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Archive for the ‘Market Assesment’ Category
Tuesday, March 9th, 2010
B2B International’s consistent growth continued in 2009 despite the difficult economic environment. The company’s turnover increased by 10% and is now approaching the £3.5 million mark (over US$5 million). B2B International has experienced year-on-year growth in every year since its formation in 1998.
“2009 was a challenging time throughout the market research sector” reports Financial Director Matthew Harrison. “Budgets in some industries were cut, and some of our clients were forced to delay projects due to the economic uncertainty. However, the main trend in 2009 was a change in the type of business we conducted. Many clients moved away from international market assessment studies towards more ‘defensive’ research such as customer satisfaction surveys. Towards the end of the year, however, this trend was reversed, and early 2010 has seen huge interest in our Chinese and wider Asian offering.”
Looking forward to 2010, Managing Director Nick Hague is optimistic about the prospects for B2B International. “It is clear that our clients across Europe, North America and Asia are feeling more positive about the future and there has been a significant upturn in enquiries and commissions since around September 2009. Our proximity to clients and research respondents across three continents means that we are ideally placed to take advantage as optimism returns.”
Posted in
Asia, B2B News, Credit Crunch, Customer Satisfaction, Economic Crisis, Economic Recovery, Growth, Market Assesment |
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Thursday, November 5th, 2009
In his first Thursday Night Insight, Alex Clements illustrates perfectly how keeping a close eye on the competition and being quick to spot opportunities can really strengthen your own market position.
Atari, Spectrum, Commodore, Sega, Nintendo, PlayStation, Xbox. Regardless of your age, you are highly likely to have heard of at least one of these, possibly even all of them. Games consoles have been around for many years and as time goes by the systems become more sophisticated and the games become more complex and realistic.
I remember text-based adventure games on the Atari and Commodore 64 which required the player to type a keyword into the console, which would in turn prompt an action on the screen. I remember Bubble Bobble; a game featuring two small, brightly coloured, 2D characters (in fact, little more than a blob of colour) that were supposed to be dragons, where the aim of the game was to blow bubbles which could trap and eliminate enemies such as ghosts and flying purple sharks (yes; flying purple sharks!).
Games developers certainly were creative all those years ago and although games are more realistic these days, it doesn’t mean that people in the games industry no longer need to be creative.
The video games industry is one which has grown and grown over the years. More users, more games, more consoles, more money and, for the manufacturers, more competition.
Now that there is so much on offer to the public, we have a huge amount of choice in the types of video games we play: We can choose a favourite genre, a favourite series of games and we can even choose which console we would prefer to use to play them. Companies who are in competition over the same market need to think very carefully before every move. The games industry is an interest of mine and I commend some of the marketing strategies I have noticed recently.
In 2005, the world was due the start of the next generation of video game consoles. There was, predictably, much hype and speculation over what each one would have to offer. The battle had started long before they were released. To this day, the Microsoft Xbox 360 and Sony PS3 still battle for sales, offering similar types of realistic games and modern online services. Meanwhile, Nintendo released the Wii. The Nintendo Wii was released for a unique target market, offering an experience to consumers which was not available from either of its two potential rivals. Instead of competing to be the console with the best graphics, most functions and most realistic games, Nintendo made a console which was for light-hearted family fun: The games aren’t trying to be realistic but, instead, boast colourful cartoon worlds and let users embrace an unusual controller unlike any other, which can be waved at the TV like a magic wand to operate.
There is much to think about when marketing a product, but before you even start to plan, you need to understand your product and your target market, and it will be highly advantageous to know the competition. Some very careful (and intelligent) decisions were made over the period of time mentioned above and Nintendo’s adaption to the available market means that more Wii consoles have been sold to date than either the Xbox 360 or PS3, despite being released last.
I will conclude my first ever Thursday Night Insight with one more example of an opportunity that was promptly taken. It was, once again, Nintendo and their online marketing strategy for a new handheld console called the “DSi”. Nintendo were aware of their competition at the time, which happened to be Sony’s “PSP go” which was due to be released in the forthcoming months. The two products are similar and have a very similar target market. Upon realisation that Sony had not bought the UK domain name for their new product’s website in preparation for its release, Nintendo decided to step in. The result was that any consumer visiting www.pspgo.co.uk, looking for information on Sony’s product, would be taken directly to the main page of its rival, the Nintendo DSi. Try it yourself and see by clicking on the link above!
Underhanded? Or a stroke of genius? It’s probably a bit of both, but the fact still remains that all PSPgo customers aiming for the UK website will land directly on Nintendo’s website, faced with a fresh new product they were not expecting which will undoubtedly only mean positive things for Nintendo’s sales.
Posted in
Alex Clements, Competitive Intelligence, Market Assesment, Marketing Strategy, Online Marketing, Strategic Marketing, Thursday Night Insight |
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Wednesday, July 1st, 2009
Matthew Harrison, B2B International’s Director of International Operations, was featured in Marketing’s recent special issue on emerging markets.
Drawing upon his time spent working in our China office and using his extensive experience gained through managing research projects in such far-reaching geographies as Russia, Sri Lanka and Tanzania, Matthew offers invaluable advice to Western companies looking to establish or build a presence in any emerging B2B market. The full published article is as follows:
Some years ago, the chief justification for Western companies entering emerging markets was to establish low-cost manufacturing operations.
However, in the past five years there has been a revolution in strategy as the purchasing power of emerging economies has grown and these companies have now shifted their focus from supply to demand.
The casual observer watching a Muscovite sip a Starbucks cappuccino could be forgiven for thinking that customers in developing markets want Western products in Western packaging, promoted in a Western style at Western prices.
