B2B International Market Evaluation: Market Research and Strategy


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Focused on how B2B companies can access new markets and gain a competitive advantage globally, this component of Hanover Research’s 2013 webinar series is designed to help you make your market research count. In addition to reviewing the importance of growth through international markets, Hanover will present its own innovative approaches to international market research, share case studies taken from client engagements, and discuss strategies for transforming B2B market research into an effective tool for growing your international presence.

What you'll learn during this webinar:
o Effective strategies for evaluating new international opportunities
o Creative approaches to performing market research/competitive intelligence in B2B markets

For more information, e-mail info@hanoverresearch.com or visit hanoverresearch.com

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B2B International Market Evaluation: Market Research and Strategy

  1. 1. Research Without Limits™Market Insight CenterWEBINAR BRIEFINGJune 2013Featuring Hanover Research Content DirectorRyland PotterB2B InternationalMarket Evaluation©2013 Hanover Research
  2. 2. OVERVIEWMarket evaluations are designed to complement companies’ strategic planningby providing systematic, objective, and dispassionate assessments of growthopportunities. Because companies have limited resources, market evaluationsoften serve as a first step in prioritizing how and when investments should bemade. Although market evaluations are frequently grounded in benchmarkingthe overall size and future growth prospects of an opportunity, elements of themarket environment, including drivers, environmental risks,product/technological landscape, and competitive landscape, may be equallyimportant in determining a company’s ability to achieve growth targets.Beyond defining the opportunity, market evaluations may be extended toencompass path to market (in the form of market entry and partnershipassessment) or mode to market (in the form of competitive intelligence).Industry monitoring and trend analysis may additionally help your company toknow when the time is right to engage with the market.This webinar outlines how each of the elements of international marketevaluations come together to foster effective decision-making. In addition tosharing these research strategies, this webinar also highlights case studies ofhow Hanover’s clients have leveraged this approach in the past.The topic of international market evaluations is of great importance as B2Bcompanies look to access new markets and gain a competitive advantageglobally. The increased demand for information and support in this area, aswell as identifying successful research methodologies, demonstrates theimportance of this topic for B2B companies. The B2B International MarketEvaluation webinar is a component of Hanover Research’s 2013 webinar seriesdesigned to help you take a comprehensive approach to market research sothat you make your market research count, as proven time and again, a piece-meal approach to market research is not effective.CONTENT & PRESENTERSThis webinar discussed the importance of growth through internationalmarkets and Hanover’s innovative approach to international market researchby Hanover Research’s Market Insight Center Content Director Ryland Potter.Additionally, Market Insight Center Managing Content Director ClintonChristensen provided insights during the question and answer segment.KEY FINDINGSThis webinar shares research strategies to better understand how yourcompany can benefit from international market evaluations, which is a keycomponent of a comprehensive approach to business growth. Below wepresent several of the key findings of the webinar to provide information onthis topic.2For inquiries, e-mail info@hanoverresearch.com or call 202.559.0050Webinar Briefing:B2B International Market EvaluationJune 2013PRESENTERSAmy MoynihanContent ManagerHanover ResearchRyland PotterContent DirectorHanover Research“There are two keyelements of this webinarthat set these strategiesapart from a standardmarket evaluation. Thefirst is the focus oninternational growthopportunities and thesecond is the focus onB2B companies.”-Ryland Potter
  3. 3. 3For inquiries, e-mail info@hanoverresearch.com or call 202.559.0050THE FIRST STEPS OF A MARKET EVALUATIONThough often difficult to perform because of missing or non-aligned data, international market evaluations area critical and necessary component of a market research strategy to help companies grow and compete in aglobal market. The first steps of a market evaluation are to determine size, growth, and market drivers. Size,which is the most tangible unit of comparison that companies have, is often measured in dollars and/or volume.Determining growth, when can be measured by immediate growth in the next year or in a set number of years,provides companies with the direction that the opportunity is moving as well as projected increases anddecreases. While these two steps are conceptually straightforward, determining these figures can be quitecomplex in implementation.A third initial step of a market evaluation is determining market drivers, which allows you to understand whydemand functions the way it does in a market and provides a sense for how long you might expect it to functionthat way. While first order drivers are often reflective of consumer preferences, second order drivers typicallytake into account customer decision-making.The understanding of market drivers marks a key point in a market evaluation as this is the point at which acomprehensive market evaluation transitions from a snapshot to a document that helps differentiate andprioritize opportunities.ADDITIONAL COMPONENTS OF A MARKET EVALUATIONUpon the understanding of size, growth and drivers, the remaining four components of a comprehensivemarket evaluation are environmental risks, technological shifts, channels to market, and competitive landscape.The overarching goal of these fundamentals is to further differentiate the opportunity and identify at a high-level how the opportunity may best be addressed. For example, decisions such as whether to invest in a newfleet or in refurbishing an older fleet, whether to offer services beyond physical transport of goods, or whetherto partner with a local company are addressed with these components. Environmental risk is the likelihood that the market’s operating environment changes and that externalfactors will shift market demand. These changes include legal, political, or regulatory shifts. With the rise ofemerging markets, gauging environmental risk – the likelihood that industry subsidies dry up, or, in extremecases, the chance an industry may be nationalized – becomes all the more important. A focus on the technological landscape allows companies to understand whether the product will thrive in agiven market. Among the questions this approach seeks to answer: Is the larger market moving towards or away from adopting your product, and does that patternhold for the market you are exploring? Are there existing customer problems or challenges your product solves, or will the value be harderto communicate? What implications might this have for investments in customer or consumer education?Webinar Briefing:B2B International Market EvaluationJune 2013
