B2B MARKETINGCASE STUDYTRANSFORMING STRATEGYONE CUSTOMER AT A TIME(BY HARVARD BUSINESS REVIEW)

PRPARED BY:SHUBHAM SINGH

RATHORE

AGENDA IntroductionMethodology used for segmentationStrategies and their implementationKey leanings ConclusionSources

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INTRODUCTION Thomson Corporation was established in 1989 CEO Mr. Jim Smith Worlds largest in information provider to industries. Publishes more than 200 newspaper, text books and journals in 2008

Shifted from print media to digital media Company purchased reuter group in 2008 and now known as Thomson Reuters

Reuters was a British multinational media and financial information company (known as Reuters news agency).

Its current Revenue was $12.2 Billion. Currently provide services to Pharma and tax accounting and science sector.

Company is listed in Toronto and New York share market.M2|BITM

CASE BACKDROP The company decided to transform its customer strategy. The strategy was focussed on the individual behaviour in an industry.

The company went through several stages. Map out the real market. Understand the customer. Product development priority.

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1. MAP OUT YOUR REAL MARKET: Company Began the analysis at Thomson Financial, in 2001 To estimate the market size Financial information market broadly split into 3 categories: 1) Firms on the buy side 2) Firms on the sell side 3) Corporate client Broader segmentation didn’t help to understand the market position as well as opportunities in market.

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TYPICAL SEGMENTATION (GRAPH A)

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THOMSON FINANCIAL RECAST THE MARKET Company used front-end customer strategy for segmentation Concentrated on ultimate user of product & services rather than sales channel or geography

Find out eight well identified segments

Company worked with Parthanon group To estimate company’s relative market share & growth potential in each segment

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MARKET SEGMENTATION ON THE BASES OF END USER (MICRO-LEVEL)

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STRATEGY USED Firstly company used macro level segmentation It gives broad picture of market segment Further company used micro level segmentation It helped to get clear & more detailed picture of market segment

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IMPLEMENTATION: EXAMPLE Alibaba e-commerce B2B company Macro level segmentations :

Automobile

industryFashion industry

Electronics industry

Chemical industry

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EXAMPLE CONTINUE Further micro level segmentations :

Micro level segmentatio

n of users

Tiers manufacturer

Fabrics and textile players

Mobile and laptops

manufacturer

Laptop manufacture

rs

Paint, detergents, soaps maker

Car manufacture

r

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2. UNDERSTAND THE CUSTOMERS After segmenting the market the company explored the needs of each segments. The company observed the customers behaviour by using following strategies:

A. Quantitative survey method with day in the life.B. Three minutes approach.C. Customers workflow study

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A. QUANTITATIVE SURVEY In-depth Interviews Taping the users activity at job Visiting users own customers to understand the need and requirements.

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B. THREE MINUTES APPROACH Interview with some users to understand what they do three minutes before and after using the product and service.

And then next three minutes and so on to understand the share of mind and share of time the company has.

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C. CUSTOMERS’ WORK FLOW STUDY Tracked the activities of the users of a particular segment Helped in identifying the work flow and the needs at each stage.

The company examined its own positions as compare to its competitors.

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IMPLEMENTATION

GlassesAir

conditioning gas

Alluminium sheets Head lamps Nuts and

bolts

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3. PRODUCT DEVELOPMENT PRIORITY Determine the pain point in work flow process and they have used statistical techniques to interpret the result.

Thomson financial surveyed 1200 investment manager customer about the product features.

Then they conducted conjoint analysis and identified 3 clusters of customers.

It help them in knowing how preference differences help in product development priority and in differential pricing.

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KEY LEARNINGS Buyers and end users are two different parte. Research and marketing strategy development is a critical process which includes the involvement of higher authorities of the organisation.

macro level segmentation gives broad picture of market segment whereas micro level segmentation helps to get clear & more detailed picture of the same.

Real time comparison with competitors gives a clear picture of the current position of the company

Develop product on the bases of users objective Continually evaluate and refine your customer strategy

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SOURCES thomsonreuters.com Harvard business review 2008 article B2B Marketing (Cengage Learning)

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