ORC International Competitive Intelligence Webinar - 5.1.13
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Transcript of ORC International Competitive Intelligence Webinar - 5.1.13
Integrating Competitive Intelligence Into Market Research Connecting Market Research Professionals with Competitive Intelligence Skills
May 1, 2013
Presented by:
Rob Amann, Vice President – Strategic Intelligence
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Today’s Discussion
Comparison of traditional definitions of competitive intelligence and market research
Competitive Intelligence versus market research – differences in practice
Aligning methodologies can better complete the picture
Cases
Hints to deploy at your company
Key Takeaways
2013 ORC International Proprietary and Confidential
Comparing Market Research and Competitive Intelligence
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Opinions and attitudes – typically from large sample groups.
Track attitudes long term in a way that can be compared over time.
Aggregated, “real world” insight across a broad and complex sample base.
Traditional Definitions of CI and Market Research
Web surveys, telephone surveys, moderated focus groups, and executive in-depth interviews, etc.
Examine beliefs, perspectives, attitudes, and perceptions.
Aggregated, the data creates it own “facts” and “truths.”
Moving beyond the data is not common. Data should speak for itself.
Specific “factual” data – details, rationales, and the “back story” in otherwise widely known narratives.
Predictions on future actions – largely based on a goals and assumptions perspective.
Secondary / public source research.
Primary source interviews with knowledgeable individuals.
Analytical frameworks that attempt to predict the future, anticipate actions, and “connect the dots” between disparate known insight.
Moving beyond the data is common.
Needs
Methodologies and Analysis
Competitive Intelligence Market Research
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Common and frequent disconnects in terminology and between market research and strategic / competitive intelligence.
This suggests a need to understand, acknowledge, and translate the differences across stakeholders.
Avoid being distracted by these differences and focus instead on the research need.
Bridging the Gaps in Understanding Between CI and MR
“Market research and competitive
intelligence are two disciplines divided
by a common language”
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Statistically meaningful percentage of a given population.
100’s or likely 1000’s of interviews / participants are involved.
Process is key – “who” and “where” often leads.
Primary sources often mean interviews/surveys with a high volume of interesting stakeholders.
Detailed “wordsmithing” builds credibility .
Formal, highly structured interviews with individuals from fairly consistent perspectives.
You are “done” if the process is flawlessly
executed so insight can flow from number crunching and thoughtful analysis.
What do the numbers tell me and how can I relate it back to the business decision?
Comparison of Language and Terminology
Written documents, reliable databases, and knowledgeable people to support points.
Effort can resemble investigative reporting Total interview sourcing (if needed) may number
from 5 to 150 people.
Specific detail sought is key – “what” leads to sources used.
Secondary/public & primary sources are used.
Free form phrasing when discussing it and interviewing.
You know you are getting good answers when you can make a credible argument.
You should be able to justify insight to stakeholders based on quality of the sources and be able to support “leaps of faith.”
How can I connect the dots, what can I argue and assume is happening, and what narrative can be constructed?
Competitive Intelligence Market Research
Data
Questions
Analysis
Research Process
Market research and competitive intelligence often sound familiar, but are very different:
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These differences often result in differing paths, emphasis, and skills – but both can yield meaningful results.
Comparison of Typical Methodological Flow
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Consumer demographics?
Media influences buying?
Perceived product value to customers?
Consumer impressions of client’s brand and competitors?
Frequency of purchases?
1,000 consumers who bought premium pet food in the last 6 months.
Balance sample for geography, gender, age, income, product buying patterns, other?
Insight into future consumer positioning and messaging.
Identify and target new consumers.
Differentiate messaging and marketing channels used.
Comparison of Language and Terminology
Competitors’ “go-to-market" strategies and tactics?
Value proposition to retailers and consumers? Competitor's assumptions about consumer
behavior? Sales estimates?
Review of online databases, articles, annual reports, analyst reports, IRI / Neilson data,
Interviews Retailers and Distributers and – if possible – competitors.
Counter and/or blunt competitor strategies and
tactics overall and at a retailer-specific level via differentiated retailer messaging, promotions, and marketing initiatives.
Anticipate and predict competitor actions based on an understanding of goals, assumptions, and capabilities.
