MARKET INTELLIGENCE IN BRAZIL · IGlobal Market Intelligence Survey 2013 I 15 • 96% of surveyed Brazilian companies agree that they have benefited from market intelligence. •

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Global Market Intelligence Survey 2013

MARKET INTELLIGENCE IN BRAZIL

IGlobal Market Intelligence Survey 2013 I 2

Table of Contents

BACKGROUND & RESPONDENT DATA 3 – 13

BENEFITS & EFFICIENCY OF MARKET INTELLIGENCE 14 – 19

MI RESOURCES & ORGANIZATION 21 – 35

MARKET INTELLIGENCE COMPARISON BY INDUSTRY 36 – 37

WORLD CLASS MARKET INTELLIGENCE 38 – 45

FUTURE INVESTMENTS IN MARKET INTELLIGENCE 46 – 49

KEY FINDINGS 50 – 53

IGlobal Market Intelligence Survey 2013 I

Background & Respondent data


•  The Global Market Intelligence Survey 2013 was carried out between late February - April 2013.

•  GIA has conducted similar surveys in 2005, 2007, 2008, 2009 and 2011, available as white papers on the GIA website.

•  Survey respondents were asked to indicate whether they are market intelligence professionals (42%) or market intelligence users (58%).

•  Survey responses were validated by GIA and invalid data was not included in the analysis.

•  The responses have been based on self-assessments by the respondents and GIA has not been in a position to validate the accuracy of the responses.

The Global MI Survey & Definition of MI

GIA’s Global Market Intelligence Survey 2013 is the largest research study on MI globally to date, with 1,207 individual responses from more than 880 companies in 64 countries.

Definition of Market Intelligence: Market Intelligence (MI) helps organizations understand their business environment, compete successfully in it, and grow as a result. As a program, market intelligence collects information about market players and strategically relevant topics and processes it into insights that support decision-making.

Role of respondent


•  The maturity index is based on the World Class MI framework and indicates how advanced a market intelligence operation is.

•  Comprised of 44 questions, grouped into 6 key success factors:

  Scope   Process   Deliverables   Tools   Organization   Culture

•  Questions were measured on a 5-point Likert scale, and an index with a maximum value of 5 and minimum of 1 was calculated.

•  Companies that scored a maturity index of 4.4 or higher are considered to have World Class market intelligence.

GIA’s World Class Market Intelligence Framework The Framework was used as the basis for the Global Market Intelligence survey 2013.


•  3% of all companies in the survey were from Brazil. Overall, 9% were Latin American companies.

•  The proportion of respondents from North America market has decreased since the previous survey, while the proportion of respondents from Western Europe has increased.

Overall respondents by geography

Distribution of companies by geography


•  The majority of the companies from Brazil who participated in the survey were larger companies (above USD 130 million in annual revenues).

•  75% of the companies exceeded annual revenues of USD 130 million and 45% had annual revenues of USD 1.3 billion or more.

Respondents by revenue: Brazil

Distribution of companies by revenue


•  Most respondents came from the Manufacturing & Industrial and Financial Service industries, covering 14% each of the total number of respondents to the survey.

•  Followed by the Consumer Goods & Retail, Mining & Metals and Oil & Gas industries, covering 8% each of the total respondents.

Respondents by industry: Brazil

Distribution of companies by industry


•  75% of the companies in Brazil have a formal MI program in place. •  The higher proportion of companies with a formal MI program in place in Brazil

is likely a result of more larger companies (annual revenues above USD 130 million) participating in the survey, as MI programs are more common in large companies.

Existence of MI: Brazil vs. Global average

Does your company have a formal MI program?

Brazil Globally


•  In most countries, MI programs exist in around 8 out of 10 companies, which is slightly higher but consistent with the proportion found in Brazil.

•  75% of Brazilian companies have a MI program in place, which compares well to the proportion of companies with MI programs in other countries.

Existence of MI: By countries

Does your company have a formal MI program in place?


•  On average, MI programs are more common in larger companies than in smaller companies (less than USD 130 million in annual revenues).

•  In Brazil, 89% of larger companies have MI programs in place, whereas only 17% of the smaller companies have a MI program.

Existence of MI: Brazil by company size

Proportion of companies that have MI programs in place, by size


•  In 8 different industries that were represented in the survey, all companies reported to have MI programs in place.

•  In the Manufacturing & Industrial industry, only 40% of companies have a MI program in place.

Existence of MI: Brazil by industry

Does your company have a formal MI program?


•  50% of all large companies in Brazil that don’t currently have a MI program in place, plan to launch one within the coming 12 months.

•  In other countries, the proportion is much lower. Globally, 21% of all companies without a MI program are planning to launch one.

Plan to launch MI program: By country and company size

Are you planning to launch an MI program within the next year?


Benefits & Efficiency of Market Intelligence


•  96% of surveyed Brazilian companies agree that they have benefited from market intelligence.

•  But only 67% of companies in Brazil think their market intelligence investments have paid-off.

Benefits and ROI of Market Intelligence

Our company has benefited from MI Our investments in MI have paid-off


•  Similar to companies in other countries, the vast majority of Brazilian companies agree that they have benefited from their market intelligence.

