Post on 26-May-2020
Executive Summary
This study was undertaken by The Boston Con-sulting Group to analyze best practices and gaps in companies’ capabilities for market re-search—or, as many companies now call it, consumer insight.
the results of a comprehensive benchmarking study conducted in the spring of 2009. In all, 40 global companies participat-ed—all industry leaders, each with at least $1.5 billion in sales, and many with sales exceeding $10 billion. The study
-vey of more than 800 executives in both line management
-tive interviews. About 60 percent of the survey respondents were from North America, and the rest were from other re-
-ety of consumer-facing industries, including consumer goods, retail, apparel, technology, travel, banking, and insurance.
Executives talk about the importance of deep con-sumer insight…but struggle to achieve it.
---
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-sumer-insight capabilities as best in class.
Most companies have not yet unlocked the value of consumer insight.
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Frustrations exist both among line managers and within consumer insight teams.
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Two critical drivers of success are the engagement model between line management and the insight function and the performance of the insight function.
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Organization structure alone does not drive a better engagement model.
A better engagement model requires a strong con-nection between line management and the insight function.
-
--
-bution channels.
-sure that the insight team has access to senior manage-
the business.
Improving consumer insight is a question not merely of spending more money on research but also of
the most of each study.
-
less
-
-
Some companies have embarked on a transformation journey to modify or enhance consumer insight capa-bilities.
is
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Mary EganKate Man-
fred Ivan Bascle-
Emmanuel Huet
Sharon Marcil
L ---
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consumer insight. But name changes not-
-ating game-changing insights. Money is spent on research
-
--
--
should
-
in best-practice consumer-insight organizations. The par--
--
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is
-concurrently -
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Hearing the Voice of the Consumer
the company.
61
17
13
6
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100Responses (%)
Consumergoods
Financial services
Retail and apparel
Travel
Technology
Industry
3
62
17
7
15
Latin America
Asia-Pacific
Region
Responses (%)
United Statesand Canada
Europe
48
52
Responses (%)
Consumerinsight
Businesslines
Employee type
Industry Region Function
-
--
-
-
-
-
--
--
Data Overload:
-
Brand manager in the travel industry
Lack of Integration:
Marketing vice president in a pack-aged-goods company
Reactive, Tactical Approaches:-
packaged-goods company
Lack of Prioritization: -
services industry
-a critical means
business.
To what extent do you agreewith the following statements?
12 21
5153
2515
9 822
Agree
NeutralDisagreeStrongly disagree
Strongly agree
Our consumer insight or marketresearch...
...contributesmaterially toour financial performance
...puts us on a fastergrowth
trajectory
AgreeNeutralDisagreeStrongly disagree
Strongly agree
7 7 8
28 34 35
29 2937
27 2317
8 82Responses (%)
2833
4450
ExcellentAbove average
0
20
40
60
80
100Responses (%)
0
20
40
60
80
100
Developing a deep consumer understanding
Developing a world- class consumer-
insight team
Turning consumer insight into
innovative productsand services
Providing sufficient funds for consumer
insight
Our consumer insight or marketresearch...
...isbest in class
...is a source of
competitiveadvantage
...providesa high ROI
How strong is your company’s currentperformance in each of the following
consumer-insight capabilities?
To what extent do you agree with the following statements?
What are the primary challenges that your organizationfaces in achieving world-class consumer insight?
Responses (%)
Oconsumer insight along a continuum that
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Stage 1: Traditional Market Research Function. --
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--
-
Stage 2: Business Contribution Team. -
-
--
--
Stage 3: Strategic Insight Organization. --
--
--
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From Cost Center to Source of Competitive Advantage
-
-
Stage 4: Strategic Foresight Organization. --
---
--
-
-
---
-
--
---
Almost 90 percent of companies are in stages 1 and 2
Traditional marketresearch function
Businesscontribution team
Strategic insightorganization
1
2
3
4Strategic foresightorganization
--
pact is seen in
-
shopper insight can translate into strategic partnerships
consumers.
better innovation.
market share gains -
-
their business: Why are customers more loyal to the ---
consumer segment.
-return on investment.
--
--
ment has a strong interest in ensuring that this money
--
---
-
---
-
-
-
-
-
-
Favorable responses1 (%)
35
41
56
54
Favorable responses (“strongly agree” or “agree”) from consumer insight staff only (%)
T engagement model be-
performance of the insight function.
