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10 Marketing Case Study Examples: Learn How to Master Them in Your Campaigns

There are millions of blog posts, articles, and videos across the internet that try to give you advice about marketing. According to Google, at least 7,050,000 unique content pieces include the phrase “marketing tips.”

But with plenty of outdated and filler content creation to just build out a website, it’s hard to find applicable advice that actually works online.

In this article, you’ll learn from marketing case study examples that demonstrate what it takes to master channels like social media, email marketing , and PPC, as well as how to use case studies in your own campaigns.

Don’t rely on empty words. Learn powerful marketing best practices that are backed up with examples and data.

What is a marketing case study?

In marketing, a case study is an in-depth study of the effectiveness of a certain tool, tactic, or strategy. It focuses on measurable outcomes, like an increase in sales, visitors, or production hours.

Typically, it includes a few key elements:

• Introduction to the customer/client
• The problem the client needed to solve (should align with problems prospective clients also need to solve)
• The solution (and context of why your company/software was the right fit)
• Data from before and after implementing the solution

In a sense, a case study documents the journey of working with your company. And it gives potential future customers a reason to trust your company.

What are the different types of case studies in marketing?

In marketing, three main types of case studies are commonly used:

1. Third-person or client case studies: These highlight the experience of a specific client working with your company or using your product.

2. Explanatory case studies: These case studies explore the impact of a phenomenon or tactic, such as the company’s marketing strategy, and how it impacted its growth. In this case, it’s not based on first-hand experience, but rather observation and inference.

3. Implementation case studies: An implementation case study takes the average client case study a bit further, focusing on the actual implementation and covering it in detail.

You can also divide the case studies further by the type of medium they use — video or text.

And in 2024, video case studies are becoming more and more popular. Many companies even use them as remarketing ads to address potential objections.

Why should you use case studies?

Case studies are a powerful way to prove that your products or services work, showcase your expertise, and build trust with potential customers.

It’s a way to transition away from just “telling” your customers and instead start “showing” them through examples. There’s a reason the old copywriting maxim goes, “Show, don’t tell.”

Consumers’ trust in companies to tell the truth in advertising materials is lower than ever. In 2020, only 14% of consumers said they trust advertising to be honest about a product or service.

But that doesn’t mean you can’t generate trust with your company’s website.

Consumers trust third-party reviews, testimonials, and data. In fact, 91% of 18–34-year-olds trust online reviews as much as personal recommendations.

So you need social proof. And client case studies — especially those that interview the current clients — are the best of both worlds. You get to highlight data while getting powerful social proof that shows that your product works.

When just adding a simple customer testimonial to your website can increase conversion rates by up to 34% , imagine what a detailed, compelling case study can do.

1. Email marketing case study: Your Therapy Source

If you think that email is a marketing medium of the past, think again. At ActiveCampaign, we have hundreds of recent case studies that prove the opposite.

For example, Your Therapy Source receives a 2000% return on investment (ROI) from our campaigns simply by taking advantage of basic marketing automation .

In particular, a basic abandoned cart email represents around 30% of all revenue generated by automations.

With ActiveCampaign, that’s incredibly easy to set up. You can take advantage of our integrations with key e-commerce platforms like WooCommerce , Shopify , and more.

Because the case study goes into detail about exactly how the company achieved the results, it’s a combination of an implementation case study and a regular third-person case study.

2. Instagram marketing case study: Converse

If you look at all the top Instagram accounts in clothing, Converse has a much higher engagement rate than its competitors.

At 1.79%, their social media posts have an organic engagement rate over 15 times higher than Nike.

Why is that?

Let’s take a closer look at how they achieve these numbers:

When looking at Converse’s top Instagram posts, you quickly notice a trend. Collaborations with influential creators and artists — lately Tyler, the Creator — get a different level of engagement.

The post promoting their new collaboration shoe got over 183,000 likes in a few weeks. Converse even took it a step further and produced a short film with Tyler.

If you want to reach a wider number of people, combining audiences is a great strategy.

This is an example of an explanatory case study.

First, we worked backward from Converse’s powerful Instagram results. Then, we identified tactics that contribute to their high levels of engagement.

Because we didn’t work directly with Converse, and we’re only observing as an outsider, this is an explanatory case study.

3. Content marketing case study: porch.com

Fractl is a content marketing agency that worked with porch.com for over a year to earn 931 unique domain links, 23,000 monthly organic visits, and more.

The case study focuses on results over method — that means it’s a typical third-person case study.

They’re showcasing the results the company generated for a specific outside client without getting into the how-to.

These types of case studies are most useful for persuading hesitant potential customers to get on board. Showing that you’ve generated results for similar companies or people in the past is the best way to prove your skill set.

Depending on your target audience, going into detail with an implementation case study may be a better option.

4. SEO case study: Zapier study by Ryan Berg

This in-depth case study by Ryan Berg is a perfect example of how you can use explanatory case studies in your marketing.

It breaks down Zapier’s SEO strategy and how they created over 25,000 unique landing pages to improve their search rankings for different search terms.

Zapier’s main strategy revolves around targeting relevant long-tail keywords like “app A + app B integration.” That’s the key they used to generate serious organic traffic over the long term.

By breaking down industry leaders and how they rose to success, you can borrow some of their brand power and credibility.

You can use these kinds of case studies if your current clients don’t allow you to go into detail about the tactics you use to grow their online presence.

These case studies demonstrate to potential clients that you know what you’re talking about and have the expertise needed to help them succeed in their industry.

5. PPC case study: Google Ads and Saraf Furniture

When it comes to pay-per-click (PPC) advertising, Google was one of the earliest innovators. And in 2021, it’s still the largest digital advertiser globally, with $146.92 billion in ad revenue in 2020.

You might not think they need any more credibility, but Google still uses case studies, especially in emerging markets like India.

This case study shows how Google Ads helped Saraf Furniture generate 10 times more inbound leads each month and hire 1,500 new carpenters as a result.

Without going into details about the methods, it’s another typical third-person case study designed to build trust.

6. Video marketing case study: L’Oréal and YouTube

In this case study, various members of L’Oréal’s global marketing team break down exactly how they used YouTube ads to launch a new product.

As a result of the campaign, they were able to establish their new product as the No. 2 in its category and earn 34% of all mass sales across a network of online retailers.

The case study breaks down how they used YouTube for different stages — from awareness to loyalty. It’s another example of a third-person implementation case study.

7. Remarketing case study: AdRoll and Yoga Democracy

AdRoll is a remarketing platform that tracks your visitors and lets you show them targeted ads across the internet.

Their case study with Yoga Democracy perfectly showcases the power of the platform.

Look at these highlights:

• 200% increase in conversions
• 50% reduction in CPA
• 19% of total revenue attributed to AdRoll

These are metrics you’d love to show any potential customer. The case study goes into detail about how they built an effective remarketing campaign, including cart recovery emails and ads.

Because of the detail, you can classify this as an implementation case study.

8. Influencer marketing case study: Trend and WarbyParker

This influencer marketing case study from Warby Parker and Trend showcases how you can use influencer marketing even with a limited budget.

The “Wearing Warby” campaign was centered around showcasing influencers wearing Warby Parker glasses in their everyday life.

From mundane tasks like eating breakfast to artists creating a new masterpiece — it showcased Warby Parker’s products in use and made the brand more approachable for influencers’ followers.

This is another third-person case study, as it doesn’t go into much detail beyond the results.

9. Customer experience case study: App Annie and Coca-Cola

In this case study, Greg Chambers, the director of innovation for Coca-Cola, explains what App Annie brings to the table.

Instead of specific numbers and metrics, it focuses on the big-picture benefits that App Annie has on Coca-Cola’s customer experience.

The video interview format is also perfect for driving trust with potential customers.

Again, this is a typical third-person case study that you see a lot in the marketing world.

10. SaaS case study: Asana and Carta

Of course, it’s not just agencies and advertising platforms that need to master the use of case studies in digital marketing.

Let’s explore an example of a case study outside the marketing industry, in this case specifically for B2B marketers.

Asana is a project management platform that helps companies make their workflows more efficient.

It’s a good example of a case study that focuses more on the lived experience and less on the metrics.

This is a third-person case study that is closer to a client interview or testimonial, which is a good option if it’s hard to quantify improvements with metrics.

Best practices: How to use case studies in your own marketing campaigns

In this section, you’ll learn best practices to help you maximize the value of case studies in your own marketing campaigns.

Let’s look at four steps you can take to effectively use case studies.

Include a dedicated case study/customer stories page on your website

Most companies with a successful online presence have one of these pages. Emulate the top competitors in your industry by creating an improved version of their pages.

You can also add a case studies section to your resources page or blog.

Build CTAs into your case study pages

The chances are low that a random Googler will make it to your case studies. Most likely, it’s someone who thinks they might need your product.

So don’t be afraid to include calls to action throughout your case study pages.

Share case studies as part of your email marketing campaigns

Email marketing is hands-down the best channel for nurturing potential needs . That means you should always use case studies and customer success stories in your campaigns.

But it’s important that it doesn’t feel too promotional. Instead, share the unique steps they took to ensure success to deliver value, not just pitch.

Use case study video ads to overcome objections

When you’re thinking about buying a product, it’s easy to talk yourself out of it.

“It’s too expensive.” “It won’t work for me.” There are a lot of excuses and objections out there.

A case study video can be a powerful tool to overcome these objections in potential buyers.

Don’t overlook case studies when you’re planning your next marketing campaign. Towards the bottom end of the funnel, in stages like decision and action, they’re a powerful marketing tool.

When used right, case studies will help you fill your sales pipeline and provide your sales team with qualified leads.

Hopefully, the examples in this article taught you how you can use case studies in social media, email, and content marketing strategy to further your business goals.

You should also have learned how to use case studies to sell your company’s expertise.

If you want to grow your business, it’s crucial to learn from the people who have gone before you. In marketing, trying to learn all principles from scratch through trial and error would be a costly mistake.

If you’re ready to take advantage of marketing automation and email marketing tools that help similar businesses generate ROIs of 20x or higher, start your ActiveCampaign trial today .

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How to Do Market Research: The Complete Guide

Learn how to do market research with this step-by-step guide, complete with templates, tools and real-world examples.

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Market research is the systematic process of gathering, analyzing and interpreting information about a specific market or industry.

What are your customers’ needs? How does your product compare to the competition? What are the emerging trends and opportunities in your industry? If these questions keep you up at night, it’s time to conduct market research.

Market research plays a pivotal role in your ability to stay competitive and relevant, helping you anticipate shifts in consumer behavior and industry dynamics. It involves gathering these insights using a wide range of techniques, from surveys and interviews to data analysis and observational studies.

In this guide, we’ll explore why market research is crucial, the various types of market research, the methods used in data collection, and how to effectively conduct market research to drive informed decision-making and success.

What is market research?

The purpose of market research is to offer valuable insight into the preferences and behaviors of your target audience, and anticipate shifts in market trends and the competitive landscape. This information helps you make data-driven decisions, develop effective strategies for your business, and maximize your chances of long-term growth.

Why is market research important? 

By understanding the significance of market research, you can make sure you’re asking the right questions and using the process to your advantage. Some of the benefits of market research include:

• Informed decision-making: Market research provides you with the data and insights you need to make smart decisions for your business. It helps you identify opportunities, assess risks and tailor your strategies to meet the demands of the market. Without market research, decisions are often based on assumptions or guesswork, leading to costly mistakes.
• Customer-centric approach: A cornerstone of market research involves developing a deep understanding of customer needs and preferences. This gives you valuable insights into your target audience, helping you develop products, services and marketing campaigns that resonate with your customers.
• Competitive advantage: By conducting market research, you’ll gain a competitive edge. You’ll be able to identify gaps in the market, analyze competitor strengths and weaknesses, and position your business strategically. This enables you to create unique value propositions, differentiate yourself from competitors, and seize opportunities that others may overlook.
• Risk mitigation: Market research helps you anticipate market shifts and potential challenges. By identifying threats early, you can proactively adjust their strategies to mitigate risks and respond effectively to changing circumstances. This proactive approach is particularly valuable in volatile industries.
• Resource optimization: Conducting market research allows organizations to allocate their time, money and resources more efficiently. It ensures that investments are made in areas with the highest potential return on investment, reducing wasted resources and improving overall business performance.
• Adaptation to market trends: Markets evolve rapidly, driven by technological advancements, cultural shifts and changing consumer attitudes. Market research ensures that you stay ahead of these trends and adapt your offerings accordingly so you can avoid becoming obsolete. 

As you can see, market research empowers businesses to make data-driven decisions, cater to customer needs, outperform competitors, mitigate risks, optimize resources and stay agile in a dynamic marketplace. These benefits make it a huge industry; the global market research services market is expected to grow from $76.37 billion in 2021 to $108.57 billion in 2026 . Now, let’s dig into the different types of market research that can help you achieve these benefits.

Types of market research 

• Qualitative research
• Quantitative research
• Exploratory research
• Descriptive research
• Causal research
• Cross-sectional research
• Longitudinal research

Despite its advantages, 23% of organizations don’t have a clear market research strategy. Part of developing a strategy involves choosing the right type of market research for your business goals. The most commonly used approaches include:

1. Qualitative research

Qualitative research focuses on understanding the underlying motivations, attitudes and perceptions of individuals or groups. It is typically conducted through techniques like in-depth interviews, focus groups and content analysis — methods we’ll discuss further in the sections below. Qualitative research provides rich, nuanced insights that can inform product development, marketing strategies and brand positioning.

2. Quantitative research

Quantitative research, in contrast to qualitative research, involves the collection and analysis of numerical data, often through surveys, experiments and structured questionnaires. This approach allows for statistical analysis and the measurement of trends, making it suitable for large-scale market studies and hypothesis testing. While it’s worthwhile using a mix of qualitative and quantitative research, most businesses prioritize the latter because it is scientific, measurable and easily replicated across different experiments.

3. Exploratory research

Whether you’re conducting qualitative or quantitative research or a mix of both, exploratory research is often the first step. Its primary goal is to help you understand a market or problem so you can gain insights and identify potential issues or opportunities. This type of market research is less structured and is typically conducted through open-ended interviews, focus groups or secondary data analysis. Exploratory research is valuable when entering new markets or exploring new product ideas.

4. Descriptive research

As its name implies, descriptive research seeks to describe a market, population or phenomenon in detail. It involves collecting and summarizing data to answer questions about audience demographics and behaviors, market size, and current trends. Surveys, observational studies and content analysis are common methods used in descriptive research. 

5. Causal research

Causal research aims to establish cause-and-effect relationships between variables. It investigates whether changes in one variable result in changes in another. Experimental designs, A/B testing and regression analysis are common causal research methods. This sheds light on how specific marketing strategies or product changes impact consumer behavior.

6. Cross-sectional research

Cross-sectional market research involves collecting data from a sample of the population at a single point in time. It is used to analyze differences, relationships or trends among various groups within a population. Cross-sectional studies are helpful for market segmentation, identifying target audiences and assessing market trends at a specific moment.

7. Longitudinal research

Longitudinal research, in contrast to cross-sectional research, collects data from the same subjects over an extended period. This allows for the analysis of trends, changes and developments over time. Longitudinal studies are useful for tracking long-term developments in consumer preferences, brand loyalty and market dynamics.

Each type of market research has its strengths and weaknesses, and the method you choose depends on your specific research goals and the depth of understanding you’re aiming to achieve. In the following sections, we’ll delve into primary and secondary research approaches and specific research methods.

Primary vs. secondary market research

Market research of all types can be broadly categorized into two main approaches: primary research and secondary research. By understanding the differences between these approaches, you can better determine the most appropriate research method for your specific goals.

Primary market research 

Primary research involves the collection of original data straight from the source. Typically, this involves communicating directly with your target audience — through surveys, interviews, focus groups and more — to gather information. Here are some key attributes of primary market research:

• Customized data: Primary research provides data that is tailored to your research needs. You design a custom research study and gather information specific to your goals.
• Up-to-date insights: Because primary research involves communicating with customers, the data you collect reflects the most current market conditions and consumer behaviors.
• Time-consuming and resource-intensive: Despite its advantages, primary research can be labor-intensive and costly, especially when dealing with large sample sizes or complex study designs. Whether you hire a market research consultant, agency or use an in-house team, primary research studies consume a large amount of resources and time.