Competitive Intelligence Market Research
Objectives
Sample
Outcomes
As a result, the methodologies provide different and complimentary value to help internal stakeholders better understand a business question as well as identify possible strategies to respond.
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Developing Well-Rounded Business Answers and Insights
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“Knowing” and “perceiving” insight are two sides of the same coin and loosely can align with CI and MR.
Processes
Assets and Equipment
Financial Metrics
Locations for Operations
People
Roles and Responsibilities
Channel Partner Relationships
Historical Actions
Innovation Patterns
Concrete Future Plans and Strategies
Planned Investments and Priorities
Others…
Broad characterization of CI Insight
Successful Operations of Processes
Efficacy of Partner Relationships
Culture and Implications of Management Personalities
Customer and Partner Experiences
Changes in Market Tastes and Preferences
Future Market Growth
Innovation Gaps and Needs
Others…
Broad characterization of MR insight
Things that can be “Known” via Competitive Intelligence
Things Generally “Perceived” via Market Research
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Fully cover all of Porter’s Four Corners
Drivers Capabilities
Assumptions Strategies
Competitor’s Future
Responses
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Drivers
“Known” “Perceived”
Management expectations regarding sales and profitability
Changes in expectations regarding a business line’s corporate contribution
Stated and observed corporate culture Changes in cost structures / operations Innovation regarding product and
manufacturing technology
Shifts in consumer / client preferences and tastes
Shifts in consumer / client demand [especially in markets where clear sales data is not available]
How does Integration Improve Insight? We can identify any disconnect between the priorities of the competitors versus actual
consumer patterns in the market. The “known” insights provides context and the background story to the consumer insights.
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Assumptions
“Known” “Perceived”
Competitor’s: Stated comparison themselves to
others in the market Beliefs about changes in technology
and service delivery 5 to 10 year plans Understanding of internal skills and
value in the market. Expected market growth rates Growth obstacles and opportunities
Successful impact of culture on the customer’s experience
Market reactions to strengths and weaknesses relative to other competitors
Market reactions to possible changes in technology and service delivery
Market size [in markets where clear sales data is not available]
Consumer perceptions of competitors and brands
How does Integrating Improve Insight? Perhaps more than the other “corners,” market research helps ground what is learned about a
competitors assumptions about itself and the market. In fact, a competitor might not even know about any disconnects and the insight could be a competitive advantage for you.
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Capabilities
“Known” “Perceived”
Financial resources Sales, marketing and “go-to-market”
processes, people and expertise Operational and logistical assets – plant,
equipment, people, and expertise C-suite and senior management skills R&D skills, expertise, and assets – such as
patents/copyrights
Market stakeholder experiences regarding the successful execution and deployment of capabilities, especially related to: Service Product Sales process Management
How does Integrating Improve Insight? There are lot of “hard facts” to be learned about how the competitor operates.
“Perceptions” help us understand if any of it matters or resonates with clients, partners, and other stakeholders.
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Strategies
“Known” “Perceived”
Current and historic actions and claimed future actions regarding: People, product, place, and promotion Investments
Senior management statements about key priorities and next steps
The tactics and steps underway to support strategies
Anticipated market stakeholder reactions to the competitors visible actions
Speculative insight from stakeholders regarding gaps and needs from the competitor
How does Integrating Improve Insight? Research getting at perceptions help assess the success of competitor’s actions as well
as assess if gaps are being filled and addressed.
What does Integration Look Like in Action?
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Case Study – New Product Introduction
Consumer package goods company sought to introduce new products in an emerging category.
Historically assessed consumer demand and preferences via quantitative market research.
Integrated competitive intelligence and market research to understand what others were planning to launch and if there was interest in a “me too offering.”
“Known” “Perceived” Value Added by Process
Competitor expectations of the category or business.
Roll up of competitor sales volume triangulated against assumptions of others in the market.
Sales channel processes and mechanics.
Supply chain insights.
Anticipated aggregated customer preferences and buying behavior.
Likely market / retailer reactions to competitor’s go-to-market.
Overall market assumptions about market growth.
Identified possible challenges in market adoption.
Anticipated competitor activity and built it into the plan – directly informed go-to-market strategies and tactics.