While many Western brands have developed a cachet across the developing world, the real picture is more complex, particularly in B2B markets. There are six factors that must distinguish B2B marketing in emerging markets.
The first is the importance of conveying higher product quality. In developing markets, companies’ product requirements often place less emphasis on product durability and quality of materials than in Western countries, putting greater importance on a lower cost. This is a huge challenge to Western companies seeking to enter the market, as they may find it hard to convey the value of the technical superiority of their product.
Second, when it comes to the services associated with a product offering, buyers in emerging markets are frequently as demanding, if not more so, than Westerners. For example, branches of Subway in China often take telephone orders for their sandwiches, and deliver these free of charge to customers’ homes or workplaces. A service such as this would be seen as extravagant in the West, but is often a basic requirement in Beijing and Shanghai, and no economic value is attached to it.
The third factor is the importance of local presence. Western companies entering developing markets often assume that the prestige of their brand excuses them from establishing a local presence. This is not the case. While customers in developing countries may be willing to pay more for the quality, prestige and technical know-how of an established Western company, all these advantages must be in addition to, not instead of, the basic requirements of spare-parts availability, access to technical support and face-to-face contact with local-language speakers.
Then there is promotion. If a Western brand can deliver on its promises, its name and values can prove a huge advantage and allow extremely large margins to be achieved. This is particularly true in consumer markets, where products such as luxury clothing and perfume brands frequently collect higher premiums than they do in the West.
In B2B markets, Western brands carry a particular weight if they can boast international accreditations such as ISO or a prestigious client list. These demonstrations of a company’s aptitude are often vital.
Fifth, relationships are key. As developing markets open up, buyers are only gradually becoming comfortable with dealing with people and companies they don’t know. Relationships are widely used as a substitute for brand when it comes to verifying provenance. Most B2B offerings also involve repeat purchases or after-sales support, and this makes attendance at events, face-to-face contact and local language capability essential.
Lastly, market research is vital. This is commonplace among Western companies, and the necessity of obtaining independent information is even more critical when it comes to operating in foreign markets. Not only do many Western companies lack insight into the developing markets, but cultural barriers and a lack of familiarity between managers in different locations can often mean that the exchange of information within international companies is wanting.
The most successful multinationals conduct frequent research across geographies, challenging their own thinking as well as the flow of information within their companies.
More of Matthew’s white papers on developing markets are available on our website:
Posted in
BRIC, Emerging Markets, Market Assesment, Market Entry, Market Intelligence, Marketing, Matt Harrison, White Papers |
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Wednesday, June 3rd, 2009
AdAgeChina is adamant that China remains one of the few bright spots for multinational marketers at the present time. After all, with some 300 million urban and upwardly mobile consumers, China can boast the world’s largest numbers of internet and mobile-phone users, as well as the biggest global market for cars, beer and cigarettes.
But it can still be a tough market to crack, and a new white paper from Ad Age – Winning Consumers in China – can help those, particularly in consumer markets, looking to grow their brands in China.
Some top tips from the paper, many of which also apply to b-to-b markets, include:
- Don’t think of China as a single country. According to AdAgeChina, an unbelievable 273 of its cities are each home to more than one million inhabitants, giving you some idea of the tremendous scale of this country.
- Don’t misinterpret the popularity of some Western brands as a desire among Chinese to become Westernized. China is advancing apace and is embracing many Western products and ideas, but it also has a strong identity, a proud history and many unique traditions of its own, all of which must be acknowledged and respected.
- Underestimate local brands at your peril.
- Beware mass media in China. One of the most effective ways to reach consumers in the world’s most populous country can actually be through one-to-one marketing.
The full white paper can be purchased from adagechina.com.
B2B International, with research experts on the ground in its Beijing office, offers some similar tips to business-to-business marketers interested in the potential of this huge country. Our white paper, Marketing and Selling to Chinese Businesses, explores the reasons behind both successful and unsuccessful marketing and sales approaches in China, and can be downloaded here for free. Alternatively, email beijing@b2binternational.com if you would like to find out more from our team in China.
Posted in
Branding, China, Market Assesment, Market Entry, Market Intelligence, Market Research China |
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Thursday, April 23rd, 2009
A recent article in BtoB Marketing – Thinking global may help U.S. marketers – argues that many emerging international markets still offer rich opportunities for domestic marketers, even in spite of the global economic downturn.
China in particular, is suggested as a market still offering excellent opportunities for U.S. companies. It is useful to note that the country’s premier, Wen Jiabao, last month predicted an 8% growth in China’s GDP this year, which, while not as large as last year’s growth, is still better than that of many countries.
One potential opening highlighted is for U.S. companies that put an emphasis on customer service. They may be able to take advantage of overseas opportunities, as it is suggested that companies in a number of other countries are much less tolerant of poor customer service.
In China, for example, 55% of companies have switched vendors in the past year because of perceived unfulfilled customer service expectations. Sweden (46%), India (44%), Italy (44%), Finland (43%) and companies in Asian countries other than China (36%) all have a tendency to switch vendors more than their US counterparts (22%).
With emerging markets such as China and India having increasing service expectations, there is the assumption that they may not be loyal to particular brands, suppliers, etc. Resultantly, they may be willing to make the potentially lucrative move from their existing domestic partners to foreign counterparts, as long as these new companies can offer them what they are looking for.
To find out how we can help you to grasp the opportunities presented by China and other Asian markets, visit www.b2binternational.com/China
Posted in
China, Global Research, International Market Research, Market Assesment, Market Entry, Market Research China, Market Research USA, USA |
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