Growth Team Membership Americas 2010 Market Research and Competitive Intelligence Priorities Survey...

Growth Team Membership™:Americas 2010 Market Research and

Competitive Intelligence PrioritiesSurvey Results

April 2010

2Growth Team Membership™ Research.

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Table of Contents

Page

Section 1: Survey Purpose and Respondents 4

Section 2: External Factors Shaping Market Research & CI Strategies 5

Section 3: Key Market Research Challenges 9

Section 3.1: By Business Model 13

Section 4: Market Research Effectiveness and Expenditures 14


Section 5: Key Competitive Intelligence Challenges 24


Section 6: Competitive Intelligence Effectiveness and Expenditures 29


Section 7: Respondent Demographics 39The content of these pages are © 2010 Frost & Sullivan. All rights reserved.


Survey Purpose and Respondents

There were 69 survey

respondents

Research ObjectiveTo understand the most pressing external and internal challenges shaping market research and competitive intelligence executives’ 2010 planning.

MethodologyWeb-based survey platform

Survey PopulationTarget respondents were Manager level and above market research and CI executives from companies throughout North and Latin America.

Co-Sponsor


External Factors Shaping Market Research and Competitive Intelligence Strategies


Top Three External Factors

N = 65

16%

26%

20%

0% 25% 50%

Changes in customer buyingbehavior

Need for product/serviceinnovation and capabilities

Intensifying Competition

KEY TAKEAWAY: Strategies are heavily influenced by customer shifts and competitor activities

Survey Question: Please indicate the three business environment factors that have the most impact on your 2010 market research and competitive intelligence plans.


67%73%

90%

0%

50%

100%

Intensifying Competition Need for product/service innovationand capabilities

Changes in customer buying behavior

External Factors Impact on Market Research and Competitive Intelligence

N = 65

Survey Question: Please indicate the impact that each of the following forces have on your 2010 market research and competitive intelligence plans.

KEY TAKEAWAY: For 2010, the top three external factors impacting strategies are overwhelmingly negative.

Negative Impact


B-to-B B-to-C Hybrid

Tapping into global market opportunities (20%)

Adjusting to the economic downturn (33%)

Intensifying competition (35%)

Intensifying competition (31%)

Changes in customer buying behavior (33%)

Need for product/service innovation and capabilities (23%)


Need for product/service innovation and capabilities (33%)


External Factor 1

KEY TAKEAWAY: There is a considerable overlap in external challenges regardless of business model

Top Three External Factors (By Business Model)

N = 65

External Factor 2

External Factor 3


Key Market Research Challenges


Key Market Research Challenges Snapshot

All CompaniesTop three challenges:

Identifying and synthesizing disparate information sources

Ensuring internal clients/stakeholders integrate research insights into their decision making

Contributing to the company’s strategic priorities

B-to-B CompaniesTop three challenges:



Ensuring the research portfolio/agenda contains the right balance of strategic and tactical projects

B-to-C CompaniesTop three challenges:


Enhancing Market Research’s capabilities to provide consultative support to internal clients/stakeholders


1

2

3

1

2

3

1

2

3


Top Five Key Market Research Challenges

Challenge 1 Identifying and synthesizing disparate information sources (22%)

Challenge 2 Ensuring internal clients/stakeholders integrate research insights into their decision making(33%)

Challenge 3 Contributing to the company’s strategic priorities (15%)

N =27

Survey Question: Please indicate the top five challenges shaping your Market Research decision-making in 2010.

KEY TAKEAWAY: Market Research’s top challenges reflect their need to enhance insight generation for stakeholders and the perennial issues around organizing information.

Challenge 4 Enhancing Market Research’s capabilities to provide consultative support to internal clients/stakeholders(24%)

Challenge 5 Maintaining a portal for centralized knowledge management (39%)


Root Cause of Top Five Market Research Challenges

N = 27

Process78% Process

67%Process

67%

Process22%

Staff22% Staff

33%Staff33%

Staff11%

Technology67%

Technology67%

Process33%

0%

50%

100%

Identifying andsynthesizing

disparate informationsources

Ensuring internalclients/stakeholdersintegrate researchinsights into theirdecision making

Contributing to thecompany’s strategic

priorities

Enhancing MarketResearch’s

capabilities toprovide consultativesupport to internal

clients/stakeholders

Maintaining a portalfor centralized

knowledgemanagement

Survey Question: For the top five challenges you selected above, please indicate whether the root cause of the challenge is staff, technology, or process.

