This paper, drawing on both historical analysis of various aspects of the market research industry, together with original global research, addresses the issue of whether the market research industry will continue to follow our historic pattern of steady evolution, or indeed whether we are at the gateway to dramatic change for our industry.
This paper aims to support the proposition that the key to understanding a brand's equity or value lies in examining its ability to retain profitable committed customers while attracting similarly profitable non-customers. This proposition is supported by case histories including work which has been done to link the measured value of customers (spend) with their measured probability of retention (via longitudinal calibration of research data) to extrapolate a TRUE measure of lifetime value. In so doing the paper examines some of the many debates on brand equity (Ehrenberg Feld wick et al) and offers a view on how research can be used to summarise the relative strength (or equity) of different brands and the implications for potential market growth or decline.
The paper examines the role of customer loyalty in maximising opportunity, and will argue that loyalty, as measured by customer spending, is simply a reflection of short-term behaviour and can only be sustained by one of two routes: building the customer relationship with the brand; and âbuyingâ sustained loyalty through price and/or promotions. In order to build sustained loyalty it is necessary to first build brand commitment, a precursor (and hence predictor) of loyalty. In order to maximise the return from customers it is necessary to obtain a clear understanding of customersâ relationship with the retail brand and the degree of their involvement in the shopping process. The findings also illustrate the importance of understanding which segments offer the most potential value to the retailer: particularly where different marketing strategies might be needed for different segments. Only by understanding the dynamics of the market in this way can it be possible to effectively prioritise marketing expenditure.
This paper describes how research was used to help Shell UK to develop a strategy to understand and build relationships with consumers in a market which has become increasingly competitive: the UK petrol/ diesel market The paper demonstrates the need to identify different market segments and understand key motivators within the segments, in order to target and refine marketing activity. The findings show that, even in a market characterised by low involvement, it is possible to measure levels of brand commitment and identify those consumers for whom brand building remains a relevant course. The findings also show that it is possible to establish the relevance and relative importance of other aspects of the marketing mix to target segments and the implications of this for marketing strategy.
In 1986 a new Company appeared on the World Stage, United Distillers, the spirits Company of Guinness PLC. The company was formed as a result of the highly publicised takeover of the Distillers Company Limited by Guinness and was primarily a combination of the Distillers Company Limited and Arthur Bell which had been bought by Guinness in 1984. The major part of the new company's portfolio was made up of leading brands of Scotch Whisky and Gin including such names as Johnnie Walker, Bells, Dewars, White Horse, VAT 69 Haig, Gordons, Tanqueray and Booths. These and others from over 150 brands were sold in every country in the world where commercial access was possible. In the four years of its existence United Distillers has been successful. In 1986 turnover was £2,747 million with pre-tax profits of £375 million. In 1990 turnover was £3511 million pre-tax profit £965 million making United Distillers not only one of the biggest but also one of the most profitable spirits companies in the world. Many factors have contributed to this success. The understanding and management of the price dynamic has been important among these. This paper describes the way in which United Distillers has set out to understand the effect of price in its various markets and how this understanding has been incorporated into the management decision process.