To provide maximum value to their internal clients, pharmaceutical and biotech companies must continue to innovate. In order to enhance business impact and reduce redundancy, savvy Market Research leaders must determine the right mix of internal staff, external personnel, and automated reporting. In the changing pharmaceutical landscape, Market Research groups are faced with the challenge of regularly generating a significant number of secondary reports while also continuing to provide more strategic insights. Burdened with headcount constraints and new products to support, executives can potentially gain critical efficiencies through the shrewd use of outsourced personnel and system automation. To identify strategies, solutions, and the transition process Market Research groups are undergoing in the near future, Best Practices, LLC, a world leader in biopharmaceutical benchmarking and best practice research, performed this research to help pharma and biotech executives and managers create more efficient groups and processes.

1. BEST PRACTICE
Best Practices, LLC Strategic Benchmarking Research
MARKET RESEARCH EFFICIENCY BENCHMARK:
Using External Personnel and Automation To
Maximize Market Research Effectiveness

2. BEST PRACTICE
Table of Contents
 Executive Summary
 Research Overview
 Benchmark Participants
 Key Findings & Insights
 I. Market Research Group Structure & Staffing Levels
 II. Using Outsourced Personnel
 III. Reasons for Outsourcing
 IV. Contractor Selection & Management
 V. Assessing the Value of Outsourced Market Research Labor
 VI. Using Automation to Enhance Market Research Performance
 Appendix A: Outsourcing Models Observed in this Study
 Appendix B: Executive Quotes from the Field
 Appendix C: Outsourcing Competitive Intelligence
 About Best Practices, LLC

3. BEST PRACTICE3
1. Explore Successful Industry
Examples of the Use of Outsourced
Market Research Labor
2. Highlight the
Prevalence, Strengths, and
Weaknesses of Automated Market
Research Systems
Research Objectives & Methodology
Objectives:
• Examine how leading market research groups:
– Use external personnel (especially for secondary research) to maximize efficiency
and maintain a lean internal headcount in the face of increased workload
– Automate market research processes for efficient report generation and better
knowledge management
– Implement and manage those automated systems
In order to provide maximum value to internal clients, market research teams must find a way to
regularly generate a significant number of secondary reports while also continuing to provide more
strategic insights. Faced with headcount constraints and new products to support, companies can
gain critical efficiencies through the shrewd use of outsourced personnel and system automation.
Field Research & Insight Development:
Engaged 22 market research executives and
managers from 19 companies in a field survey
Analyzed qualitative findings and insights from
seven deep-dive interviews with industry veterans
Objective:

4. BEST PRACTICE
Companies Participating in Study
Participating Companies Include:
This research emerges from survey data gathered from 22 participants representing 19 leading
biopharmaceutical companies. Best Practices, LLC analysts also conducted deep-dive interviews
with seven participating executives to gather additional insights.
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5. BEST PRACTICE5
Most Participants Serve at Director Level
• Global Head, Strategic Sourcing -
Market Research
• Head, Procurement
• Senior Director, Market Planning (MR)
• Senior Director, Market Research
• Director, Business Analytics &
Insights
• Director, Business Intelligence
• Director, Global Market Research
Research Participant Job Titles Include:
• Director, Market Research
• Director, Marketing
• Coordinator, Sales & Marketing
• Associate Director, Market Research
• Senior Manager, Market Research
• Manager, Business Intelligence
• Manager, Global Sourcing
• Manager, Market Research
• Manager, Marketing
A majority of study participants serve at the director level, mainly in Market Research. Some
respondents who work in Business Intelligence, Strategic Sourcing, and Marketing also participated.
Interviewed executives are highlighted in red italics below.

6. BEST PRACTICE
Key Findings & Insights: Using Outsourced Personnel
 Most Companies Use Outsourced MR Personnel, But Not Systematically: Overall, 73% of
surveyed companies use outsourced personnel for some type of market research. However, the
labor outsourcing models used in the industry vary widely among companies – and few
organizations use multiple external personnel for any given market research function
 Outsourcing Types Used: Externally contracted personnel “wear different hats” at different
companies. Outsourcing personnel for primary research (63% of companies) is slightly more
common than for secondary report preparation (56%) or secondary analytics (44%).
 Drivers: Internal FTE constraints drive almost all (82%) moves to personnel outsourcing: Most
participating market research groups are faced with static headcounts. It is this aversion to invest
in more staff – the costliest resource for any company – that drives the widespread use of external
contract personnel observed in this study.
 Market research teams often contract external personnel during “busy” periods when
workloads ramp up, especially in support of new products
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The following key findings and insights emerged from this study around the use of external contract
personnel.

7. BEST PRACTICE
(n=22)
Q. How is your market research group currently structured?
(Choose the best option.)
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36%
23%
18%
5%
18%
De-centralized reporting with some employees
serving specific therapeutic areas or business unit
levels
De-centralized reporting with some employees
serving specific brands
Centralized reporting with some employees serving
specific therapeutic areas or business unit levels
Centralized reporting with some employees serving
specific brands
Completely centralized reporting
Market Research Group Structure:
More than three-quarters of participating market research groups use some form of centralized reporting
structures. There is a close correlation between company size and market research structure: the larger
the company, the greater degree of decentralization.
Most MR Groups Are Centralized, Especially MidCaps
* (All MidCaps)
** (All Large Pharma)
Research Note:
None of the participating
companies structure
themselves strictly by
geography or market.
Centralized Models
Decentralized Models

8. BEST PRACTICE
Internal FTE
constraints (i.e.,
static
headcount),
82%
Other,
18%
FTE Constraints Drive Almost All Moves to Outsourcing
(n=15)
Q. Which factor plays the greatest role in motivating your market research group’s outsourcing effort?
(Choose the best option.)
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“Other” Factors
Cited:
• “Competence” (i.e.,
Finding a competent
contractor)
• “Balancing short-term
need vs. current
staffing level”
Note: No participant selected an option
of “Internal budgetary constraints.”
Impetus for Outsourcing:
Most participating market research groups are faced with static headcounts. It is this aversion to
invest in more staff – the costliest resource for any company – that drives the widespread use of
external contract personnel observed in this study.

