GfK Group Welcome to the knowledge society

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GfK Group - Welcome to the knowledge society
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A short overview of GfK
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Increasing InternationalisationGrowth of Total
Earnings in Million DM
Average annual growth 1990 - 2000 13.6 1990 -
2000 Total Earnings more than tripled
919
760
621
541
478
427
446
306
382
254
366
357
214
178
312
130
105
119
259
75
47
333
212
237
252
247
252
268
264
287
315
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000 Forecast
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Increasing InternationalisationGrowth of Total
Earnings in Million DM
760
Average annual growth 1989 - 1999 12.8 1989 -
1999 Total Earnings more than tripled
621
541
478
427
446
306
382
254
366
357
214
178
312
130
105
119
259
75
228
47
51
333
177
212
237
252
247
252
268
264
287
315
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
5
Increasing InternationalisationEmployment Growth
Average annual growth 1990 - 2000 8.4 1990 -
2000 Number of employees doubled
4.398
3.875
3.266
2.978
2.920
2.800
2.994
2.508
2.462
2.326
1.938
2.301
2.329
2.118
1.707
1.563
1.411
1.117
897
838
905
684
1.434
1.491
1.429
1.396
1.391
1.389
1.357
1.271
1.328
1.413
1.404
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Heads
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Increasing InternationalisationEmployment Growth
Average annual growth 1989 - 1999 7.9
1989-1999 Number of employees doubled
3,855
3,266
2,978
2,920
2,800
2,508
2,442
2,326
1,938
2,301
2,329
2,118
1,707
1,563
1,411
1,832
1,117
897
838
905
684
650
1,434
1,491
1,429
1,396
1,391
1,389
1,357
1,271
1,328
1,413
1,182
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
1989
Heads
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GfK Group
2000 expected total earnings470 m Euro
approx. 4,300 employees1)
GfK Group
Integrated systems ofEurope-wide and world-wide
syndicated research
105 subsidiaries and associated companies in 44
countries
1) Current full time
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Strategic Business Units and Regions
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Complementary range of products and services1)
Regions
Business divisions
Asia, Pacific and Australasia 6
Ad Hoc Research 42
Media 12
ConsumerTracking 20
Synergies across all Strategic Business Divisions
Infrastructure
Data collection
Technology
Client base
1) 1st half 2000, data from the Management
Information System
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Strategy GfK Group

• Organic growth through market trend
• International expansion- U.S.A. and Latin
  America Non-Food Tracking and Ad Hoc- Europe
  in all Strategic Business Units- Asia Non-Food
  Tracking and Ad Hoc
• Conversion of minority shares into majority
  shares
• New marketsInternet, Health Sciences,
  Telecommunications, Direct marketing
• New productsEncodex, GfK Online-Monitor, GfK
  Data Webhouse, GfK WebScope

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Market Trends

• Consumer Tracking is a growth market
• Category Management applications represent a
  growth potential
• Customers are increasingly using data. This
  intensity requires a better data quality.
• Customers are expecting best practice on a
  European level
• Data / reports must be available faster than in
  the past
• Data base management / front end tools are of
  increasing central importance
• Customers are expecting more and more consultancy

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SBU GfK Consumer Tracking

• is still exposed to an intensive competition in
  price and quality with ACN
• cooperates on the international market with TNS
  as strategic partner - Account
  Management - Best Practices - Software
  Solutions

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Strategic Goals

• Organic growth in turnover and results (no
  acquisitions)
• Expansion of European market leadership (market
  shares)
• Qualitative market leadersip
• Added value services
• Cooperation with TNS in EuroPanel
• Cooperation of the SBUs within the GfK Group
• fit for e-commerce

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Operative Goals 1

• Improvement in performance
• Increase in business volume / expansion of
  market shares
• Cost leadership
• European standardization and speeding up of
  production processes
• Clear brand policy (national and European)
• Technological market leadership - Front end
  tools - Internet Data Delivery - Data
  collection (ED, Internet-barriers to entry) -
  Production processes

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Operative Goals 2

• Product innovations
• Quality leadership in data and client service
• Integrated Consumer Tracking
• Account Management / sales optimization -
  national - European
• Staff training / GfK Consumer Tracking Academy
• Cultivation and extension of strategic
  cooperations with - TNS in EuroPanel -
  Coop in Switzerland - IGRS / IRI - USA /
  Europe - NPD

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Challenges

• Customers mergers / consolidations
• Consulting companies
• Trend from Tracking to Diagnostics
• Information technology - European Roll out
  Standardization (Data collection, production,
  data delivery - front end tools)
• Innovation - product development / speed to
  market
• Global branding
• Internet

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• GfK ConsumerScan consumer panels for fmcg
  GfK ConsumerScope consumer panels für smcg /
  services
• Uniform strategic management of the GfK consumer
  panel activities through the GfK Consumer
  Tracking Board (CTB)

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Overview / Organisational Structure
GfK AG Board responsible for strategy and
economic data
Board Members GfK Consumer Tracking 6 managing
directors from Germany, Benelux, Switzerland /
Italy, Denmark / Scandinavia, Austria / Eastern
Europe, representing the European countriesin
charge ofsales, marketing, product development,
best practice, harmonization
Project teams forConsumerScanConsumerScopeInfo
rmation technology / production system
aTRACKtiveEuropean cooperation
(EuroPanel)Product brandingInternational
account manager (centres of excellence)Human
Resources / Training
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ConsumerScan Brands
20
ConsumerScope Brands
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6. CONCLUSIONS
SPEED - FLEXIBILITY - PRECISION - INTERNATIONAL
NOW MORE THEN EVER
DATA CONSULTANCY
NOW MORE THEN EVER Products People