KEY TAKEAWAY: Process and Technology are cited as the predominant root causes of Market Research’s challenges.


B-to-B B-to-C Hybrid

Identifying and synthesizing disparate information sources (25%)

Ensuring internal clients/stakeholders integrate research insights into their decision making (100%)



Enhancing Market Research’s capabilities to provide consultative support to internal clients/stakeholders (100%)


Ensuring the research portfolio/agenda contains the right balance of strategic and tactical projects (17%)


Contributing to the company’s strategic priorities (29%)

Challenge 1

KEY TAKEAWAY: Regardless of business model the top market research challenges remain the same.

Top Three Market Research Challenges (By Business Model)

N = 27

Challenge 2

Challenge 3


Market Research Effectiveness and Expenditures


Market Research Expenditures and Effectiveness Snapshot

All CompaniesRank their market research effectiveness as above average

Budgets are evenly distributed across research activities

Expect the number of vendors they work with to stay the same in 2010

Expect the percentage of their budget spent on vendors to stay the same in 2010

Expect their staffing levels to stay the same in 2010

Expect their budgets to increase moderately in 2010

B-to-B CompaniesRank their marketing effectiveness as average

Largest budget expenditures are on market sizing and business intelligence




Expect their budgets to stay the same in 2010

Hybrid CompaniesRank their market research effectiveness as above average

Largest budget expenditures are on product testing and customer behavior


Expect their percentage of their budget spent on vendors to decrease moderately in 2010


Expect their budgets to increase moderately in 2010

Note: Due to small response rates, there is no data available for B-to-C Respondents.


Average40%

Above Average48%

Exceptional12%

Average23%

Above Average62%

Exceptional15%

Average64%

Above Average27%

Exceptional9%

All Companies B-to-B Companies

Hybrid Companies

Market Research’s View of Its Effectiveness (By Business Model)

N = 25

Survey Question: Please assess the overall effectiveness of your marker research function compared to those in other firms within your industry.

KEY TAKEAWAY: B-to-B companies are more likely to rank their Market Research’s effectiveness as Average.


75%

0%

25%

0% 0% 0% 0%

17% 17%

25%

8%

17%

8% 8%4%4%8%

4%

44%

8%

28%

0%

20%

40%

60%

80%

Less than $500,000 $500,000 to$999,999

$1 Million to $2.99Million



$10 Million to$19.99 Million

$20 Million or more

B-to-B Hybrid All Companies

2009 Market Research Budgets (By Business Model)

N = 25

Survey Question: Please indicate your 2009 total market research budget (all expenditures on primary, secondary syndicated and other research butexcluding general & administrative expenses such as salaries) was in the range of in US$.

KEY TAKEAWAY: Most respondents’ companies are likely to allocate under $500,00 to their Market Research budgets.

The red percentages are for all respondents.


18%

8%

5%

11% 10%

3%

18%

5%

15%

10%

15%

10% 10%

5%

10%10%10%10%10% 10%

5%

0%

20%

Market Size/Structure Product/ServiceDevelopment and Testing

Branding, Messaging,and MarCom

Customer/ConsumerBehavior

Pricing Research CustomerSatisfaction/Market

Tracking

Business/CompetitiveIntelligence

B-toB Hybrid Overall

Market Research Budget Allocation (By Business Model)

KEY TAKEAWAY: B-to-B companies are likely to allocate three times as much of their budget to market sizing and business intelligence activities than their peers in hybrid companies.

N = 25

The red percentages are the median values for all companies’ marketing budget by category.

