developments 5 – 10 years down the road
Consulting companies will take over territory of market research providers, turning these providers into mere data-
providers
Respondent cooperation will dramatically decrease
Internet research will revolutionize the business
Market research data will be more integrated withCRM-data
Market research will become more important because ofgreater incorporation in companies strategic planning
Clients will require far more creativity and businessintelligence from providers
Providers (n=1099) Clients (n=272)
Selection of up to 3 future developments out of 12
21
27
22
24
27
48
22
24
27
34
43
51
0 10 20 30 40 50 60%
A different type of Market Research emerging…
From Risk-Aversive MR
Go/No GoType of research
MonitoringType of research
To a more Strategic one
Needs-drivenInsightfulType of research
Can We Do It? What we say will happen in next 10 years
Don't know
Traditional market research will disappear
No change and same issues as today
More partnerships between clients and providers
Division between data providers and market research consultancies
Providers (n=1099 Clients (n=272)
7
11
21
29
33
5
14
19
31
31
0 10 20 30 40 50 60%
The Current Business Model…..
Characteristics:• Huge investments in “data manufacturing”• Value based on data delivery (tracking, syndicated, simple ad hoc)
• Focus on shareholder growth/profit
* Source: The Profit Zone, Slywotzky & Morrison
The Traditional Value Chain*
rapportageonderzoek
Product/Service offering
Inputs,Raw material
Product / Service Offering
Channels The Customer
Assets/Core Competences
Traditional Phases of Development in MR (large and medium sized companies)
build up researchtechnology/
build data factory
add local/regional
competence
add domain-specific/
sector competence
add marketing competence
(pre-structured solutions/acc.mgt)
Reputation vs. Margin
Dominant Business model:• does not support “Best
Solution”/ Consulting Services if they do not help sell data.
• focuses on increasing factory load & coverage
• Helps to sell products and syndicated services
Business Insights
DataDelivery
BusinessInsights
DataDelivery
The amount of reputation
The amount of profit
…. change of rules of the game
rapportageonderzoek
Product/Service offering Channels
Product / Service Offering
Inputs,Raw material
TheCustomer
Assets/Core Competences
MR Industry to Innovate:
Improve value add ….and move to a much wider context: from data management to decision facilitation
(using variety of sources…..meeting demand for actionable insights)
Reverse value orientation: transform business model
Change in take-off phase
NEW HORIZONS
• Re-Define the Market for MR
• Develop New Business Models
• Address Industry Issues Pro-actively
Re –define the market for MRRe –define the market for MR
OPPORTUNITIESOPPORTUNITIES
OPPORTUNITY
Re-define market Explore new, wider horizons
Understand different needs
Be creative / re-position
Cooperate and/or join forces
Consumer Distribution CompaniesRepackagingResearchProcess
Develop new business models
Develop new business models
OPPORTUNITIESOPPORTUNITIES
FIERCE FIGHT FOR ADDED VALUE ACROSS THE BUSINESS SYSTEM
Consumer Distribution CompaniesRepackagingResearchProcess
-Consumers get organized
-Research providers re -define roles
-Client companies on the move
-New players focus on re-packaged insight
DEVELOP NEW BUSINESS MODELS
Addressindustry issues
proactively
Addressindustry issues
proactively
OPPORTUNITIESOPPORTUNITIES
INDUSTRY ISSUES
How to move successfully to the new era?
Relevancy? Legislative concerns? Representation public at large?
Concerted industry action? One message, one voice?
Standards of quality performance? Quality of research? A quality sample? A quality panel?
ADDRESSING INDUSTRY ISSUES?
•There is a need to address external challenges, align main players within the industry and ensure adequate standards of performance.
•Orchestration is vital: ESOMAR in the lead, close cooperation other MR organizations
•ESOMAR: European origin, scale worldwide; individual membership; focus on representation, standards, professional development and industry initiatives.
INDUSTRY INITIATIVES? THE EXTERNAL CHALLENGE
• EXTERNAL RELEVANCY/ REPRESENTATION?
• CREATION OF THE ALLIANCE FOR RESEARCH (ESOMAR, Efamro – 2002)
• OFFICE IN BRUSSELS: PROMOTING THE BENEFITS OF RESEARCH- / SELF REGULATION
The Marketing Research Industry
INDUSTRY INITIATIVES? CONCERTED INDUSTRY EFFORT
ONE INDUSTRY , ONE VOICE?
ALIGNMENT OF LEADERS & ASSOCIATIONS IN WIN (2003) “WORLD INDUSTRY NETWORK” (Facilitators: ESOMAR, ARF)
SET UP: -flexible platform, global scope-bi-annual schedule-agenda for action
(key condition for success)
The Marketing Research Industry
Clients, ProvidersAssociations
INDUSTRY INIATIVES? PERFORMANCE STANDARDS
• STANDARDS OF PERFORMANCE ARE THE LIFEBLOOD OF AN INDUSTRY, HOW TO ENSURE CONTINUITY?
• SET UP “QUO VADIS”” PROJECT (ESOMAR, IN CLOSE COOPERATION WITH INDUSTRY SPECIALISTS -2003)
• AGREEMENT ON PRINCIPLES, RE-CONFIRMATION CODE, ADAPTATION OF GUIDELINES
The Marketing Research Industry
HORIZONS/OPPORTUNITIESHORIZONS/OPPORTUNITIES
Re-define the market for MRRe-define the market for MR
Address industry issues
pro-actively
Address industry issues
pro-actively
Develop new business models
Develop new business models
Thank You !