the martec group 2014

The Martec Group: Intelligence Solutions

The Martec Group Confidential

2013

DETROIT • CHICAGO • FRANKFURT • SHANGHAI • BEI J ING


…neither should business leaders.”

“Military leaders don’t advance without intelligence…

The Martec Group Confidential3

Turning Insight Into Action

Since 1984, our B2B and select B2C services have accelerated and enhanced client success through in-depth sector expertise, rapid execution and actionable intelligence.

We consider our core competencies to include the following:

The Martec Group’s global reach and unique approach to market research provides tactical and strategic decision

support.

Global• Borderless service through global presence - offices in the U.S., Europe and Asia• Long-standing strategic partners provide additional global coverage

Custom• Methodology-neutral, uniquely employing proven and leading-edge research tools to deliver

customized deliverables driven by client needs• Attentive, interactive client relationships to generate independent, sensitive, valuable results

Versatile• Experience across sectors fosters agility and provides insights drawn from involvement with

diverse business structure, culture, strategy• We are market-access savvy; provide rapid ramp-up and turnaround; routinely adapt

approach throughout project duration to optimize client deliverables and budget

Trust

• We are industry-based and veteran; Partners each have 20+ years of experience; over 50% of our professional staff have been with Martec 10 years or more

• We emphasize transparent, end-to-end visibility for our clients with single responsible point of contact from proposal through reporting – no “hand-off”

• We are committed to our clients and uphold a non-compete philosophy on all projects


4

Our footprint allows us to execute on a global scale...

Global Presence

Martec - North America- Chicago, Detroit –

bSR- Sao Paulo -

Martec - Europe- Frankfurt -

Junicon- Tokyo -

Martec - Asia- Shanghai, Beijing -

Puente-Sur- Santiago, Chile -

• Direct office presence in North America, Europe and Asia

• Long-standing alliance partners (20+ years) in Tokyo, Japan and Sao Paulo, Brazil

• Full complement of language capabilities

• Captive quantitative data collection centers located the US, EU, and AP


Our global team of consultants supports a broad array of industries, technologies and markets:

Sectors We Serve

Chemicals

Transportation

Specialty Materials

Healthcare/Life Sciences

BuildingConstruction

Industrial Equipment

Energy

Advanced Technologies


The Martec Engagement Model is designed with end-to-end visibility to provide our clients with superior research value.

Martec Engagement Model

• Execute field research• Ongoing analysis, vigilant

validation• Interim updates and

progress meetings• Adjustments in scope

and/or approach• Cogent interpretation,

integration of findings

• Final presentation and reporting

• Deliverables turnover; full knowledge transfer

• Address and close any ‘open’ issues

• Further support via ongoing research or interpretation of results

• Stakeholder alignment on proposed scope, schedule, approach and cost

• Clear, concise read on research deliverables and expectations

• Exchange of technical and commercial background

• Understand client business drivers and pending decisions

• Discuss, develop objectives blueprint

• Key metrics and optimal information sources

• Methodology/approach; optimal design for research and budget

Definition of Requirements

and Design

Project Alignment

and Kick-off

Project Research

and Review

Report and Support

Independent Perspective, Interactive Collaboration

Client Confidence in Results


Martec has significant experience in providing market-based due diligence input in three environments.

Bidding Process (1st/2nd Round)• Quick-turn, 30,000 ft. view of market,

competitors, target company, customer analysis, etc.

• Feeds into internal assessment of deal attractiveness

• Average timing of 1-2 weeks

Post-Bid/Letter of Intent• Provided detailed analysis of market,

customers, competitors, etc. via in-depth primary and secondary research

• Work with internal teams and target company management

• Typical timing is 2-4 weeks

Portfolio Consulting• Typical market research and

consulting engagements for portfolio companies

• Focus on growth and value creation• Significant to P.E. partners as focus

shifts to “creating value” within portfolio

The Martec Group offers market due diligence support to both Strategics and Private Equity buyers.

Due Diligence Efforts

Martec goes beyond the offering memo/ book and provides

independent research and analysis of the target’s market, product and customer positioning and health.

• Financial, Tax• Legal• Environmental• Internal/Systems

• Markets• Products• Customers

Martec Focus


This competency was developed due the large number of projects requiring both of these skill sets; objectives calling for qualitative and quantitative research phases.

