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Creating Custom Panels For Niche Markets

With Specific Case Study Example From Bounty -
      A Parenting Club and Media Owner


               Prepared for AIMRI Meeting
              “Understanding Niche Markets”
                         Munich
                   October 30th, 2009


      Charles Pearson – Managing Director, EasyInsites
         Vicki Kateley – Research Manager, Bounty
Fertility Rate Trends –
Quite Varied Across The Big 5
And Select Others
               Country            % Chg In Total
                                  Fertility Rate (2000-
                                  05 to 2005-10)
              Spain               12.0
              Italy               9.0
              Sweden              7.2
              UK                  6.6
              Russia              4.0
              Australia           3.0
              Germany             1.0
              France              .53
              US                  .49


    Source: UN World Population Prospects
General Population Trends –
Most Experiencing Increases

              Country – ranking      % Chg In Total
              based on previous      Population (2005-
              ranking on fertility   2010)
              rate chg
             Spain                   0.77
             Italy                   0.13
             Sweden                  0.45
             UK                      0.42
             Russia                  -0.51
             Australia               1.01
             Germany                 -0.07
             France                  0.49
             US                      0.97

   Source: UN World Population Prospects
What Is Happening With
The UK Birth Rate?




 UK fertility rate is highest in 34 years with an average of 1.91 children per
 woman
 For every 1000 live girls born, there were 1059 live boys – this is the
 highest ratio of girls to boys since 1979
 Continued rise in the proportion of children born to mothers not born in
 the UK – 24% in 2008 vs. 23% in 2007 vs. 14% in 1998

 Bottom line – mums/young families are an important niche market!

    Source: GRO, ONS, SGRO and NISRA
What Exactly is a Niche
Market?

  Typically, it is one where the incidence is low and the challenge of finding
  and engaging them is greater than with the general consumer population.

  Also, for these niche markets to matter, they are typically growing and/or
  are stable with significant enough size to matter to key manufacturers of
  products directed to those markets.

  So many examples to name, just a few include: expectant mums or mums
  with babies or young children (young families), high net worth individuals,
  specialist professionals such as IT professionals, ethnic minorities, those
  who have special dietary requirements, and buyers of a particular brand.
So what makes the young family
audience hard to reach?


                              The
                           emotional
                            journey
                                                   Evolving
                                                    needs –
        Social                                     physical,
       impact               Significant           hormonal &
                          ‘ripple effect’          practical
                         of pregnancy &
                           motherhood


             Personal
             economic                       New values
             situation                      & priorities
Media Stackers are born


                           Media stacking
                     under immense distraction!
Household tasks                                         Attention pulled
                                                        towards children


         Phone                                          Pushed for time,
                                                       dashing out e.g. on
                                                         school run etc.
            One channel competing       Household users
                 with another       competing with each other


      Promiscuous                                    Organised, low
          media                                         tolerance
      consumption                                     consumption
      in pregnancy                                    in family life
Media Stackers grow up
 to become Influencers


Impact and enormity of the parenting experience enhances the need for self-efficacy*

   = the need for self-belief in your own capabilities to be the parent you want to be
      = the core driver to establishing mutually beneficial relationships with other parents,
      thereby modelling self on the attitudes and behaviours of others

                               Friends are of equal importance as a source of information
                               as reference books and healthcare professionals **
Network of mutual              Parents talk to an average of 4 other parents per week
support & empathy              about family issues, products and services **
                               In a typical year parents who talk online talk to an average
                               of 24 other parents who they have never met in person **

                               Social change drives ‘Influencer’ behaviour…
                                                                             * Source: Bandura, 1989
                                                                             ** Source: Bounty Insight
The Power of Niche


Women at the family lifestage are:

 Connectors       Talk to many different people about products
                                                                               Influencers
 Mavens           Have a large amount of knowledge about products
                                                                               By definition
 Salespeople      Are very likely to convince others about products      = vital brand advocates



                                               63%      of pregnant women are influencers *
          Clothing, food, healthy
                                                        of pregnant women & those with
       living, household products,             57%
                                                        preschool children are influencers *
       pharmaceuticals, toiletries
                                                        of women with no children are
                                               46%      influencers *

      Parents, and especially mothers in their role as household main shoppers,
                         become influential brand advocates
                                                                                * Source: TGI 2009 Q3
Recently ‘overheard’ on
  Bounty.com forums

 Can anyone recommend DS games like           Can anyone recommend a
 professor layton, millionheir files etc      hotel near gatwick?

