Investing in Global

Market Research
ENGLISH COVER

A Strategic Guide for Small to

MediumSized Enterprises (SMEs)

Not to be distributed without permission.

INVESTING IN GLOBAL
MARKET RESEARCH:
A STRATEGIC GUIDE
FOR SMALL TO
MEDIUM-SIZED
ENTERPRISES (SMES)

Sabrina Kinckle
Sales Manager, So Paulo

CONNECT WITH US
EUROMONITOR INTERNAT ION A L 2 0 1 5

CONTENTS

1 INTRODUCTION
2

ASSESSING THE VALUE OF MARKET RESEARCH

Case study: attracting a younger domestic customer base
for future growth

USES FOR SMES AND START-UPS

Exporting
Case study: a small ice cream manufacturer wanted
to expand internationally
Entering a new market
Launching a new product
Developing a strong business plan
Case study: a midsized hair care company wanted
to develop a new product aimed at African-American
women with natural hair
Developing a competitive strategy
Forecasting

15 CONCLUSION
Market research: an upfront, strategic investment for growth

iv

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ABOUT EUROMONITOR INTERNATIONAL

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THE AUTHOR

EU R O M O N I TO R I NTERNATI O NAL 2015

INTRODUCTION

Consider these questions:

Do you think your company is too small to invest in market research?
Do you consider market research a luxury that only Fortune 500
companies can afford?
Do you want to grow your profits and brand equity?
As a small business owner and a business development professional
at Euromonitor, I have witnessed first-hand the power market research has
on small to midsize enterprises (SMEs) success. Ive helped SMEs create
in-depth expansion plans, export strategies and marketing campaigns they
never thought were possible. The best part? These companies saw real business
growth as a result.
I have also watched SMEs slowly deteriorate, due to a poor understanding
of their end markets, industry and business environment. According
to the Federal Reserve Bank of New York, even slight variations in a business
environment may affect smaller businesses more than larger businesses.
However, SMEs can prepare for these variations if they conduct a thorough
and accurate market analysis before taking action. Growth markets hold
a wealth of opportunity for your business. New regulations and channels
of distribution are changing the way companies do business and in an uncertain
economic environment, SMEs cannot afford to operate blind. They must be
proactive rather than reactive.

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ASSESSING THE VALUE

OF MARKET RESEARCH

The misconception that only big corporations need to commission

market research has been largely perpetuated due to lack of awareness.
When implemented correctly, market research is a strategic investment
for companies of any size, helping deliver rich insights and allowing
for a competitive advantage.
If there is one thing Ive learned working with SMEs, it is that there may not be
a one-size-fits-all market research solution. SMEs may not require the breadth
of data larger brands need. Rather, they should focus on ensuring the data is
relevant, accurate and internationally cross-comparable.
Investing in market research gives SMEs access to the right amount of accurate
information, directing future strategy.
The process of generating insight requires three components:
Volume of data: There are a variety of free resources SMEs
can consult for market research such as the Census Bureau,
federal statistics, trade groups and business magazines.
All of these resources are limited in the volume of data they provide.
Most SMEs that have never invested in market research are unaware
of the depth and breadth market research providers can supply.
By relying on public resources alone, SMEs only have a top-line view
of their market and industry, limiting growth potential and making
themselves vulnerable to better informed competitors.
Adequate methodology: SMEs often gather information
from a variety of sources. Most of these resources have different
methodologies, category and channel definitions and currency
exchange rates, providing an inaccurate view of the market.
SMEs should ensure the data they use is internationally
standardized, cross-comparable and accurate.

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Assessin g th e Value of Mar k et R e s e a rch

Capable analyst to make sense of it all: The role of the analyst is key
in this process. Data and methodology are nothing without
an analyst who can offer context.
Market research vendors should be able to answer the following questions:
1. How will market trends affect my company?
2. Who is my target market and how does this market make
purchase decisions?
3. How can my company increase its share in the market?
4. What marketing strategies will work best?
5. How is the size of my target market predicted to change?
Keys to Success in Small Business

Source: http://smallbiztrends.com/wp-content/uploads/2013/03/businesses1.png

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A ss e ss i ng th e Va lue o f Market Res earc h

Case study: attracting a younger

domestic customer base for
future growth
Background
A domestic wine manufacturer in the US had a loyal customer base over
the age of forty-five, but needed to target a younger demographic to ensure
future growth. Despite various marketing promotions, the company struggled
to attract younger customers.

Research Process
The wine manufacturer wanted to conduct a full market analysis of the wine
industry in the US, including consumer drinking habits and trends, regional
variations and major competitors.
The company consulted resources such as government trade websites
and association and industry-trade publications. By using these free resources,
the company had a topline view of the wine industry in the US but lacked
the information necessary to attract a younger audience. The manufacturer
commissioned Euromonitor International to help with the project.

