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Russia & CIS

Market Intelligence in Companies in Russia and CIS Countries Lag Behind Global Peers in Scope and Budgets

December 13, 2011. Results from the 2011 Global Market Intelligence Survey show that companies in Russia and the Commonwealth of Independent States (CIS) tend to think more highly of their systematic market intelligence than companies in other regions. But when compared along other parameters, companies in this region appear to have a great deal of work ahead of them in achieving world class market intelligence programs.

Conducted in March 2011 by Global Intelligence Alliance, the Global Market Intelligence Survey 2011 reviewed the current state of market intelligence in 52 large and mid-sized companies in Russia and the CIS, and compared the results with other countries.

While corporate functions, such as market intelligence, have grown in importance in Russia and CIS countries in recent years, 85% of the companies surveyed said that they have a systematic market intelligence operation in place, while 96% agreed that they have benefited from market intelligence. These figures are higher than in other regions.

Source: 2011 Global Market Intelligence Survey by GIA
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Market Intelligence Set Up

In the Russia and CIS region, companies tend to set up their market intelligence operations under sales and marketing, more often than companies in other European countries.

Source: 2011 Global Market Intelligence Survey by GIA
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Due to the relatively smaller size of Russian companies overall, 95% of Russian and CIS companies have no more than three organizational layers between their market intelligence teams and their CEOs, and as a result, stay closer to decision makers than teams in other regions.

Source: 2011 Global Market Intelligence Survey by GIA
*Click on image to enlarge

Market Intelligence Budgets

Compared with other regions, Russia and CIS companies have significantly smaller market intelligence budgets across all industries. Excluding human resources costs, the average budget is less than 100,000 Euros (US$140,000). This can be partly explained by the comparatively smaller size of the companies in the survey, but such budgets may also indicate that market intelligence programs in Russia and CIS are not yet considered key corporate functions deserving greater investment.

Source: 2011 Global Market Intelligence Survey by GIA
*Click on image to enlarge

Market Intelligence Networks

Companies in Russia and CIS countries tend to have small to mid-sized teams; eight people on average have market intelligence as their primary job. Overall, 45% of market intelligence work is done in a regular fashion and 65% of requests are fulfilled. Internal market intelligence networks have only 32 persons.

Source: 2011 Global Market Intelligence Survey by GIA
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Typically, less than 50 of people within the organization are involved in market intelligence in Russian and CIS companies. This is 15 times less than the world’s average. Intelligence is gathered and distributed for a very limited set of people.

Source: 2011 Global Market Intelligence Survey by GIA
*Click on image to enlarge

From these initial results, it appears that there is great potential for further development of market intelligence programs in the region. As Russian and CIS markets grow and become increasingly diversified, market intelligence functions will need to develop and grow as well.

For answers to how global companies run world class market intelligence functions, download the 2011 Global Market intelligence Survey white paper. Or request a presentation of the country results from the 2011 Global Market intelligence Survey by a GIA consultant today.

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