Investments in Market Intelligence in Brazil Set To Increase
October 26, 2011. Brazil is still suffering from the 2011 crisis – in spite of a quick rebound. This means that companies in the country are seeing stronger competition, and there is little room for strategic mistakes. Knowing one’s competitive environment is key for survival and growth. The 2011 Global Market Intelligence Survey indicates that 60% of Brazilian companies plan to increase their investment in market intelligence programs, while the remaining 40% plan to maintain current levels.
In the Global Market Intelligence Survey conducted in March 2011, GIA looked at the current state of market intelligence in 80 large and mid-sized Brazilian companies, comparing the results with other countries.
Budgets and value
As Brazilian companies understand the increasing importance of structuring a Market Intelligence department, it is only natural to see companies anticipating that their investments in this area will increase.
Source: 2011 Global Market Intelligence Survey by GIA
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Companies recognize that a relatively small investment in market intelligence may produce ten-fold returns in revenue, and there is a growing demand within companies in Brazil for timely and strategic Intelligence.
Source: 2011 Global Market Intelligence Survey by GIA
*Click on image to enlarge
These investments are justified by the approval rate of market intelligence programs (89%) conducted by Brazilian companies, a rate equivalent to those of many European countries.
Market Intelligence Set Up
Most Brazilian companies lack an established market intelligence
process, but there is a growing interest in the topic. Companies that
have structured a market intelligence department tend to set it up under
Strategic Planning and/or Sales & Marketing, with neither
dominating the other. This follows more mature markets such as the US
and Europe.
Source: 2011 Global Market Intelligence Survey by GIA
*Click on image to enlarge
68% of Brazilian companies reported to have none, or one, organizational layer between the head of Market Intelligence and the CEO. This points to the strategic role placed on market intelligence, asserting its importance in the corporate structure in companies in Brazil.
Source: 2011 Global Market Intelligence Survey by GIA
*Click on image to enlarge
About half of the market intelligence work by companies in Brazil is done in a regular fashion, indicating established deliverables and processes. Ad-hoc processes (punctual, non-continuous processes) are 49%. This organization usually allows for lower costs, while at the same time allowing the fulfillment of 71% of the requests.
Source: 2011 Global Market Intelligence Survey by GIA
*Click on image to enlarge
Market Intelligence Networks
The average size of market intelligence teams in Brazil is 11 persons. While this is below very well-structured countries like the UK – with 28 persons on average – this high number is certainly the reason why Brazilian companies have most of their requests fulfilled, and perhaps explains why Brazilian companies are not too inclined to outsource their market intelligence activities (13% of deliverables).
Source: 2011 Global Market Intelligence Survey by GIA
*Click on image to enlarge
The number of internal clients – 95 – may be considered low as compared to global averages. It would appear that Brazilian companies still do not disseminate gathered intelligence as much as it would be recommended, and this could be preventing quicker and more accurate decisions from being made.
As Brazilian companies recognize the benefits of market intelligence, we should expect higher investments in this area in the region, leading to a more competitive environment. The survey showed that 56% of the respondents without market intelligence operations plan to launch one within the next 12 months.
For answers to how global companies run world class market intelligence functions, download the 2011 Global Market intelligence Survey white paper. Or request for a presentation of the country results from the 2011 Global Market intelligence Survey by a GIA consultant today.
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