Qualitative Quantitative

• We offer a team of IDI and focus group moderators, each with 15 to 20+ years of experience

• Our team has collectively moderated hundreds of focus groups and conducted thousands of IDIs

• Phone centers located in the U.S., Europe and Asia

• CATI system based recruiting and large scale telephone interviewing

• Complex statistical analysis capabilities in-house

• Dyads, triads, mini groups, focus groups

• In-person/on-site IDIs• In-depth WAT (web-assisted

telephone) interviews• DMU groups (group interview with

the key stakeholders/decision-makers at a single customer)

• On-line surveys utilizing customized panels

• Telephone interviews• Large scale WAT interviews• SUS (simulated user studies)• Product testing clinicsInformation

Gathering Methodologies

Information Gathering Methodologies

CompetenciesCompetencies

The Martec Group has over 25 years of experience conducting both qualitative and quantitative healthcare sector research.


Martec’s Intelligence Solutions are organized into four discrete offerings:

Product Intelligence

CustomerIntelligence

MarketIntelligence

CompetitorIntelligence

Intelligence Solutions


The Martec Group’s Product Intelligence Solutions help answer this and other questions by providing first-hand customer insight from concept development through to product commercialization.

Our Product Intelligence solutions encompass…• Pain-point Analysis – Unmet Needs• Product Positioning (Benefit Development)• Concept Development & Testing• Pricing & Price Elasticity (Van Westendorp)• Product Intelligence Clinics/Human Factor

Studies• Penetration & Share Forecasting• Product Value Analysis

Product development efforts can yield either the next ‘Intel Inside’ or the next ‘New Coke’. What does ‘innovation’ mean to

your customers?


Examples of Product Intelligence Projects

Project Methodology and Results Summary

Product positioning and pricing elasticity analysis for a new industrial safety labeling system

• Project objectives included detailing the products utilized and unmet needs, characterizing reaction to the new technology and determining value positioning and pricing elasticity vs. competing products

• In-depth interviews were conducted with 80 plant/facility decision makers• Implementation of positioning and pricing recommendations resulted in revenue and

profitability exceeding client projections.

Value assessment of a new hand hygiene product targeting the U.S. hospital market

• Objectives included assessment of the evaluation/purchase process, performance of current products, unmet needs, value of specific new product features, pricing and anticipated adoption and utilization

• Focus groups and IDIs involving 48 Infection Control Managers, Nurses and Physicians• Findings were incorporated into product launch and go-to-market planning initiatives

Assessment of requirements for a closed system to reduce HAI/BSI incidence

• Objectives included detailing current infection control practices and protocols and reaction to a new closed system concept (IV fluid containers and access devices)

• Over 100 in-person and WAT interviews were conducted with IC professionals in North American, Europe, Asia and Latin America

• Results were integrated into to final stage product development plans and associated positioning and messaging strategies


Why are customer satisfaction scores up, but market share is down?

What “really” makes the needle move?

Martec’s Customer Intelligence Solutions help to unlock your customers’ frustrations and delights, digging deep into the purchase motivations that matter…and that lead to financial returns.

Our Customer Intelligence solutions encompass…• Customer Satisfaction & Loyalty Analysis• Behavior-Based and DMU Segmentation

Analysis• Brand Imagery, Awareness & Positioning• Key Purchase Criteria (KPC) Analysis• Win/Loss Analysis (Lost Order Autopsy)• Total Customer Connection (Behavioral

Solutions)• Message Development & Testing


Examples of Customer Intelligence Projects

Project Methodology Summary

Customer satisfaction tracking analysis; global market for base chemicals and elastomeric resins

• Objectives included measuring and tracking attribute importance and pack/gown supplier performance (20 attributes)

• 100 in-depth interviews conducted annually with global purchasers of base chemicals (ethylene, propylene, benzene, butadiene) and elastomeric resins

• Results were integrated into client go-to-market and customer facing strategies and programs

“Voice of the customer” needs assessment for a new line of food service equipment

• Conducted 6 focus groups, 35 IDIs and 200 telephone interviews spread over multiple end-use segments

• Objectives included identifying and defining customer needs and translating these into new product positioning and benefit statements

• Resulted in launch of two new service offerings targeting specific end-use segments

Needs based segmentation analysis of the U.S. tool & equipment market

• Objectives included profiling based on demographic, behavioral and attitudinal metrics• On-line survey was completed with 500 qualified automotive repair technicians and shop

owners in the U.S. and Europe• Six potential segmentation schemes were identified; a profiling tool was developed for the

chosen segmentation scheme to place customers into the correct segment allowing for the use of targeted product positioning and communications materials by field sales

Collateral testing for the global launch of a “closed” infection control system for use in acute care hospitals

• WAT and in-person interviews (n=70) were conducted with infection control professionals in North American, Europe and Latin America

• Reactions and adoption/utilization feedback was gathered regarding brochures, sales aids, literature sleeves and product logos/icons

• Results were utilized to fine tune the materials prior to product launch


When we deploy our Market Intelligence Solutions, we put function as your ‘feet on the street’ to support your decision making process and help determine specific market opportunities and penetration strategies.