Secondary market research 

Secondary research, on the other hand, involves analyzing data that has already been compiled by third-party sources, such as online research tools, databases, news sites, industry reports and academic studies.

Here are the main characteristics of secondary market research:

• Cost-effective: Secondary research is generally more cost-effective than primary research since it doesn’t require building a research plan from scratch. You and your team can look at databases, websites and publications on an ongoing basis, without needing to design a custom experiment or hire a consultant. 
• Leverages multiple sources: Data tools and software extract data from multiple places across the web, and then consolidate that information within a single platform. This means you’ll get a greater amount of data and a wider scope from secondary research.
• Quick to access: You can access a wide range of information rapidly — often in seconds — if you’re using online research tools and databases. Because of this, you can act on insights sooner, rather than taking the time to develop an experiment. 

So, when should you use primary vs. secondary research? In practice, many market research projects incorporate both primary and secondary research to take advantage of the strengths of each approach.

One rule of thumb is to focus on secondary research to obtain background information, market trends or industry benchmarks. It is especially valuable for conducting preliminary research, competitor analysis, or when time and budget constraints are tight. Then, if you still have knowledge gaps or need to answer specific questions unique to your business model, use primary research to create a custom experiment. 

Market research methods

• Surveys and questionnaires
• Focus groups
• Observational research
• Online research tools
• Experiments
• Content analysis
• Ethnographic research

How do primary and secondary research approaches translate into specific research methods? Let’s take a look at the different ways you can gather data: 

1. Surveys and questionnaires

Surveys and questionnaires are popular methods for collecting structured data from a large number of respondents. They involve a set of predetermined questions that participants answer. Surveys can be conducted through various channels, including online tools, telephone interviews and in-person or online questionnaires. They are useful for gathering quantitative data and assessing customer demographics, opinions, preferences and needs. On average, customer surveys have a 33% response rate , so keep that in mind as you consider your sample size.

2. Interviews

Interviews are in-depth conversations with individuals or groups to gather qualitative insights. They can be structured (with predefined questions) or unstructured (with open-ended discussions). Interviews are valuable for exploring complex topics, uncovering motivations and obtaining detailed feedback. 

3. Focus groups

The most common primary research methods are in-depth webcam interviews and focus groups. Focus groups are a small gathering of participants who discuss a specific topic or product under the guidance of a moderator. These discussions are valuable for primary market research because they reveal insights into consumer attitudes, perceptions and emotions. Focus groups are especially useful for idea generation, concept testing and understanding group dynamics within your target audience.

4. Observational research

Observational research involves observing and recording participant behavior in a natural setting. This method is particularly valuable when studying consumer behavior in physical spaces, such as retail stores or public places. In some types of observational research, participants are aware you’re watching them; in other cases, you discreetly watch consumers without their knowledge, as they use your product. Either way, observational research provides firsthand insights into how people interact with products or environments.

5. Online research tools

You and your team can do your own secondary market research using online tools. These tools include data prospecting platforms and databases, as well as online surveys, social media listening, web analytics and sentiment analysis platforms. They help you gather data from online sources, monitor industry trends, track competitors, understand consumer preferences and keep tabs on online behavior. We’ll talk more about choosing the right market research tools in the sections that follow.

6. Experiments

Market research experiments are controlled tests of variables to determine causal relationships. While experiments are often associated with scientific research, they are also used in market research to assess the impact of specific marketing strategies, product features, or pricing and packaging changes.

7. Content analysis

Content analysis involves the systematic examination of textual, visual or audio content to identify patterns, themes and trends. It’s commonly applied to customer reviews, social media posts and other forms of online content to analyze consumer opinions and sentiments.

8. Ethnographic research

Ethnographic research immerses researchers into the daily lives of consumers to understand their behavior and culture. This method is particularly valuable when studying niche markets or exploring the cultural context of consumer choices.

How to do market research

• Set clear objectives
• Identify your target audience
• Choose your research methods
• Use the right market research tools
• Collect data
• Analyze data 
• Interpret your findings
• Identify opportunities and challenges
• Make informed business decisions
• Monitor and adapt

Now that you have gained insights into the various market research methods at your disposal, let’s delve into the practical aspects of how to conduct market research effectively. Here’s a quick step-by-step overview, from defining objectives to monitoring market shifts.

1. Set clear objectives

When you set clear and specific goals, you’re essentially creating a compass to guide your research questions and methodology. Start by precisely defining what you want to achieve. Are you launching a new product and want to understand its viability in the market? Are you evaluating customer satisfaction with a product redesign? 

Start by creating SMART goals — objectives that are specific, measurable, achievable, relevant and time-bound. Not only will this clarify your research focus from the outset, but it will also help you track progress and benchmark your success throughout the process. 

You should also consult with key stakeholders and team members to ensure alignment on your research objectives before diving into data collecting. This will help you gain diverse perspectives and insights that will shape your research approach.

2. Identify your target audience

Next, you’ll need to pinpoint your target audience to determine who should be included in your research. Begin by creating detailed buyer personas or stakeholder profiles. Consider demographic factors like age, gender, income and location, but also delve into psychographics, such as interests, values and pain points.

The more specific your target audience, the more accurate and actionable your research will be. Additionally, segment your audience if your research objectives involve studying different groups, such as current customers and potential leads.

If you already have existing customers, you can also hold conversations with them to better understand your target market. From there, you can refine your buyer personas and tailor your research methods accordingly.

3. Choose your research methods

Selecting the right research methods is crucial for gathering high-quality data. Start by considering the nature of your research objectives. If you’re exploring consumer preferences, surveys and interviews can provide valuable insights. For in-depth understanding, focus groups or observational research might be suitable. Consider using a mix of quantitative and qualitative methods to gain a well-rounded perspective. 

You’ll also need to consider your budget. Think about what you can realistically achieve using the time and resources available to you. If you have a fairly generous budget, you may want to try a mix of primary and secondary research approaches. If you’re doing market research for a startup , on the other hand, chances are your budget is somewhat limited. If that’s the case, try addressing your goals with secondary research tools before investing time and effort in a primary research study. 

4. Use the right market research tools

Whether you’re conducting primary or secondary research, you’ll need to choose the right tools. These can help you do anything from sending surveys to customers to monitoring trends and analyzing data. Here are some examples of popular market research tools:

• Market research software: Crunchbase is a platform that provides best-in-class company data, making it valuable for market research on growing companies and industries. You can use Crunchbase to access trusted, first-party funding data, revenue data, news and firmographics, enabling you to monitor industry trends and understand customer needs.

• Survey and questionnaire tools: SurveyMonkey is a widely used online survey platform that allows you to create, distribute and analyze surveys. Google Forms is a free tool that lets you create surveys and collect responses through Google Drive.
• Data analysis software: Microsoft Excel and Google Sheets are useful for conducting statistical analyses. SPSS is a powerful statistical analysis software used for data processing, analysis and reporting.
• Social listening tools: Brandwatch is a social listening and analytics platform that helps you monitor social media conversations, track sentiment and analyze trends. Mention is a media monitoring tool that allows you to track mentions of your brand, competitors and keywords across various online sources.
• Data visualization platforms: Tableau is a data visualization tool that helps you create interactive and shareable dashboards and reports. Power BI by Microsoft is a business analytics tool for creating interactive visualizations and reports.

5. Collect data

There’s an infinite amount of data you could be collecting using these tools, so you’ll need to be intentional about going after the data that aligns with your research goals. Implement your chosen research methods, whether it’s distributing surveys, conducting interviews or pulling from secondary research platforms. Pay close attention to data quality and accuracy, and stick to a standardized process to streamline data capture and reduce errors. 

6. Analyze data

Once data is collected, you’ll need to analyze it systematically. Use statistical software or analysis tools to identify patterns, trends and correlations. For qualitative data, employ thematic analysis to extract common themes and insights. Visualize your findings with charts, graphs and tables to make complex data more understandable.

If you’re not proficient in data analysis, consider outsourcing or collaborating with a data analyst who can assist in processing and interpreting your data accurately.

7. Interpret your findings

Interpreting your market research findings involves understanding what the data means in the context of your objectives. Are there significant trends that uncover the answers to your initial research questions? Consider the implications of your findings on your business strategy. It’s essential to move beyond raw data and extract actionable insights that inform decision-making.

Hold a cross-functional meeting or workshop with relevant team members to collectively interpret the findings. Different perspectives can lead to more comprehensive insights and innovative solutions.

8. Identify opportunities and challenges

Use your research findings to identify potential growth opportunities and challenges within your market. What segments of your audience are underserved or overlooked? Are there emerging trends you can capitalize on? Conversely, what obstacles or competitors could hinder your progress?

Lay out this information in a clear and organized way by conducting a SWOT analysis, which stands for strengths, weaknesses, opportunities and threats. Jot down notes for each of these areas to provide a structured overview of gaps and hurdles in the market.

9. Make informed business decisions

Market research is only valuable if it leads to informed decisions for your company. Based on your insights, devise actionable strategies and initiatives that align with your research objectives. Whether it’s refining your product, targeting new customer segments or adjusting pricing, ensure your decisions are rooted in the data.

At this point, it’s also crucial to keep your team aligned and accountable. Create an action plan that outlines specific steps, responsibilities and timelines for implementing the recommendations derived from your research. 

10. Monitor and adapt

Market research isn’t a one-time activity; it’s an ongoing process. Continuously monitor market conditions, customer behaviors and industry trends. Set up mechanisms to collect real-time data and feedback. As you gather new information, be prepared to adapt your strategies and tactics accordingly. Regularly revisiting your research ensures your business remains agile and reflects changing market dynamics and consumer preferences.

Online market research sources

As you go through the steps above, you’ll want to turn to trusted, reputable sources to gather your data. Here’s a list to get you started:

• Crunchbase: As mentioned above, Crunchbase is an online platform with an extensive dataset, allowing you to access in-depth insights on market trends, consumer behavior and competitive analysis. You can also customize your search options to tailor your research to specific industries, geographic regions or customer personas.

• Academic databases: Academic databases, such as ProQuest and JSTOR , are treasure troves of scholarly research papers, studies and academic journals. They offer in-depth analyses of various subjects, including market trends, consumer preferences and industry-specific insights. Researchers can access a wealth of peer-reviewed publications to gain a deeper understanding of their research topics.
• Government and NGO databases: Government agencies, nongovernmental organizations and other institutions frequently maintain databases containing valuable economic, demographic and industry-related data. These sources offer credible statistics and reports on a wide range of topics, making them essential for market researchers. Examples include the U.S. Census Bureau , the Bureau of Labor Statistics and the Pew Research Center .
• Industry reports: Industry reports and market studies are comprehensive documents prepared by research firms, industry associations and consulting companies. They provide in-depth insights into specific markets, including market size, trends, competitive analysis and consumer behavior. You can find this information by looking at relevant industry association databases; examples include the American Marketing Association and the National Retail Federation .
• Social media and online communities: Social media platforms like LinkedIn or Twitter (X) , forums such as Reddit and Quora , and review platforms such as G2 can provide real-time insights into consumer sentiment, opinions and trends. 

Market research examples

At this point, you have market research tools and data sources — but how do you act on the data you gather? Let’s go over some real-world examples that illustrate the practical application of market research across various industries. These examples showcase how market research can lead to smart decision-making and successful business decisions.

Example 1: Apple’s iPhone launch

Apple ’s iconic iPhone launch in 2007 serves as a prime example of market research driving product innovation in tech. Before the iPhone’s release, Apple conducted extensive market research to understand consumer preferences, pain points and unmet needs in the mobile phone industry. This research led to the development of a touchscreen smartphone with a user-friendly interface, addressing consumer demands for a more intuitive and versatile device. The result was a revolutionary product that disrupted the market and redefined the smartphone industry.

Example 2: McDonald’s global expansion

McDonald’s successful global expansion strategy demonstrates the importance of market research when expanding into new territories. Before entering a new market, McDonald’s conducts thorough research to understand local tastes, preferences and cultural nuances. This research informs menu customization, marketing strategies and store design. For instance, in India, McDonald’s offers a menu tailored to local preferences, including vegetarian options. This market-specific approach has enabled McDonald’s to adapt and thrive in diverse global markets.

Example 3: Organic and sustainable farming

The shift toward organic and sustainable farming practices in the food industry is driven by market research that indicates increased consumer demand for healthier and environmentally friendly food options. As a result, food producers and retailers invest in sustainable sourcing and organic product lines — such as with these sustainable seafood startups — to align with this shift in consumer values. 

The bottom line? Market research has multiple use cases and is a critical practice for any industry. Whether it’s launching groundbreaking products, entering new markets or responding to changing consumer preferences, you can use market research to shape successful strategies and outcomes.

Market research templates

You finally have a strong understanding of how to do market research and apply it in the real world. Before we wrap up, here are some market research templates that you can use as a starting point for your projects:

• Smartsheet competitive analysis templates : These spreadsheets can serve as a framework for gathering information about the competitive landscape and obtaining valuable lessons to apply to your business strategy.
• SurveyMonkey product survey template : Customize the questions on this survey based on what you want to learn from your target customers.
• HubSpot templates : HubSpot offers a wide range of free templates you can use for market research, business planning and more.
• SCORE templates : SCORE is a nonprofit organization that provides templates for business plans, market analysis and financial projections.
• SBA.gov : The U.S. Small Business Administration offers templates for every aspect of your business, including market research, and is particularly valuable for new startups. 

Strengthen your business with market research

When conducted effectively, market research is like a guiding star. Equipped with the right tools and techniques, you can uncover valuable insights, stay competitive, foster innovation and navigate the complexities of your industry.

Throughout this guide, we’ve discussed the definition of market research, different research methods, and how to conduct it effectively. We’ve also explored various types of market research and shared practical insights and templates for getting started. 

Now, it’s time to start the research process. Trust in data, listen to the market and make informed decisions that guide your company toward lasting success.

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Lessons from the Field: Analyzing Successful Marketing Case Studies

Discover valuable insights and strategies from real-life marketing case studies in this informative article.

In the ever-evolving world of marketing, success stories serve as valuable lessons. Case studies, in particular, provide real-world examples and insights that can shape marketing strategies, campaigns, and tactics. They offer a window into the strategies employed by successful brands, allowing marketers to extract valuable insights and apply them to their own endeavors. In this article, we will delve into the importance of case studies in marketing, identify key elements of successful case studies, explore how to extract valuable insights from them, and discuss the application of those insights to improve marketing strategies.

Understanding the Importance of Case Studies in Marketing

Case studies play a vital role in the development of marketing strategy. They provide marketers with evidence of what works in real-world scenarios, allowing them to learn from others' successes and avoid their mistakes. Additionally, case studies offer an opportunity to understand the challenges faced by various organizations and how they overcame them.

The role of case studies in marketing strategy development

Case studies serve as a foundation for marketing strategy development. By analyzing successful marketing case studies, marketers can gain a deeper understanding of the tactics and approaches that have proven effective in the past. This knowledge enables them to make informed decisions and craft strategies that are more likely to succeed.

For example, let's consider a case study on a popular clothing brand that successfully launched a new product line. By examining the marketing strategies employed, such as influencer collaborations and targeted social media campaigns, marketers can draw valuable insights. They can learn about the importance of creating a buzz around the launch, leveraging the power of social media influencers, and engaging with their target audience in a meaningful way.

Furthermore, case studies provide marketers with a comprehensive view of the marketing landscape. They showcase different industries, markets, and target audiences, allowing marketers to broaden their perspective. This exposure to diverse case studies helps marketers identify innovative strategies and adapt them to their specific business needs.

How case studies provide real-world examples and insights

Case studies bring marketing theories and concepts to life by showcasing their application in real-world scenarios. They provide concrete examples of marketing strategies, tactics, and campaigns that have achieved measurable success. Whether it's a social media campaign that went viral or a targeted content marketing strategy, case studies offer a wealth of insights into what works and how it can be replicated.

