THEY are the trend trackers of the world. Through surveys, polls and data crunching, market research firms help companies as well as the media spot emerging trends and gaze into the future. Their role could not have been more critical in a rapidly growing economy where technology, rising incomes and global exposure is stirring up socio-economic norms at all levels.
Thomas Puliyel, president, IMRB International, one of India’s leading market research firms, spoke to Malini Goyal about how market research firms are trying to grow and capture the evolving trends better.
How big is the market research (MR) industry and how is it growing?
India is the fastest growing market in the world, with growth rates at around 31% (for ’05 over ’04). China is a distant second, growing at 20%. The size is small at Rs 492 crore, but the industry is growing rapidly with lot of business coming from overseas.
What kind of overseas demand it is?
The demand is on two counts — in a lot of global surveys India figuring far more than it did in the past. Then we see lot of outsourcing as cost advantages are enormous. The processing of data is almost 50% cheaper in India than in developed countries. The outsourcing business — 8% for the industry — is almost doubling in value every year.
What are the sectoral patterns in the domestic market?
Financial services and telecom, the two fast growing sectors, are providing lot of business to the MR industry. We also have business from companies involved in social marketing, environmental issues, health, government bodies and international funding bodies like World Bank, UNICEF. We do get lot of work from social sector. Many government studies are joint studies with international agencies or corporate sector.
How is technology impacting the way MR firms work?
There is, of course, high cost advantages of using the phone or the internet as against face-to-face interviews. If face-to-face interview cost Rs 3, a phone call costs Rs 1 and internet just 50 paise. But in India, penetration of these technologies is low.
What is the usage level of these technologies and how do you see them growing?
It was less than 1% five years ago. Today it is less than 5%. E-mail and phone have their pros and cons. On e-mails, its easier to monitor the quality of response. And its very useful if the survey is to be done with the same sample at regular intervals. E-mails are also useful when the respondent has to see snippets of information before answering. For many B-to-B surveys, it is used. The biggest disadvantage of internet is that it is customary for people to pretend to be completely different. It works the best if you have pre-selected respondent base whose real identity is established. We are using it to survey a small panel of IT managers and their buying behaviour.
Why do surveys/poll forecasts go so horribly wrong sometimes?
It is unfortunate that the most visible part of our work is perhaps of the worst quality. What you see in the press is more of the frivolous stuff. (The much-criticised) pollforecasts, etc often go wrong because there are so many things at play there that influence a decision at the last minute. But 80% of our work comes from our clients who have been using us for decades and clearly they do see value in getting the surveys done.
How is the talent war playing out in the MR industry?
Industry attrition is high at 30%. With 1,100 employees we face challenges on that front. Low salary is a reason for many to leave. We need a mindset change from the client’s side — they should be willing to pay more. For the last five years, the cost of survey has remained almost stagnant even as our costs have gone up by 50%. We are introducing processes to make our company employee friendly
Thomas Puliyel, president, IMRB International, one of India’s leading market research firms, spoke to Malini Goyal about how market research firms are trying to grow and capture the evolving trends better.
How big is the market research (MR) industry and how is it growing?
India is the fastest growing market in the world, with growth rates at around 31% (for ’05 over ’04). China is a distant second, growing at 20%. The size is small at Rs 492 crore, but the industry is growing rapidly with lot of business coming from overseas.
What kind of overseas demand it is?
The demand is on two counts — in a lot of global surveys India figuring far more than it did in the past. Then we see lot of outsourcing as cost advantages are enormous. The processing of data is almost 50% cheaper in India than in developed countries. The outsourcing business — 8% for the industry — is almost doubling in value every year.
What are the sectoral patterns in the domestic market?
Financial services and telecom, the two fast growing sectors, are providing lot of business to the MR industry. We also have business from companies involved in social marketing, environmental issues, health, government bodies and international funding bodies like World Bank, UNICEF. We do get lot of work from social sector. Many government studies are joint studies with international agencies or corporate sector.
How is technology impacting the way MR firms work?
There is, of course, high cost advantages of using the phone or the internet as against face-to-face interviews. If face-to-face interview cost Rs 3, a phone call costs Rs 1 and internet just 50 paise. But in India, penetration of these technologies is low.
What is the usage level of these technologies and how do you see them growing?
It was less than 1% five years ago. Today it is less than 5%. E-mail and phone have their pros and cons. On e-mails, its easier to monitor the quality of response. And its very useful if the survey is to be done with the same sample at regular intervals. E-mails are also useful when the respondent has to see snippets of information before answering. For many B-to-B surveys, it is used. The biggest disadvantage of internet is that it is customary for people to pretend to be completely different. It works the best if you have pre-selected respondent base whose real identity is established. We are using it to survey a small panel of IT managers and their buying behaviour.
Why do surveys/poll forecasts go so horribly wrong sometimes?
It is unfortunate that the most visible part of our work is perhaps of the worst quality. What you see in the press is more of the frivolous stuff. (The much-criticised) pollforecasts, etc often go wrong because there are so many things at play there that influence a decision at the last minute. But 80% of our work comes from our clients who have been using us for decades and clearly they do see value in getting the surveys done.
How is the talent war playing out in the MR industry?
Industry attrition is high at 30%. With 1,100 employees we face challenges on that front. Low salary is a reason for many to leave. We need a mindset change from the client’s side — they should be willing to pay more. For the last five years, the cost of survey has remained almost stagnant even as our costs have gone up by 50%. We are introducing processes to make our company employee friendly