Address for Correspondence

Hoek van Hollandlaan 13

2554 EA The Hague

The Netherlands

Tel: +31-10-2894 505

e-mail: efamro@hetnet.nl

IBAN: NL45ABNAO421984864

BIC: ABNANL2A

Business Plan Efamro 2004-02-01

1.0 Introduction

Within European countries, market research as a branch of trade and a vocation is becoming organised on an ever more professional basis. A well-organised branch of trade at the national level has also become an absolute necessity as a consequence of ever-stricter legislation, fierce competition from non-professional organisations, particularly in the sphere of data collection and advice, and a development from a nationally-oriented information market to an ever-increasingly European and even globally-organised market. That calls for adjustments within the professional sphere of market research itself, but also for a strongly internationally-oriented representation of interests. This representation of interests from the perspective of the supplier of information services and products has formed Efamro’s sphere of activity since “way back”. At the moment Efamro represents 13 European countries.

2.0 The mission

Efamro’s mission can be formulated as the representation of the interests of the suppliers of market research products and services in the broadest sense of the words, in which the emphasis must be placed on the spheres of (international) legislation, the internal and external promotion of market research and opinion polling, quality standards and an adequate range of products for the affiliated national associations and their members.

3.0 The strength – weakness analysis

Efamro arose out of the need, on the suppliers’ side, to be able to take a strong stand on a number of component areas of market research and opinion-polling. The situation however has greatly changed in recent years. The role of Brussels has increased enormously, so that effective representation in Brussels became necessary. The consequences of this when translated into national legislation became weightier, the influence of legislation on market research only became greater and greater (telecom, privacy, anti-trust legislation etc.) In addition there arose the need for the developed quality standard (EMRQS) to be deepened and broadened (ISO-collaboration). Aside from that, pressure arising from the present economic situation, doubt exisits at the national level about the usefulness and value of continued investment in Efamro. Among the national grassroots supporters there is great unfamiliarity with Efamro’s activities and, proceeding from that, unawareness of the usefulness and sense of the (relatively low) contributions that one makes to Efamro. Thus, there are few, if any, of Efamro’s services and products whose usefulness and sense could be measured. Everything occurs behind the scenes, so that the profile of Efamro is unclear. So it not surprising that, consequently, no basis of support for a solid financial organisation has been created. On the other hand, the role of (the unknown) Efamro should not be underestimated either. There is NO comparable organisation in the professional sphere of market research that, in the European context, can and may speak on behalf of the suppliers of market research and opinion polling. Even an organisation respected on all sides such as Esomar cannot fulfil that role. And thus it is not strange that Esomar is very interested in close collaboration with Efamro. With Efamro, Esomar is considerably stronger than without it. This need explains why Efamro and Esomar having jointly set up a lobby bureau in Brussels. Also the ISO market research standard under development is an initiative of Efamro and has now been taken over by individual countries. The limited financial scope is also the most important reason why Efamro, in contrast to other comparable European organisations, cannot have any full-time professionals in full-time service. In view of the great importance of good representation and the fact that the interests of clients and employers within this branch of trade, as represented by Esomar, can sometimes be opposed to each other, a strong European organisation for this branch of trade is an absolute necessity.

In summary, strengths and opportunities can be formulated in the following (random) order:

• Single platform for employers of market research bureaux at the European level
• Potentially good financial basis because of the (indirect) memberships of all large sophisticated suppliers of market research
• Clear foothold in Brussels
• For lack of other organs, the most appropriate interlocutor world-wide.

The weak and threatening aspects can be summarised as follows (again in random order):

• very limited financial scope
• (too) limited dedication from professionals
• decisive action is dependent on the availability of volunteers
• limited decisive action on the part of the organisation
• dependence on Esomar
• (very) limited awareness of Efamro among the grassroots supporters
• pressure regarding the usefulness of the contributions (already very low, anyway) of the countries
• no recognisable range of products and services
• increasing pressure from Brussels in terms of outlooks that directly affect market research
• no clear mission which Efamro stands for and would wish to stand for in the long term

For lack of a mission and an attendant strategy, Efamro is insufficiently capable of representing the interests of the business from the suppliers’ side.

4.0 The objectives

.

The main activities which Efamro should concentrate on could be described as follows:

• legislation at European and national levels
• promotion of uniform quality standards
• development of products and services for the affiliated countries and their members
• internal and external PR and representation.

In the following sections, these four main activities are elaborated in greater detail.

4.1 Legislation at European and national levels

For a year now, Efamro has been jointly represented with Esomar in Brussels, with its lobbying and search department. This department was set up specifically to monitor the Brussels initiatives and to be able to anticipate in a timely manner the possible threats that derive from the proposed legislation. The financial foundations for this lobby lie, to a very considerable extent, with Esomar. Within two years, Efamro must be able to pay its proportional contribution to this office, if it wishes to go on counting in this lobby in the future. And in two years, the subsidy from Esomar will probably be stopped.