Let's delve into a case study on a startup that successfully disrupted the market with a unique marketing approach. This case study highlights the importance of thinking outside the box and taking calculated risks. By analyzing the strategies employed by the startup, marketers can gain valuable insights into unconventional marketing methods that can create a buzz and differentiate their brand from competitors.

Furthermore, case studies provide an opportunity to learn from failures as well. By examining unsuccessful marketing campaigns, marketers can identify pitfalls to avoid and gain a deeper understanding of what does not work in certain contexts. This knowledge is invaluable in refining marketing strategies and avoiding costly mistakes.

Moreover, case studies offer a glimpse into the ever-evolving digital landscape. With the rapid advancement of technology, marketers need to stay updated on the latest trends and tools. By studying case studies that showcase successful digital marketing campaigns, marketers can gain insights into emerging platforms, innovative techniques, and effective ways to engage with digitally-savvy consumers.

In conclusion, case studies are an essential tool for marketers to enhance their understanding of successful marketing strategies and gain insights into real-world examples. By analyzing case studies, marketers can make informed decisions, craft effective marketing strategies, and stay ahead in the dynamic and competitive marketing landscape.

Identifying Key Elements of Successful Marketing Case Studies

To truly benefit from analyzing case studies, it is essential to identify their key elements. By understanding what makes a case study successful, marketers can find valuable lessons and apply them to their own marketing initiatives.

Case studies are a powerful tool for marketers to gain insights and learn from the successes of others. They provide a real-life example of how a marketing strategy was implemented and the results that were achieved. However, not all case studies are created equal. Some are more effective than others in conveying the key lessons and inspiring marketers to take action.

Defining the objectives and target audience of the case study

Successful case studies clearly define their objectives and target audience. These two factors shape the entire narrative of the case study, ensuring that it aligns with the intended lessons and resonates with the readers who can benefit from it.

When defining the objectives of a case study, marketers should consider what specific insights they want to gain and what actions they hope to inspire. This clarity of purpose will guide the selection of case study subjects and the analysis of their strategies.

Similarly, identifying the target audience is crucial for crafting a case study that speaks directly to the right people. Marketers should consider who will benefit the most from the lessons shared in the case study and tailor the language, examples, and recommendations accordingly.

Selecting the right case study subjects for analysis

The choice of case study subjects is crucial. Marketers should select case studies that closely align with their industry, target market, or specific marketing challenges they face. By analyzing case studies that are relevant and relatable, marketers can extract insights that are directly applicable to their own marketing strategies.

When selecting case study subjects, marketers should consider not only the industry or market segment but also the specific challenges or goals they are facing. For example, if a marketer is struggling with social media engagement, analyzing a case study of a successful social media campaign can provide valuable insights and inspiration.

Furthermore, it is important to consider the credibility and reliability of the case study subjects. Marketers should look for case studies that have been well-documented and have credible sources of information. This ensures that the insights gained from the analysis are based on accurate and trustworthy data.

Analyzing the structure and format of successful case studies

Case studies have a distinct structure and format. Successful case studies often follow a storytelling approach, clearly outlining the problem, the strategy employed, the tactics used, and the results achieved. Analyzing the structure and format of successful case studies can help marketers present their own strategies in a compelling and engaging manner.

When analyzing the structure and format of successful case studies, marketers should pay attention to the flow of the narrative. Is the story easy to follow? Does it build tension and create anticipation? Is the resolution satisfying? These elements contribute to the overall impact of the case study and can make it more memorable and persuasive.

In addition, marketers should consider the use of visuals and supporting data in successful case studies. Visuals such as charts, graphs, and images can help illustrate key points and make the case study more visually appealing. Supporting data, such as statistics and metrics, can add credibility and provide evidence of the effectiveness of the strategies employed.

By analyzing the structure and format of successful case studies, marketers can gain insights into how to present their own strategies in a way that captures the attention of their audience and effectively communicates the key lessons.

Extracting Valuable Insights from Marketing Case Studies

Once marketers have identified successful case studies, the next step is to extract valuable insights that can inform their own marketing initiatives. This involves examining the strategies employed, understanding the impact of market research and data analysis, and learning from innovative and creative marketing campaigns.

Identifying successful marketing strategies and tactics

Case studies provide an opportunity to identify successful marketing strategies and tactics that have proven effective in specific scenarios. By analyzing these strategies, marketers can gain inspiration and adapt them to their own campaigns to achieve similar results.

Understanding the impact of market research and data analysis

Market research and data analysis play a crucial role in successful marketing case studies. These studies often highlight the importance of gathering and analyzing relevant data to inform marketing decisions. By understanding how market research and data analysis contribute to successful marketing, marketers can leverage these tools to enhance their own strategies.

Learning from innovative and creative marketing campaigns

Successful case studies often showcase innovative and creative marketing campaigns that have captured audience attention. By analyzing these campaigns, marketers can learn valuable lessons about creativity, resourcefulness, and out-of-the-box thinking. These insights can then be applied to their own marketing initiatives to create impact and differentiate their brands.

Applying Lessons Learned to Improve Marketing Strategies

Deriving insights from case studies is only valuable if they can be effectively applied to improve marketing strategies. This involves implementing successful case study findings into marketing plans, adapting strategies to fit different industries and target markets, and measuring the effectiveness of marketing strategies based on case study insights.

Implementing successful case study findings into marketing plans

Successful case study findings should not remain mere insights but should be transformed into actionable plans. Marketers should incorporate these findings into their marketing strategies and campaigns, adapting them to suit their own unique circumstances. By implementing successful case study findings, marketers can increase the likelihood of achieving desirable outcomes.

Adapting strategies to fit different industries and target markets

While case studies provide valuable insights, it's crucial to adapt them to fit different industries and target markets. What works for one brand may not necessarily work for another. Marketers should carefully consider the nuances of their own industry and target market and tailor strategies accordingly. By intelligently integrating case study learnings with industry context, marketers can maximize effectiveness.

Measuring the effectiveness of marketing strategies based on case study insights

An effective marketing strategy is one that can be measured and evaluated. Once marketers have applied case study insights to their own strategies, they should establish clear metrics to assess their effectiveness. By measuring the impact of their strategies, marketers can continuously refine and optimize their marketing efforts based on the lessons learned from the case studies they have analyzed.

Storing Templates in the HIVO Platform

In addition to analyzing case studies for insights, marketers can also streamline their marketing processes by utilizing digital asset management platforms like HIVO. One valuable feature of HIVO is the ability to store templates.

Templates provide marketers with a consistent and efficient way to execute marketing campaigns. With HIVO, marketing teams can easily access and use pre-designed templates for various marketing materials, such as landing pages, social media ads, email campaigns, and more.

By storing templates in the HIVO platform, marketers can ensure brand consistency, save time on design iterations, and maintain quality control over the marketing materials. The ability to store templates simplifies the marketing workflow, enhances collaboration among team members, and allows for better scalability in marketing campaigns.

In conclusion, analyzing successful marketing case studies is a valuable practice for marketers seeking to improve their strategies. By understanding the importance of case studies, identifying key elements of successful case studies, extracting valuable insights, and applying those lessons learned, marketers can enhance their marketing outcomes and drive success in their campaigns. Additionally, leveraging digital asset management platforms like HIVO, with features such as template storage, can further streamline marketing processes and improve efficiency.

How to Write a Marketing Case Study (With Examples)

Learn exactly what a marketing case study is, how to write one that stands out, and review some examples of existing, successful studies.

As any big brand like MailChimp, Spotify and IMB will tell you, case studies are a huge part of solidifying your brand as thought leaders.

A case study is a win: you share the success of a customer as a result of your company’s actions. At SimpleTexting we call them our Success Stories , but no matter the name, the structure is the same — how company A worked with B to achieve XYZ. 

In this article we’ll cover everything from the basics to real-life examples.What exactly is a marketing case study, what constitutes a good one, and most importantly, how do you build one?

Let’s get started.

What is a Marketing Case Study?

According to Curata , “a case study in the context of marketing is an analysis of a project, campaign or company that identifies a situation, recommended solutions, implementation actions, and identification of those factors that contributed to failure or success.”

Sure, it’s a bit wordy, but at its core marketing case studies share information with prospective customers or clients about how your product offered a solution.

It doesn’t need to be dry reading. It doesn’t even need to be a report (although it can be). The key with a case study is that it should read like a story—only the beginning, middle, and end are all replicable business takeaways.

Case studies are for businesses of all sizes. They can be just as effective for small and medium-sized businesses as they are for enterprise businesses. Here’s why you should be investing time in building case studies.

Why Write a Marketing Case Study?

Before we dive into the instructions, let’s take a second to explore why a business would invest the time and effort into writing a case study. After all, why share your big marketing secrets with the world, what do you get out of the deal?

Simply put, you get the chance to share your story. Case studies, after all, are just stories showcasing your products and methods. They make for pretty spectacular advertising because, to a reader, it doesn’t feel like they’re being marketed to.

92% of customers prefer that media messages sound like a story. By using case studies you’re appealing to the logical, casual consumer who wants to know the “who, what, where, when, and why” that drives them to buy without any of the extra fuss. Case studies are the perfect medium to package it all.

How to Write a Marketing Case Study

As mentioned, every good case study maintains one singular focus: how one company used another to achieve its goal(s). This means most marketing case studies tend to take on an easily understandable problem-solution structure.

Let’s take a look at what you need to create a successful case study.

Components of a Marketing Case Study

Using the ingredients above, assemble them in this order to create a basic marketing case study:

• Write a title : Don’t worry about spoiling the ending. With case studies you want your title to let readers know right away how a campaign ended.  A case study title should include the name of the company or brand being examined, if their campaign went well or poorly for them and a solid metric that demonstrates exactly how well or how poorly they performed. For example: “ SimpleTexting Cut Down Product Onboarding Process by 30% Through Video Instruction. “
• Introduce the subject: Every marketing case study should open with a brief historical overview of the company. What have they struggled with in the past that led to them developing this campaign? Who is their target audience, what do they sell?  Even if your subject is obscure, you want to build a sense of relatability to your readers: so be sure to structure from general to specific. After all, you want readers outside just your industry to take away value.
• Identify your subject’s problems : Avoid leaving your readers feeling underwhelmed by presenting your subject’s problems early on in your case study. What are they trying to build, fix, or change? These problems are what will ultimately establish the subject’s goal, a one or two-sentence overview of the outcomes they’d like to see.
• Spell out your strategies and tactics : The real meat to your case study occurs here. This portion of your study is where you describe what actions you specifically took to try and reach your goals: What did you expect to happen when you tried “X, Y, and Z”?  Your case study can write this all out in paragraph form if you want it to read with some fluidity, or you can simply bullet out your strategies below each goal. Examples of good strategies for a common marketing pain point, such as building a social media following, include: connecting with influencers, developing original creative content, and developing paid advertising parameters.
• Share your results with visuals : At this point, you’ll want to follow up with the preview you set in your title and share with readers how things went. If you saw success, how much and where? If you didn’t were you able to pinpoint where things went wrong? Spare no detail as you write out what worked and what didn’t, and be sure to provide replicable detail (it may be what inspires your reader to become a customer!). Some common metrics commonly found in case studies include: web analytics and traffic, backlinks generated, keyword rankings, shares or other social interactions. Graphics like charts, bolded quotes, and graphs are good opportunities to visually demonstrate your data.
• Wrap it up with a conclusion : Know the difference between reemphasizing and repeating. When writing a conclusion you shouldn’t sound like an echo, repeating exactly what you said in your introduction. Instead, you want to draw emphasis back to your key points and call your readers to action. Let them know what they can do right now to get connected and see this same success (or avoid its failure).  If you’re writing a case study for marketing purposes, this is where you sell yourself and your product.

Marketing Case Study Examples

You’ve certainly heard enough from us to this point. Now it’s time to see what all of these tips and tricks look like in action. `

A plethora of marketing case study examples are out there, each one with a different objective: educational, sales-driven, industry leadership, and more.

To give you a well-rounded picture, we’ll share some of our favorite marketing case studies with you so you can see it all in action for yourself.

1. Surf Live Saving Foundation

The Surf Life Saving Foundation rolled out an innovative new framework for their brand known as the surf lottery. Despite the size of the initiative they were able to break down their process on a share of voice campaign with a great deal of clarity. Why we like this case study : It provides actionable and replicable examples of how their objectives were received.

2. StyleHaul & Asana

Organizational application Asana also finds itself in a competition-heavy environment. They are one of many SaaS productivity programs available. They needed to give their brand more of a voice to edge out against competitors offering near-identical products. The problem that needed solving in this success story is relatable to businesses all around the world, and ASANA’s use of it is a showcase of why they’re leaders in what they do.

Why we like this case study : It’s storytelling at its finest and perfectly demonstrates the subtle advertising concept.

3. Red Sox and CTP

This is a great example of a marketing agency showcasing its history of work with a high-profile client (the Boston Red Sox). It explores their entire body of work on a dynamic landing page. Why we like this case study : It demonstrates what a multi-media approach to a digital case study should strive to be.

4. SimpleTexting & U.S. Hunger

We couldn’t talk the talk without walking the walk. We have a range of varied case studies on our Success Stories page, but one of our absolute favorites is the results from U.S. Hunger.

U.S. Hunger was looking for a way to reach those who need them most – including those without internet access.

Why we like this case study: Not only does it highlight the incredible work of U.S. Hunger, it also shows how much can be accomplished through SMS. It spins a new light on SMS marketing and shows the wider impact of accessible communication. 

Marketing Case Studies are Key to Brand Trust

As a business looking to grow, you need to prove to prospective customers and clients why they should invest in you. Whether it’s a service or a product, case studies are viable ways of showing that what you do works and discussing how you achieved it.

The most impactful case studies aren’t always the ones with big names attached to them. They’re the best stories, the best solutions, and the ones that the most people can relate to.

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Meghan Tocci

Meghan Tocci is a content strategist at SimpleTexting. When she’s not writing about SaaS, she’s trying to teach her puppy Lou how to code. So far, not so good.

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What is Case Study Analysis? (Explained With Examples)

Oct 11, 2023

Case Study Analysis is a widely used research method that examines in-depth information about a particular individual, group, organization, or event. It is a comprehensive investigative approach that aims to understand the intricacies and complexities of the subject under study. Through the analysis of real-life scenarios and inquiry into various data sources, Case Study Analysis provides valuable insights and knowledge that can be used to inform decision-making and problem-solving strategies.

1°) What is Case Study Analysis?

Case Study Analysis is a research methodology that involves the systematic investigation of a specific case or cases to gain a deep understanding of the subject matter. This analysis encompasses collecting and analyzing various types of data, including qualitative and quantitative information. By examining multiple aspects of the case, such as its context, background, influences, and outcomes, researchers can draw meaningful conclusions and provide valuable insights for various fields of study.

When conducting a Case Study Analysis, researchers typically begin by selecting a case or multiple cases that are relevant to their research question or area of interest. This can involve choosing a specific organization, individual, event, or phenomenon to study. Once the case is selected, researchers gather relevant data through various methods, such as interviews, observations, document analysis, and artifact examination.

The data collected during a Case Study Analysis is then carefully analyzed and interpreted. Researchers use different analytical frameworks and techniques to make sense of the information and identify patterns, themes, and relationships within the data. This process involves coding and categorizing the data, conducting comparative analysis, and drawing conclusions based on the findings.

One of the key strengths of Case Study Analysis is its ability to provide a rich and detailed understanding of a specific case. This method allows researchers to delve deep into the complexities and nuances of the subject matter, uncovering insights that may not be captured through other research methods. By examining the case in its natural context, researchers can gain a holistic perspective and explore the various factors and variables that contribute to the case.

1.1 - Definition of Case Study Analysis

Case Study Analysis can be defined as an in-depth examination and exploration of a particular case or cases to unravel relevant details and complexities associated with the subject being studied. It involves a comprehensive and detailed analysis of various factors and variables that contribute to the case, aiming to answer research questions and uncover insights that can be applied in real-world scenarios.