-
canwill
--
-
-
-
--
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The Myth: Organization Structure “Makes or Breaks” the Engagement Model.
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Closing the Gap
High ROI
Insight team’s seat at the table
Insight team says:We can’t have a realimpact on the business without a strong advocateon the business side topull us into strategic discussions.
Business side says:For too long, the insightfunction has been a service provider to the company, so it is difficultto move past thatmindset until they prove what they can deliver.
Insight team performance Business engagement model
6 3 3 17 6Companies using model
Consumer insight teamhoused within business units
Central consumerinsight team
-
--
-
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The Reality: Four Key Tenets for Improving the En-gagement Model.
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Ensure an appropriate interface with senior executives. The
---
Move beyond a narrow marketing scope. Many compa--
---
Consumer insight team helps informdecisions regarding...
...new productdevelopment
and innovation
...optimalmarketingmessages
...consumerpricing
...promotionalspending
allocations
...optimalchannel mix
80
Favorable responses1 (%)
74 72
38 3730
0
20
40
60
Vice president of consumer insights, consumer packaged-goods company
Manager of strategy and insights, consumer packaged-goods company
-
Prioritize strategic work and exercise the ability to say “no” to some projects. -
-
-
---
Strongly embed the insight team in the business unit. --
--
-
Market research spending (%)
Industry
---
-
then--
-
-sight FTE actually declined
-
continuum.
Spending and Resource Levels.
-
-
---
-
--
Fortune
and
--
-
-nership.
Investment in People.-
--
Hiring and Talent.
-
Favorable responses1 (%)
0
Spending($thousands)
Market research spending per full-timeemployee in the insight function
Spending per insight FTE islower at companies in moreadvanced stages of insight
800
700
600
500
400
300
200
100
670
400
Stage 1 and 2companies
Stage 3 and 4companies
-
-
-
-
--
right
Career Paths.
--
Training. There is room to enhance capabilities among
-
-
0I received training
within the last six months to improve my consumer-
insight capabilities
I have a clear senseof my future careerprogression within
the company
It is easy to use my current role as a
springboard to biggerroles in the organization
My company has a rotational programfor consumer insight
employees
80
100
60
40
20
43 4235
9
Favorable responses1 (%)
Optimizevendor usage
Synthesizeinsights across
multiplesources
Leveragecustomer and
shopperinsights Provide
megatrendcompass
Drive to the“so what?”
Balance global consistency with
customizationDevelopscalable
capability
Executive vice president of consumer insights and strategy, consumer packaged-goods company
Senior vice president of consumer planning, con-sumer packaged-goods company
Director of marketing, retail and apparel company
--
W -
-
--
processes
-
--
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Establish co-ownership with business lines.
-
Expect that success takes time. --
Getting Started on a Transformation Journey
-
Commit to make talent changes.--
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Generate CEO-level buy-in and sponsorship. --
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Make changes visible. -
-
--
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Learn as you go. --
-
--
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-and
M
The Boston Consulting Group pub--
Women Want More: How to Capture More Than Your Fair Share of the Female Economy
Winning Consumers Through the Downturn: 2009 BCG Global Report on Consumer Sentiment
Capturing the Green Advantage for Consumer Companies
Trading Up and Down Around the World
Customer Segmentation: A Call to Action
Driving the Bottom Line from the Front Line
For Further Reading
--
Consumer Goods
The Clorox Company
Energizer
Nestlé
PepsiCo
Puig
Financial Services
BMO Financial GroupBNP Paribas Liberty Mutual
Retail and Apparel
The Gap
VF Corp.
Technology
Travel
-
-
-
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Patrick DucasseBCG Paris
Miki Tsusaka
Christine Barton
Ivan BascleBCG Munich
Mary Egan
Note to the Reader
Jean-Manuel Izaret
Stephen Kremser
Carol Liao
Sharon MarcilBCG Washington
Antonella Mei-PochtlerBCG Vienna
Stuart Quickenden
Bernd ZieglerBCG Munich
Emmanuel HuetBCG Paris
Kate ManfredBCG Chicago
For a complete list of BCG publications and information about how to obtain copies, please visit our Web site at www.bcg.com/publications.
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11/09