Kids Marketing Consulting
Attractiveness of the market research industry in Ukraine based on Porter’s Five Sources (from CMO point of view).
Industry Competitors (Segment Rivalry):
Also there is competition, the market research industry in Ukraine does not have numerous, strong, or aggressive competitors in the kids, tweens and teens niche. Actually, KMC could be considered a pioneer in this niche and as all pioneers company had enjoyed solid growth and profitability and developed a strong customer base. However due to rising competition, company has to shift towards protecting its niche.
Competition does not seem to have high stakes in staying in the segment (major leaders are large international company’s belonging to global ESOMAR community). While they could be called strategic group with many niche players within, none of the firms operating in Ukraine are solely dedicated to market research focusing on children.
As a CMO I must “dig deeper” and consider competitive set as “limiting of competitors only to those that offer the same quality product or have the same standards”. Than I might consider only industry leaders or those firms who, for example, belong to Ukrainian Marketing Association (UMA), legally registered and operated (white in Ukraine), I will call them Group A. Group A firms are considered to have a higher industry standards and reputation. Customer, if unfamiliar, would be educated as to value and quality of product they are receiving.
I would also think that perhaps this high standards have more value and affordability in the “larger” client segment, where medium to smaller clients competitors circle would be different. Medium clients would probably use “white and gray” research firms (Group B). Smaller clients with limited resources would probably considering not registered/black market offerings (Group C), since this group usually has the lowest rates.
Exit barriers (industry’s main asset are know - how professionals and a built