                                                       I can recommend FANTASTIC
I only buy andrex puppies on a roll! Cannot
                                                       wedding/party planner for
stand thin cheapy loo roll.
                                                       Essex area

 can anyone recommend
 a courier?                                          I can get a mobile phone upgrade
                                                     soon yay - what phones do you
 am SO impressed with Thomson Holidays.              recommend? x
 They allow a 10kg baggage for infants
 under 2, and carry pushchair and car seat
                                                          i always buy fairy washing up
 for free! Wahoo!!!!!!!!!!!!!!
                                                          liquid - lasts ages


               Influential brand advocates and yet so hard to reach…
Approach To Creating Custom
Panels For Niche Markets


  In the same way that marketing to these niche markets needs to be very
  focused, so does finding them for research purposes.

  In most cases, the challenges are not insurmountable, it simply requires
  more thought and attention and generally speaking a higher budget.

  Thinking and planning needs to be applied at all stages of the process,
  starting with recruitment all the way through to data collection and
  maintaining a relationship.
Source For Recruitment

 There needs to be a source for recruitment. This is typically a website
 that is frequented by that particular market, or a database that has been
 built by a company who provides products or services to that market.
 Bounty is a great example given their unique relationship with National
 Health Service maternity units where 95% of women in the UK deliver
 their babies.

 The panel should also be built and owned by the owner of the source for
 recruitment, thereby reinforcing their relationship and contributing to
 better response rates and lower attrition. The manufacturer or brand has
 the relationship with these consumers, and this affinity produces a longer
 lasting and better result, as compared with a company simply passing over
 the leads to another company to use as a recruitment source.

 Without the source, the costs for finding and acquiring these people will
 likely make the panel build cost prohibitive and partnering opportunities
 should be pursued
Customised Panel Look, Feel
and Language

 By definition, these panelists will be unique from the general population
 and have a lot in common with one another. The panel look, feel and
 language should reflect this uniqueness.

 A generic approach to the look and feel and language will not work well,
 these panelists will want to feel a part of something that is relevant to
 who they are, their core needs and their expected mode and style of
 communication.

 There should be consistency of colours, images, and language used
 throughout the process of inviting, profiling and interacting with them and
 these should be familiar and consistent with how they live their lives.
Relevant Engagement and
Research Opportunities

 It is critical that the types of research these panelists are expected to
 complete are primarily focused on the reason why they joined the panel
 in the first place

 For example, if the panel is comprised of expectant or new mothers,
 sending them surveys on travel for single adults or sports cars is not likely
 to be of interest or consistent with their reason for joining this panel at
 this time in their lives. In this example, the primary focus for research
 directed at these panelists should be associated with the products and
 brands needed for raising their children or running a household with
 children.

 Even cars and financial services products that are closely aligned
 with this particular niche market would be very appropriate as
 research topics

                                                                      X
Summary Points – Building
Custom Panels For Niche Markets

 Building panels in niche markets is not necessarily an expensive
 endeavour. If you or your client owns a list or has a database of
 customers, consumers or a website that attracts those who meet your
 desired niche profile, then this is an excellent starting point for building a
 panel.

 With a Panel Exchange approach where the panel is made available to
 other researchers to use, there is also the opportunity to provide a
 revenue source for you or your client as the panel owner to help
 compensate for the cost of building and maintaining the panel.

 With niche markets, these panels typically command a very high CPI (cost
 per interview), so there is likely a money making opportunity for panel
 owners that can also help fund their own research program.
Core drivers to Bounty panel
    success


        For Bounty,                                            For Bounty members,
  as custom panel owners                                           the panelists

           EasyPanel                                                The one-off
       EasyBulletinBoard                                             The group
           EasyVideo                   Flexibility                 The ‘therapy’
          EasyMobile                                             The ‘out & about’
Direct access and/ or full service



            The full range of research services to meet business objectives

     Methodologies that fit with the panelist’s lifestyle and media consumption
Core drivers to Bounty panel
 success


      For Bounty,                                           For Bounty members,
as custom panel owners                                          the panelists

On-going maintenance &                                         Only one live survey
        profiling                    Control                   invitation at a time
 Absolute transparency                                             Control over
Consistency with overall                                          frequency of
 business best practice                                           participation


   At-a-glance updates on composition, availability, third party usership, etc.

