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IPSOS, A COMPANY THAT TRANSFORMS ITSELF

Sources: www.ipsos.com

One of the world leaders in studies


■ Turnover: approximately $ 1.7 billion, 46% of turnover was generated in Europe, the Middle East
and Africa, 16% in Asia-Pacific and 38% in the Americas.

■ Present in 87 countries

■ More than 16 500 employees

■ No. 3 worldwide in polls and surveys and


positioned in the top 4 out of the ten largest
countries representing 80% of the research
market:

- No. 1 in Canada;
- No. 2 in France and China;
- No. 3 in the UK and Brazil;
- No. 4 in Japan, USA, Germany,
Australia, Italy.

Ipsos and the marketing research market


■ In the market, growth comes from automated online panels and value-added analysis,
segments in which Ipsos faces competition from its peers (Nielsen or Kantar), research
companies such as Gartner or Forrester, but also new players from the Web. It is in this
environment of strong price pressure Ranking of studies and research companies
that Ipsos will have to find its way by Rank Turnover in USD
reinventing a good part of its business.
[...]

■ In recent years, the market research


market has grown below expectations,
particularly in the consumer goods
sector. It is now driven mainly by
emerging countries [...]. The slowdown
in growth in a large number of sectors
has a direct impact on our customers,
whose demand may decrease in some cases. [...] The Ipsos Group serves a large number of
clients (more than 5,000 clients) in a wide variety of industries and in many countries. The top 10
customers — all multinational groups [...] — account for 18% of the group's turnover. The largest
customer accounted for just over 4.3% of the group's 2014 revenue. [...] The emergence of new
technological tools for collecting information, sometimes developed internally at clients'
premises, can also lead to their need for market research, or at least modify it.
■ The business of the Ipsos Group may also be affected by privacy legislation which allows
consumers to protect themselves from unsolicited telemarketing. Legislation protecting against
unsolicited telephone telemarketing has been implemented in the United States (Do Not Call List)
and Italy. In other countries, existing legislation tends to be interpreted restrictively by the courts.
Similar rules exist regarding unsolicited e-mail (spam). Although these regulations generally do
not apply to market research appeals, new laws or regulations or the interpretation of existing
laws and regulations by courts could extend these devices to market research. [...]

■ Ipsos' overall strategy is to be the owner of the data collected as well as the production
platforms [...]. As a result, the level of subcontracting is low in this area. It is more important when
Ipsos considers that the service is not directly strategic for its activity and when the external offer
is of real interest at a good price and with a good level of efficiency. This will be the case, for
example, for all types of IT infrastructures [...] and software [...].

Ipsos partners with Google to evolve its marketing studies


Ipsos has announced [...] the signing of a partnership with Google to launch new marketing
research services based on geolocation. This new offer, initially deployed on the North American
market, is based on the Google Opinion Rewards application, which has more than one million
active subscribers [...]. "We really wanted to offer something different that makes the most of the
unique features of Google's consumer survey platform (CroogleConsumer Survey)," says Didier
Truchot, co-founder and president of Ipsos [...]. "This first offer will leverage geolocation data
provided by app subscribers, allowing our customers to interview consumers who have visited
their facilities within 24 hours of their visit," he continues. [...] Through its Google Opinion
Rewards application, the group encourages consumers to respond to market research in order to
earn credits for paid content, such as applications, music or e-books.

Ipsos transforms its business


For its marketing surveys, [...] the company "offers new solutions, no longer based solely on
declarative but also on observation methods such as neuroscience, ethnography and data
analysis," says Didier Truchot. This adaptation is just beginning to bear fruit. "There are signs of
improvement in some key markets for us, such as the United States or the United Kingdom. [...]
On the other side of the Atlantic, the dynamism of these new services would begin to offset the
decline in traditional services. [...] It will be necessary [...] that these services prove themselves
in France, Ipsos' third market, where activity stagnates "and shows no sign of accelerating," says
Didier Truchot. In emerging countries, "the situation is very variable. Countries such as Brazil,
Mexico or Turkey remain growing, while others such as Russia, due to the current geopolitical
context, affect our activity. Ipsos is betting in particular on China, even if uncertainties, again,
weigh on the future.

QUESTIONS:

1. Identify the SBUs of IPSOS.


2. Present the external diagnosis of “Market studies” activity of IPSOS (global
environment and competitive forces).

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