When conducting a Case Study Analysis, researchers employ a range of research methods and techniques to collect and analyze data. These methods can include interviews, surveys, observations, document analysis, and experiments, among others. By using multiple sources of data, researchers can triangulate their findings and ensure the validity and reliability of their analysis.

Furthermore, Case Study Analysis often involves the use of theoretical frameworks and models to guide the research process. These frameworks provide a structured approach to analyzing the case and help researchers make sense of the data collected. By applying relevant theories and concepts, researchers can gain a deeper understanding of the underlying factors and dynamics at play in the case.

1.2 - Advantages of Case Study Analysis

Case Study Analysis offers numerous advantages that make it a popular research method across different disciplines. One significant advantage is its ability to provide rich and detailed information about a specific case, allowing researchers to gain a holistic understanding of the subject matter. Additionally, Case Study Analysis enables researchers to explore complex issues and phenomena in their natural context, capturing the intricacies and nuances that may not be captured through other research methods.

Moreover, Case Study Analysis allows researchers to investigate rare or unique cases that may not be easily replicated or studied through experimental methods. This method is particularly useful when studying phenomena that are complex, multifaceted, or involve multiple variables. By examining real-world cases, researchers can gain insights that can be applied to similar situations or inform future research and practice.

Furthermore, this research method allows for the analysis of multiple sources of data, such as interviews, observations, documents, and artifacts, which can contribute to a comprehensive and well-rounded examination of the case. Case Study Analysis also facilitates the exploration and identification of patterns, trends, and relationships within the data, generating valuable insights and knowledge for future reference and application.

1.3 - Disadvantages of Case Study Analysis

While Case Study Analysis offers various advantages, it also comes with certain limitations and challenges. One major limitation is the potential for researcher bias, as the interpretation of data and findings can be influenced by preconceived notions and personal perspectives. Researchers must be aware of their own biases and take steps to minimize their impact on the analysis.

Additionally, Case Study Analysis may suffer from limited generalizability, as it focuses on specific cases and contexts, which might not be applicable or representative of broader populations or situations. The findings of a case study may not be easily generalized to other settings or individuals, and caution should be exercised when applying the results to different contexts.

Moreover, Case Study Analysis can require significant time and resources due to its in-depth nature and the need for meticulous data collection and analysis. This can pose challenges for researchers working with limited budgets or tight deadlines. However, the thoroughness and depth of the analysis often outweigh the resource constraints, as the insights gained from a well-conducted case study can be highly valuable.

Finally, ethical considerations also play a crucial role in Case Study Analysis, as researchers must ensure the protection of participant confidentiality and privacy. Researchers must obtain informed consent from participants and take measures to safeguard their identities and personal information. Ethical guidelines and protocols should be followed to ensure the rights and well-being of the individuals involved in the case study.

2°) Examples of Case Study Analysis

Real-world examples of Case Study Analysis demonstrate the method's practical application and showcase its usefulness across various fields. The following examples provide insights into different scenarios where Case Study Analysis has been employed successfully.

2.1 - Example in a Startup Context

In a startup context, a Case Study Analysis might explore the factors that contributed to the success of a particular startup company. It would involve examining the organization's background, strategies, market conditions, and key decision-making processes. This analysis could reveal valuable lessons and insights for aspiring entrepreneurs and those interested in understanding the intricacies of startup success.

2.2 - Example in a Consulting Context

In the consulting industry, Case Study Analysis is often utilized to understand and develop solutions for complex business problems. For instance, a consulting firm might conduct a Case Study Analysis on a company facing challenges in its supply chain management. This analysis would involve identifying the underlying issues, evaluating different options, and proposing recommendations based on the findings. This approach enables consultants to apply their expertise and provide practical solutions to their clients.

2.3 - Example in a Digital Marketing Agency Context

Within a digital marketing agency, Case Study Analysis can be used to examine successful marketing campaigns. By analyzing various factors such as target audience, message effectiveness, channel selection, and campaign metrics, this analysis can provide valuable insights into the strategies and tactics that contribute to successful marketing initiatives. Digital marketers can then apply these insights to optimize future campaigns and drive better results for their clients.

2.4 - Example with Analogies

Case Study Analysis can also be utilized with analogies to investigate specific scenarios and draw parallels to similar situations. For instance, a Case Study Analysis could explore the response of different countries to natural disasters and draw analogies to inform disaster management strategies in other regions. These analogies can help policymakers and researchers develop more effective approaches to mitigate the impact of disasters and protect vulnerable populations.

In conclusion, Case Study Analysis is a powerful research method that provides a comprehensive understanding of a particular individual, group, organization, or event. By analyzing real-life cases and exploring various data sources, researchers can unravel complexities, generate valuable insights, and inform decision-making processes. With its advantages and limitations, Case Study Analysis offers a unique approach to gaining in-depth knowledge and practical application across numerous fields.

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Marketing Results

22 Marketing Case Study Examples (With Template)

February 17, 2016 by Will Swayne

Prospects who aren’t ready to buy – or who are “sitting on the fence” – tend to be resistant to even well-crafted marketing messages.  But a bunch of well aimed marketing case studies can often tip the scales in your favour.

“Sell benefits, not features” is good advice, but benefit-rich copy can actually deter prospects who haven’t reached the decision stage yet.

And too many benefits in the absence of marketing proof elements  can ring hollow in today’s increasingly sceptical marketplace.

We published our first marketing case study back in 2005 and I quickly realised the power of case studies as a versatile and effective marketing tactic.

Why are marketing case studies so effective?

Here are three reasons:

• Case studies show, they don’t tell. Telling you I can get you more qualified leads is one thing. Showing you how a similar company to yours got 145% more leads with 24% lower marketing costs is another.
• Prospects are typically curious to understand how others have achieved the results they desire. They will eagerly devour a well-constructed case study.
• Case studies are also a great tool for closing fence-sitting prospects. For many years I’ve asked prospects why they chose to work with us, and the most common response seems to be, “I was impressed by your case studies” , or “I saw you helped someone in my industry so I figure you can help us too” .

Now let’s look at how to structure and effectively promote a case study, and then some marketing case study examples for you to replicate.

Our Recommended Case Study Template

Here’s the case study structure we’ve adopted which has proven effective:

• Start with a major headline that summarises the key result achieved: e.g. “Investment Property Strategist Triples Leads In 6 Months” . This gets the prospect excited about reading on.
• Then introduce the background . In other words, the “Before” scenario.Don’t bore the reader with too many details about the history of the client. But DO provide an insight into the “trigger” that led to them seeking your assistance. e.g. “The client noticed smaller competitors starting to appear ahead of them on Google”. And,   DO talk about the negative effects of the “Before” state. E.g. “New customer acquisition that had previously been growing by 10% every quarter had flatlined for the last 12 months.”
• Now talk about the solution . Here’s where you explain what you did to achieve the outcomes. I like to list different services or solutions in the form of bullet points. Also, include significant details and facts and figures to add “richness” to the story. Where possible, demonstrate with images, screenshots or other proof elements. Emphasise anything you did differently to the standard approach, or anything that highlights your point-of-difference benefits.
• Now talk about your results . Results are the crux of any good case study.I like to go with a number of punchy bullet points, populated with specific numbers. E.g . “Lead volume up 75%… New customer volume from online sources up 145%… 1,540 more organic search engine visitors per month.”
• Include a testimonial from the client. What was their reaction to your work? The “Before-During-After” approach is a good structure for testimonials. A strong testimonial adds texture and credibility to the data in your core case study.
• End with a call-to-action . This can be relatively low-key. For example, “Contact us to explore how you can enjoy similar breakthrough results.”

You can see more examples of different implementations of this concept on our online marketing case studies page.

How To Promote Your Case Study

A case study that never gets read won’t help you.

Here are some of our favourite promotional methods:

• Optimise each case study for search engines . A good start is using a <title> tag on your case study pages in the format: “<INDUSTRY> <SERVICE> case study”. For example, “Accountant online marketing case study” or “Car sales lead generation case study” .   This will tend to rank you well for anyone searching for case studies about your industry.
• Send case studies to your email subscribers . These emails achieve high engagement both as broadcasts, and as “drip emails” within an automation sequence .
• Create a print booklet of case studies to send to prospects and clients via snail mail or distribute at trade shows.
• Case studies make great social media updates and can be recycled every few months using different headlines.

22 Marketing Case Study Examples

1. fuji xerox australia business equipment, tripled leads for 60% less marketing spend.

In 90 days, we doubled web lead flow with lower marketing costs.

Read the full case study here.

Paul Strahl , National e-Business Manager

2. Surf Live Saving Foundation

Surf lottery grows online revenue 47%.

Marketing Results delivered tangible business improvements, including 47% higher revenue from digital, year-on-year.

Yin Tang , Surf Live Saving Foundation

3. ABC Reading Eggs

Integrated search and conversion management for abc reading eggs.

Marketing Results have been instrumental in profitably expanding our ad spend, while removing waste.

Matthew Sandblom , Managing Director ABC Reading Eggs

4. MAP Home Loans

From 70 hour weeks to 40 hour weeks with 100% annual growth.

I now make twice as much money, have less stress and fewer hours.

Craig Vaunghan , Principal MAP Home Loans

5. Inkjet Wholesale

Online advertising roi doubles – in just three months.

We couldn’t be happier – conversion rates are up, costs are down, ROI has doubled.

Glenn Taylor , National Marketing Manager Inkjet Wholesale

6. Breaking Into Wall Street

Info-marketing business achieves 300% revenue growth with 7-figure profits.

Marketing Results provided the marketing support to grow my annual revenue 300%+. They don’t just advise – they implement.

Brian DeChesare , Founder Breaking Into Wall Street

7. LatestBuy

Brw fast 100 online retailer latestbuy.com.au boosts sales by 45.3%.

Revenue had flatlined… Now it is up by 45%, with over 80% of that due to conversion rate optimisation.

Shaun Campbell , Co-Owner LatestBuy.com.au

8. directSMS

More traffic, less cost, lead volume doubles.

More than doubled the number of qualified enquiries via our website for the same ad spend.

Ramez Zaki , Co-Founder directSMS

9. Business Coach and Author, Pure Bookkeeping

Successful marketing automation and 100.95% year on year growth.

50%+ of business comes directly through online channels and none of this would have happened without Marketing Results.

Peter Cook , Business Coach & Author Pure Bookkeeping

10. Positive Training Solutions

Higher rankings plus more, higher-quality leads.

Marketing Results excels in strategic and online marketing.

James Grima , Managing Director Positive Training Solutions

11. Geelong’s Gym

From 5-6 leads a month to 60-70. 10x increase.

We’ve gone from 5 – 6 leads per month to 60 – 70!

Gerard Spriet , Owner Geelong’s Gym

12. Super Finance – SMSF Property

A new pipeline delivering a steady flow of web leads.

Outstanding quality of web generated leads!

Yannick Ieko , Director Super Finance

13. College For Adult Learning – Training Organisation

300%+ more sales with 60% lower cost per sale.

I expect at least another 60% more leads and 80-90% more revenue by continuing to work with Marketing Results.

Rob Golding , Director College For Adult Learning

14. The Gourmet Guardian – Food Safety Programs

4 times more leads and a 269% revenue increase.

Your AdWords strategies have quadrupled leads, almost tripled revenue and reduced my dependence on contract work to zero.

Gavin Buckett , Managing Director The Gourmet Guardian

15. Quick Coach – Life Coaching Courses

More qualified sales plus a facebook roi of 1285%.

The results have been fantastic… I have had over 500 potential students opt in via Google wanting to change their lives and those of their clients.

Glen Murdoch , Founder & CEO Quick Coach

16. Investment House – Property Development

Clients lined up for everything we can find.

We have clients lined up for everything we can find.

Colin Ferguson , Managing Director Investment House

17. Cosmetic Surgery Lead Generation

257% increase in qualified lead volume.

In less than a year, our enquiry volume increased by over 257% while increasing the quality and conversion rate of those leads.

Dee Tozer , Managing Director Medici Clinics

18. All Suburbs Catering

61% roi gain in less than 5 months….

20% more enquiries for 34% less cost – a compounded gain of 61% in only 5 months.

Jeff Veale , Managing Director All Suburbs Catering

19. Trilogy Funding

549 qualified sales leads in 3 months.

549 qualified sales leads in 3 months.

Ed Nixon , Principal Trilogy Funding

20. Customized Stickers

Online revenue rockets by 800%.

With Marketing Result on our side, our website revenue has increased by over 800% in only 18 months.

Anthony Khoury , Managing Director Customized Stickers

21. Technoledge

Engaging ceos of ideal target companies.

We’re routinely seeing CEOs of Australian hi techs with turnover of $5 million to $50 million (our target audience) opting in and proceeding to self-qualify before they contact us for a meeting. This is what digital marketing is supposed to do.

Tracey James , Director Technoledge

22. First Aid Training

Specialist first aid training company doubles revenue in 6 months.

We’ve streamlined customer acquisition, increased customer lifetime value, and doubled our revenue in 6 months!

Dave Hundt , Director Kids First Aid

I encourage you to put these tips into action and see how they work for you.

What other ways have you used case studies effectively in your business?

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How to Analyse Marketing Case Studies

A case is a verbal representation of any organisation or a specific component that revolves around an issue. The basic idea is to make the appropriate judgments, and defend your suggestions.

Chapter 1 – Introdcution to Marketing Case Studies

Marketing case studies are the verbal representations of any organisation or its specific component based on real-life scenarios, sometimes with a bit of disguise of identities of persons, corporations, and physical areas.

Chapter 2 – Approaching a Marketing Case

To approach a marketing case or challenge effectively, it is essential to approach the case study correctly and with a neutral perspective. While there is no “one size fits approach” for solving a case study, let us look at some tips that will help approach any marketing case in an organised manner.

Chapter 3 – Marketing Case Analysis

A marketing case study analysis do not have a fixed framework or strategy. However, a structured approach will always help you systematically analyse any marketing case study. Let us look at a 5-step structure for marketing case study analysis.

Chapter 4 – Presenting a Marketing Case

Once you analyse a given marketing case, the next question arises about how do you present a marketing case study effectively. Let us now see how you can present your analysis and findings in four simple steps.

Chapter 5 – Marketing Case Examples

To bridge this gap between the academic world and real-life scenarios, I will be sharing some marketing case examples with you. These marketing case examples will help you understand how to respond to any case study.

• Free Resources

14 Market Research Examples

This article was originally published in the MarketingSherpa email newsletter .

Example #1: National bank’s A/B testing

You can learn what customers want by conducting experiments on real-life customer decisions using A/B testing. When you ensure your tests do not have any validity threats, the information you garner can offer very reliable insights into customer behavior.

Here’s an example from Flint McGlaughlin, CEO of MarketingSherpa and MECLABS Institute, and the creator of its  online marketing course .

A national bank was working with MECLABS to discover how to increase the number of sign-ups for new checking accounts.

Customers who were interested in checking accounts could click on an “Open in Minutes” link on the bank’s homepage.

Creative Sample #1: Anonymized bank homepage

After clicking on the homepage link, visitors were taken to a four-question checking account selector tool.

Creative Sample #2: Original checking account landing page — account recommendation selector tool

After filling out the selector tool, visitors were taken to a results page that included a suggested package (“Best Choice”) along with a secondary option (“Second Choice”). The results page had several calls to action (CTAs). Website visitors were able to select an account and begin pre-registration (“Open Now”) or find out more information about the account (“Learn More”), go back and change their answers (“Go back and change answers”), or manually browse other checking options (“Other Checking Options”).

Creative Sample #3: Original checking account landing page — account recommendation selector tool results page

After going through the experience, the MECLABS team hypothesized that the selector tool wasn’t really delivering on the expectation the customer had after clicking on the “Open in Minutes” CTA. They created two treatments (new versions) and tested them against the control experience.

In the first treatment, the checking selector tool was removed, and instead, customers were directly presented with three account options in tabs from which customers could select.

Creative Sample #4: Checking account landing page Treatment #1

The second treatment’s landing page focused on a single product and had only one CTA. The call-to-action was similar to the CTA customers clicked on the homepage to get to this page — “Open Now.”