•  63% of surveyed Brazilian companies strongly agree that they have benefited from market intelligence, the second highest compared to other countries.

Benefits of MI compared to other countries

Our company has benefited from Market Intelligence?


•  Professional Services, Telecommunications, Construction & Property Development, Defense & Aerospace and Medical Device & Healthcare companies in Brazil see the most benefit of having a MI program in place.

•  Companies in the Oil & Gas industry on average see less benefits, but are still positive overall all.

Benefits of MI: Brazil by industry

Our company has benefited from Market Intelligence?

Scale:

5 = Strongly agree 4 = Somewhat agree 3 = Neither agree nor disagree 2 = Somewhat disagree 1 = Strongly disagree


•  Only 67% of Brazilian companies agree that their investments in MI have paid-off.

•  The attitude of surveyed Brazilian companies towards ROI is the lowest among all surveyed countries.

ROI of MI compared to other countries

Our investments in MI have paid-off?


•  Comparing companies with MI against companies without, it’s evident that MI supports decision-making positively.

•  Companies without a formal market intelligence function don’t have information readily available to the same extent as companies with MI, and intelligence is not used to back-up decisions to the same extent.

Efficiency of decision-making: Overall

Efficiency of decision making with or without MI program

Scale:



•  Compared to companies in Western Europe, North America and Asia Pacific, efficiency of decision-making is higher in Brazilian companies.

•  Compared to companies from the three other regions, Brazilian companies consider executive decision-making to be very efficient. This is probably linked to a higher proportion of larger companies in the Brazilian survey.

Efficiency of decision-making: by regions

Efficiency of decision-making

Scale:



Resources & Organization of Market Intelligence


•  For Brazilian companies, the market intelligence operation is typically set up under strategic planning & business development and sales and marketing.

Market Intelligence placement: Brazil

Under which function is Market Intelligence placed?


•  In all surveyed countries, companies typically have their market intelligence set up under strategic planning & business development and sales and marketing.

•  Brazilian companies predominantly follow this trend.

Market Intelligence placement: By countries

Under which function is Market Intelligence placed?


•  85% of Brazilian companies have between 0 - 3 organizational layers between the Head of MI and the CEO.

•  No companies reported to have more than 4 organizational layers between the Head of MI and the CEO.

Organizational layers: Brazil

How many layers between Head of MI and CEO?


•  A large proportion of Brazilian companies have fewer than 2 layers between their MI operation and CEO, which is consistent with companies in other countries surveyed.

•  In contrast to APAC and US companies, that tend to have more layers between the head of MI and CEO, 55% of Brazilian companies have either 1 or no layers.

Organizational layers: By countries



•  63% of Brazilian companies operating B2B businesses only have either 1 or no layers between the Head of MI and the CEO.

•  50% of B2C business companies that responded to the survey have 1 layer.

Organizational layers: Brazil by type of business



•  On average, 8 people have market intelligence as their primary job, which is 4 people less than in the global average MI team, which consists of 12 people on average.

•  However, a majority (60%) of companies in Brazil have only 1 to 5 people working with market intelligence as their primary job.

Size of MI teams: Brazil

How many people have MI as their primary job?


•  In most countries, companies typically have a smaller MI team consisting of 1 to 5 people working with market intelligence as their primary job.

•  The range of Brazilian companies’ MI team sizes is consistent with companies in other countries.

Size of MI teams: By countries



•  For companies with both a B2B & B2C business or a B2B business only, they normally have a smaller MI team size consisting of on average 7 people.

•  For companies with a B2C business only, the MI team size is slightly larger, consisting of 15 people, on average.

Size of MI teams: Brazil by type of business



•  59% of work is done in a regular fashion. •  68% of the deliverables are produced by centralized market intelligence

resources.

Distribution of MI work: Brazil

Time spent on regular MI deliverables? How is MI work distributed?


•  The highest proportion of centralized MI work in Brazil takes place in the Automotive, Construction & Property Development and Electronics & High Tech industries, where all responding companies reported to be conducting all MI work centrally.

Distribution of MI work: Brazil by industry

What proportion of MI work is conducted through centralized resources?


•  Excluding HR costs, the budget figure is just shy of USD 1.4 million. •  Including HR costs, the budget figure is about USD 1.9 million.

Market Intelligence budgets: Brazil

Average MI budget (excl. HR costs)

$ 1,391,667

Average MI budget (incl. HR costs)

$ 1,897,941


•  Companies in Brazil have an average MI budget of around USD 1.4 million, similar to companies in Germany.

•  However, the average figure is not always representative. The median MI budget is only USD 100,000 in Brazil, meaning 50% of companies spend less than USD 100,000 on MI every year.

Market Intelligence budgets: By countries

Average MI budgets ($, excl. HR costs)


•  The Consumer Goods & Retail, Telecommunications and Electronics & High Tech industries have companies with budgets exceeding USD 2 million for market intelligence.

•  MI budgets for all other surveyed industries are below USD 2 million per year.