Survey Question: Please provide the percentage allocation of your total 2009 market research budget to the following research categories (must sum to 100%)


Decrease Substantially

8%

Increase Moderately

15%

Stay the Same54%

Decrease Moderately

23%


8%

Increase Moderately

8%

Stay the Same54%

Decrease Moderately

30%


8%

Increase Moderately

25%

Stay the Same50%

Decrease Moderately

17%

2010 vs. 2009 Vendor Portfolio (By Business Model)

N = 26

Survey Question: In comparison to 2009, your 2010 the number of vendors your market research function works with will:

KEY TAKEAWAY: Regardless of business model, market researchers report no change in the number of vendors they will be working with in 2010.


Hybrid Companies



11%Increase

Moderately23%

Stay the Same39%

Decrease Moderately

27%


15%

Increase Moderately

23%

Stay the Same23%

Decrease Moderately

39%


8%Increase

Moderately25%

Stay the Same50%

Decrease Moderately

17%

2010 vs. 2009 Vendor Budget (By Business Model)

N = 26

Survey Question: In comparison to 2009, your 2010 the percentage of your market research budget allocated to vendors will:

KEY TAKEAWAY: For most respondents 2010 will see budget stability as corporate cost cutting abates.


Hybrid Companies


Increase Moderately

19%

Stay the Same65%

Decrease Moderately

12%

Increase Substantially

4%

Increase Moderately

15%

Stay the Same62%

Decrease Moderately

15%


8%

Increase Moderately

25%

Stay the Same67%

Decrease Moderately

8%

2010 vs. 2009 Staffing Plans (By Business Model)

N = 26

Survey Question: In comparison to 2009, your 2010 market research staff will:

KEY TAKEAWAY: Market Research functions plan on maintaining their current staffing levels in 2010.


Hybrid Companies



8%

Increase Moderately

15%

Stay the Same46%

Decrease Moderately

31%

Increase Moderately

46%

Stay the Same24%

Decrease Moderately

15%


15%


8%Increase

Moderately25%

Stay the Same42%

Decrease Moderately

25%


Hybrid Companies

2010 vs. 2009 Budgets (By Business Model)

N = 26

Survey Question: In comparison to 2009, your 2010 market research budget will:

KEY TAKEAWAY: The majority of respondents’ 2010 budgets will stay the same or increase.



4%

Increase Moderately

44%Stay the Same32%

Decrease Moderately

12%


8%

Increase Moderately

63%

Stay the Same16%

Decrease Moderately

4%Increase

Substantially 16%


9%

Increase Moderately

46%

Stay the Same36%

Decrease Moderately

9%


Hybrid Companies

Anticipated Company Performance in 2010 (By Business Model)

N = 25

Survey Question: In comparison to 2009, your company’s performance by the end of 2010 will:

KEY TAKEAWAY: Regardless of business models, respondents are optimistic about their company’s performance in 2010.


Key Competitive Intelligence Challenges


Key Competitive Intelligence Challenges Snapshot

All CompaniesTop three challenges:

Embedding an understanding of CI’s benefits with executive management

Packaging and communicating competitive data and insights to drive stakeholder decision making

Developing a methodology for identifying disruptive or emergent challenges

B-to-B CompaniesTop three challenges:



Creating and managing a portal to centralize CI-related information within the company

B-to-C CompaniesTop three challenges:

Engaging internal clients/stakeholders to diagnose their specific intelligence needs



1

2

3

1

2

3

1

2

3


Top Five Key Competitive Intelligence Challenges

Challenge 1 Embedding an understanding of CI’s benefits with executive management (15%)

Challenge 2 Packaging and communicating competitive data and insights to drive stakeholder decision making (26%)

Challenge 3 Developing a methodology for identifying disruptive or emergent challenges (19%)

N = 27

Survey Question: Please indicate the top five challenges shaping your Competitive Intelligence decision-making in 2010.

KEY TAKEAWAY: CI’s challenges reflect their need to contribute to the bottom line of their companies and the struggle to capture competitive information from a myriad of sources.