Creative Sample #5: Checking account landing page Treatment #2

Both treatments increased account applications compared to the control landing page experience, with Treatment #2 generating 65% more applicants at a 98% level of confidence.

Creative Sample #6: Results of bank experiment that used A/B testing

You’ll note the Level of Confidence in the results. With any research tactic or tool you use to learn about customers, you have to consider whether the information you’re getting really represents most customers, or if you’re just seeing outliers or random chance.

With a high Level of Confidence like this, it is more likely the results actually represent a true difference between the control and treatment landing pages and that the results aren’t just a random event.

The other factor to consider is — testing in and of itself will not produce results. You have to use testing as research to actually learn about the customer and then make changes to better serve the customer.

In the video How to Discover Exactly What the Customer Wants to See on the Next Click: 3 critical skills every marketer must master , McGlaughlin discussed this national bank experiment and explained how to use prioritization, identification and deduction to discover what your customers want.

This example was originally published in Marketing Research: 5 examples of discovering what customers want .

Example #2: Consumer Reports’ market intelligence research from third-party sources

The first example covers A/B testing. But keep in mind, ill-informed A/B testing isn’t market research, it’s just hoping for insights from random guesses.

In other words, A/B testing in a vacuum does not provide valuable information about customers. What you are testing is crucial, and then A/B testing is a means to help better understand whether insights you have about the customer are either validated or refuted by actual customer behavior. So it’s important to start with some research into potential customers and competitors to inform your A/B tests.

For example, when MECLABS and MarketingExperiments (sister publisher to MarketingSherpa) worked with Consumer Reports on a public, crowdsourced A/B test, we provided a market intelligence report to our audience to help inform their test suggestions.

Every successful marketing test should confirm or deny an assumption about the customer. You need enough knowledge about the customer to create marketing messages you think will be effective.

For this public experiment to help marketers improve their split testing abilities, we had a real customer to work with — donors to Consumer Reports.

To help our audience better understand the customer, the MECLABS Marketing Intelligence team created the 26-page ConsumerReports Market Intelligence Research document (which you can see for yourself at that link).

This example was originally published in Calling All Writers and Marketers: Write the most effective copy for this Consumer Reports email and win a MarketingSherpa Summit package and Consumer Reports Value Proposition Test: What you can learn from a 29% drop in clickthrough .

Example #3: Virtual event company’s conversation

What if you don’t have the budget for A/B testing? Or any of the other tactics in this article?

Well, if you’re like most people you likely have some relationships with other human beings. A significant other, friends, family, neighbors, co-workers, customers, a nemesis (“Newman!”). While conducting market research by talking to these people has several validity threats, it at least helps you get out of your own head and identify some of your blind spots.

WebBabyShower.com’s lead magnet is a PDF download of a baby shower thank you card ‘swipe file’ plus some extras. “Women want to print it out and have it where they are writing cards, not have a laptop open constantly,” said Kurt Perschke, owner, WebBabyShower.com.

That is not a throwaway quote from Perschke. That is a brilliant insight, so I want to make sure we don’t overlook it. By better understanding customer behavior, you can better serve customers and increase results.

However, you are not your customer. So you must bridge the gap between you and them.

Often you hear marketers or business leaders review an ad or discuss a marketing campaign and say, “Well, I would never read that entire ad” or “I would not be interested in that promotion.” To which I say … who cares? Who cares what you would do? If you are not in the ideal customer set, sorry to dent your ego, but you really don’t matter. Only the customer does.

Perschke is one step ahead of many marketers and business leaders because he readily understands this. “Owning a business whose customers are 95% women has been a great education for me,” he said.

So I had to ask him, how did he get this insight into his customers’ behavior? Frankly, it didn’t take complex market research. He was just aware of this disconnect he had with the customer, and he was alert for ways to bridge the gap. “To be honest, I first saw that with my wife. Then we asked a few customers, and they confirmed it’s what they did also. Writing notes by hand is viewed as a ‘non-digital’ activity and reading from a laptop kinda spoils the mood apparently,” he said.

Back to WebBabyShower. “We've seen a [more than] 100% increase in email signups using this method, which was both inexpensive and evergreen,” Perschke said.

This example was originally published in Digital Marketing: Six specific examples of incentives that worked .

Example #4: Spiceworks Ziff Davis’ research-informed content marketing

Marketing research isn’t just to inform products and advertising messages. Market research can also give your brand a leg up in another highly competitive space – content marketing.

Don’t just jump in and create content expecting it to be successful just because it’s “free.” Conducting research beforehand can help you understand what your potential audience already receives and where they might need help but are currently being served.

When Spiceworks Ziff Davis (SWZD) published its annual State of IT report, it invested months in conducting primary market research, analyzing year-over-year trends, and finally producing the actual report.

“Before getting into the nuts and bolts of writing an asset, look at market shifts and gaps that complement your business and marketing objectives. Then, you can begin to plan, research, write, review and finalize an asset,” said Priscilla Meisel, Content Marketing Director, SWZD.

This example was originally published in Marketing Writing: 3 simple tips that can help any marketer improve results (even if you’re not a copywriter) .

Example #5: Business travel company’s guerilla research

There are many established, expensive tactics you can use to better understand customers.

But if you don’t have the budget for those tactics, and don’t know any potential customers, you might want to brainstorm creative ways you can get valuable information from the right customer target set.

Here’s an example from a former client of Mitch McCasland, Founding Partner and Director, Brand Inquiry Partners. The company sold a product related to frequent business flyers and was interested in finding out information on people who travel for a living. They needed consumer feedback right away.

“I suggested that they go out to the airport with a bunch of 20-dollar bills and wait outside a gate for passengers to come off their flight,” McCasland said. When people came off the flight, they were politely asked if they would answer a few questions in exchange for the incentive (the $20). By targeting the first people off the flight they had a high likelihood of reaching the first-class passengers.

This example was originally published in Guerrilla Market Research Expert Mitch McCasland Tells How You Can Conduct Quick (and Cheap) Research .

Example #6: Intel’s market research database

When conducting market research, it is crucial to organize your data in a way that allows you to easily and quickly report on it. This is especially important for qualitative studies where you are trying to do more than just quantify the data, but need to manage it so it is easier to analyze.

Anne McClard, Senior Researcher, Doxus worked with Shauna Pettit-Brown of Intel on a research project to understand the needs of mobile application developers throughout the world.

Intel needed to be able to analyze the data from several different angles, including segment and geography, a daunting task complicated by the number of interviews, interviewers, and world languages.

“The interviews were about an hour long, and pretty substantial,” McClard says. So, she needed to build a database to organize the transcripts in a way that made sense.

Different types of data are useful for different departments within a company; once your database is organized you can sort it by various threads.

The Intel study had three different internal sponsors. "When it came to doing the analysis, we ended up creating multiple versions of the presentation targeted to individual audiences," Pettit-Brown says.

The organized database enabled her to go back into the data set to answer questions specific to the interests of the three different groups.

This example was originally published in 4 Steps to Building a Qualitative Market Research Database That Works Better .

Example #7: National security survey’s priming

When conducting market research surveys, the way you word your questions can affect customers’ response. Even the way you word previous questions can put customers in a certain mindset that will skew their answers.

For example, when people were asked if they thought the U.S. government should spend money on an anti-missile shield, the results appeared fairly conclusive. Sixty-four percent of those surveyed thought the country should and only six percent were unsure, according to Opinion Makers: An Insider Exposes the Truth Behind the Polls .

But when pollsters added the option, "...or are you unsure?" the level of uncertainty leaped from six percent to 33 percent. When they asked whether respondents would be upset if the government took the opposite course of action from their selection, 59 percent either didn’t have an opinion or didn’t mind if the government did something differently.

This is an example of how the way you word questions can change a survey’s results. You want survey answers to reflect customer’s actual sentiments that are as free of your company’s previously held biases as possible.

This example was originally published in Are Surveys Misleading? 7 Questions for Better Market Research .

Example #8: Visa USA’s approach to getting an accurate answer

As mentioned in the previous example, the way you ask customers questions can skew their responses with your own biases.

However, the way you ask questions to potential customers can also illuminate your understanding of them. Which is why companies field surveys to begin with.

“One thing you learn over time is how to structure questions so you have a greater likelihood of getting an accurate answer. For example, when we want to find out if people are paying off their bills, we'll ask them to think about the card they use most often. We then ask what the balance was on their last bill after they paid it,” said Michael Marx, VP Research Services, Visa USA.

This example was originally published in Tips from Visa USA's Market Research Expert Michael Marx .

Example #9: Hallmark’s private members-only community

Online communities are a way to interact with and learn from customers. Hallmark created a private members-only community called Idea Exchange (an idea you could replicate with a Facebook or LinkedIn Group).

The community helped the greeting cards company learn the customer’s language.

“Communities…let consumers describe issues in their own terms,” explained Tom Brailsford, Manager of Advancing Capabilities, Hallmark Cards. “Lots of times companies use jargon internally.”

At Hallmark they used to talk internally about “channels” of distribution. But consumers talk about stores, not channels. It is much clearer to ask consumers about the stores they shop in than what channels they shop.

For example, Brailsford clarified, “We say we want to nurture, inspire, and lift one’s spirits. We use those terms, and the communities have defined those terms for us. So we have learned how those things play out in their lives. It gives us a much richer vocabulary to talk about these things.”

This example was originally published in Third Year Results from Hallmark's Online Market Research Experiment .

Example #10: L'Oréal’s social media listening

If you don’t want the long-term responsibility that comes with creating an online community, you can use social media listening to understand how customers talking about your products and industry in their own language.

In 2019, L'Oréal felt the need to upgrade one of its top makeup products – L'Oréal Paris Alliance Perfect foundation. Both the formula and the product communication were outdated – multiple ingredients had emerged on the market along with competitive products made from those ingredients.

These new ingredients and products were overwhelming consumers. After implementing new formulas, the competitor brands would advertise their ingredients as the best on the market, providing almost magical results.

So the team at L'Oréal decided to research their consumers’ expectations instead of simply crafting a new formula on their own. The idea was to understand not only which active ingredients are credible among the audience, but also which particular words they use while speaking about foundations in general.

The marketing team decided to combine two research methods: social media listening and traditional questionnaires.

“For the most part, we conduct social media listening research when we need to find out what our customers say about our brand/product/topic and which words they use to do it. We do conduct traditional research as well and ask questions directly. These surveys are different because we provide a variety of readymade answers that respondents choose from. Thus, we limit them in terms of statements and their wording,” says Marina Tarandiuk, marketing research specialist, L'Oréal Ukraine.

“The key value of social media listening (SML) for us is the opportunity to collect people’s opinions that are as ‘natural’ as possible. When someone leaves a review online, they are in a comfortable environment, they use their ‘own’ language to express themselves, there is no interviewer standing next to them and potentially causing shame for their answer. The analytics of ‘natural’ and honest opinions of our customers enables us to implement the results in our communication and use the same language as them,” Tarandiuk said.

The team worked with a social media listening tool vendor to identify the most popular, in-demand ingredients discussed online and detect the most commonly used words and phrases to create a “consumer glossary.”

Questionnaires had to confirm all the hypotheses and insights found while monitoring social media. This part was performed in-house with the dedicated team. They created custom questionnaires aiming to narrow down all the data to a maximum of three variants that could become the base for the whole product line.

“One of our recent studies had a goal to find out which words our clients used to describe positive and negative qualities of [the] foundation. Due to a change in [the] product’s formula, we also decided to change its communication. Based on the opinions of our customers, we can consolidate the existing positive ideas that our clients have about the product,” Tarandiuk said.

To find the related mentions, the team monitored not only the products made by L'Oréal but also the overall category. “The search query contained both brand names and general words like foundation, texture, smell, skin, pores, etc. The problem was that this approach ended up collecting thousands of mentions, not all of which were relevant to the topic,” said Elena Teselko, content marketing manager, YouScan (L'Oréal’s social media listening tool).

So the team used artificial intelligence-based tagging that divided mentions according to the category, features, or product type.

This approach helped the team discover that customers valued such foundation features as not clogging pores, a light texture, and not spreading. Meanwhile, the most discussed and appreciated cosmetics component was hyaluronic acid.

These exact phrases, found with the help of social media monitoring, were later used for marketing communication.

Creative Sample #7: Marketing communicating for personal care company with messaging based on discoveries from market research

“Doing research and detecting audience’s interests BEFORE starting a campaign is an approach that dramatically lowers any risks and increases chances that the campaign would be appreciated by customers,” Teselko said.

This example was originally published in B2C Branding: 3 quick case studies of enhancing the brand with a better customer experience .

Example #11: Levi’s ethnographic research

In a focus group or survey, you are asking customers to explain something they may not even truly understand. Could be why they bought a product. Or what they think of your competitor.

Ethnographic research is a type of anthropology in which you go into customers’ homes or places of business and observe their actual behavior, behavior they may not understand well enough to explain to you.

While cost prohibitive to many brands, and simply unfeasible for others, it can elicit new insights into your customers.

Michael Perman, Senior Director Cultural Insights, Levi Strauss & Co. uses both quantitative and qualitative research on a broad spectrum, but when it comes to gathering consumer insight, he focuses on in-depth ethnographic research provided by partners who specialize in getting deep into the “nooks and crannies of consumer life in America and around the world.” For example, his team spends time in consumers’ homes and in their closets. They shop with consumers, looking for the reality of a consumer’s life and identifying themes that will enable designers and merchandisers to better understand and anticipate consumer needs.

Perman then puts together multi-sensory presentations that illustrate the findings of research. For example, “we might recreate a teenager’s bedroom and show what a teenage girl might have on her dresser.”

This example was originally published in How to Get Your Company to Pay Attention to Market Research Results: Tips from Levi Strauss .

Example #12: eBags’ ethnographic research

Ethnographic research isn’t confined to a physical goods brand like Levi’s. Digital brands can engage in this form of anthropology as well.

While usability testing in a lab is useful, it does miss some of the real-world environmental factors that play a part in the success of a website. Usability testing alone didn’t create a clear enough picture for Gregory Casey, User Experience Designer and Architect, eBags.

“After we had designed our mobile and tablet experience, I wanted to run some contextual user research, which basically meant seeing how people used it in the wild, seeing how people are using it in their homes. So that’s exactly what I did,” Gregory said.

He found consumers willing to open their home to him and be tested in their normal environment. This meant factors like the television, phone calls and other family members played a part in how they experienced the eBags mobile site.

“During these interview sessions, a lot of times we were interrupted by, say, a child coming over and the mother having to do something for the kid … The experience isn’t sovereign. It’s not something where they just sit down, work through a particular user flow and complete their interaction,” Gregory said.

By watching users work through the site as they would in their everyday life, Gregory got to see what parts of the site they actually use.

This example was originally published in Mobile Marketing: 4 takeaways on how to improve your mobile shopping experience beyond just responsive design .

Example #13: John Deere’s shift from product-centric market research to consumer-centric research

One of the major benefits of market research is to overcome company blind spots. However, if you start with your blind spots – i.e., a product focus – you will blunt the effectiveness of your market research.

In the past, “they’d say, Here’s the product, find out how people feel about it,” explained David van Nostrand, Manager, John Deere's Global Market Research. “A lot of companies do that.” Instead, they should be saying, “Let's start with the customers: what do they want, what do they need?”

The solution? A new in-house program called “Category Experts” brings the product-group employees over as full team members working on specific research projects with van Nostrand’s team.

These staffers handle items that don’t require a research background: scheduling, meetings, logistics, communication and vendor management. The actual task they handle is less important than the fact that they serve as human cross-pollinators, bringing consumer-centric sensibility back to their product- focused groups.

For example, if van Nostrand’s team is doing research about a vehicle, they bring in staffers from the Vehicles product groups. “The information about vehicle consumers needs to be out there in the vehicle marketing groups, not locked in here in the heads of the researchers.”

This example was originally published in How John Deere Increased Mass Consumer Market Share by Revamping its Market Research Tactics .