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Assessin g th e Value of Mar k et R e s e a rch

To help the manufacturer, the project took a multi-tiered approach:

Consulted syndicated Euromonitor market data, to understand
major players and their share of the market, on-trade vs. off-trade
consumption, distribution and pricing
Utilized brand share data of other major players successfully
targeting a younger market
Consulted contacts within the industry including distributors,
retailers and other manufacturers for strategic guidance
Issued store checks to compare pricing, packaging, promotions
and placement within retail and foodservice establishments
Used US-State level data to understand regional preferences
in the US, including which region consumes the most wine
and future outlook for wine consumption in the US
Explored consumption habits for consumers in the US as well
as habits among consumers aged 21-30.

Result
The project helped the wine manufacturer gain an in-depth understanding of its
market. State-level data identified which regions in the US consume the most
wine per capita. These types of insights helped identify their target market
and regions of focus. By commissioning additional research on its competitors
strategies, the manufacturer was better equipped to create a unique campaign
that stood out from the competition.
The wine company gained valuable market insights it did not have access
to before, helping the organisation develop a strategic plan for targeting
younger consumers.

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USES FOR SMES

AND START-UPS

Exporting
More than ever before, companies of all sizes are exporting. In fact, the biggest
business in the world is international trading.
More firms of all sizes are exporting. The Commerce Departments
Exporter Data Base (EDB) reveals that in 2010 the total number
of U.S. firms exporting goods stood at 293,131, a 6% increase
from 2009.
Exporting and importing activities among SMEs are increasing.
Of those companies engaged in trade, 80,640 both exported
and imported merchandise in 2010. Of these, 76,335 were SMEs,
accounting for 94.7 % of companies that both export and import.
Export revenue among SMEs is growing. The known export revenue
of SMEs rose to $383.4 billion in 2010, up 24.1 % from 2009.
Non-manufacturing companies dominate both exporting
and importing by SMEs. In 2009, wholesalers and other
nonmanufacturing firms made up 72% of all SME exporters,
generating 67% of total SME exports, and accounting for 80%
of all SME importers.
SMEs could sharply boost exports by entering new markets.
In 2009, 59% of all SME exporters posted sales to only one foreign
market. On the other hand, more than half (55%) of large firms that
exported recorded sales to five or more foreign markets in 2009.

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Uses for SMEs an d Sta rt- u ps

Trade Growth Favours Exporters Across the Developing Regions

Source: Euromonitor International

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U s e s f o r S M E s a nd Start-up s

Case study: a small ice cream

manufacturer wanted to expand
internationally
Background
The ice cream manufacturer was unsure which international market to target
or what factors to consider for expansion.

Research Process
The manufacturer used Euromonitors syndicated data to discover
markets showing the highest forecast growth for ice cream. It found Indias
ice cream market is expected to grow rapidly through 2016, making it a viable
target market.
Historic and Forecasted Growth for Market Sizes of Ice Cream in India,
20122016

Source: Euromonitor International

The manufacturer reviewed the competition by analysing company and brand

share data and consulted consumption habits amongst consumers in India
to assess risk and identify the impact of government regulations and economic
and industry change. In addition, the manufacturer examined analysis on best
practices for entering emerging markets.

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Uses for SMEs an d Sta rt- u ps

Category Briefing: Ice Cream in India

Source: Euromonitor International

Result
Using research on market sizes, company and brand shares and industry
analysis reports listed above, the manufacturer identified opportunities,
risks and vulnerabilities of exporting its goods to India.
Using this research, the small business entered India and increased annual sales
by 5%.

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U s e s f o r S M E s a nd Start-up s

Entering a new market

Entering new markets is a cornerstone for business growth. Establishing a
presence in new territories requires a substantial investment alongside political,
economic, cultural, legislative and technological barriers acting as major
disincentives to enter new markets.
Issues to consider before entering new markets:
Geographical expansion
Diversifying product offering
Market saturation
Long term growth
Market Share vs. price cuts
Appealing to different consumer segments
Spare production capacity
Technology or products that can be adapted to other markets
Clients using market research should answer the following questions prior
to moving forward:
What are the best routes to market for my products or services?
What is the size of my target market?
What products or services currently exist in this market similar
to my own?
How can I price my products or services in this market?
Based on the consumers in my target market, will I need to alter my
current product offerings to appeal to the new market?

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Uses for SMEs an d Sta rt- u ps

Launching a new product

SMEs, like their larger counterparts, often strive to maintain a portfolio
of products and services that speak to changing industry and consumer trends.
Many SMEs embark on developing new products after doing little to no market
research. According to Why Most Product Launches Fail, an article published
in the April 2011 edition of the Harvard Business Review, brand managers
claim that while they havent done the research they know anecdotally
that their claims for creating revolutionary and desirable products are true.
The same article stated 75% of newly launched consumer packaged goods
and retail products fail to earn even $7.5 million during the first year.
A pre-launch research project determines whether the product or service is
of interest to the target market. This process is vital, especially for an SME
lacking a reputable brand name.