     Engaged panelists who remain active but never harassed or saturated
Core drivers to Bounty panel
 success


      For Bounty,                                        For Bounty members,
as custom panel owners                                       the panelists

   Ability to open to                                      Appropriate and
       the panel                                              on-going
                            Return on Investment
  to research buyers                                         incentives
  and sample buyers
        globally


       Set-up, recruitment, and maintenance costs are more than off-set

              Engaged panelists who feel appropriately rewarded
In Summary:

  Step back and examine your resources or those of your client – in many
  cases you will have a source for recruitment even if this is not the more
  obvious database or membership-base

  Think creatively about how to engage and interact with panelists – use
  channels of communication, language, tone, and technology that work for
  them

  Respect the on-going relationship with your panelists - they are your
  customers and the success of your panel depends on them


                                       Unleash the niche!

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EasyInsitesBountyBuildingCustomPanelsForNicheMarketsAIMRIconf30thOct2009

  • 1. Creating Custom Panels For Niche Markets With Specific Case Study Example From Bounty - A Parenting Club and Media Owner Prepared for AIMRI Meeting “Understanding Niche Markets” Munich October 30th, 2009 Charles Pearson – Managing Director, EasyInsites Vicki Kateley – Research Manager, Bounty
  • 2. Fertility Rate Trends – Quite Varied Across The Big 5 And Select Others Country % Chg In Total Fertility Rate (2000- 05 to 2005-10) Spain 12.0 Italy 9.0 Sweden 7.2 UK 6.6 Russia 4.0 Australia 3.0 Germany 1.0 France .53 US .49 Source: UN World Population Prospects
  • 3. General Population Trends – Most Experiencing Increases Country – ranking % Chg In Total based on previous Population (2005- ranking on fertility 2010) rate chg Spain 0.77 Italy 0.13 Sweden 0.45 UK 0.42 Russia -0.51 Australia 1.01 Germany -0.07 France 0.49 US 0.97 Source: UN World Population Prospects
  • 4. What Is Happening With The UK Birth Rate? UK fertility rate is highest in 34 years with an average of 1.91 children per woman For every 1000 live girls born, there were 1059 live boys – this is the highest ratio of girls to boys since 1979 Continued rise in the proportion of children born to mothers not born in the UK – 24% in 2008 vs. 23% in 2007 vs. 14% in 1998 Bottom line – mums/young families are an important niche market! Source: GRO, ONS, SGRO and NISRA
  • 5. What Exactly is a Niche Market? Typically, it is one where the incidence is low and the challenge of finding and engaging them is greater than with the general consumer population. Also, for these niche markets to matter, they are typically growing and/or are stable with significant enough size to matter to key manufacturers of products directed to those markets. So many examples to name, just a few include: expectant mums or mums with babies or young children (young families), high net worth individuals, specialist professionals such as IT professionals, ethnic minorities, those who have special dietary requirements, and buyers of a particular brand.
  • 6. So what makes the young family audience hard to reach? The emotional journey Evolving needs – Social physical, impact Significant hormonal & ‘ripple effect’ practical of pregnancy & motherhood Personal economic New values situation & priorities
  • 7. Media Stackers are born Media stacking under immense distraction! Household tasks Attention pulled towards children Phone Pushed for time, dashing out e.g. on school run etc. One channel competing Household users with another competing with each other Promiscuous Organised, low media tolerance consumption consumption in pregnancy in family life
  • 8. Media Stackers grow up to become Influencers Impact and enormity of the parenting experience enhances the need for self-efficacy* = the need for self-belief in your own capabilities to be the parent you want to be = the core driver to establishing mutually beneficial relationships with other parents, thereby modelling self on the attitudes and behaviours of others Friends are of equal importance as a source of information as reference books and healthcare professionals ** Network of mutual Parents talk to an average of 4 other parents per week support & empathy about family issues, products and services ** In a typical year parents who talk online talk to an average of 24 other parents who they have never met in person ** Social change drives ‘Influencer’ behaviour… * Source: Bandura, 1989 ** Source: Bounty Insight
  • 9. The Power of Niche Women at the family lifestage are: Connectors Talk to many different people about products Influencers Mavens Have a large amount of knowledge about products By definition Salespeople Are very likely to convince others about products = vital brand advocates 63% of pregnant women are influencers * Clothing, food, healthy of pregnant women & those with living, household products, 57% preschool children are influencers * pharmaceuticals, toiletries of women with no children are 46% influencers * Parents, and especially mothers in their role as household main shoppers, become influential brand advocates * Source: TGI 2009 Q3
  • 10. Recently ‘overheard’ on Bounty.com forums Can anyone recommend DS games like Can anyone recommend a professor layton, millionheir files etc hotel near gatwick? I can recommend FANTASTIC I only buy andrex puppies on a roll! Cannot wedding/party planner for stand thin cheapy loo roll. Essex area can anyone recommend a courier? I can get a mobile phone upgrade soon yay - what phones do you am SO impressed with Thomson Holidays. recommend? x They allow a 10kg baggage for infants under 2, and carry pushchair and car seat i always buy fairy washing up for free! Wahoo!!!!!!!!!!!!!! liquid - lasts ages Influential brand advocates and yet so hard to reach…