Market Intelligence budgets: By Industries

Top spending industries ($, excl. HR costs)


MI Resources: Brazil vs. Global average Brazilian companies, on average, have similarly sized MI teams but only around 30% the amount of MI contributors, with a smaller internal client base, compared to the global average company.

Brazil avg MI team size Brazil avg MI Contributors Global average MI team size Global average MI Contributors

Bubble size = number of people


MI Comparison between different industries


Level of MI sophistication vs. return on investment in different industries

Ave

rage

MI M

aturity inde

x score

Average ROI score

Investments in MI have paid-‐off? (ROI) Scale:


MI in the Consumer Goods & Retail and Professional Services sectors in Brazil are the most sophisticated.

< $ 650 k

$ 650 k – 1.3 mln

$ 1.3 – 3.3 mln

< $ 3.3 mln

Bubble size and color = avg MI budget (excl HR)


World Class Market Intelligence


•  The maturity index indicates how advanced a market intelligence operation is.

•  Comprised of 44 questions, grouped into 6 key success factors:

  Scope   Process   Deliverables   Tools   Organization   Culture

•  Questions were measured on a 5-point Likert scale, and an index with a maximum value of 5 and minimum of 1 was calculated.

•  Companies that scored a maturity index of 4.4 or higher are considered to have World Class market intelligence.

Maturity index & World Class MI companies

Measuring the level of sophistication of MI programs.


Maturity index: World Class MI vs. Global average

1.0 2.6 3.3 3.8 4.4 5.0

Average of all companies

Average of World Class companies

11% of all companies are considered to have World Class MI


•  World Class MI teams are positioned closer to the CEO. •  World Class MI functions are more tightly integrated with other key corporate

functions in the company. •  World Class MI companies have more people working full-time with market

intelligence. •  World Class MI companies have more internal customers to market

intelligence. •  World Class MI teams direct more of their deliverables towards top

management. •  World Class MI teams spend more time producing regular deliverables, as

opposed to ad-hoc. •  World Class MI companies centralize intelligence work to a greater extent. •  World Class MI companies are more efficient in decision-making.

41

World Class MI: Summary Common traits of companies with World Class MI


World Class MI: Organization World Class MI companies have 50% more internal clients and 50% larger MI teams


•  World Class MI companies consistently score higher on the questions concerning efficiency of decision-making in organizations.

•  Furthermore, companies with World Class MI back their decisions up with intelligence to a greater extent.

World Class MI: Decision-making

Scale: 5 = Strongly agree, 1 = Strongly disagree

Efficiency of decision-making with World Class MI


•  World Class Market Intelligence is more tightly integrated with all key corporate processes compared to other companies.

•  In particular, World Class MI is integrated into the strategic planning and sales & marketing processes.

World Class MI: Process integration

Scale: 5 = Strongly agree, 1 = Strongly disagree

Market Intelligence integration with corporate processes


World Class MI: Budgets The distribution of MI budgets (excl. HR costs) among World class MI companies is similar to the distribution among other companies

Maturity index

MI budget (excl. HR)

World class companies Other companies


Future investments in MI


•  81% of companies in Brazil intend to increase investments in MI over the next two years.

•  Only 4% of the respondents surveyed intend to reduce investments in market intelligence.

Market Intelligence investments: Brazil

How will investments in MI develop over the next two years?


•  Brazil along with Mexico, have the highest proportion of respondents surveyed that intend to increase investments in market Intelligence, both at 81%, and well ahead of the global average.

Market Intelligence investments: By country



•  Organizations in the Brazilian Professional Services industy are the most optimistic about future investments.

•  In the Oil & Gas industry, MI investments are expected to remain the same.

Investments in MI: Brazil by industry


Scale:

5 = Increase significantly 4 = Somewhat increase 3 = Remain the same 2 = Somewhat decrease 1 = Decrease significantly


Executive Summary of Key Findings


MI Efficiency: Key findings

The efficency of decision-making improves with a formal market intelligence operation in place

•  75% of the companies in Brazil have a formal MI program in place.

•  96% of surveyed Brazilian companies agree that they have benefited from market intelligence.

•  67% of companies in Brazil think their market intelligence investments have paid-off.

•  Brazilian companies agree that MI positively supports their decision-making process.


•  In addition to the core MI team of 8 people, on average only 30 people contribute to MI.

•  Excluding HR costs, the budget figure is around USD 1.4 million.

•  Including HR costs, the budget figure is about USD 1.9 million.

•  81% of companies intend to increase their investments in market intelligence.

MI Resources: Key findings

MI resources vary across companies and will be increasing over the next two years


GIA offers bespoke benchmarking opportunities for your company’s market intelligence

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There are several options for your company’s Market Intelligence to benefit from the Global MI Survey 2013 data.

• Global MI Survey 2013 white paper.

• Standardized Benchmarking Assessment reports from GIA.

• Customized Benchmarking Assessment projects from GIA.

• Benchmarking Circle roundtable projects by GIA.


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MARKET INTELLIGENCE IN BRAZIL · IGlobal Market Intelligence Survey 2013 I 15 • 96% of surveyed Brazilian companies agree that they have benefited from market intelligence. •