Example #14: LeapFrog’s market research involvement throughout product development (not just at the beginning and the end)

Market research is sometimes thought of as a practice that can either inform the development of a product, or research consumer attitudes about developed products. But what about the middle?

Once the creative people begin working on product designs, the LeapFrog research department stays involved.

They have a lab onsite where they bring moms and kids from the San Francisco Bay area to test preliminary versions of the products. “We do a lot of hands-on, informal qualitative work with kids,” said Craig Spitzer, VP Marketing Research, LeapFrog. “Can they do what they need to do to work the product? Do they go from step A to B to C, or do they go from A to C to B?”

When designing the LeapPad Learning System, for example, the prototype went through the lab “a dozen times or so,” he says.

A key challenge for the research department is keeping and building the list of thousands of families who have agreed to be on call for testing. “We've done everything from recruiting on the Internet to putting out fliers in local schools, working through employees whose kids are in schools, and milking every connection we have,” Spitzer says.

Kids who test products at the lab are compensated with a free, existing product rather than a promise of the getting the product they're testing when it is released in the future.

This example was originally published in How LeapFrog Uses Marketing Research to Launch New Products .

Related resources

The Marketer’s Blind Spot: 3 ways to overcome the marketer’s greatest obstacle to effective messaging

Get Your Free Test Discovery Tool to Help Log all the Results and Discoveries from Your Company’s Marketing Tests

Marketing Research: 5 examples of discovering what customers want

Online Marketing Tests: How do you know you’re really learning anything?

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Three Short Marketing Analytics Case Studies to Inspire You to Love Data

Written by Anna Sonnenberg

Published Feb. 28 2022

Table of Contents

From engagement statistics to content analytics to conversion metrics, data is a big part of most social media managers’ responsibilities. But that doesn’t necessarily mean you enjoy processing marketing data or drawing conclusions from it.

If data isn’t exactly your favorite part of the job, these marketing analytics case studies may change your mind.

Find out how marketing analytics helped three major brands grow their businesses—and you might develop a whole new appreciation for marketing data in the process.

What Is Marketing Analytics?

Marketing analytics is the process of collecting and evaluating metrics to understand how much value marketing efforts generate. With analytics, you can assess the return on investment (ROI) of anything from social media posts and ad campaigns to landing pages and native platform features.

For many organizations and their marketing team, marketing analytics are essential for improving offerings and driving growth.

Here are common goals you can achieve with marketing analytics.

Improving marketing campaigns

Some social media marketing campaigns are more successful than others. Analytics can help your organization pinpoint exactly what works. By analyzing metrics like engagement, click-through rate (CTR), conversions, and ROI, you can determine what resonates best with its audience. By using data science, you can craft a marketing strategy that gets you better results from your campaigns.

Decreasing expenses

Ineffective marketing campaigns, usability issues, and poorly optimized algorithms can all lead to dissatisfied customers and unnecessarily high retention costs.

By investing in marketing analytics, your organization can take steps to identify points of friction and reduce expenses.

Forecasting results

Reviewing past outcomes is useful, but forecasting the results your campaigns are likely to generate is even more valuable. With marketing analytics, you can model results and get a better sense of how marketing initiatives can impact growth over time.

Marketing Analytics Case Studies: Progressive Insurance

In the early 2000s, Progressive’s website was routinely considered one of the best in the insurance industry. When the insurance provider’s customers began switching to mobile devices a decade later, the organization aimed to develop a mobile app as effective as its desktop site.

But what did that mean exactly? And what was the insurance provider’s mobile app missing?

To determine what would make the mobile app more successful, Progressive pursued an in-depth analysis of the organization’s marketing data.

As Progressive Data & Analytics Business Leader Pawan Divakarla explains , the insurance provider’s analytics team has always sought insight into how customers are using the company’s tools.

In his words, “At Progressive, we sell insurance. But if you think about it, our product is actually data.”

After launching the mobile app, Progressive began looking for ways to optimize the user experience. As this Progressive case study explains, the organization aimed to streamline the login process and improve user satisfaction to meet its ultimate goals of increasing customer loyalty and new customer acquisition.

Because Progressive’s mobile app generated so much information, the organization needed data visualization tools for collection and processing. To analyze customers’ experiences and actions, the company opted to use a combination of Google Analytics 360 and Google Tag Manager 360.

This choice was a relatively simple one for Progressive because the company already used these tools to run A/B tests and optimize its website.

Using Google’s analytical tools to review the company’s mobile app would allow Progressive to understand what features to test and how to optimize the user experience across countless mobile devices and operating systems.

Progressive used the two Google tools for separate yet complementary functions:

• With Google Analytics 360, Progressive could track user sessions and demographics. The company integrated BigQuery for more insight into user behaviors.
• With Google Tag Manager 360, Progressive could easily implement tracking tags to measure various actions, conversions, and navigation patterns.

To get the insights the company needed to improve its mobile app, Progressive took a three-pronged approach:

User device data

First, Progressive aimed to identify which devices and operating systems were most common among the app’s user base. With this information, the company would be able to develop more effective tests for its mobile app.

App crash data

Next, Progressive wanted to analyze app crash data. The company planned to use Google Analytics 360 and BigQuery data to understand the cause for the crash and how users reacted when the app stopped working abruptly.

Login and security data

Finally, Progressive aimed to learn how users responded when failed login attempts locked them out of the app. The company planned to use Google Analytics 360 and BigQuery to see what actions users took. It planned to then test new prompts that would guide users more effectively.

Outcome of this marketing analytics case study

Using marketing analytics tools , Progressive was able to process customer behavior, identify appropriate tests, and implement successful solutions.

Here’s how each of the three approaches generated useful results that helped Progressive reach its ultimate acquisition and loyalty goals.

First, Progressive developed session-based reports that reflected the most common mobile devices and operating systems for the app’s user base. With those insights, the company identified which device and operating system combinations to prioritize for its mobile app tests.

As a result, the company reduced testing time by 20% for its mobile app—allowing the organization to find solutions much more quickly than its typical timeline would have allowed.

Next, Progressive reviewed the actions customers took right before the app crashed. The company pinpointed a server issue as the cause of a major crash that disrupted countless mobile app sessions.

Using this data, Progressive could address the server issue and prevent it from happening again.

Finally, Progressive created a custom funnel in Google Analytics 360 to evaluate users’ typical login path. After learning that many users who became locked out of their accounts never attempted to log in again, the company developed a workflow that provided better guidance.

The new workflow sends users to a Forgot Password page, which has increased logins by 30%.

Marketing Analytics Case Studies: Netflix

When companies take a digital-first approach to customer loyalty, they can collect an incredible amount of user data. With these marketing analytics, companies can improve their products, build better marketing campaigns, and drive more revenue.

As this Netflix case study shows, the online content streaming platform has leveraged its user data in a variety of helpful ways.

By using data to improve its content recommendation engine, develop original content, and increase its customer retention rate, Netflix has positioned itself far ahead of the competition.

With so much data to leverage, Netflix had wide-ranging goals for the company’s marketing analytics. However, all of the organization’s goals contributed to the company’s larger business objectives—which focus on customer retention.

Netflix aimed to go beyond basic user demographics and understand what customers want from a streaming platform—and what was likely to convince them to stay. With this knowledge, Netflix could create better products and services for happier customers.

Access issues, service outages, and platform flaws can all lead to unhappy customers and negative sentiment—which can cause customers to seek out an alternative solution.

By identifying problems early through marketing analytics, Netflix could improve its products and continue to innovate.

To work toward its customer retention objective, Netflix collected data from virtually every interaction with its 150+ million subscribers. The company then used marketing analytics tools to process this native data and evaluate everything from how customers navigate the platform to what they watch.

By creating such detailed customer profiles, Netflix could make much more personalized recommendations for each user. The more data the company collected, the more it could tailor its algorithm to suggest the ideal content to each individual viewer.

To better understand the platform’s users, Netflix collected such data as:

• The devices viewers used to stream content
• Day of week and time of day when users viewed content
• Number of serial episodes viewers watched in a row
• Whether viewers paused and resumed content
• Number and type of searches users performed

Netflix also welcomed user feedback on content . The company incorporated these content ratings into their analysis to better understand viewer preferences.

According to the streaming platform, the Netflix algorithm is responsible for about 80% of viewer activity . The company has successfully collected relevant data and used marketing analytics to generate recommendations that encourage viewers to continue watching and subscribing.

The revenue metrics suggest that Netflix’s focus on marketing analytics has been hugely beneficial to the company. The company estimates that its algorithm generates $1 billion in value every year, largely due to customer retention.

In recent years, Netflix’s customer retention rate has far surpassed competitors like Hulu and Amazon Prime. Netflix has an impressive 90% retention rate , meaning the vast majority of viewers continue to subscribe to the service month after month. (In contrast, Amazon Prime’s retention rate is 75%, and Hulu’s is 64%.)

For Netflix, customer retention means more than happy viewers. It also means more data, a continually improving algorithm, and substantial business growth.

Netflix has emerged as the world’s most highly valued company, with a total valuation of over $160 billion. Netflix can continue to increase this valuation. It leverages its data by producing original media and recommending the ideal content to viewers every time they access the streaming platform.

Marketing Analytics Case Studies: Allrecipes

As the world’s biggest digital food brand, Allrecipes has 18 websites and more than 85 million users. But the brand also has plenty of competition from other food-focused apps and websites.

To stay ahead of other recipe sites and ensure that it continues to provide all the solutions that users want, Allrecipes relies on marketing analytics.

With marketing analytics, the digital brand can better understand the customer journey and analyze trends as they emerge. As this Allrecipes case study explains, the brand can expand its audience and attract even more lucrative demographics using these insights.

To continue to gain ground as the world’s top digital food brand, Allrecipes established several wide-ranging goals.

Some of the brand’s primary objectives included the following.

Improve user experience

With more than a billion and a half visitors across the brand’s sites every year, Allrecipes generates a ton of traffic. But the company needed a way to understand how visitors were using the site, so it could improve the user experience and gauge the health of the sites.

Increase video engagement

To take advantage of a demand for video content, Allrecipes had decided to invest heavily in video. However, the video production team needed strategic guidance. The brand needed to know what types of content would drive the most engagement.

Drive mobile engagement

To continue to meet the needs of its user base, Allrecipes had to look beyond its websites. As more and more people began using mobile devices to access the brand’s content, Allrecipes realized that the company needed to optimize its mobile app.

Inform product strategy

To promote new features and integrations or pursue partner programs, Allrecipes needed to know what its community wanted. Had they adopted the new integrations yet? Did they need new features to use the site or app more effectively?

Expand user base

Cooking and dining trends come and go, and Allrecipes needed a simple yet effective way to identify these developments.

By responding quickly to trends, the brand would be able to capture a larger user base, including elusive millennials.

Grow advertising revenue

Like many digital brands, Allrecipes has a native advertising program that allows the company to monetize its website. The company aimed to increase its advertising revenue, yet the organization didn’t want to compromise the user experience. To find the right partners to grow this program, Allrecipes needed deeper insights into its audience.

Although the brand’s goals were varied, the approach was relatively straightforward. To process marketing analytics from a wide range of channels, the brand opted to use Tableau, a business intelligence platform.

With Tableau, Allrecipes could establish a single platform for visualizing data from Adobe Marketing Cloud, Hitwise, and comScore. By linking Adobe Marketing Cloud to Tableau, the brand could pull in all of its website and marketing analytics. By linking Hitwise and comScore, the brand could source demographic data.

Using Tableau allowed Allrecipes to build custom dashboards and develop tailored reports to answer all of the brand’s questions. This tool also allowed the brand to pursue collaboration options across the organization.

In fact, departments ranging from marketing and design to product and finance contributed to the tool. Teams used Tableau Server to publish dashboards, creating a single space where stakeholders could visualize or analyze data.

With Tableau, Allrecipes was able to visualize the brand’s data successfully, enabling smarter decisions and making progress toward key goals. Here’s what the brand accomplished using marketing analytics:

Using insights from Tableau, Allrecipes was able to see how visitors typically used the site—including how they submit recipes, share content, and post links on social media channels. The organization then used this data to devise a plan for improving the site.

Knowing how visitors were already engaging with the site allowed the brand to make data-driven, goal-focused decisions.

With Tableau’s marketing analytics, Allrecipes found that out of all types of recipes, dessert typically generated more views and attracted more comments and photos. As a result, the brand opted to focus on this highly engaging niche, creating a separate video hub for dessert recipes.

To increase engagement on mobile devices, Allrecipes devised an A/B test that displayed the brand’s mobile site on all devices. Then the organization used the analytics to identify what drove interactions on mobile. The brand then used insights to improve the mobile site, including optimizing content and encouraging photo uploads.

Tableau’s data visualizations helped Allrecipes understand trends in its user community and respond to preferences more efficiently. Using these insights, the brand was able to promote integrations and features while gathering data for future product enhancements.

By using Tableau’s insights to process trends, Allrecipes was able to segment audiences for various recipe types, ultimately identifying millennial users’ interests and preferences. The brand was then able to create more content geared toward this growing user base—likely responding much more quickly than competitors could.

By tapping into real-time marketing analytics, Allrecipes was able to share popular recipe searches and trending content with its advertising partners during a recent holiday season. Advertisers could then create ads tailored to these interests, generating a better ROI and creating a more appealing experience for users.

What We Learned From These Marketing Analytics Case Studies

As these marketing analytics case studies show, data can tell you a lot about what your customers want—and where your organization succeeds or has room for improvement. Using insights from marketing analytics, a digital marketer can make data-driven decisions to cultivate customer loyalty, generate more revenue, and ultimately grow your business.

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Coop: market research description.

Daryl Buckmeister, CEO of The Chicken Coop, must decide whether to invest in market research, how much money to spend, and which programs to fund. His two vice presidents (of quality and marketing) have presented very different proposals.

Case Description Coop: Market Research

Strategic managment tools used in case study analysis of coop: market research, step 1. problem identification in coop: market research case study, step 2. external environment analysis - pestel / pest / step analysis of coop: market research case study, step 3. industry specific / porter five forces analysis of coop: market research case study, step 4. evaluating alternatives / swot analysis of coop: market research case study, step 5. porter value chain analysis / vrio / vrin analysis coop: market research case study, step 6. recommendations coop: market research case study, step 7. basis of recommendations for coop: market research case study, quality & on time delivery.

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Case Analysis of Coop: Market Research

Coop: Market Research is a Harvard Business (HBR) Case Study on Sales & Marketing , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Coop: Market Research is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Coop: Market Research case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Coop: Market Research will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Coop: Market Research case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Sales & Marketing, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Coop: Market Research, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Coop: Market Research case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Sales & Marketing Solutions

In the Texas Business School, Coop: Market Research case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Coop: Market Research

Step 1 – Problem Identification of Coop: Market Research - Harvard Business School Case Study

The first step to solve HBR Coop: Market Research case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Coop Buckmeister is facing right now. Even though the problem statement is essentially – “Sales & Marketing” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Coop Buckmeister, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Coop: Market Research. The external environment analysis of Coop: Market Research will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Coop: Market Research case study. PESTEL analysis of " Coop: Market Research" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Coop: Market Research macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Coop: Market Research

To do comprehensive PESTEL analysis of case study – Coop: Market Research , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Coop: Market Research

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Coop: Market Research ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Coop Buckmeister is operating, firms are required to store customer data within the premises of the country. Coop Buckmeister needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Coop: Market Research has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Coop Buckmeister in case study Coop: Market Research" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Coop Buckmeister in case study “ Coop: Market Research ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Coop Buckmeister in case study “ Coop: Market Research ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Coop: Market Research ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Coop Buckmeister can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Coop: Market Research case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Coop Buckmeister needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Coop: Market Research

Social factors that impact coop: market research, technological factors that impact coop: market research, environmental factors that impact coop: market research, legal factors that impact coop: market research, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: coop: market research case study solution.

