Growth Team MembershipTM:European Union Market Research

and Competitive Intelligence

Priorities: Survey Results

June 2009

2

What is Growth Team Membership™?

The Growth Team Membership™ (GTM) is an annual subscription program that supports individual executives in the eight functions (CEO’s Growth Team) that CEOs rely on to shape and execute their growth strategy.

GTM offers growth-focused research, events and services designed to increase the effectiveness, productivity and impact of these executives.

If you have any questions or comments, please contact us at GTMResearch@frost.com

3

Table of Contents Growth Team MembershipTM Research

Page

Section 1: Summary of Findings …………………………………..……………….…..4

Section 2: Business Environment Factors….............................……………………..8

Section 3: Key Market Research Challenges………………………………………...11

Section 4: Conclusions and Implications……………………..……………………....17

Section 5: Respondent Demographics……………………..…………………...…....18

Note: Due to the low response rates of competitive intelligence executives we could not include their Key Challenges.

The content of these pages are © 2009 Frost & Sullivan. All rights reserved.

4

Summary of Findings Growth Team MembershipTM Research

Factors in current business environment shaping Market Research and Competitive Intelligence plans in 2009

Respondents identified the following as the top five environmental factors:

1.Global economic downturn (44%)

2. Emerging global markets (44%)

3. Corporate restructuring (28%)

4. Increasing need for product/service innovation (22%)

5. Decreasing customer demand (22%)

5

Summary of Findings continued Growth Team MembershipTM Research

Key Challenges facing Market ResearchRespondents identified the following top three challenges:

1. Ensuring that the research portfolio/agenda contains the right balance of strategic and tactical issues (33%)

2. There was a tie for second:

• Ensuring internal client/stakeholders integrate research insights into their decision making (17%)

• Ensuring high quality contributions from suppliers/agencies (17%)

3. Enhancing market research’s capabilities to provide consultative support to internal clients/stakeholders (18%)

The effectiveness of the Market Research Function• Half of the respondents (50%) rated the effectiveness of their function as

“Average,” while 33% rated it as “Above Average”

6

Summary of Findings continued Growth Team MembershipTM Research

Survey Population

• The survey was sent to Market Research and Competitive Intelligence executives in the European Union

• The number of respondents was 29

Respondent Demographics

• 67% work in a B2B company while 25% work in a hybrid (B2B and B2C)

• 67% work in a private company while 25% work in a public company

• The largest set of respondents (33%) was from companies with revenues from €696 million to €7 billion

• The Healthcare and Life Science(25%), and Information and Communication Technologies (25%) industries had the largest number of respondents

Impact of Business Environment Factors

on Market Research and

Competitive Intelligence Strategy

8

Top Five Business Environment Factors Growth Team MembershipTM Research

Market Research’s and Competitive Intelligence’s dominant concern is split between the recession (44%) and the opportunities creating through emerging global markets (44%). The recession’s effects in decreasing customer demand and driving corporate restructuring are also evident. Respondents also recognize a demand for greater new product/service innovation.

Please indicate the two business environment factors that have the most impact on your 2009 Market Research and Competitive Intelligence plans.

N=18

44%

44%

28%

22%

22%

0% 10% 20% 30% 40% 50%

Emerging global markets

Global economic downturn

Corporate restructuring

Increasing need for product/serviceinnovation

Decreasing customer demand

9

Business Environment Impact on Market Research and Competitive Intelligence Growth Team MembershipTM Research

The global economic downturn, the increase in competition, the resulting decrease in customer demand and corporate restructuring were clearly negative influences on 2009 planning. Two of the top five factors were judged to have a strongly positive impact as they provided opportunities to stimulate growth via innovation and by tapping into emerging global markets.

(N=18)

Please indicate the impact that each of the following forces have on your 2009 Market Research and Competitive Intelligence plans.

Business Environment Positive Impact No Impact Negative Impact

Emerging global markets 72% 17% 11%

Global economic downturn 6% 11% 83%

Corporate restructuring 6% 11% 83%

Increasing need for product/service innovation 72% 17% 11%

Decreasing customer demand 0% 24% 77%

Key Challenges Facing

Market Research Executives

11

Top Three Key Market Research Challenges Growth Team MembershipTM Research

Market Research executives’ challenges focus primarily on the need to address and balance strategic and tactical issues. Respondents identify the difficulties in ensuring the quality of suppliers’ deliverables. They also struggle to get stakeholders to embed data and insights into decision making. Finally, executives recognize the need for Market Research to take a consultative stance with stakeholders.

