BudNet: Making Customer Information the Lifeblood of the Organization CONDUCTING MARKETING RESEARCH AND FORECASTING DEMAND GROUP 3 - MEMBERS My M987Z247 FernandoM987Z257 Eli M987Z254 Loan – M987Z234 Ocha M987Z212 Joice M987Z224 COMPANY OVERVIEWS In 1997, Anheuser started using BudNet system to collect the consumer data. The result was extensive and finely-tuned consumer and market data network. Works hand-in-hand with distributors both wholesalers and store retailers; e.g. 7-eleven, Buy N Save, liquor marts and restaurants to collect useful information of consumer. Distributors compile information and transmit it daily to Anheuser corporate headquarters. COMPANY OVERVIEWS • Sales reps. Collect new orders and rack competitors’ marketing efforts on PDAs and laptops. • Data from BudNet can be reveals trends by city, social class, holiday activities, etc. • Since 1876, Market Share: 50% • Annual Revenue: $16 billion USD • Bought in 2008 by InBev for US$52 billion. WHAT IS BUDNET? BudNet is widely considered to be the most advanced, thorough consumer gather system in the marketing industry. A system that uses aspects from technology, accounting, and inventory in order to create the most accurate MIS possible WHAT IS BUDNET? (CONT’D) A marketing system that accurately pinpoints who is buying their products, and from where. Then, the marketing becomes persuasive; thus increasing sales. The MIS network that has increased sales and allowing Anheuser-Bush to be the market-leader in their industry THE MARKETING RESEARCH PROCESS Defining the Problem and the Research Objectives Develop Research Plan Collect the Information Analyze the Information Present the Findings Make the Decisions STEP DEFINING THE PROBLEM AND THE RESEARCH OBJECTIVES1: Research Objectives Knowing customers buying patterns and competitor’s product position Having an accurate information for decision making of promotion strategy To encourage sales and to extend market share STEP 2: DEVELOP RESEARCH PLAN Data Sources Data Types Primary data Variables Numbers of sales (and also providing sales per location); consumers tendency; competitor’s product, prices, and display. Secondary Consumers data tendency (Nielsenstyle); demographical data Data Collection Methods Sources Survey by working hand- Distributors that in-hand with directly gathering distributors to collected store-level data. store-level data. Gathering additional data from another sources . Information Resources, Inc.; U.S. Census. STEP 2: DEVELOP RESEARCH PLAN Research Approaches Research Method Technical Implementation Observation Direct observation to the stores to gathering information not only about own brands but also about the competitor. Survey Research Monthly surveys to see what & why beer drinkers buy. Behavioral Data Analysis Forecasting the trends by using another data sources (secondary data), and crossing it with storelevel data to reveal more specific picture of the market. STEP 3: COLLECT THE INFORMATION Primary Data Information Secondary Data Direct Observation: 1. Find out the customer’s buying patterns (what, where, when, and why ) and their behavior 2. Works hand-in-hand with distributors both wholesalers and store retailers e.g. 7-eleven, Buy N Save, liquor marts and restaurants to collect useful information of consumers. Monitoring Competitor: 1. Buy and analyze competitors product 2. Monitor they sales (walks the competitors store) 3. Check for new patents (products, prices, and displays) 4. Examine various types of physical evidence Primary Data Survey: 1. Monthly surveys to see what & why beer drinkers buy 2. Using interactive website to make people interested in participate and fill the questionnaires Experiment: Using different combination of marketing-mix variables (displays, discounts, and promotions) to knows which combination has the strongest effect on sales or profitability SECONDARY DATA Internal Sources: Collected from people inside of the company (executives, engineers, scientists, purchasing agents, and sales forces). Government sources: 1. U.S census data to figure out the demographic and economic situation . 2. U.S. Security and Exchange commission’s and U.S. Patent and Trademark Office database to provides financial information on public competitors Book and Periodical Sources: Industry specific newspapers , magazines, books, etc. Commercial (Online) Sources: Information Resources, Inc, Dialog, Hoover’s, DataStar, LexisNexis, Dow Jones News Retrieval, ProQuest, and Dun&Bradstreet’s . STEPS 4: ANALYZE THE INFORMATION Analyzing the information in order to: To figure out the current market situation To forecast the future market situation STEP 5: PRESENT THE FINDINGS The information gathered and analyzed was sent directly to BUDNET data network, which provides information about the market preferences, inventory, packaging types used by competitors, new products, the brand space in the shelves, discounts, promotions, etc. In conjunction with U.S. census and other sources of additional data was used by managers to develop marketing campaigns with a local precision never seen before (city, neighborhood, holidays, and even store) STEP 6: MAKE THE DECISIONS • Anheuser through the utilization of budnet was able to identify the specific needs of their customers, and most important moves made by its competitors. • This management tool gave to Anheuser a big advantage in the beer market, because with the available data the company could be constantly changing its marketing strategy, design new products directed at each segment of its market and anticipate the movements of their competitors. SUMMARY Marketing research is of the important tasks to conduct decision making and planning. By market research, companies can have a picture of market situation in current and in the future time. By understanding market situation, the company could decide which is the strongest strategy that would encourage its company’s objectives. CONCLUSIONS The market information plays a crucial role in any organization for the development and application of their marketing strategies. Like we can see on the budNet example, the market information system must be focused on two points: The first is referred to obtain valuable information for the company and the second about protecting the valuable company’s information from its competitors REFERENCE Kotler, et al. (2006), Marketing Management, Pearson, 12th Edition Ferrell, et al. (2008), Marketing Strategy, Thomson, 4th Edition