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Global Market Intelligence Survey 2013

MARKET INTELLIGENCE IN MEXICO

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.


•  4% of all companies in the survey were from Mexico. Overall, 9% were Latin American companies.

•  The proportion from the North America market has decreased since the previous survey whereas the most respondents came from Western Europe.

Overall respondents by geography

Distribution of companies by geography


•  A majority of the companies from Mexico who participated in the survey were relatively smaller companies (under $ 130 million in annual revenues) compared to other countries.

•  37% of the companies exceeded annual revenues of $ 130 million and only 21% had annual revenues of $ 1.3 billion or more.

Respondents by revenue: Mexico

Distribution of companies by revenue


•  Most respondents came from the Manufacturing and Industrial industry, covering 15% of the total number of respondents to the survey.

•  Followed by Consumer Goods and Biotechnology industries covering 13% and 11% of total respondents, respectively.

Respondents by industry: Mexico

Distribution of companies by industry


•  57% of the companies in Mexico have a formal MI program in place. •  The lower proportion of companies with a formal MI program in place in Mexico

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

Existence of MI: Mexico vs. Global

Does your company have a formal MI program?

Mexico Globally


•  In most countries, MI programs exist in around 8 out of 10 companies, which is slightly higher than the proportion found in Mexico.

•  57% of Mexican companies having an MI program in place is the second lowest compared to other countries surveyed.

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 $ 130 million in annual revenues).

•  In Mexico, only 78% of larger companies have MI programs, indicating that MI programs are slightly less common in Mexico overall.

Existence of MI: Mexico by company size

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


•  All companies in the Telecommunications, Automotive, Financial Services and Biotechnology & Pharmaceuticals industries that took part in the survey reported to have MI programs in place.

•  In the Manufacturing & Industrial industry (largest respondent group), only 43% of companies have Market Intelligence programs in place.

Existence of MI: Mexico by industry

Does your company have a formal MI program?


•  12% of all small companies in Mexico 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 higher. Globally, 21% of all companies without a MI program are planning to launch one.

Plan to launch MI program: By countries and company size

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


Benefits & Efficiency of Market Intelligence


•  89% of surveyed Mexican companies agree that they have benefited from market intelligence.

•  85% of companies in Mexico 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 other countries, the vast majority of Mexican companies agree that they have benefited from their market intelligence.

•  54% of surveyed Mexican companies strongly agree that they have benefited from market intelligence, in line with other countries globally.

Benefits of MI compared to other countries

Our company has benefited from Market Intelligence?


•  Professional Services and Telecommunications companies in Mexico see the most benefit of having a Market Intelligence operation in place.

•  Companies in the Manufacturing & Industrial industry on average neither agree nor disagree with the statement.

Benefits of MI: Mexico 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


•  A large proportion of Mexican companies strongly agree that their investments in MI have paid-off, the highest amongst surveyed regions.

•  The attitude of surveyed Mexican companies towards ROI is higher than Brazil, Russia and China.

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 slightly higher in Mexican companies.

•  Compared to the three regions, Mexican companies consider executive decision-making to be very efficient. This is probably linked to a slightly higher proportion of smaller companies in the Mexican survey.

Efficiency of decision-making: by regions

Efficiency of decision-making

Scale:



Resources & Organization of Market Intelligence


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

•  25% have set up MI under research and development/product management, the highest amongst surveyed countries.

Market Intelligence placement: Mexico

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.

•  Mexican companies predominantly follow this trend.

Market Intelligence placement: By countries

Under which function is Market Intelligence placed?


•  75% of Mexican companies have none or a maximum of 2 organizational layers between the head of MI and CEO.

•  Only 5% of companies have 5 organizational layers between the head of MI and CEO, no companies exceed 5 layers.

Organizational layers: Mexico

How many layers between Head of MI and CEO?


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

•  In contrast to APAC and US companies that tend to have more layers between the head of MI and CEO, 65% of Mexican companies have either 1 or no layers.

Organizational layers: By countries



•  72% of Mexican companies operating both B2B & B2C business have either 1 or no layers.

•  100% of B2C business companies the responded to the survey have 1 layer. •  The range of B2B companies’ MI team sizes is about evenly distributed.

Organizational layers: Mexico by type of business



•  On average, 11 people have market intelligence as their primary job. •  60% of companies in Mexico have 1 to 5 people working in market intelligence

as their primary job.

Size of MI teams: Mexico

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 in market intelligence as their primary job.

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

Size of MI teams: By countries



•  For companies with both B2B & B2C business, they normally have a larger MI team size consisting of on average 10 people.

•  For companies with B2B or B2C business only, the MI team size is slightly larger, consisting of 14 or 15 people respectively, on average.

Size of MI teams: Mexico by type of business



•  On average, 64% of work is done in a regular fashion. •  48% of the deliverables are produced by centralized market intelligence

resources.

Distribution of MI work: Mexico

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


•  The highest proportion of centralized MI work in Mexico takes place in the Automotive industry, where all responding companies reported to be conducting all MI work centrally.

•  In the Manufacturing & Industrial industry, only one tenth of all MI work is conducted through centralized resources.

Distribution of MI work: Mexico by industry

What proportion of MI work is conducted through centralized resources?


•  Excluding HR costs, the budget figure is just around USD 2.25 million. •  Including HR costs, the budget figure is just shy of USD 3 million.

Market Intelligence budgets: Mexico

Average MI budget (excl. HR costs)

$ 2,250,000

Average MI budget (incl. HR costs)

$ 2,968,500


•  Mexico has the fourth largest average MI budget when compared with other countries, despite the relatively larger share of smaller companies.

•  However, the average figure is not always representative. The median MI budget is only USD 700,000 in Mexico, meaning that 50% of companies spend less than 700,000 on MI every year.

Market Intelligence budgets: By countries

Average MI budgets ($, excl. HR costs)


•  Telecommunications, Biotechnology & pharmaceuticals and Financial Services industries have companies with budgets exceeding USD 2.5 million for market intelligence.

•  MI budgets for all other surveyed industries are USD 1 million or below.

Market Intelligence budgets: By Industries

Top spending industries ($, excl. HR costs)


MI Resources: Mexico vs. Global average Mexican companies, on average, have similarly sized MI teams but almost only 20% the amount of MI contributors

Mexico avg MI team size Mexico 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 Automotive and Telecommunications sectors in Mexico are the most sophisticated. ROI is perceived highest in the Professional Services sector.

< $ 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 agree that they intend to increase their investments in market intelligence in Mexico.

•  None of the respondents surveyed intend to reduce investments in market intelligence.

Market Intelligence investments: Mexico

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


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

Market Intelligence investments: By country



•  Organizations in the Mexican Consumer Goods & Retail industries are the most optimistic about future investments.

•  In only 2 of the industries, companies expect MI investments to remain the same or decrease.

Investments in MI: Mexico 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 does improve with market intelligence operation

•  Only 57% of Mexican companies surveyed have a market intelligence operation in their organization.

•  89% of Mexican companies agree that they have benefited from market intelligence operation.

•  85% think their market intelligence investments have paid-off.

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


•  In addition to the core MI team of 11 people, on average only 23 people contribute to MI.

•  Excluding HR costs, the average budget is just around $2,250,000.

•  Including HR costs, Mexican companies’ MI budgets are over $2,968,000 on average.

•  57% 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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