Challenge 4 Using informal networks to capture the competitive information held by the company’s employees (12%)

Challenge 5 Entrenching competitive intelligence insights in the company’s revenue-generating activities, e.g. Sales (16%)


Root Cause of Top Five Competitive Intelligence Challenges

N = 27

Technology14%

Process25%

Process86% Process

100%

Process67%

Process100%

Staff75%

Staff Staff

Staff33%

Staff

0%

50%

100%

Embedding anunderstanding of CI’s

benefits with executivemanagement

Packaging andcommunicating

competitive data andinsights to drive

stakeholder decisionmaking

Developing a methodologyfor identifying disruptive or

emergent challenges

Using informal networks tocapture the competitiveinformation held by thecompany’s employees

Entrenching competitiveintelligence insights in the

company’s revenue-generating activities, e.g.,

Sales

Survey Question: For the top five challenges you selected above, please indicate whether the root cause of the challenge is staff, technology, or process.

KEY TAKEAWAY: Process is indicated as the primary root cause of four of CI’s top challenges. However, Staff is indicated as the root cause for embedding the benefits of CI with executive management.


B-to-B B-to-C HybridEmbedding an understanding of CI’s benefits with executive management (14%)

Engaging internal clients/stakeholders to diagnose their specific intelligence needs (40%)

Embedding an understanding of CI’s benefits with executive management (25%)

Packaging and communicating competitive data and insights to drive stakeholder decision making (21%)



Creating and managing a portal to centralize CI-related information within the company (21%)

Embedding an understanding of CI’s benefits with executive management (20%)

Developing a methodology for identifying disruptive or emergent challenges (50%)

Challenge 1

KEY TAKEAWAY: Regardless of business model, the top three challenges of CI remain the same.

Top Three Competitive Intelligence Challenges (By Business Model)

N = 27

Challenge 2

Challenge 3


Competitive Intelligence Effectiveness and Expenditures


Competitive Intelligence Expenditures and Effectiveness Snapshot

All CompaniesRank their competitive intelligence effectiveness as average

Report directly to the Marketing function


Expect the percentage of their budget spent on vendors to increase moderately in 2010



B-to-B CompaniesRank their competitive intelligence effectiveness as average






B-to-C CompaniesRank their competitive intelligence effectiveness as average or exceptional



Expect their percentage of their budget spent on vendors to stay the same in 2010

Expect their staffing levels to increase in 2010

Expect their budgets to decrease moderately in 2010


Average44%

Above Average22%

Exceptional19%

Below Average15%

Average40%

Exceptional40%

Below Average20%

Average56%

Above Average22%

Exceptional11%

Below Average11%

Average39%

Above Average31%

Exceptional15%

Below Average15%


B-to-C CompaniesHybrid Companies

Competitive Intelligence’s View of Its Effectiveness (By Business Model)

N =27

Survey Question: Please assess the overall effectiveness of your competitive intelligence function compared to those in other firms within your industry.

KEY TAKEAWAY: B-to-C companies are more likely to rank the effectiveness of their CI function as exceptional.


57%

29%

0%

7%

0%

7%

0% 0%

50%

0% 0% 0% 0%

25% 25%

0%

67%

11% 11% 11%

0% 0% 0% 0%

0%1%7%

0%

7%

59%

19%

4%

0%

20%

40%

60%

80%

Less than$250,000

$250,00O to$499,999

$500,000 to$999,999





$5 Million or more

B-to-B B-to-C Hybrid All Companies

2009 Competitive Intelligence Budgets (By Business Model)

N = 27

Survey Question: Please indicate your 2009 total competitive intelligence budget (all expenditures on competitive intelligence activities but excluding general & administrative expenses such as staff) was in the range of in US$.

KEY TAKEAWAY: Regardless of business model, most companies allocate less than $250,000 to their annual CI budget.



Direct Line Reporting of Competitive Intelligence Functions

N = 24

46%

18%

9% 9% 9% 9%

50%

25%

0%

25%

0% 0%

44%

11%

22%

11% 11%

0%

3%

8%

13%

46%

17%

13%

0%

20%

40%

60%

Marketing Strategy/Planning Market Research Sales/BusinessDevelopment

CEO/President/General Manager

R&D/Innovation

B-to-B Companies B-to-C Companies Hybrid Companies All Companies

KEY TAKEAWAY: Regardless of business model, CI departments tend to report directly to Marketing.

Survey Question: Your CI department reports directly into the following function.




