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surveys: power of knowledge
The potential of market research lies both with companies commissioning research and those conducting it

First, the good news. Oman’s economy has seen strong growth, modest inflation, large surpluses in fiscal and balance of payments positions and easy domestic liquidity conditions, consistently over the last three decades. In 2005, the per capita income stood at a healthy US$12,000 while the GDP was US$30bn. One would think that the science of market research, which offers businesses a gateway into the minds of its customers, would be booming in such a scenario, where quantifying opportunities is just as important as identifying them. But that’s not exactly the case in Oman, at least not as yet. Explains Dominic Myers, general manager, Matrah Cold Stores (MCS), “The lack of published data and research options is a major weakness in the commercial environment in Oman. The traditional view that information is power and should not be shared is not helpful in promoting a competitive economy.”

Cluster patterns
It is not as if Oman doesn’t have market research firms. And its significance as a tool to gain a competitive edge in areas ranging from product design and development to branding and equity to advertising and communication to customer loyalty, is not lost on companies either. Hassan Shaban, divisional head, corporate communication division, NBO, puts it succinctly. “We are very focused on knowing our customer needs and requirements. And the only way to meet those needs is through market research.” What is lacking, perhaps, is a more widespread understanding of its potential as well as, in some instances, its presentation. And there are issues to using the services of market research firms here, the first of which Mohammed al Farsi, brand and communications and customer value proposition manager, Shell Oman Marketing Company, puts forth. “Overall, we would be satisfied if we had a good range of different market research companies who have full-fledged offices in Oman. There are just a handful of such companies today. So we don’t have much to choose from. Also, if we want to do certain research very quickly, we don’t get the service we need.”

Oman does suffer from the fact that most global companies conduct their usage and attitude surveys with customers in Saudi Arabia, UAE, and possibly Kuwait, but rarely in the sultanate. As a result, the investment in research sponsored by major multinationals is not really taking place in Oman. The lack of choice Farsi talks about is seconded by Suhail Khan, manager, Simpa Marketing Research and Consultancy Services. He believes that the issue impacts the existing market research companies themselves. “Not having international players have their research offices here influences the scenario because if there were more competition, there would be more demand for research. The industry itself would grow.” There has been a pattern to the presence of international research firms here, though hopefully that is changing now. Synovate’s operations in Oman were launched as part of an agreement with a partner company, where the partner was responsible for carrying out fieldwork for three years. In effect, Oman was not getting Synovate’s services the way the rest of the world was getting them. But now that that agreement has ended, Synovate is looking into the possibility of having independent operations and offices here.

There is plenty of place for the more established players to cement their operations here and for the new names to make their place in this market. Because, in present time, there are many potential users like Vanessa Dolan, account director, Zeenah, who does not see enough market research firms here. “If they do exist, I cannot find them and they have not found me.”

Meeting counterpoints
Continues Dolan, “I would like firms to have some research on hand that could be bought by companies here, instead of reinventing the wheel or re-researching. The research firm must have some vital statistics on hand that can be sold to companies.” There is a market for such prepared data. K V Suresh, manager-Oman, ACNielsen AMER, says that the firm gets about 70 per cent of its business from the FMCG sector. These figures show patterns depending perhaps on the market research company’s presence internationally. Suresh says that their main clients include Pepsi Cola International, Procter & Gamble, Unilever, Gillette, British American Tobacco, Philip Morris and HSBC, among others. Myers informs that MCS has purchased the entire universe map for Oman by name and location from ACNielsen, and are now in the process of evaluating this database. Most companies tend to have a fair balance between conducting their research in-house and outsourcing it. Like MCS, companies tend to look in-house for small market survey projects to establish competitive distribution, pricing or prior to the launch of a new product. For larger scale projects, where an independent approach is preferred, third parties are used. Another insight is provided by Maaike Starrenburg, marketing and communications manager, Synovate, Arabian Gulf, “The bigger companies conduct a lot of their own market research along with outsourcing major projects to research companies like us, whereas the medium-sized and smaller companies have the tendency to outsource most of their market research requirements.” Synovate’s last few proj-ects in Oman included brand tracking studies for a major international oil and gas company as well as an international food chain.

