The Nielsen Company Competition
Now Viewing The Nielsen Company's competition in: Market Research Services (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How successful is the company at retaining key customers? - Large projects take time to sell and cover a large proportion of fixed costs; repeat business accounts for well over half of most firms’ revenue.
How is the company improving its project proposals? - Sales teams develop a boiler-plate presentation of the company’s capabilities, then tailor it to the task and explain the benefits of the research.
What percentage of revenue is derived from the firm’s top five clients? - Small firms may be very reliant on a few major customers.
Does the firm have government clients? - Most business comes from commercial clients, but government contracts can be large.
How does the firm market itself? - Most companies attend conferences and symposiums and may publish in trade journals.
How much of the firm’s business comes from competitive bids? - Responding to RFPs is a common way to gain new business.
Does the firm have a dedicated sales force? - Small firms rely on senior management for selling.
What is the company’s primary competitive advantage? - Research firms work hard to develop a quality reputation in an area and to protect intellectual capital.
Competitive Landscape
Demand is driven primarily by the health of the US economy and corporate profits. The profitability of individual companies depends on managing costs and maintaining a steady flow of work. Large companies have advantages in providing a variety of research and ancillary services to large customers, and in achieving economies of scale in marketing and computerized operations. Small companies can compete successfully by specializing in a research methodology or in emerging niche knowledge areas. The industry is labor-intensive: annual revenue per employee is less than $100,000.
Business Challenges
CRITICAL ISSUES
Dependence on Corporate Profits - Marketing research is sometimes seen as an expendable expense that may be cut in economic downturns or when corporations are struggling financially. Some research firms were hurt in the last recession when corporate profits fell. Firms specializing in ad tracking and branding were particularly hurt, as ad budgets are one of the first areas for spending cutbacks.
Retaining Qualified Staff - Success depends on employee skill and knowledge. Senior research analysts and consultants are valued for their knowledge and client relationships. Companies compete for a limited number of qualified professionals, and thus try to retain high performers. Experienced staff is kept at many firms even in slow economic times. Non-compete agreements are frequently required of associates.
Industries Where The Nielsen Company Competes
- Business Services
- Advertising & Marketing
- Market Research Services(primary)
- Consulting
- Advertising & Marketing
- Media
- Publishing