9. BEST PRACTICE
Maintaining Low Headcount Is Chief Outsourcing Goal
200
240
253
307
400
0 50 100 150 200 250 300 350 400 450 500
More innovative analysis/insight
Cost efficiency
Faster turnaround times
Greater work efficiency (i.e., through process
familiarity)
Keep MR headcount low / free up internal
resources & FTEs
(n=14)
Q. What are your company's primary goals in outsourcing market research?
(Please rank the following goals 1 – 5, where 1 is the "most important objective," 2 is the "second-most important objective," etc.)
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Note: A weighted average index was used to analyze these responses, assigning a value of 5 to the most important ranking items and a value of 1 to the least
important ranking items. The total weighted average score for each service is calculated and then multiplied by 100 to standardize the index for comparison
across segments.
Top Outsourcing Objectives:
Most Important
Objective
Least Important
Objective
Keeping internal headcount low (while simultaneously freeing up internal resources to do more
strategic work) was clearly rated by the benchmark class as the most important goal in moving to an
outsourcing model. It is perhaps not surprising that “producing more innovative insights” was rated as
a less important goal, since most companies contract externally to meet upswings in particular types of
studies - and not necessarily to conduct high-level primary research.

10. BEST PRACTICE
Outsourcing of Report Preparation May Increase
Q. To what extent do you expect labor for the following market research functions to be outsourced in the next
2 – 3 years? (Choose the best option for each activity.)
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Change in Outsourcing Levels:
Many study participants (59%) were bullish on the use of outsourcing in secondary report
preparation, predicting it will increase in the future. None predicted a drop-off from current usage levels.
For outsourced primary research, on the other hand, a majority of participants predicted no growth in
usage (56%) or even an outright reduction (6%).
47%
59%
38%
56%
41%
47%
0%
6% 6%
Day-to-day primary
research
management
Secondary report
preparation
Secondary analytics
Same as NowMore than Now
(n = 16) (n = 17)
Less than Now
(n = 17)

11. BEST PRACTICE
System Maintenance Is Internal– via IT or Even MR Group Itself
Management for technical aspects and processes of automated work systems are frequently kept
in-house, with IT tasked at 57% of companies and the market research group itself in charge at
29%. Once a system has been put in place, external vendors or consultants are rarely involved in
ongoing management.
Technical aspects
managed by IT
Dept,
57%
Technical aspects
managed by
the Market
Research Team
itself,
29%
Technical aspects
managed by
an External
Vendor,
14%
(n=14)
Q. Which of the following options best describes how your automated system is currently managed?
(Choose the best option.)
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Automated System Management:

12. BEST PRACTICE
Model A: “All Monthly Secondary Reporting in a Day”
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Outsourcing Profile:
Type: Outsourced personnel for secondary report
preparation
Contractor: Former colleague, now freelancer
Location: Onsite - all secondary reporting for month
completed in 1-2 days
 Reason for Use: Competency, industry experience
Strengths: Faster turnaround time, low cost
Weaknesses: Short-term solution
 Key Tactic(s): Outsourced contractor also puts Excel-
based data on intranet
Representative Quote:
"The intention long-term would be that the
company would be able to buy or produce a
front end and the warehouse would produce all
of this reporting in an automated way”
-Market Research Manager
External
Contract
Employee
Primary Care
Brands
Specialty
Care Brand
Specialty
Care Brand
External Contractor Model:
In this model, the market research contractor (or external contract employee) produces one secondary
report for each of the supported brands on a monthly basis. This model works well when reports are
routine and data-specific, and involve no ad-hoc projects.

13. BEST PRACTICE
Outsourcing Quantitative CI = Greatest Opportunity for Some
In order to efficiently outsource competitive intelligence, companies must safeguard strategic insight
and only contract work requiring the least amount of specialized skills and knowledge. As a
result, companies willing to (or needing to!) outsource CI demonstrated a greater inclination to
outsource secondary research and quantitative activities.
Outsourcing Competitive Intelligence: Differentiating By Function and Activity
Greatest Opportunity for CI
Outsourcing:
• Minimal loss of strategic insight and
confidentiality
• Not utilizing special skills
Keep Work In-House:
• Highest level of strategic insight
• Specialized skills and training
more advantageous
Primary Research
QuantitativeActivities
Opportunity for Outsourcing:
• More likely to outsource than
quantitative activities under primary
research
Minor Opportunity for
Outsourcing:
• Less specialized skills but still
precarious position because of
sensitivity
Secondary Research
QualitativeActivities
Lower Value Outsourcing Greater Value Outsourcing
Greater
Value
Out-
sourcing
Lower
Value
Out-
sourcing
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14. BEST PRACTICE14
Copyright © Best Practices®, LLC
Best Practices, LLC is a research and consulting firm that conducts work
based on the simple yet profound principle that organizations can chart a
course to superior economic performance by studying the best business
practices, operating tactics and winning strategies of world-class
companies.
Best Practices, LLC
6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517
919-403-0251
best@best-in-class.com
www.best-in-class.com
About Best Practices, LLC
Link for Report: Market Research Efficiency Benchmarking Report