[MUSIC] Hello to everybody, I have the pleasure to be here today with Jaime Veiga. Jaime is an expert in market research. He has actually worked for many, many years in Proctor and Gamble, where he has led many market research projects for Europe. And actually, he is currently working in Johnson and Johnson, where he is also leading Global insight products in south Europe. Jaime is also our professor at our business school and also he is leading one of the masters we have in market research. So thank you very, very much for being here with us, Jaime. It's a pleasure. So first of all, I would like, before I can very large company, so first of all I would like you to explain to us how important is positioning for those companies. Well, positioning is critical. It's one of the first critical aspects that a company needs to think of for a brand strategy. It's critical to understand who do you want to target? Who's going to be your end audience? And also it's critical to position the value proposition you wanted to give to them. So, it's an early choice, and a critical one. So it can drive totally destructive for the commanders but also will influence a lot of tactical decisions. So it's an important one to begin with. >> Like I said, you need to be sure to get it absolutely right. That's great, and that's actually something we are insisting during the core visit. This is very, very strategic, it's something you must have, right? Okay, hi, you're an expert in research as I mentioned, and I'd like to speak a little bit about segmentation. Can you explain how it works to us, market research when you apply it to segmentation a little bit? >> Sure, so when you get the request of doing segmentation, it's the strategic project that complex one, clearly So first, you need to know about the category. You need to know about the consumers, you cannot start submitting, obviously, if you don't know them. That's the first point. Then normally you will get to the key golden question which is, who is the real consumer for my brand? Who do I want to target? How different they are? Why are they buying such different things? Those are the segmentation questions. So actually you will need to deliver the answers beyond segmentation research. Normally a quantitative research, survey, focusing on habits, focusing on motivations as the two key aspects. And [COUGH] the key aspect is actually not the question or the research itself but the analysis. In the analysis is where the company or the brand will take the choices about how I'm going to segment. And it links about which variable you're going to use to segment. You can segment based on age or kinds at home or not which is social demographic, you can answer segment of what consumers believe, psychographic, or you can talk about behavioral which is based on what they do. That's the real choice Which one is the best? It depends on the company. So companies normally take a strategic choice cross cut area about the type of segmentations we do. So that's the type of segmentation that you will activate. So you would be consistent with that strategy. For instance, Proctor and Gamble will always do segmentation based on need states. So it is a mix of psychographic and some other aspects. So it's critical. And the key point is the results that you're going to get are going to drive the strategy. So you are not done by doing the analysis. The next thing is that you need to make sure that this is shared by the organization and is deployed properly. So one of the things that macroresearcher people need to do is like behavior as marketeers. And try to find smart names of the groups, smart ways of presenting them, so everybody in the organization when taking the big decisions know who they are? Bring them to life. And still you're not done because the last step is actually you need to make sure that those questions that drive the segmentations are ready and available for many other strategic research like concept testing, like pricing, like RND prod of testing. So you understand how those strategic perform within your target So it's a complex one. >> It's a complex and seems to be absolutely necessary, right? >> Yeah. You need it. >> You need to do your research properly. It's not something you can do on your own. You need to speak to customers and understand them. >> Totally, and a good point is that you do it once every four, five years. So normally, so you will not be updating segmentations yearly. So it's really strategic. >> Okay. Jaime, you've been working on this for many, many years and there are quite a few trends happening now. Do you think segmentation, the way we segment, has changed over the last years? What's your view on this? >> Well, in my personal point. What I've seen in fast moving consumer goods company and using all the sectors is that big data's sending things there. Because we get more information about our consumer so we tend to rely more on that behavioral part. So, behavioral segmentations are getting quite popular. And I'm talking about the classical, loyal consumers, these loyal consumers are never tried my brand, they tried my brand. So, we get more information on those areas so that's why we can We can use it more often and more accurately. But of course, other types of demos, social demos, are also being used. Digital marketing is bringing a lot of measures about who is visiting my web, whose my friend in social media, which is also being used quite often. So the trend is more behavioral because we get more data. >> Very interesting we can be more and more precise. >> Yeah, more on what we do. >> [LAUGH] Okay, Jaime, there's a lot of hype about new techniques and you're an expert in neuromarketing, so let me ask you about neuromarketing. Where do we stand with neuromarketing, in terms of segmentation? >> That's a good question and actually field research on segmentations will rely on neuromarketing. Because we are in an early stage. We are still learning about neuro marketing and how we can apply neuro science knowledge into marketing. So we still most of the research focus about what we share versus what we are different on. So that is why it's not widely used in large companies at the moment. But I'm sure we'll get there. Because the more we learn about cognitive process, memory, perception the more it will be used to segment us on how we process the information. At that moment for sure it will be widely used. At this stage, is very young I would say. >> That's very, very exciting. >> That will come for sure. >> Excellent. And let me go for a last question. Well, we always say that consumers are very dynamic, that they are changing, so I'd like to understand how do you monitor those changes and if you can share with us an example about changing your target group because of those changes. >> Sure, I mean, obviously, consumers they are the final boss so they take the final choices of what they buy. And of course, there's evolution on how they behave. So, in some cases, you need to upgrade your segmentation. That's strategic, difficult decision to take on a company level because it means changes to your strategy. So of course, you do that when actually you need to do that because your results are not there, your strategies is not performing. When you do that, normally it's linked to a change in the segmentation. So it's rarely you would see from target a to target b as part of a new segmentation model where you will target somebody different based on the strategic, on business reasons. Having said that, there are examples of that happen. Cheetos for instance, a snack brand here in Europe, did make significant changes from the position that we're initially focusing on kids. And they saw that the consumers were actually more teenagers, so they decided to go actually for them, to get more of that target, so more of those teenage buyers. So it was a strategic change on segmentation. Herbal Essence, a shampoo global brand, did change from traditional organic herbs or natural ingredients. It changed to something much more experiential, modern, totally different segmentation at global level. Another recent in the news, we heard about Apple targeting not only the top standards of the early adopters of the category in terms of technology, but also going into a value proposition with previous models, seeking for those value oriented consumers. So clearly this evolves and the strategy will evolve. But I'm sure that each of those decision was complex and difficult one to take because it's a strategic change. >> Yeah, it seems to be something we cannot change from one day to another. We have to be 100% sure about the move. >> Well that will tell where you want to be in the long term. So clearly, you want to do as few changes to your strategy as possible if you are performing, of course. >> Okay Jaime. Thank you very, very much. >> You're welcome. >> For your time. I think it was a great insight about how positioning works. How a strategically test, and the world of market research necessarily place into this. Thank you very, very much Jaime. [CROSSTALK] It's been a pleasure to have you here with us. Thank you. >> Thanks a lot. [MUSIC]