Our Market Intelligence Solutions encompass…• RMA – Rapid Market Assessment • Size, Segment & Growth Analysis• Value Chain Analysis• Opportunity Analysis – Market Potential• Market Due Diligence (M&A)• Platform Growth Assessment• Trends & Market Forecasting• Competitive Landscape

New markets, new segments, new geographies. The trick is to know where to go and to get there first.


Examples of Market Intelligence Projects


Global assessment of opportunities for an on-site cleaner/sanitizer generation system

• 50 in-depth interviews conducted with key corporate and plant level respondents in North America, Europe, Asia and Latin America; respondents represented the beverage, dairy and food market sectors

• Objectives included detailing the current environment (usage, protocols, practices), the purchase decision process, key drivers of product selection (features, service, price, etc.) and trends and emerging needs

• Findings recommended market entry; system is in the process of being developed and launched

Assessment of market entry opportunities for environmental testing in targeted U.S. food related market segments

• 40 in-depth interviews were conducted with key corporate and plant level decision makers; respondents represented the dairy, meat, produce and prepared food market sectors

• Objectives included detailing current practices and tests utilized, testing locations/environments, testing turnaround time requirements, costs and trends regarding environmental testing

• Findings detailed the pros and cons of market entry and participation

Analysis of the U.S. healthcare market for skin care products

• Secondary analysis involving numerous data sources, including IMS data, published market reports and internal client data

• Objectives included assessing all available data sources in order to provide a “best of breed” assessment of market size and share

• The finalized market size and share information was incorporated into corporate and strategic plans


You compete for customers’ hearts and wallets. But what should you know about your competitors who are trying to do the same?

Martec’s Competitive Intelligence Solutions provide an understanding of your competitors’ strategic thrusts, manufacturing cost structure or organizational structure and can give you a leg up by helping to amplify your competitive advantages.

Our Competitor Intelligence Solutions encompass…• Manufacturing Process/Production Analysis• Cost-to-produce Analysis/Modeling• Core Competencies – Vulnerabilities• Resource Allocation Analysis (Make-Buy)• Import/Export Tracking• Feasibility Studies – Plant Location Support• Technology Benchmarking• Product/Sample Acquisition


Examples of Competitor Intelligence Projects


Supply chain analysis: Automotive component manufacturer

• Detailed profiles of two brake manufacturing facilities – 3 products• Secondary research was conducted followed by interviews with targeted sources;

current and ex-employees, component and raw materials suppliers, plant and consulting engineers, key customers

• Final deliverable detailed the plant layout, employment, production technology, utilization and capacity, and a cost to manufacture analysis

• Results were utilized to assist client in developing North American capacity and identifying means of being more competitive for U.S. based business

Manufacturing cost analysis: Biochemical chip technology

• Primary objective was to develop a cost of manufacturing model of a targeted competitor’s microarray chip manufacturing process

• Secondary research was conducted followed by 100 interviews with value chain participants; distributors, chemical and component suppliers, R&D thought leaders

• Detailed cost model was delivered

Competitive threat analysis: Food service equipment

• Primary objective was to assess competitive threats in the food service equipment market

• Secondary research was conducted along with ~35 interviews with key value chain participants and leading procurement individuals at large customers (schools, hotels, hospitals, restaurants etc.)

• Identified “near neighbor” threats that were not previously considered by client management – development of contingency plans and ongoing monitoring of unfolding market situation

Product Intelligence Market Intelligence Competitor IntelligenceCustomer Intelligence

Whether you’re just setting out, or well along the intelligence path…

…Martec Intelligence Solutions can help show you the way.



We are confident of our ability to add maximum value to our clients’ business planning efforts through technical market

research.

Thank you for this opportunity.

Chicago105 West Adams StreetSuite 2125Chicago, Illinois 60603(312) 606-9690(312) 606-9695 (Fax)

Detroit27777 Franklin RoadSuite 1600Southfield, Michigan 48034(248) 357-0040(248) 351-4158 (Fax)

martecgroup.com

EuropeBerliner Strasse 21963067Offenbach/MainGermany+ 49 69 80903 60 + 49 69 80903 70 (Fax)

China 121 Yanping RoadSanhe Plaza 10BShanghai 200042 China +86 (21) 6246-2121+86 (21) 6246-2066 (fax)


Product Intelligence Market Intelligence Competitor IntelligenceCustomer Intelligence

For further information, please contact…

Bill Lucken

[email protected]

248-327-8031

martecgroup.comThank you for this opportunity.

the martec group 2014

Marketing