  4. 4. 4For inquiries, e-mail info@hanoverresearch.com or call 202.559.0050 Channel to market implies a deeper look at whether your existing structure – manufacturing, sales andmarketing, logistics – is transferable to a new market. Whether you decide to pursue an export strategy orto manufacture for local markets, a company will need to consider the infrastructure that exists to get yourproduct in the hands of your target customers. A review of the competitive landscape seeks to shed light on what your market penetration might be andfrom whom you need to take market share. It can provide insight into how customers work with theirsuppliers and help you determine what will set you apart. Profiling competitors’ revenues, operations, andproduct ranges, among other items, can give you a topline understanding of what you need in order tocompete.WAYS TO FURTHER EXPAND THESE MARKET EVALUATION METHODOLOGIESIn addition to the strategies presented above, this webinar presented several strategies to use as potentialextensions of market evaluations. To help determine path or mode to market, B2B companies should look tomarket entry or partnership evaluation, competitive intelligence, and industry monitoring and trend analysis toincorporate this additional level of understanding to an international market evaluation. Path to Market: Market Entry and Partnership Evaluations: Whether a part of orienting a decision to investor how to take the next steps once your company has narrowed in on the most attractive opportunity, aclose look at how to approach that market is important. Your company will need to assess whether youexport or manufacture in country or source from existing suppliers locally or internationally. Your companywill also need to assess how much it wishes to invest and control overseas products and determine whetherto create a joint venture, acquire a firm, license to a partner, or ‘go it alone’. The leading techniques for this type of assessment are scenario testing, case studies andbenchmarking, and surveys of consumers and customers. Mode to Market: Competitive Intelligence: Competitive intelligence as an extension of market evaluation ismost important when your business expects to need to capture a large amount of market share to validatethe investment or when upstream or downstream players command the value chain. Hanover Research hasfound that there is no one definitive way to perform competitive intelligence in an international market.Differences in reporting structures and cultures, differences in government enforcement, and poor recordkeeping make it exceptionally difficult to create comparable due diligence. As a result, Hanover’scompetitive intelligence typically focuses on creating an exhaustive list of leading competitors and theircompany background, ownership structure, revenues (by geography, market, and product line, as available),major products, locations, mode to market, and any recent developments. Interviews with industryparticipants, including current or former customers, suppliers, and partners can also add unique perspectiveregarding their method of operation. Intelligence gathered through these means can be compared againstmarket data or industry trends to get a read on whether the company is ahead of or behind the market,testing a new strategy, or refocusing its investments. Competitive intelligence functions better as a systemthan as a single project; As such, the best outcomes come from aggregating and monitoring sources over along period of time, with repeat, structured activities designed to refresh your data, such as quarterlyrevenue updates, soliciting monthly distributor or end-user price quotes, or weekly competitor newsmonitoring.Webinar Briefing:B2B International Market EvaluationJune 2013
  5. 5. 5For inquiries, e-mail info@hanoverresearch.com or call 202.559.0050 Market Timing and Ongoing Monitoring: Industry Monitoring and Trend Analysis: Many of the elementsthat make emerging markets attractive are inherently instable. While a market evaluation may indicate thatthe overall opportunity is worth exploring, the timing may not be opportune. This intelligence informscompanies that it may be the most advantageous to delay the opportunity and wait to see how trends playout before moving forward. Depending on the nature of the industry and your company’s flexibility, you maychoose to refresh trends on a monthly or quarterly basis. Significant shifts in trends or drivers may signalthat it is time to revisit your original market evaluation to adjust your strategy or expected outcomes.HOW DOES HANOVER USE THESE RESEARCH STRATEGIESSeveral basic techniques that Hanover uses in international market evaluations include: Top-down demand and market-segmentation modeling Bottom-up estimation (which is best performed when the market is small or well-defined) Macroeconomic forecasting Value-chain mapping Technology-adoption lifecycle and penetration mapping Benchmarking and case studies Industry surveys of, or in-depth interviews with, industry participantsAt Hanover, we frequently use reports or the datasets on which they are based to help give shape to our clients’markets. However, we have found that off-the-shelf reports generally require a process of filtering andaugmentation to be directly relevant to our clients. It is important to understand the value of these reports, aswell as their shortcomings, to ensure that subsequent strategies both factor in as well as aim to fill gaps in thedata.Several of the resources we use in developing comprehensive international market evaluations are: Off-the-shelf reports with broad breakdowns of industry size and growth by market including Freedonia,Frost & Sullivan, Euromonitor, and IBISWorld International production and trade data including Government statistics, UNComtrade, and PIERS US Government reports from the Department of Commerce and International Trade Commission, forexample, and country monitoring services such as Business Monitor International and the EconomistIntelligence Unit Industry and trade publications Data and inputs provided by market participants including earnings reports, patent records, and industrysurveys/in-depth interviewsWebinar Briefing:B2B International Market EvaluationJune 2013
