INTERNATIONAL MARKET RESEARCH The New Horizons

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INTERNATIONAL MARKET RESEARCHThe New Horizons

• Warsaw, October 17, 2003

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Market Research ADDS VALUE TO BUSINESS AND
SOCIETY

• CONNECTS DEMAND SUPPLY
• TRANSPARENCY
• EFFECTIVENESS
• EFFICIENCY
• CONTRIBUTES SOCIAL/OPINION INSIGHT TO QUALITY
  OF SOCIETY

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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

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EXTERNAL DYNAMICS DRIVE CHANGE

• INTERNATIONALISATION
• ICT/TECHNOLOGY
• DIFFERENT REQUIREMENTS
• NEW ENTRANTS/COMPETITORS
• LEGISLATIVE PRESSURE

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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

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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

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Future Developments 5 10 years down the road
Selection of up to 3 future developments out of 12
Clients will require far more creativity and
businessintelligence from providers
Market research will become more important
because ofgreater incorporation in companies
strategic planning
Market research data will be more integrated
withCRM-data
Internet research will revolutionize the business
Respondent cooperation will dramatically decrease
Consulting companies will take over territory of
market research providers, turning these
providers into mere data- providers
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A different type of Market Research emerging
From Risk-Aversive MR
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Can We Do It? What we say will happen in next 10
years
Division between data providers and market
research consultancies
More partnerships between clients and providers
No change and same issues as today
Traditional market research will disappear
Don't know
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The Current Business Model..
The Traditional Value Chain

• 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
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Reputation vs. Margin
The amount of reputation
The amount of profit
Business Insights
Business Insights

• 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

Data Delivery
Data Delivery
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. change of rules of the game

• 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

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NEW HORIZONS

• Re-Define the Market for MR
• Develop New Business Models
• Address Industry Issues Pro-actively

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OPPORTUNITIES
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OPPORTUNITY




ResearchProcess
Consumer
Distribution
Companies
Repackaging

• Re-define market
• Explore new, wider horizons
• Understand different needs
• Be creative / re-position
• Cooperate and/or join forces

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OPPORTUNITIES
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FIERCE FIGHT FOR ADDED VALUE ACROSS THE BUSINESS
SYSTEM
-Consumers get organized -Research providers re
-define roles -Client companies on the move -New
players focus on re-packaged insight DEVELOP NEW
BUSINESS MODELS
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OPPORTUNITIES
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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?

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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.

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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

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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)

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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

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HORIZONS/OPPORTUNITIES
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Thank You !