Creating Custom Panels For Niche Markets

With Specific Case Study Example From Bounty -A Parenting Club and Media Owner

Prepared for AIMRI Meeting

“Understanding Niche Markets”

Munich

October 30th, 2009

Charles Pearson – Managing Director, EasyInsites

Vicki Kateley – Research Manager, Bounty

Fertility Rate Trends Fertility Rate Trends ––Quite Varied Across The Big 5Quite Varied Across The Big 5And Select OthersAnd Select Others

Country % Chg In Total

Fertility Rate (2000-

05 to 2005-10)

Spain 12.0

Italy 9.0

Sweden 7.2

Source: UN World Population Prospects

Sweden 7.2

UK 6.6

Russia 4.0

Australia 3.0

Germany 1.0

France .53

US .49

General Population Trends General Population Trends ––Most Experiencing IncreasesMost Experiencing Increases

Country – ranking

based on previous

ranking on fertility

rate chg

% Chg In Total

Population (2005-

2010)

Spain 0.77

Italy 0.13

0.45

Source: UN World Population Prospects

Sweden 0.45

UK 0.42

Russia -0.51

Australia 1.01

Germany -0.07

France 0.49

US 0.97

What Is Happening WithWhat Is Happening WithThe UK Birth Rate?The UK Birth Rate?

UK fertility rate is highest in 34 years with an average of 1.91 children per woman

For every 1000 live girls born, there were 1059 live boys – this is the highest ratio of girls to boys since 1979

Continued rise in the proportion of children born to mothers not born in the UK – 24% in 2008 vs. 23% in 2007 vs. 14% in 1998

Bottom line – mums/young families are an important niche market!

Source: GRO, ONS, SGRO and NISRA

What Exactly is a NicheWhat Exactly is a NicheMarket?Market?

Typically, it is one where the incidence is low and the challenge of finding and engaging them is greater than with the general consumer population.

Also, for these niche markets to matter, they are typically growing and/or are stable with significant enough size to matter to key manufacturers of products directed to those markets.products directed to those markets.

So many examples to name, just a few include: expectant mums or mums with babies or young children (young families), high net worth individuals, specialist professionals such as IT professionals, ethnic minorities, those who have special dietary requirements, and buyers of a particular brand.

So what makes the young family So what makes the young family audience hard to reach?audience hard to reach?

The

emotional

journey

Social

impact

Evolving

needs –

physical, impact

Personal

economic

situation

New values

& priorities

physical,

hormonal &

practicalSignificant

‘ripple effect’

of pregnancy &

motherhood

Media Stackers are bornMedia Stackers are born

Household tasks Attention pulled

towards children

Media stacking

under immense distraction!

Phone Pushed for time,

One channel competing

with another

Household users

competing with each other

Phone Pushed for time,

dashing out e.g. on

school run etc.

Promiscuous

media

consumption

in pregnancy

Organised, low

tolerance

consumption

in family life

Media Stackers grow upMedia Stackers grow upto become Influencersto become Influencers

Impact and enormity of the parenting experience enhances the need for self-efficacy*

= the need for self-belief in your own capabilities to be the parent you want to be

= the core driver to establishing mutually beneficial relationships with other parents,

thereby modelling self on the attitudes and behaviours of othersthereby modelling self on the attitudes and behaviours of others

Friends are of equal importance as a source of information

as reference books and healthcare professionals **

Parents talk to an average of 4 other parents per week

about family issues, products and services **

In a typical year parents who talk online talk to an average

of 24 other parents who they have never met in person **

����Network of mutual

support & empathy

* Source: Bandura, 1989

** Source: Bounty Insight

����

����

Social change drives ‘Influencer’ behaviour…

The Power of NicheThe Power of Niche

Connectors Talk to many different people about products

Mavens Have a large amount of knowledge about products

Salespeople Are very likely to convince others about products

By definition

= vital brand advocates

Influencers

Women at the family lifestage are:

Clothing, food, healthy

living, household products,

pharmaceuticals, toiletries

of pregnant women & those with

preschool children are influencers *57%

of pregnant women are influencers *63%

of women with no children are

influencers *46%

Parents, and especially mothers in their role as household main shoppers,

become influential brand advocates* Source: TGI 2009 Q3

Recently ‘overheard’ onRecently ‘overheard’ onBounty.com forumsBounty.com forums

Can anyone recommend DS games like

professor layton, millionheir files etc

Can anyone recommend a

hotel near gatwick?

I can recommend FANTASTIC

wedding/party planner for

Essex area

I only buy andrex puppies on a roll! Cannot

stand thin cheapy loo roll.

Influential brand advocates and yet so hard to reach…

can anyone recommend

a courier? I can get a mobile phone upgrade

soon yay - what phones do you

recommend? x am SO impressed with Thomson Holidays.