Developing a strong business plan

Effective research provides entrepreneurs with information that determines
start-up costs and the range of products and services the company will need
to be successful. This helps entrepreneurs define success and answer essential
questions such as:
Size of the market
Main consumer segments
Consumer expenditure
Channels of distribution
Available alternatives
Price movements
Competitive environment

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U s e s f o r S M E s a nd Start-up s

Case study: a midsized hair care

company wanted to develop a new
product aimed at African-American
women with natural hair
Background
An international company specializing in professional salon services
and products for curly haired women wanted to expand its product line
to textured hair care products and needed to determine if focusing
on the African American hair care market was the next best step for expansion.

Research Area
The company used market research to discover the market sizes for several
subcategories in the curly haired, beauty and personal care portfolio such
as shampoos, conditioners, styling products, finishing products, treatments
and chemical treatments.
According to the data, the market for specialty hair products for texturised hair
was growing. Research was also provided on the shares of the major players
as well as the dominant channels.
In store analysis was also conducted to report on innovations, packaging
concepts, marketing messaging and price ranges. Research indicated
opportunities in hair care and the company decided to launch its next line
of products.

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Uses for SMEs an d Sta rt- u ps

Historic and Forecasted Growth for Hair Care in USA, 20102016

Source: Euromonitor International

Result
The hair care company successfully launched a new product for texturized hair
and saw an increase in revenue of more than 10%.

Developing a competitive strategy

Companies of all sizes benefit greatly from knowing their market
and the competition.
Developing a competitive strategy enables businesses to leverage their products
and services, while at the same time determining how competitors are likely
to leverage their information.
The benefits of compiling competitor data include:
Maintaining competitive advantage by identifying opportunities
and potential threats
Tracking competitor activities and anticipating their strategies
Identifying strategic weaknesses in competitor positions
Evaluating competitor marketing claims, promotions
and advertising
Finding suitable partners for distribution or supply

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U s e s f o r S M E s a nd Start-up s

Compiling competitor information can be difficult. Market research firms

have longstanding relationships that provide access to competitor data.
Most companies refuse to share product development and pricing, ingredients,
distribution channels and areas of innovation with their competition.
The naturally secretive nature of companies makes it almost impossible
for businesses to develop a thorough competitive strategy without the help
of a reputable and experienced market research company.

Forecasting
Forecasting is a vital aspect of developing a long-term business strategy,
making it possible to respond to anticipated changes ahead of time.
Businesses greatly benefit from being ahead of the curve. Industry
and macroeconomic forecasting provides an opportunity for businesses
to develop a strategy based on where the market is headed.
Developing a strategy for business growth requires companies to have a full
understanding of the way their business works and its position relative
to others in their market.
A good plan seeks to answer several questions, including:
Where is your business now? This involves understanding as much
about your business as possible, including how it operates internally,
what drives its profitability, and how it compares with competitors.
Where do you see your business in five or ten years? What do you
want to be the focus of your business and your source of competitive
advantage over your rivals in the marketplace?
What do you need to do to get there? What changes will you need
to make to meet strategic objectives?

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CONCLUSION

Market research: an upfront, strategic

investment for growth
The misconception that big corporations should only commission
market research has been largely appropriated, due to lack of awareness
and understanding. As you move forward with your business plan, remember
that when implemented correctly, market research is a strategic investment
for companies of any size, delivering and providing rich insights and a
competitive edge.
If you decide to utilize a market research provider, background research will
help prior to selecting services. To better understand each providers insights,
identify how they define their research, the depth and scope of research
and accessibility to analysts. Some research companies rely only on scan data,
others only consumer insights, and some use a top-down approach
to uncover valuable information. Asking key questions will help you decide
what information is most vital to your strategy.

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ABOUT EUROMONITOR
INTERNATIONAL

Euromonitor International is the worlds leading provider for global business

intelligence and strategic market analysis. We have more than 40 years
of experience publishing international market reports, business reference books
and online databases on consumer markets.
Request a demonstration or read product reviews to learn more about Passport,
our database market research, or contact us to speak with a representative
about the best solution for your business.
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THE AUTHOR

SABRINA KINCKLE
Sales Manager
Euromonitor International, So Paulo
@SabrinaKinckle | LinkedIn

Sabrina Renee Kinckle leads a team in Brazil that works with Professional
Service, Government and Academic institutions, both large and small.
She previously led the SME Team in the U.S. and has more than
fifteen years of business development and communications experience
within the corporate, government and higher education sectors.
Through Euromonitor International, she has worked with small businesses
and midsize corporations to grow revenue using global market research.

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