  • 11. Approach To Creating Custom Panels For Niche Markets In the same way that marketing to these niche markets needs to be very focused, so does finding them for research purposes. In most cases, the challenges are not insurmountable, it simply requires more thought and attention and generally speaking a higher budget. Thinking and planning needs to be applied at all stages of the process, starting with recruitment all the way through to data collection and maintaining a relationship.
  • 12. Source For Recruitment There needs to be a source for recruitment. This is typically a website that is frequented by that particular market, or a database that has been built by a company who provides products or services to that market. Bounty is a great example given their unique relationship with National Health Service maternity units where 95% of women in the UK deliver their babies. The panel should also be built and owned by the owner of the source for recruitment, thereby reinforcing their relationship and contributing to better response rates and lower attrition. The manufacturer or brand has the relationship with these consumers, and this affinity produces a longer lasting and better result, as compared with a company simply passing over the leads to another company to use as a recruitment source. Without the source, the costs for finding and acquiring these people will likely make the panel build cost prohibitive and partnering opportunities should be pursued
  • 13. Customised Panel Look, Feel and Language By definition, these panelists will be unique from the general population and have a lot in common with one another. The panel look, feel and language should reflect this uniqueness. A generic approach to the look and feel and language will not work well, these panelists will want to feel a part of something that is relevant to who they are, their core needs and their expected mode and style of communication. There should be consistency of colours, images, and language used throughout the process of inviting, profiling and interacting with them and these should be familiar and consistent with how they live their lives.
  • 14. Relevant Engagement and Research Opportunities It is critical that the types of research these panelists are expected to complete are primarily focused on the reason why they joined the panel in the first place For example, if the panel is comprised of expectant or new mothers, sending them surveys on travel for single adults or sports cars is not likely to be of interest or consistent with their reason for joining this panel at this time in their lives. In this example, the primary focus for research directed at these panelists should be associated with the products and brands needed for raising their children or running a household with children. Even cars and financial services products that are closely aligned with this particular niche market would be very appropriate as research topics X
  • 15. Summary Points – Building Custom Panels For Niche Markets Building panels in niche markets is not necessarily an expensive endeavour. If you or your client owns a list or has a database of customers, consumers or a website that attracts those who meet your desired niche profile, then this is an excellent starting point for building a panel. With a Panel Exchange approach where the panel is made available to other researchers to use, there is also the opportunity to provide a revenue source for you or your client as the panel owner to help compensate for the cost of building and maintaining the panel. With niche markets, these panels typically command a very high CPI (cost per interview), so there is likely a money making opportunity for panel owners that can also help fund their own research program.
  • 16. Core drivers to Bounty panel success For Bounty, For Bounty members, as custom panel owners the panelists EasyPanel The one-off EasyBulletinBoard The group EasyVideo Flexibility The ‘therapy’ EasyMobile The ‘out & about’ Direct access and/ or full service The full range of research services to meet business objectives Methodologies that fit with the panelist’s lifestyle and media consumption
  • 17. Core drivers to Bounty panel success For Bounty, For Bounty members, as custom panel owners the panelists On-going maintenance & Only one live survey profiling Control invitation at a time Absolute transparency Control over Consistency with overall frequency of business best practice participation At-a-glance updates on composition, availability, third party usership, etc. Engaged panelists who remain active but never harassed or saturated
  • 18. Core drivers to Bounty panel success For Bounty, For Bounty members, as custom panel owners the panelists Ability to open to Appropriate and the panel on-going Return on Investment to research buyers incentives and sample buyers globally Set-up, recruitment, and maintenance costs are more than off-set Engaged panelists who feel appropriately rewarded
  • 19. In Summary: Step back and examine your resources or those of your client – in many cases you will have a source for recruitment even if this is not the more obvious database or membership-base Think creatively about how to engage and interact with panelists – use channels of communication, language, tone, and technology that work for them Respect the on-going relationship with your panelists - they are your customers and the success of your panel depends on them Unleash the niche!