3%Increase

Moderately29%

Stay the Same50%

Decrease Moderately

14%


4%

Decrease Moderately

20%

Stay the Same80%


12%Increase

Moderately44%

Stay the Same44%

Increase Moderately

29%

Stay the Same43%

Decrease Moderately

21%


7%

2010 vs. 2009 Vendor Portfolio (By Business Model)

N = 28

Survey Question: In comparison to 2009, your 2010 the number of vendors your competitive intelligence function works with will:

KEY TAKEAWAY: CI executives report no plans to change the number of vendors they employ in 2010.





3%

Increase Moderately

32%

Stay the Same36%

Decrease Moderately

25%


4%

Stay the Same60%

Decrease Moderately

40%


11%

Increase Moderately

45%Stay the Same22%

Decrease Moderately

11%


11%

Increase Moderately

36%

Stay the Same36%

Decrease Moderately

28%

2010 vs. 2009 Vendor Budget (By Business Model)

N = 28

Survey Question: In comparison to 2009, your 2010 the percentage of your competitive intelligence budget allocated to vendors will:

KEY TAKEAWAY: With the exception of B-to-C companies, respondents indicate they will increase their 2010 vendor budget.




Increase Moderately

21%

Stay the Same61%

Decrease Moderately

14%


4%

Increase Moderately

11%

Stay the Same67%

Decrease Moderately

11%


11%

Increase Moderately

21%

Stay the Same71%

Decrease Moderately

8%

2010 vs. 2009 Staffing Plans (By Business Model)

N = 28

Survey Question: In comparison to 2009, your 2010 competitive intelligence staff will:

KEY TAKEAWAY: Most companies do not intend to change their CI staffing levels in 2010.


B-to-C CompaniesHybrid CompaniesIncrease

Moderately20%

Stay the Same40%

Decrease Moderately

20%



4%

Increase Moderately

25%

Stay the Same46%

Decrease Moderately

18%


7%

Stay the Same20%

Decrease Moderately

60%

Increase Moderately

20%


11%

Increase Moderately

11%Stay the Same

45%

Decrease Moderately

11%


22%

Increase Moderately

36%

Stay the Same57%

Decrease Moderately

7%



2010 vs. 2009 Budgets (By Business Model)

N = 28

Survey Question: In comparison to 2009, your 2010 market research budget will:

KEY TAKEAWAY: Respondents indicate that their CI budgets are likely to remain static in 2010.


Increase Moderately

61%

Stay the Same28%

Decrease Moderately

7%


4%

Stay the Same20%

Increase Moderately

80%

Increase Moderately

11%


89%

Increase Moderately

36%

Stay the Same43%

Decrease Moderately

14%


7%



Anticipated Company Performance in 2010 (By Business Model)

N = 28

Survey Question: In comparison to 2009, your company’s performance by the end of 2010 will:

KEY TAKEAWAY: The majority of respondents are optimistic about their company’s performance in 2010.


Market Research and Competitive Intelligence Respondent Demographics


Venture Capital1%

Public72%

Private27%

B-to-C Company

13%

Hybrid Company

38%

B-to-B Company

49%

Demographics

N = 67

Over half of the respondents work in a public company.

Survey Question: Please indicate the type of enterprise best represents your organization.

Respondents tended to be from public, B-to-B companies whose 2009 revenue ranged from $1 to $11 billion.

15%6%

42%

27%

5%0%

30%

60%

Below $100 million $100 to $499.99million

$500 million to$999.99 million

$1 billion to $11billion

More than $11billion

Enterprise Type Business Model

Company Revenue

N =67 N = 68


19%

13%

12%

10%

20%

0% 15% 30%

Healthcare and Life Sciences

Information and CommunicationTechnologies

Financial Services

Energy and Power Systems

Chemicals, Materials, and Food

Demographics: Top Five Participating Industries

N = 69

Survey Question: Please indicate which of these Industry categories best describes you organization (please indicate all that apply).


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Growth Team Membership Americas 2010 Market Research and Competitive Intelligence Priorities Survey...

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Transcript of Growth Team Membership Americas 2010 Market Research and Competitive Intelligence Priorities Survey...