The role of marketing research

in developing business in Moldova

Dr. Tomas Krasny; VEF Moldova, June 25, 2010

GfK. Growth from Knowledge

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GfK CEE The Role of Marketing Research Tomas Krasny June 25, 2010

Market Economy and Free Society Needs More than Just Liquidation of Iron Curtain…

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GfK CEE The Role of Marketing Research Tomas Krasny June 25, 2010

Citizen-Centric Society is the Foundation of Prosperity…..

Citizen = client of companies

Citizen-Centric

The centre of advanced society must be (WO)MAN - citizen

If we accept this mantra we define automatically also the role of opinion and market research

Citizen = client of

politicians Understanding

the Citizen

Tools of research help to understand the believes, wishes, dreams, needs of citizens

What they see, believe, buy….

There is no real market w/o empowered clients

Companies need to base their decisions on deep understanding their clients

The same applies for public sphere….

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GfK CEE The Role of Marketing Research Tomas Krasny June 25, 2010

Mission of the Research Company (an GfK Example)

We help our clients to create new futures.

Companies need to make decisions, and knowledge is the basis for decision-making. We help our clients to ask the right questions and to find the right answers. We make the difference between success and failure.

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GfK CEE The Role of Marketing Research Tomas Krasny June 25, 2010

PL

A

HR

SRB BG

RO H

SK

UA

RUS

BiH

LV

KAZ

Slovakia

1990

Hungary

1989

Czechia

1991

Croatia

1999

Slovenia

2001

Bosnia

2004

Austria

1950

AL

Poland

1990

Romania

1996

Bulgaria

1994

Russia

1991

Ukraine

1998

Kazakhstan

2005

Baltic States

2006

Macedonia

2007

BY

CZ

Serbia

2002

LT

EST

SLO

MK

Albania

2008

Egypt

2008

TR

In Central & Eastern Europe Fulfills GfK This Mission Since 1989 Our 1 500 Local Experts Support Both Domestic and Global Clients We Are More Than Happy to Do So Also in Moldova

EG

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GfK CEE The Role of Marketing Research Tomas Krasny June 25, 2010

GfK Loyalty Plus GfK KDA GfK Mystery Shopping

GfK Target Positioning GfK Ad*Vantage Multimedia GfK BVT GfK ATS GfK ConsumerScan

GfK Roper Trends GfK Category Influentials GfK Ethnography GfK Shopper Insight GfK Consumer Journey GfK SegMentor GfK Navigator GfK EmoSensor

GfK Genius GfK Concept Challenger GfK Product Challenger GfK Pack Challenger GfK Price Challenger GfK Test Markets GfK Volumetric TESI GfK Volumetric Price GfK Hilca Conjoint

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The Role of Research is to Support the Whole Product Cycle: From Basic Market Understanding, via Product Development up to Advertising and Sales

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GfK CEE The Role of Marketing Research Tomas Krasny June 25, 2010

Source: GfK Consumer Tracking ; Measure: value share (%); Period: 2009

67%33%

Bosnia&Herzegovina

14%86%

Russia

9%

91%

Ukraine

82%

19%

Slovakia

30%70%

Romania

72%

28%

Czech

63%

37%

Hungary

48%53%

Poland

37%63%

Serbia

26%74%

Bulgaria

38%62%

Croatia

Top 10

Others

Some of the Research Outputs Are Basic (Example: Share of Modern Trade Top 10 in CEE)

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GfK CEE The Role of Marketing Research Tomas Krasny June 25, 2010

-80

-60

-40

-20

0

20

40

60

80

-80

-60

-40

-20

0

20

40

60

80

Some Outputs Have Even Predictive Power (Example: GfK-Indicator EURO-Climate, Business Cycle Expectations)

Source: Consumer Survey for EU Commission, GfK Marktforschung (D)

Indicator points Indicator points

Poland

Romania

Bulgaria

01 02 03 04 05 06 07 08 09 10

Austria

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GfK CEE The Role of Marketing Research Tomas Krasny June 25, 2010

47

31

25

9

4

53

39

26

19

6

4

61

24

12

13

10

0

76

Any (Net)

Credit distress

(Net)

Job distress

Home distress

(Net)

Personal

bankruptcy

None of the

above

<$50K HHI

$50-75K HHI

$75K+ HHI

Predictions Based on Trend Research Are Sometimes Quite Powerfull (See Chart from GfK US of Oct 2007)

% of online adults 18+ whose household has experienced following in past six months, by income

Source: GfK Roper Reports US 10/2007

Those with lower incomes are most likely to experience credit and job distress, but housing woes affect a broader base

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GfK CEE The Role of Marketing Research Tomas Krasny June 25, 2010

Still the Key Role of Research is to Understand What & Why is Happening (Example: Ukraine, Drivers of One Food Category Value 2009 vs 2008)

Value

Volume Paid price x

Inflation rate

Up\Down trading

-1.1%

+15.9%

+13.4%

+14.7% -1.1%

Source: GfK Consumer Tracking

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GfK CEE The Role of Marketing Research Tomas Krasny June 25, 2010

What & Why is Happening (Example: Ukraine; Drivers of Volume 2009 vs 2008)

Market volume in value terms

Price

Volume per buyer

x

x

x

Buyers share

Frequency of purchases

Size of purchases

Inflation

Up\Down trading

+4.8%

+1.8%

-2.9%

-2.8%

Market volume accounting on the basis of quantities

-1.1%

Source: GfK Consumer Tracking

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GfK CEE The Role of Marketing Research Tomas Krasny June 25, 2010

Instead of Conclusion: Please Remember This Chart

Citizen = client of companies

Citizen-Centric

The centre of advanced society must be (WO)MAN - citizen

If we accept this mantra we define automatically also the role of opinion and market research

Citizen = client of politicians

Understanding the Citizen

Tools of research help to understand the believes, wishes, dreams, needs of citizens

What they see, believe, buy….

There is no real market w/o empowered clients

Companies need to base their decisions on deep understanding their clients

The same applies for public sphere….

GfK. Growth from Knowledge

Dr. Tomas Krasny, GfK Austria/CEE

tomas.krasny@gfk.com