Measured Approach
A continued soft economy seemed to have little impact on promotion-related research spending as marketers may have shifted methods slightly but spent essentially the same dollars. This gave the segment a small 1.5 percent boost to $1.49 billion for 2002, according to PROMO estimates based on industry sources, as compared to $1.47 billion for 2001.
“We were challenged to show greater imagination in qualitative research and we rose to that challenge,” says Janese Evans, EVP-director of Research and Information Services for Minneapolis-based FFWD. “Our clients are shifting from quantitative research to qualitative, spending fewer dollars per piece. On the RFPs and activity, we don’t have the size of pieces that we had previously seen; it’s an increase in smaller ad hoc pieces that are having a lot of impact. All our services are customized and FFWD’s positioning is very reliant on actual behavior vs. studies that try and track behavior based on recall.”
Evans believes that marketers are beginning to change the way they view promotion-related research. “Traditionally we had handled research as a way to manage risk and decision making; now we are positioning research far more as a way to manage growth. Clients want help looking for an upside, looking for an opportunity, rather than the older view of wanting help to cover their tail,” she says.
Conversely, Valerie Skala, VP Analytic Product Management & Development for Chicago-based Information Resources, Inc., believes that quantitative analytic research is the wave of the future. “Technology-enabled analytics and advanced modeling techniques have changed the face of this piece of the industry.”
And our survey says…
Marketers will need both qualitative and quantitative research in the coming months, as U.S. consumers continue to change their shopping habits in response to lifestyle and economic factors. Consumers are cutting back on trips to the grocery store and increasing visits to supercenters, dollar stores, and warehouse club stores, according to the latest Channel Blurring study from ACNielsen. Additionally, convenience-oriented food and cleaning items are among the fastest-growing CPG categories, according to ACNielsen’s Consumer Pre*View survey.
When presented with shifts in consumer behavior like ACNielsen is reporting, Evans sees the opportunity for promotion-related research. Her clients will want “more projective research techniques in terms of what do you see when, and what will you do, what implication does that have for the brand? They want to see where they fit in and where they can differentiate.”
Several brands have begun to shift focus from research focused on “consumer” behavior to studies of specific “shopper” behavior. “This is just another indication of the extent to which retailers like Wal-Mart and Target are in the driver’s seat these days when it comes to the way we think about promotion,” says one brand manager.
And while the economy may remain soft for the foreseeable future, Skala also sees an opportunity: “When our clients feel economic pressure, they look for tools to help them optimize their resources,” she said. “People are willing to spend on research to the extent that the research shows a return on investment.”
RESEARCH SNAPSHOT
total spent in 2002: $1.49 billion
Promotion-related research spending grew 1.5 percent versus 2001
Shifting consumer behavior may spur research spending growth
Internet-based desktop delivery is growing in importance