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Top 10 Marketing Analytics Case Studies [2024]

The power of marketing analytics to transform business decisions is indisputable. Organizations leveraging these sophisticated tools gain unparalleled access to actionable intelligence that substantively impacts their financial outcomes. The scope of this invaluable resource extends from elevating the customer experience to fine-tuning the allocation of marketing budgets, presenting a spectrum of tactical possibilities. To explain the transformative impact and multifaceted benefits of employing marketing analytics, the article ventures into an in-depth analysis of five compelling case studies.

Each case is carefully selected to represent a distinct industry and set of challenges, offering a holistic understanding of how data-driven initiatives can surmount obstacles, amplify Return on Investment (ROI), and fortify customer retention metrics.

Case Study 1: How Amazon Boosted Sales by Personalizing Customer Experience

The situation: a tricky problem in early 2019.

Imagine it’s the start of 2019, and Amazon, a top name in online shopping, faces a confusing problem. Even though more people are visiting the website, sales are not increasing. It is a big deal, and everyone at Amazon wonders what’s happening.

The Problem: Complex Challenges

Figuring out the root problem was not easy. Amazon needed to know which customers weren’t buying stuff, their behaviors, and why the old methods of showing them personalized items weren’t working. It was a complicated issue that needed a smart and modern solution.

Related: Role of Data Analytics in B2B Marketing

The Solution: Using Advanced Tools

That’s when Amazon decided to use more advanced marketing tools. They used machine learning to understand different types of customers better. This insight wasn’t just basic info like age or location; they looked at how customers behave on the site, items left in carts, and trends based on where customers lived.

The Key Numbers: What They Tracked

To understand if the new plan was working, Amazon focused on a few key metrics:

1. Return on Investment (ROI): This showed the new marketing strategies effectiveness.

2. Customer Lifetime Value (CLV): This KPI helped Amazon understand how valuable customers were over the long term.

3. Customer Acquisition Cost (CAC): This measured how costly it was to get new customers.

4. Customer Retention Rate: This KPI showed how well they kept customers around.

5. Net Promoter Score (NPS): This gave them an idea of how happy customers were with Amazon.

The Results: Big Improvements

The new plan worked well, thanks to advanced marketing analytics tools. In just three months, Amazon increased its sales by 25%. Not only that, but the money they made from the new personalized ads went up by 18%. And they did a better job keeping customers around, improving that rate by 12%.

Lessons Learned: What We Can Take Away

So, what did we learn from Amazon’s success?

1. Personalizing Can Scale: Amazon showed that you can offer personalized experiences to a lot of people without sacrificing quality.

2. Track the Right Metrics: This case study clarifies that you must look at several key numbers to understand what’s happening.

3. Data Can Be Actionable: Having lots of data is good, but being able to use it to make smart decisions is what counts.

Related: Tips to Succeed with Marketing Analytics

Case Study 2: McDonald’s – Decoding Social Media Engagement Through Real-time Analytics

Setting the stage: a tantalizing opportunity beckons.

Imagine a brand as ubiquitous as McDonald’s, the global fast-food colossus. With its Golden Arches recognized in virtually every corner of the world, the brand had an expansive digital realm to conquer—social media. In the evolving digital arena, McDonald’s was trying to mark its presence and deeply engage with its audience.

The Maze of Complexity: A Web of Challenges

Steering the complicated world of social media isn’t for the faint-hearted, especially when catering to a customer base as diverse as McDonald’s. The challenge lay in disseminating content and in making that content strike a chord across a heterogeneous audience. The content must resonate universally, be it the Big Mac aficionado in New York or the McAloo Tikki enthusiast in Mumbai.

The Game Plan: A Data-driven Strategy

McDonald’s adopted a strategy that was nothing short of a data-driven symphony. Utilizing real-time analytics, the brand monitored a series of Key Performance Indicators (KPIs) to track the impact of its social media content:

1. Likes and Reactions: To measure immediate emotional responses from the audience.

2. Shares and Retweets: To gauge the virality potential of their content.

3. Impressions and Reach: To assess the scope and scale of engagement.

4. Click-Through Rates (CTR): To assess whether the content was sufficiently engaging to drive necessary action.

Types of content monitored varied from light-hearted memes to product promotions and even user-generated testimonials.

Related: Difference Between Marketing Analytics and Business Analytics

The Finale: Exceptional Outcomes and a Standing Ovation

The result? A whopping 30% increase in customer engagement on social media platforms within a quarter. But that’s not the end of the story. The customer retention rate—a metric critical for evaluating long-term brand loyalty—soared by 10%. These numbers didn’t just happen; they were sculpted through meticulous planning and real-time adjustments.

The Wisdom Gleaned: Eye-opening Insights and Key Takeaways

Several critical insights emerged from this exercise in digital finesse:

1. Agility is King: The fast-paced world of social media requires an equally agile analytics approach. Real-time monitoring allows for nimble adjustments that can significantly enhance audience engagement.

2. Diverse Audiences Require Tailored Approaches: The ‘one-size-fits-all’ approach is a fallacy in today’s digital age. Real-time analytics can help brands develop a subtle understanding of their diverse consumer base and tailor content accordingly.

3. Retention is as Crucial as Engagement: While the spotlight often falls on engagement metrics, customer retention rates provide invaluable insights into the long-term health of the brand-customer relationship.

4. Data Informs, But Insight Transforms: Data points are just the tip of the iceberg. The transformative power lies in interpreting these points to formulate strategies that resonate with the audience.

Related: VP of Marketing Interview Questions

Case Study 3: Zara—Harnessing Predictive Analytics for Seamless Inventory Management

The prelude: zara’s global dominance meets inventory complexities.

When you think of fast, chic, and affordable fashion, Zara is a name that often comes to mind. A retail giant with a global footprint, Zara is the go-to fashion hub for millions worldwide. However, despite its extensive reach and market leadership, Zara faced a dilemma that plagued even the most formidable retailers—inventory mismanagement. Both overstocking and understocking were tarnishing the brand’s revenue streams and diminishing customer satisfaction.

The Conundrum: A Dynamic Industry with Static Models

The fashion sector is a rapidly evolving giant, where the ups and downs of trends and consumer preferences create a landscape that is as dynamic as it is unpredictable. Conventional inventory systems, largely unchanging and based on past data, emerged as the weak link in Zara’s otherwise strong business approach.

The Tactical Shift: Machine Learning to the Rescue

Recognizing the inherent limitations of traditional approaches, Zara turned to predictive analytics as their technological savior. They implemented cutting-edge tools that used machine learning algorithms to offer more dynamic, real-time solutions. The tools were programmed to consider a multitude of variables:

1. Real-time Sales Data: To capture the instantaneous changes in consumer demands.

2. Seasonal Trends: To account for cyclical variations in sales.

3. Market Sentiments: To factor in the influence of external events like fashion weeks or holidays.

Related: MBA in Marketing Pros and Cons

The Metrics Under the Microscope

Zara’s analytics model put a spotlight on the following KPIs:

1. Inventory Turnover Rate: To gauge how quickly inventory was sold or replaced.

2. Gross Margin Return on Inventory Investment (GMROII): To assess the profitability of their inventory.

3. Stock-to-Sales Ratio: To balance the inventory levels with sales data.

4. Cost of Carrying Inventory: To evaluate the costs of holding and storing unsold merchandise.

The Aftermath: A Success Story Written in Numbers

The results were startlingly positive. Zara observed a 20% reduction in its inventory costs, a metric that directly impacts the bottom line. Even more impressively, the retailer witnessed a 5% uptick in overall revenue, thus vindicating their shift to a more data-driven inventory model.

The Gold Nuggets: Key Takeaways and Strategic Insights

1. Technology as a Strategic Asset: Zara’s case emphasizes that technology, particularly machine learning and predictive analytics, is not just a facilitator but a strategic asset in today’s competitive landscape.

2. The Power of Real-Time Analytics: The case reaffirms the necessity of adapting to real-time consumer behavior and market dynamics changes. This adaptability can be the distinguishing factor between market leadership and obsolescence.

3. Holistic KPI Tracking: Zara’s meticulous monitoring of various KPIs underlines the importance of a well-rounded analytics strategy. It’s not solely about cutting costs; it’s equally about boosting revenues and improving customer satisfaction.

4. The Future is Proactive, Not Reactive: Zara strategically moved from a reactive approach to a proactive, predictive model. It wasn’t merely a technological shift but a paradigm shift in how inventory management should be approached.

Related: Hobby Ideas for Marketing Leaders

Case Study 4: Microsoft—Decoding Public Sentiment for Robust Brand Management

Background: microsoft’s expansive reach and the perils of public opinion.

Microsoft is a titan in the technology industry, wielding a global impact that sets it apart from most other companies. From enterprise solutions to consumer products, Microsoft’s offerings span a multitude of categories, touching lives and businesses in unprecedented ways. But this extensive reach comes with its challenges—namely, the daunting task of managing public sentiment and maintaining brand reputation across a diverse and vocal customer base.

The Intricacies: Coping with a Data Deluge

The issue wasn’t just what people said about Microsoft but the sheer volume of those conversations. Social media platforms, customer reviews, and news articles collectively produced overwhelming data. Collecting this data was difficult, let alone deriving actionable insights from it.

The Playbook: Employing Sentiment Analysis for Real-time Insights

Microsoft addressed this issue head-on by embracing sentiment analysis tools. These tools, often leveraging Natural Language Processing (NLP) and machine learning, parsed through the voluminous data to categorize public sentiments into three buckets:

1. Positive: Which elements of the brand were receiving favorable reviews?

2. Negative : Where was there room for improvement or, more critically, immediate crisis management?

3. Neutral: What aspects were simply ‘meeting expectations’ and could be enhanced for better engagement?

Related: How to Become a Marketing Thought Leader?

Metrics that Mattered

Among the KPIs that Microsoft tracked were:

1. Net Promoter Score (NPS): To measure customer loyalty and overall sentiment.

2. Customer Satisfaction Index: To gauge the effectiveness of products and services.

3. Social Media Mentions: To keep a tab on the frequency and tonality of brand mentions across digital channels.

4. Public Relations Return on Investment (PR ROI) : To quantify the impact of their PR strategies on brand reputation.

Outcomes: A Leap in Brand Reputation and Diminished Negativity

The result was a 15% improvement in Microsoft’s Brand Reputation Score. Even more telling was the noticeable reduction in negative publicity, an achievement that cannot be quantified but has far-reaching implications.

Epilogue: Lessons Learned and Future Directions

Precision Over Ambiguity: Sentiment analysis provides precise metrics over ambiguous opinions, offering actionable insights for immediate brand management strategies.

1. Proactive Vs. Reactive: By identifying potential crises before they snowballed, Microsoft demonstrated the power of a proactive brand management strategy.

2. The ‘Neutral’ Opportunity: Microsoft found that even neutral sentiments present an opportunity for further engagement and customer satisfaction.

3. Quantifying the Intangible: Microsoft’s improved Brand Reputation Score underscores the value in quantifying what many consider intangible—brand reputation and public sentiment.

Related: Reasons Why Marketing Managers Get Fired

Case Study 5: Salesforce—Attribution Modeling Unlocks the Full Potential of Marketing Channels

Background: salesforce’s prowess meets marketing complexity.

Salesforce, synonymous with customer relationship management (CRM) and Software as a Service (SaaS), has revolutionized how businesses interact with customers. The company’s extensive portfolio of services has earned it a lofty reputation in numerous sectors globally. Yet, even this venerated SaaS titan grappled with challenges in pinpointing the efficacy of its myriad marketing channels regarding customer acquisition.

The Challenge: Decoding the Marketing Mix

Salesforce diversified its marketing investments across multiple channels—from search engine optimization (SEO) to pay-per-click (PPC) campaigns and email marketing. However, identifying which channels were instrumental in steering the customer through the sales funnel was a complex, if not convoluted, affair. The absence of a clear attribution model meant that Salesforce could invest resources into channels with subpar performance while potentially neglecting more lucrative opportunities.

The Solution: Attribution Modeling as the Rosetta Stone

To unravel this Gordian Knot, Salesforce employed attribution modeling—a sophisticated analytics technique designed to quantify the impact of each touchpoint on the customer journey. This model shed light on crucial metrics such as:

1. Last-Click Attribution: Which channel was responsible for sealing the deal?

2. First-Click Attribution: Which channel introduced the customer to Salesforce’s services?

3. Linear Attribution: How can the value be evenly distributed across all touchpoints?

4. Time-Decay Attribution: Which channels contribute more value as the customer gets closer to conversion?

The Dashboard of Key Performance Indicators (KPIs)

Among the KPIs that Salesforce monitored were:

1. Return on Investment (ROI): To calculate the profitability of their marketing efforts.

2. Customer Lifetime Value (CLV): To gauge the long-term value brought in by each acquired customer.

3. Cost per Acquisition (CPA): To understand how much is spent to acquire a single customer via each channel.

4. Channel Efficiency Ratio (CER): To evaluate the cost-effectiveness of each marketing channel.

Related: How to Become a Chief Marketing Officer?

Results: A Refined Marketing Strategy Paying Dividends

By adopting attribution modeling, Salesforce could make data-driven decisions to allocate their marketing budget judiciously. The outcome? A notable 10% surge in overall revenue and a 5% increase in ROI. The effectiveness of each channel was now measurable, and the insights gained allowed for more targeted and effective marketing campaigns.

Postscript: Reflective Takeaways and Industry Wisdom

1. Demystifying the Channel Puzzle: Salesforce’s approach elucidates that even the most well-funded marketing campaigns can resemble a shot in the dark without attribution modeling.

2. Customization is Key: One of the remarkable aspects of attribution modeling is its flexibility. Salesforce was able to tailor its attribution models to align with its unique business needs and customer journey.

3. Data-Driven Allocations: The campaign reveals the significance of using empirical data for budget allocation instead of gut feeling or historical precedents.

4. The ROI Imperative: Perhaps the most compelling takeaway is that focusing on ROI is not just a financial exercise but a strategic one. It affects everything from budget allocation to channel optimization and long-term planning.

Related: How Can CMO Use Marketing Analytics?

Case Study 6: Starbucks – Revolutionizing Customer Loyalty with Analytics-Driven Rewards

The backdrop: starbucks’ quest for enhanced customer loyalty.

Starbucks, the iconic global coffeehouse chain, is the most preferred place for coffee lovers. Renowned for its vast array of beverages and personalized service, Starbucks confronted a pivotal challenge: escalating customer loyalty and encouraging repeat visits in an intensely competitive market.

The Dilemma: Deciphering Consumer Desires in a Competitive Arena

In the dynamic landscape of the coffee industry, understanding and catering to evolving customer preferences is paramount. Starbucks faced the daunting task of deciphering these varied customer tastes and devising compelling incentives to foster customer loyalty amidst fierce competition.

The Strategic Overhaul: Leveraging Analytics in the Loyalty Program

Starbucks revamped its loyalty program by embracing a data-driven approach and deploying sophisticated analytics to harvest and interpret customer data. This initiative focused on crafting personalized rewards and offers, aligning perfectly with customer preferences and behaviors. The analytics framework delved into:

1. Purchase Patterns: Analyzing frequent purchase habits to tailor rewards.

2. Customer Preferences: Understanding individual likes and dislikes for more personalized offers.

3. Engagement Metrics: Monitoring customer interaction with the loyalty program to refine its appeal.

The Analytical Lens: Focused KPIs

Starbucks’ revamped loyalty program was scrutinized through these key performance indicators:

1. Loyalty Program Enrollment: Tracking the growth in membership numbers.

2. Repeat Visit Rate: Measuring the frequency of customer visits post-enrollment.

3. Customer Satisfaction Index: Gauging the levels of satisfaction and overall experience.

4. Redemption Rates of Offers: Understanding the effectiveness of personalized offers and rewards.

The Triumph: A Narrative of Success through Numbers

The implementation of analytics in the loyalty program bore significant fruit. Starbucks experienced a remarkable 20% increase in loyalty program membership and a 15% rise in the frequency of customer visits. More than just numbers, these statistics represented a deepening of customer relationships and an elevation in overall satisfaction.

The Crux of Wisdom: Essential Insights and Strategic Perspectives

1. Customer-Centric Technology: The Starbucks case highlights the crucial role of technology, especially analytics, in understanding and catering to customer needs, thereby not just facilitating but enriching the customer experience.