4.2 Promotion of uniform quality standards

An adequate programme must be drawn up to make the quality of market research measurable. The ISO-standardisation can play a role in this, but the drawing up of quality requirements for access-panels, the execution of international research and the like, is also of the greatest concern. That concern has two angles of approach. The drawing up of quality standards is in a number of cases seen as a cost item that from the economic point of view has little or no priority. However, there is something to be said against this: namely, the exclusion of suppliers who do not employ those quality requirements and as a result can apparently operate more cheaply. Usually it is only afterward that the client experiences that in these sorts of cases, cheap is dear. Research that is still conducted these days via universities and polytechnics, in an often amateurish manner, in many cases does not comply with the present quality requirements as have been laid down by Efamro for market research and opinion polling. In the Netherlands, it involves the approximately € 150 million a year that eludes the members of the Association. At the European level, that must mean more than a thousand million Euro. Among other things, by pointing to (a lack of) quality requirements that should be placed on market research, the client will have to be made more critical. As a result, there must arise a tendency towards regular market research suppliers who are qualitatively beyond dispute. Within 6 months, a working group will have to indicate what the quality programme will have to look like.

4.3 Development of products and services for the affiliated countries and their members

In recent years, few recognisable products and services have been developed for the national associations and their members. A product and service range from Efamro must provide for the needs of suppliers. In addition, these products will profile Efamro as a useful organisation which offers value for money. At the moment, Efamro’s grassroots supporters have to guess what Efamro does, and indeed, whether it does anything at all. One might for example think in terms of:

• A European Business Confidence Index. How do the bureau managements see the developments of the market for market research. A three-monthly index, exclusively available to the members of the affiliated associations.
• Electronic sales per country
• Help-desk for questions from the members of the affiliated associations, which have to do with legislation and specific situations in the affiliated countries.
• Website with a search system for bureaux for the benefit of clients (only the members of the affiliated associations).
• Launch of a new Efamro quarterly magazine aimed at members of affiliated associations and their clients.
• Establishing a regular (once a year?) forum at which European leaders of major research organisations would come together to discuss issues of common concern.
• Databank with national census data for the purpose of uniform reweighing of research results for the members.

4.4 Internal and external PR and representation

If Efamro wishes to be able to play a role of significance, then it is essential that it becomes more visible. Not only in Brussels, among the policy-makers, but especially also among the customers for market research and among the suppliers of market research. If the suppliers begin to see the usefulness of Efamro, the funds can more easily be generated in order to give Efamro that professional status which it must have for an effective policy as formulated in the above objectives. By also making itself recognisable and explicitly profiling itself to the client side, Efamro will have to make it clear to the customers for market research that research has a quality label, and that is the Efamro label. Clients must become aware of the fact that the way in which research comes into being is 100% determinative of the result and with that, the policy of an enterprise. Efamro should in the coming years be able to build up among clients an awareness (as regards content) of more than 50%.

5.0 Elaboration

Efamro does not have the in-house staff or resources at the present time to realise all of the development projects outlined above and since it is unlikely that Efamro will be able to afford to employ full time staff in the foreseeable future some other approach will have to be used to realise the development plan proposed. The most practicable alternative is to place assignments for the development of new projects with appropriate executives/consultants on an ad hoc basis and this is what is suggested.

Working to the above plans and objectives, including the launch of an Efamro publication, the elaboration of the website and the other products for the members of the affiliated associations, it must be possible to enable Efamro to play a role of significance.

The great financial effort required for realising this catch-up manoeuvre must come from the associations (the present contributors) by developing a range of product and services that is attuned to the industry’s needs. In this connection, priority must be given to those services that can quickly be realised, such as the development of the website, the launch of a Business Confidence Index, an informal network for CEOs of leading research organisations and the development of a new Efamro publication.

We should also bear in mind that it might be possible to develop some products and services jointly with ESOMAR and for them to be part funded by ESOMAR.

6.0 Timing

In view of the great importance and the threats which lie in wait for this branch of trade and particularly for the suppliers within the research branch, decision-making must take place in the short term concerning Efamro’s policy for the coming years. If we want to continue counting as a partner, then, at the next meeting a brainstorming session should lead to the concretisation of the plans, which subsequently can be elaborated in more detail at a later meeting. Subsequently, if agreements could be made in the period up to February 2004, development of the programme could begin in the second quarter of 2004.

7.0 In conclusion

The management board is aware that this draft plan means a rigorous change in the policy which has been conducted up to now. The management board attaches great importance to declaring that in the first place it has been circumstances that have led to this change of course. Moreover, one must think particularly of the financing and further expansion of the Research Alliance in Brussels, Esomar’s contribution towards which is going to decrease very considerably after 2004. Also, one must bear in mind the poor economic situation, which can put membershipof organisations such as Efamro under pressure, with the consequence that future developments cannot be effectively acted on.

Finally, the management board wishes to emphasise that it finds the collaboration with Esomar to be of great value. It wishes to continue this and absolutely does not wish to frustrate it, but it does also wish to follow a line of its own, as has been disclosed in this business plan. In this connection, we are assuming that the spheres of activity have been clearly delineated.

Amsterdam,

01-02-04

Vincent Ravet Wim van Slooten Bryan Bates

President Vice President. Director General