Reinforced the value of entering the market.
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Case Study – Market Sizing and Implications Financial Services client sought to understand the
market for specific back-office services among small-to-medium-sized enterprises.
Historically understood large market and assumed a ratio to calculate SME segments.
Concerned third-parties and internal capabilities restricted access and success into the SME segments.
Balanced the ability of MR to get at what was closer to the surface with CI’s ability to work with ambiguity.
“Known” “Perceived” Value Added by Process
Large market sales and adoption rates.
Competitor interest in / understanding of SME space
Channel partner roles and sales
SME usage and solution patterns – especially regarding in-house and outsourced
Future SME usage patterns Ability for existing
competitors and alternates to serve existing and future needs
Better understanding of the vast hidden portions of the market
Insight into what portions of SME could be accessed and what should be ignored
Sales estimates – largely based on “perceived” data to make sense of hidden portions of the market
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Case Study – Win / Loss Analysis
Professional services company sought to understand recent defections and wins.
Historically used an ongoing qualitative effort of reaching out to recent “wins” and “losses.”
Outcomes often resulted in fighting yesterdays battles instead of being proactive and anticipating future issues.
Integrate additional stakeholder voices – including competitors and channel partners.
“Known” “Perceived” Value Added by Process
Specific client experiences. Competitor counter-
positioning, service functionality, and resources.
Competitor intentions – versus execution – regarding service and product.
Importance of service and other gaps to decisions.
Identified standard trends to improve service, product, and account management.
Counterbalanced with insight about what the competition is actually doing.
Developed responses to address specific trends and tested likely competitor reactions.
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How Can You Deploy at Your Company?
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Five Practices and Behaviors to Consider
Break Down Barriers and Collaborate
Build Expert Relationships and Connections
Build Internal Advocates and Champions
Emphasize Insight and Context over Data
Focus on the Business Issue, Not the Methodology
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People – Relationships and Connections
Break Down Barriers and Collaborate
Build Relationships With Trusted Experts
Build Internal Advocates and Champions
• Work with as many other research colleagues as you can.
• Share findings and insights on a routine basis. It helps reinforce the value and credibility of your role within in the organization.
• Permit insights to cross-pollinate research efforts -- even if broader efforts are not possible.
• Develop a deeper understanding of your business and the market overall will clearly expose the value of integration to yourself and internal stakeholders.
• Learn what you don’t know and how to know enough to be dangerous.
• As with other research colleagues, obtain feedback from experts to act as a proxy and round out insight if timing and resources don’t permit broader efforts.
• Educate key stakeholders within your organization on research processes.
• Manage internal stakeholder expectations.
• Build credibility in order to expand resources or find ways to more explicitly share across functions and silos.
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Data and Insight
Consider Business Issue First, Methodology Second
Emphasize Insight and Context over Pure Data
• Get back to basics and look at the issue at hand as a question independent of any tools or methodologies.
• Focus your language internally on the business issues and less on the day-to-day “blocking and tackling” of research.
• A complete picture of the business issue at hand lends itself to context and implications. These kinds of deliverables could help you get a “seat at the table” with senior management because you can demonstrate value.
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Conclusion
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Recognize and embrace differences in methodologies – avoid methodology “tunnel vision.”
Focus on the business issue at hand and use approaches as tools – not mandates.
However, in some cases the approach taken might leave insight on the table.
A variety of approaches can help understand what is happening/will happen as well the market reaction to it.
Key Takeaways
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About ORC International ORC International is a leading global research firm with offices across the U.S., Europe and Asia Pacific. We offer a platform of integrated intelligence that combines traditional and forward-thinking methodologies, technology, industry expertise, and skilled research professionals to provide clients with the most comprehensive foundation for providing actionable insight to solve their most pressing business challenges worldwide.
Princeton Boston Chicago Cincinnati Maumee Minneapolis New York Reno Seattle London Manchester Melbourne
Hong Kong Shanghai Singapore Sydney
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Contact Us
Questions?
Rob Amann Vice President, Strategic Intelligence
202-427-6723 [email protected]
To learn more contact us at : [email protected]
Visit our website at www.orcinternational.com
Follow us on Twitter: @ORCIntl
2013 ORC International Proprietary and Confidential