They allow a 10kg baggage for infants

under 2, and carry pushchair and car seat

for free! Wahoo!!!!!!!!!!!!!!i always buy fairy washing up

liquid - lasts ages

Approach To Creating CustomApproach To Creating CustomPanels For Niche MarketsPanels For Niche Markets

In the same way that marketing to these niche markets needs to be very focused, so does finding them for research purposes.

In most cases, the challenges are not insurmountable, it simply requires more thought and attention and generally speaking a higher budget.

Thinking and planning needs to be applied at all stages of the process, starting with recruitment all the way through to data collection and maintaining a relationship.

Source For RecruitmentSource For Recruitment

There needs to be a source for recruitment. This is typically a website that is frequented by that particular market, or a database that has been built by a company who provides products or services to that market. Bounty is a great example given their unique relationship with National Health Service maternity units where 95% of women in the UK deliver their babies.

The panel should also be built and owned by the owner of the source for The panel should also be built and owned by the owner of the source for recruitment, thereby reinforcing their relationship and contributing to better response rates and lower attrition. The manufacturer or brand has the relationship with these consumers, and this affinity produces a longer lasting and better result, as compared with a company simply passing over the leads to another company to use as a recruitment source.

Without the source, the costs for finding and acquiring these people will likely make the panel build cost prohibitive and partnering opportunities should be pursued

Customised Panel Look, FeelCustomised Panel Look, Feeland Languageand Language

By definition, these panelists will be unique from the general population and have a lot in common with one another. The panel look, feel and language should reflect this uniqueness.

A generic approach to the look and feel and language will not work well, these panelists will want to feel a part of something that is relevant to who they are, their core needs and their expected mode and style of who they are, their core needs and their expected mode and style of communication.

There should be consistency of colours, images, and language used throughout the process of inviting, profiling and interacting with them and these should be familiar and consistent with how they live their lives.

Relevant Engagement andRelevant Engagement andResearch OpportunitiesResearch Opportunities

It is critical that the types of research these panelists are expected to complete are primarily focused on the reason why they joined the panel in the first place

For example, if the panel is comprised of expectant or new mothers, sending them surveys on travel for single adults or sports cars is not likely sending them surveys on travel for single adults or sports cars is not likely to be of interest or consistent with their reason for joining this panel at this time in their lives. In this example, the primary focus for research directed at these panelists should be associated with the products and brands needed for raising their children or running a household with children.

Even cars and financial services products that are closely alignedwith this particular niche market would be very appropriate asresearch topics

X

Summary Points Summary Points –– BuildingBuildingCustom Panels For Niche MarketsCustom Panels For Niche Markets

Building panels in niche markets is not necessarily an expensive endeavour. If you or your client owns a list or has a database of customers, consumers or a website that attracts those who meet your desired niche profile, then this is an excellent starting point for building a panel.

With a Panel Exchange approach where the panel is made available to other researchers to use, there is also the opportunity to provide a revenue source for you or your client as the panel owner to help compensate for the cost of building and maintaining the panel.

With niche markets, these panels typically command a very high CPI (cost per interview), so there is likely a money making opportunity for panel owners that can also help fund their own research program.

EasyPanel

EasyBulletinBoard

EasyVideo

Core drivers to Bounty panel Core drivers to Bounty panel successsuccess

Flexibility

For Bounty,

as custom panel owners

For Bounty members,

the panelists

The one-off

The group

The ‘therapy’EasyVideo

EasyMobile

Direct access and/ or full service

Flexibility The ‘therapy’

The ‘out & about’

The full range of research services to meet business objectives

Methodologies that fit with the panelist’s lifestyle and media consumption

Control

For Bounty,

as custom panel owners

For Bounty members,

the panelists

On-going maintenance &

profiling

Only one live survey

invitation at a time

Core drivers to Bounty panel Core drivers to Bounty panel successsuccess

Controlprofiling

Absolute transparency

Consistency with overall

business best practice

invitation at a time

Control over

frequency of

participation

At-a-glance updates on composition, availability, third party usership, etc.

Engaged panelists who remain active but never harassed or saturated

Return on Investment

For Bounty,

as custom panel owners

For Bounty members,

the panelists

Ability to open to

the panelAppropriate and

on-going

Core drivers to Bounty panel Core drivers to Bounty panel successsuccess

Return on Investmentto research buyers

and sample buyers

globally

on-going

incentives

Set-up, recruitment, and maintenance costs are more than off-set

Engaged panelists who feel appropriately rewarded

In Summary:

Step back and examine your resources or those of your client – in many cases you will have a source for recruitment even if this is not the more obvious database or membership-base

Think creatively about how to engage and interact with panelists – use channels of communication, language, tone, and technology that work for Think creatively about how to engage and interact with panelists – use channels of communication, language, tone, and technology that work for them

Respect the on-going relationship with your panelists - they are your customers and the success of your panel depends on them

Unleash the niche!