Low overhead costs, using local facilitators, and quick turnaround times also make it to the wishlist of companies commissioning market research. To this end, it must be understood that the costs of market research depend upon the respondent type, the sample size and the research coverage, among other factors. If a certain survey requires meeting CEOs of organisations, it would be tougher and more time consuming to arrange, as opposed to meeting homemakers. Similarly, a study might require a visit to the interiors of the sultanate. Interviewers might have to stay there for a few days. Considering expenses concerned with travel and hotel stay, among others, the charges of such research would be higher. Data analysis following the research also has an effect on the cost. Believes V Anil Kumar, director, International Marketing Research Consultancy (IMRC), “Overall I would think that our charges for the surveys are quite affordable and a small expense for the client when you measure against the benefits it brings to the businesses.” But the fact that the benefits of research cannot be apportioned does make for an issue for certain clients. Says Simpa’s Khan, “Research doesn’t necessarily pay off in two years, it pays off over a period of time. Those who think long-term view research as an investment. Others see it as a cost. They might think that sales and promotion driven philosophies are more effective, because they show results quickly.”

Starrenburg puts that attitude down to a minimum level of awareness about market research. “There is a need to create more awareness about market research and also about the uses of market research information.”

The speed issue, believes Anil Kumar, is one that can be resolved through the understanding that research is a time-consuming process. “All processes are about collecting the opinions of consumers, which takes time because we have to find the target respondent, get an appoin-tment suitable to the respondent and then conduct the interview. Fieldwork cannot be crunched, even if we increase the number of interviewers.” He adds, “There are also times when clients don’t pre-plan research or budget it for the period they require it. Sometimes they will come to us just a fortnight before they wish to launch an advertising campaign. Even if we manage to assess the campaign on time – what if the research shows that the advertising campaign is bound to fail – would that then give the client enough time to go back to the drawing board?”

Method to power
Meanwhile, companies who agree that research is power, feel the need for more customisation. Says Hani Mirza, managing director, Bin Mirza International, who commissioned research before introducing the brands Second Cup and Nando’s, for which the company has the franchise, “Adaptability is very important for effective market research. You can’t have a standard set of questions and think that it will work across industries.”

Shell’s Farsi says that it’s also important to have qualified Omanis understand and ask the questions, as opposed to expatriates. “A lot of companies here don’t have a proper Arabic unit to translate questions, which means a lot of information could be lost in translation.” But such issues, among others, are being resolved as both sets of companies communicate with each other. And business has been growing as a result. Simpa doesn’t have any clients who took up research activity and then stopped, and IMRC’s business is doing well enough for the company to have planned to expand operations to Egypt. It’s been more power to research, as NBO’s Shaban points out, “We believe in the results that come from market research because they are based on facts and figures. Recently, we changed the name of our product Savings Excitement to Al Kanz. We did this because we got feedback from our customers asking why a national bank was using a non-Arabic name for a good product.”

Mirza echoes a sentiment that seems to set the tone for the future of research in Oman when he says, “It is smarter to invest a small sum on research before launching a business rather than risk losing a huge amount of capital because you didn’t think research was important enough. And when you have established your presence in the market, research provides you with the knowledge and tools to keep your brand on top.”

Over the past year, MCS has commissioned external consultants to conduct customer satisfaction surveys across various channels as well as employee satisfaction surveys with over 300 employees. A second wave of research to test responses to the initiatives since the first wave of research are also underway. Besides, the company will be participating in the industry-wide compensation survey by ORDC. As Myers concludes, “If we feel that there isn’t enough awareness about market research here, we all have a duty to improve this.”