  6. 6. 6For inquiries, e-mail info@hanoverresearch.com or call 202.559.0050HOW TO INCORPORATE SYSTEMATIC, OBJECTIVE, AND DISPASSIONATE ASSESSMENTS BASED ON MARKET RESEARCH INTOYOUR COMPANY’S STRATEGIC PLANNINGThis webinar, in addition to sharing key components of international market evaluations, presented a review ofways to incorporate systematic, objective, and dispassionate assessments into your company’s strategicplanning.First, build a knowledge base of available resources internal and external. One of the biggest challenges wesee among both our B2B and B2C clients is a failure to recognize and use the data you already have on hand.Your sales logs may be more than a way to keep track of customers, they may also be a way for you to tap intobrand recognition or sales penetration in new markets. A second challenge is knowing how the strengths andweaknesses of your data sources impact your interpretation of results. Finally, to ensure your information is up-to-date and objectively considered, continuously refreshing and systematically mining your sources is a must.Secondly, be targeted and systematic. Know what your company values – be it access to a geographical marketor growth in an industry in which you currently participate – and know your company’s threshold for pursuingthe opportunity. Thoroughly consider how the components of an international market evaluation (marketsize/growth/drivers, environmental risks, product/technological landscape, channels to market, andcompetitive landscape) may change your strategy.Finally, revisit your initial assessment. Market evaluations are a snapshot, and depending on your company’stimelines, market conditions may shift significantly between first consideration and your move to market.Ongoing industry or trend monitoring can help you be up-to-date on your investments.POLLING RESULTSSeveral live polls during our webinar provided invaluable information on the use of international marketevaluations at the companies of our webinar participants. When asked the specific reasoning for theparticipant’s company to explore international market evaluations, the highest numbers of respondentsselected To learn about how this component of market research is used as well as To better understand themany pieces of market evaluations. Following a description of multiple components of international marketevaluations, participants responded that the components of market evaluations most needed at their companyare Competitive Landscapes followed by Drivers, Growth, and Size. When asked in which areas would theparticipant’s company benefit most from improvements, the greatest number of respondents chose Moresystematic evaluation of market components, followed by Better knowledge of/access to external resources.Webinar Briefing:B2B International Market EvaluationJune 2013
  7. 7. 6For inquiries, e-mail info@hanoverresearch.com or call 202.559.0050BIOGRAPHIESAmy Moynihan (Moderator)Amy Moynihan is the Content Manager - Webinar Specialist at Hanover Research. Amy is currently a Ph.D.candidate in Higher Education at The University of Virginia, Curry School of Education. She also holds a M.Ed. inSocial Foundations from The University of Virginia, Curry School of Education and a B.A. from ColumbiaUniversity.Ryland Potter (Presenter)As a Content Director with the Market Insight Center, Ryland has deep experience designing, executing, andleveraging market research to inform new product and market development strategies. She primarily servesclients in the advanced/engineered materials, energy, chemicals, and consumer packaged goods industries.Prior to Hanover Research, Ryland served as a consultant at Accenture and at Newry Corp. She holdsundergraduate degrees in Business and German from Case Western Reserve University, and received herMaster of Global Policy Studies from the Lyndon Baines Johnson School of Public Affairs at The University ofTexas at Austin.Clinton Christensen (Co-Presenter)Clinton joined Hanover Research in 2009 as a Content Analyst, independently completing over 40 projects for avariety of clients. He currently serves as Managing Content Director, overseeing the research operations of theMarket Insight Center. Clinton serves as a true thought partner, executing projects and providing researchstrategy guidance to clients in industries such as automobile parts manufacturing, packaging, insurance, andpublishing. Clinton holds a Bachelor of Science, magna cum laude, Phi Beta Kappa, in Psychology and PoliticalScience from Florida State University, and a Master of Arts in Political Science from the University of California,San Diego, where he was a Mark Twain Teaching Fellow.Webinar Briefing:B2B International Market EvaluationJune 2013“B2B companies face massively complex decisions, the least of which is often, “How do I get ourcustomers my product?” Varying go-to-market strategies and pricing structures, longer lead times,longer sales and supplier evaluation cycles, smaller customer bases, and the need to sell existing andsometimes quite content customers on new product benefits are just a few of the areas where stakesare higher for B2B companies than their B2C counterparts. When faced with rebuilding your customernetwork or recasting your business model overseas, the importance of properly defining anopportunity can’t be overstated.”- Ryland Potter
  8. 8. LEARN MORETo view the recorded webinar, open the following link http://bit.ly/1351wFXFor more information on Hanover Research’s market research, see our blog athttp://www.hanoverresearch.com/category/blog/business-blog/To learn more about how Hanover Research can provide market research for yourcompany, check out our capabilities at http://www.hanoverresearch.com/b2b-b2c-market-research-services/District Administration PracticeResearch Without Limits™Market Insight Center©2013 Hanover Research