(N=12)

Please indicate the top three challenges shaping your Market Research decision-making in 2009.

• Ensuring that the research portfolio/agenda contains the right balance of strategic and tactical issues (33%)

• Ensuring that internal clients/stakeholders integrate research insights into their decision making(17%)

• Ensuring high-quality contributions from suppliers/agencies (17%)

• Enhancing market research’s capabilities to provide consultive support to internal clients/stakeholders (18%)

Challenge One

Challenge Two

Challenge Three

12

Top Three Key Market Research Challenges: root-cause Growth Team MembershipTM Research

The majority of the respondents indicates that process or staff are the predominant root-causes of their top three challenges. Staff was reported as the root-cause for the challenge of balancing a portfolio of both strategic and tactical requests.

(N=12)

For the top three challenges you selected above, please indicate whether the root-cause of the challenge is staff, technology or process.

Challenge Staff Technology Process

1. Ensuring that the research portfolio/agenda contains the right balance of strategic and tactical issues 100% 0% 0%

2a. Ensuring internal clients/stakeholders integrate research insights into their decision making 33% 0% 67%

2b. Ensuring high-quality contributions from suppliers/agencies 0% 33% 67%

3. Enhancing market research’s capabilities to provide consultative support to internal clients/stakeholders 50% 0% 50%

13

Market Research Function Effectiveness Growth Team MembershipTM Research

Half of the market research respondents (50%) rated the effectiveness of their function as “Average,” and 33% rate their function’s effectiveness as “Above Average.”

Please asses the overall effectiveness of your function as compared to other firms in your industry.

N=12

8%

50%

33%

8%

0% 10% 20% 30% 40% 50% 60%

Below Average

Average

Above Average

Exceptional

14

Conclusions and Implications Growth Team MembershipTM Research

Business EnvironmentBoth sets of executives are concerned about the current economic environment and the resulting decrease in customer demand and corporate restructuring. However, emerging global markets and innovation are seen as positive developments for both functions.

Key Market Research ChallengesMarket Research’s primary challenge revolves around the difficulties of ensuring their portfolio accommodates both strategic and tactical projects given limited resources. Other challenges focus on enhancing the function’s role, by supporting stakeholders’ decision-making processes and acting as an internal consultant to the firm. Finally, as Market Research is heavily dependent upon its agencies and is dealing with constrained resources, it is imperative that agency contributions are truly value adding.

Addressing the root-causes of these challenges necessitates Market Research strengthening their processes and upskilling their staff.

Moving ForwardThe Growth Team MembershipTM is focusing its Best Practice Guidebooks to address the key issues that have been identified in this survey.

If you have any questions or comments please contact us at GTMResearch@frost.com

Respondent Demographics

16

Demographics: Enterprise Type Growth Team MembershipTM Research

The majority of the respondents work in a private company

Please indicate the type of enterprise best represents your organisation.

N=24

Enterprise Type

25%8%

67%

Public Private Venture Capital

17

Demographics: Business Model Growth Team MembershipTM Research

An overwhelming majority of respondents work in B-to-B companies

Please indicate which of these options best describes your business model.

N=24

67%

8%

25%

0% 10% 20% 30% 40% 50% 60% 70% 80%

B-to-B

B-to-C

Both B-to-B and B-to-C

18

Demographics: Company Revenue Growth Team MembershipTM Research

The majority of the respondents are in companies with revenues of €696 Million +

Please indicate which of these company revenue ranges best represent your organisation. This should include all divisions, business units, and facilities.

N=24

0%

8% 8%

33%

29%

0%

10%

20%

30%

40%

Below 70 million Euros 70 million to 347.99million Euros

348 million to 695.99million Euros

696 million to 7 billionEuros

More than 7 billion Euros

19

Demographics: Top Five Participating Industries Growth Team MembershipTM Research

Half of the respondents are in either the Healthcare and Life Sciences or Information and Communication Technologies industries

Please indicate which of these Industry categories best describes you organisation.

N=28

25%

25%

14%

7%

7%

0% 10% 20% 30%

Healthcare and Life Sciences

Information and CommunicationTechnologies

Energy and Power Systems

Chemicals, Materials and Food

Automotive and Transportation