2. Personalization as a Loyalty Catalyst: The successful implementation of personalized rewards based on analytics underscores the effectiveness of customized engagement in enhancing loyalty.

3. Comprehensive KPI Tracking: Starbucks’ meticulous tracking of diverse KPIs illustrates the importance of a multi-dimensional analytics approach. It’s a blend of tracking memberships and understanding engagement and satisfaction.

4. Proactive Customer Engagement: Beyond traditional loyalty programs, Starbucks’ strategy shifts towards a proactive, analytics-based engagement model.

Related: Marketing Executive Interview Questions

Case Study 7: Uber – Revolutionizing Ride-Hailing with Predictive Analytics

Setting the scene: uber’s mission to refine ride-hailing.

Uber, a pioneer in the ride-hailing sector, consistently leads the way in technological advancements. To refine its operational efficiency and enhance the user experience, Uber faced the intricate challenge of synchronizing the supply of drivers with the fluctuating demand of riders across diverse geographical terrains.

The Challenge: Harmonizing Supply and Demand

The core challenge for Uber lies in efficiently balancing the availability of drivers with the dynamically changing needs of customers in different locations. This balancing act was essential for sustaining operational effectiveness and guaranteeing customer contentment.

The Strategic Move: Embracing Real-Time Data Analytics

In response, Uber turned to the power of real-time analytics. This strategic shift involved:

1. Demand Prediction: Leveraging data to forecast rider demand in different areas.

2. Dynamic Pricing Mechanism: Employing algorithmic solutions to modify pricing in real-time in response to the intensity of demand.

3. Driver Allocation Optimization: Using predictive analytics to guide drivers to areas with anticipated high demand.

Results: Measurable Gains in Efficiency and Satisfaction

The results of this approach, grounded in data analytics, were impressive. Uber saw a 25% decrease in average wait times for riders, a direct indicator of enhanced service efficiency. Additionally, driver earnings saw a 10% increase, reflecting better allocation of rides. Importantly, these improvements translated into higher overall customer satisfaction.

Related: Is Becoming a CMO Worth It?

Case Study 8: Spotify – Harnessing Music Analytics for Enhanced Personalization

Backstory: spotify’s pursuit of personalized music experience.

Spotify, the global giant in music streaming, sought to deepen user engagement by personalizing the listening experience. In a digital landscape where user preference is king, Spotify aimed to stand out by offering uniquely tailored music experiences to its vast user base.

The Challenge: Navigating a Sea of Diverse Musical Tastes

With an expansive library of music, Spotify faced the critical task of catering to the incredibly diverse tastes of its users. The task was to craft a unique, personalized listening experience for each user within a vast library containing millions of songs.

The Strategy: Leveraging Machine Learning for Custom Playlists

To address this, Spotify deployed machine learning algorithms in a multifaceted strategy:

1. Listening Habit Analysis: Analyzing user data to understand individual music preferences.

2. Playlist Curation: Employing algorithms to generate personalized playlists tailored to match the individual tastes of each user.

3. Recommendation Engine Enhancement: Continuously refining the recommendation system for more accurate and engaging suggestions.

Results: A Symphony of User Engagement and Loyalty

Implementing these machine-learning strategies led to a remarkable 30% increase in user engagement. This heightened engagement was a key factor in driving a significant rise in premium subscription conversions, underscoring the success of Spotify’s personalized approach.

Related: How Can Creating a Course Lead to Marketing Your Business?

Case Study 9: Airbnb – Advancing Market Positioning and Pricing with Strategic Analytics

Overview: airbnb’s quest for pricing and positioning excellence.

Airbnb, the revolutionary online lodging marketplace, embarked on an ambitious mission to optimize its global listings’ pricing and market positioning. This initiative aimed to maximize booking rates and ensure fair pricing for hosts and guests in a highly competitive market.

The Challenge: Mastering Competitive Pricing in a Diverse Market

Airbnb’s main challenge was pinpointing competitive pricing strategies that would work across its vast array of worldwide listings. The task was to understand and adapt to market demand trends and local variances in every region it operated.

The Strategic Approach: Dynamic Pricing Through Data Analytics

To achieve this, Airbnb turned to the power of analytics, developing a dynamic pricing model that was sensitive to various factors:

1. Location-Specific Analysis: Understanding the pricing dynamics unique to each location.

2. Seasonality Considerations: Adjusting prices based on seasonal demand fluctuations.

3. Event-Based Pricing: Factoring in local events and their impact on accommodation demand.

Results: A Story of Enhanced Performance and Satisfaction

This analytical approach reaped significant rewards. Airbnb saw a 15% increase in booking rates, indicating a successful price alignment with market demand. Additionally, this strategy led to increased revenues for hosts and bolstered customer satisfaction due to more equitable pricing.

Case Study 10: Domino’s – Transforming Pizza Delivery with Analytics-Driven Logistics

Background: domino’s drive for enhanced delivery and service.

Domino’s Pizza, a global leader in pizza delivery, set out to redefine its delivery efficiency and elevate its customer service experience. In the fiercely competitive fast-food industry, Domino’s aimed to stand out by ensuring faster and more reliable delivery.

The Challenge: Streamlining Deliveries in a Fast-Paced Environment

The critical challenge for Domino’s was ensuring timely deliveries while maintaining food quality during transit. It required a subtle understanding of logistics and customer service dynamics.

The Strategy: Optimizing Delivery with Data and Technology

Domino’s responded to this challenge by implementing sophisticated logistics analytics:

1. Route Optimization Analytics: Utilizing data to determine the fastest and most efficient delivery routes.

2. Quality Tracking Systems: Introducing technology solutions to track and ensure food quality throughout delivery.

Results: Measurable Gains in Efficiency and Customer Satisfaction

Adopting these strategies led to a notable 20% reduction in delivery times. This improvement was not just about speed; it significantly enhanced customer satisfaction, as reflected in improved customer feedback scores.

Conclusion: The Transformative Impact of Marketing Analytics in Action

Wrapping up our exploration of these five case studies, one unambiguous insight stands out: the effective application of marketing analytics is pivotal for achieving substantial business gains.

1. Personalization Works: The e-commerce platform’s focus on customer segmentation led to a 25% boost in conversion rates, underscoring that tailored strategies outperform generic ones.

2. Real-Time Matters: McDonald’s implementation of real-time analytics increased customer engagement by 30% and improved retention rates by 10%.

3. Forecast to Optimize: Zara’s application of predictive analytics streamlined inventory management, resulting in a 20% cost reduction and a 5% revenue increase.

4. Sentiment Drives Perception: Microsoft leveraged sentiment analysis to enhance its brand image, achieving a 15% rise in brand reputation score.

5. Attribution is Key: Salesforce’s adoption of attribution modeling led to a 10% revenue increase and a 5% boost in ROI, optimizing their marketing budget allocation.

These case studies demonstrate the unparalleled value of utilizing specialized marketing analytics tools to meet diverse business goals, from boosting conversion rates to optimizing ROI. They are robust examples for organizations seeking data-driven marketing decisions for impactful results.

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How to Conduct a Market Analysis? (+ Examples)

Appinio Research · 04.10.2023 · 29min read

Are you ready to transform your business with the unparalleled advantages of market analysis? Discover how harnessing the power of data-driven insights can propel your decision-making and unlock exceptional growth opportunities.

In this guide, we delve deep into the art of market analysis, showing you how to gain a competitive edge, tailor your strategies with precision, and, ultimately, boost your success. Let's embark on this journey of discovery together.

What is Market Analysis?

Market analysis is the process of evaluating market conditions and dynamics to understand its potential and make informed decisions. It helps you answer crucial questions:

• Who are your customers?
• What are their needs and preferences?
• Who are your competitors?
• What market trends should you be aware of?

Market analysis is crucial because it empowers you to make data-driven choices, minimize risks, and maximize opportunities.

Why is Market Analysis Important?

Before diving into the analysis, you need to define your objectives. Common goals of market analysis include:

• Market Entry: Evaluating the feasibility of entering a new market.
• Product Development : Identifying market gaps for new product development.
• Competitor Analysis: Understanding your competition's strengths and weaknesses.
• Strategic Planning: Shaping your business strategies based on market insights.

Benefits of Effective Market Analysis

Conducting a thorough market analysis brings several benefits:

• Risk Mitigation: Minimize the risk of entering an unprofitable market.
• Resource Allocation: Optimize resource allocation for marketing and product development.
• Competitive Advantage: Gain a competitive edge by understanding your market better.
• Innovation: Identify opportunities for innovation and growth.

Now that you understand the importance of market analysis, let's move on to the practical steps involved.

How to Prepare for Market Analysis?

Before diving into market analysis, setting the stage for success is essential. Here are the key steps to prepare for market analysis:

• Set Clear Objectives: Define your specific goals and objectives for the analysis. Be clear about what you want to achieve. For example, if you're planning to enter a new market, your purpose might be to determine market demand and competition.
• Identify Target Audience: Knowing your audience is crucial. Identify the demographics, preferences, and behaviors of your target market. This information will guide your data collection methods .
• Gather Necessary Resources: Market analysis requires data, tools, and expertise. Ensure you have access to the resources you need. This might include budget allocation for research tools, hiring analysts, or outsourcing data collection.
• Consider Ethical Considerations: Ethical guidelines are paramount in market analysis. Ensure that your data collection methods and analysis processes adhere to ethical standards, respecting privacy and confidentiality.

With your preparations in place, you're ready to collect the data necessary for your market analysis.

Data Collection for Market Analysis

Accurate and relevant data is the lifeblood of market analysis. Here's how you can gather the information you need:

Primary Data Sources

Primary data refers to information collected directly from the source. You can obtain primary data through:

• Surveys: Conducting surveys to gather insights from your target audience.
• Interviews: Engaging in one-on-one interviews with industry experts or potential customers .
• Observations: Collecting data by observing customer behavior or market trends.

Secondary Data Sources

Secondary data is information that already exists and is collected by someone else. Sources of secondary data include:

• Market Reports: Industry-specific reports and publications.
• Government Data: Data provided by government agencies.
• Competitor Reports : Analyzing reports and information about your competitors.

Qualitative Data Collection Methods

Qualitative data provides in-depth insights into customer attitudes and behaviors. Qualitative methods include:

• Focus Groups: Gathering a small group of participants to discuss specific topics.
• In-Depth Interviews: Conducting in-depth interviews with individuals to explore their perspectives.

Quantitative Data Collection Methods

Quantitative data is numerical and can be analyzed statistically. Common quantitative methods include:

• Surveys: Creating structured questionnaires for large-scale data collection.
• Online Analytics: Analyzing website and social media metrics for user behavior.

With your data collected, it's time to move on to the next crucial step: analyzing and interpreting the data.

Market Research Techniques

Analyzing the data you've collected is where the real insights come to light. Let's explore various market research techniques that help you make sense of your data.

Surveys and Questionnaires

Surveys and questionnaires are powerful tools for collecting quantitative data. They allow you to gather structured responses from a large sample of participants. When designing surveys, consider:

• Question Types: Crafting survey questions that are clear and unbiased.
• Sampling Techniques: Ensuring your sample is representative of your target audience.
• Data Analysis: Applying statistical methods to analyze survey data.

Interviews provide qualitative data through in-depth conversations with individuals. Key considerations include:

• Interview Structure: Developing a structured interview guide.
• Listening Skills: Active listening to uncover valuable insights.
• Transcribing and Coding: Transcribing interviews and coding responses for analysis.

Focus Groups

Focus groups involve small group discussions, providing rich qualitative data. To conduct effective focus groups:

• Moderation Skills: Skillfully moderating group discussions.
• Participant Selection: Recruiting diverse participants for varied perspectives.
• Thematic Analysis : Identifying themes and patterns in focus group discussions.

Observational Research

Observational research involves watching and recording customer behavior.

• Research Setting: Choosing the right environment for observations.
• Data Recording: Accurate and detailed recording of observations.
• Interpretation: Interpreting observed behaviors in the context of your objectives.

Competitor Analysis

Competitor analysis involves evaluating your rivals to understand their strengths and weaknesses.

• Identifying Competitors: Determine who your main competitors are.
• Competitive Metrics: Choose relevant metrics to assess competition.
• Benchmarking: Comparing your performance against competitors.

By mastering these market research techniques, you'll be well-prepared to extract valuable insights from your data. The next step is to interpret these insights effectively.

Data Analysis and Interpretation

Analyzing and interpreting data is the heart of market analysis. This process involves converting raw data into actionable insights.

Data Cleaning and Preparation

Data can be messy, and cleaning and preparing it for analysis is essential. This involves:

• Data Cleaning: Removing outliers, errors, and inconsistencies.
• Data Transformation: Converting data into a consistent format.
• Data Validation: Ensuring data accuracy and completeness.

Descriptive Analysis

Descriptive analysis involves summarizing and visualizing data to understand its basic characteristics. Techniques include:

• Summary Statistics: Calculating measures like mean, median, and standard deviation.
• Data Visualization: Creating charts and graphs to represent data visually.
• Data Distribution Analysis: Understanding how data is distributed.

Statistical Analysis

Statistical analysis allows you to draw meaningful conclusions from your data. Techniques include:

• Hypothesis Testing: Testing hypotheses to make data-driven decisions.
• Regression Analysis: Examining relationships between variables.
• Segmentation Analysis: Grouping data for more targeted insights.

Identify Trends and Patterns

Identifying trends and patterns in your data helps you make predictions and formulate strategies.

• Time Series Analysis: Analyzing data over time to identify trends.
• Pattern Recognition: Spotting recurring patterns in customer behavior.
• Predictive Modeling : Using data to make future predictions.

Armed with these analytical skills, you can effectively uncover valuable insights that inform your business decisions.

Market Segmentation

Market segmentation is crucial in understanding your audience better and tailoring your strategies accordingly.

What is Market Segmentation?

Market segmentation involves dividing your market into distinct groups based on shared characteristics. This is significant because it allows you to:

• Target Specific Audiences: Tailor your marketing efforts to specific segments.
• Personalize Products: Customize products and services to meet segment needs.
• Optimize Resource Allocation: Allocate resources more efficiently by focusing on high-potential segments.

Types of Market Segmentation

There are various ways to segment a market, including:

• Demographic Segmentation : Dividing based on age, gender, income, etc.
• Psychographic Segmentation : Grouping by lifestyles, values, and attitudes.
• Geographic Segmentation: Segmenting by location or region.
• Behavioral Segmentation : Dividing based on buying behavior and preferences.

Targeting Specific Market Segments

After segmentation, you must target your chosen segments effectively. This involves:

• Positioning: Crafting a unique value proposition for each segment.
• Messaging: Tailoring your marketing messages to resonate with each segment.
• Product Development: Adapting products to meet segment-specific needs.

By understanding your market segments, you can connect with your audience on a deeper level and increase your chances of success.

SWOT Analysis

A SWOT analysis is a valuable tool for assessing your business's internal strengths and weaknesses, as well as external opportunities and threats.

Identify and leverage your strengths, such as:

• Unique Products: What sets your products apart from the competition?
• Skilled Workforce: Highlight the expertise of your team.
• Strong Brand: Emphasize your brand reputation and recognition.

Acknowledge and address your weaknesses, including:

• Limited Resources: Recognize budget constraints or resource shortages.
• Market Share : Assess areas where competitors outperform you.
• Operational Challenges: Identify internal issues that need improvement.

Opportunities

Exploit opportunities in your market, such as:

• Market Growth: Explore emerging markets and trends.
• Partnerships: Seek collaboration with complementary businesses.
• New Technologies: Embrace innovations that can improve your operations.

Mitigate potential threats, such as:

• Competition: Analyze the competitive landscape and potential disruptors.
• Economic Trends: Consider how economic fluctuations may affect your business.
• Regulatory Changes: Stay updated on industry regulations and compliance.

Conducting a SWOT analysis helps you develop strategies that capitalize on strengths, mitigate weaknesses, seize opportunities, and guard against threats.

How to Conduct Competitive Market Analysis?

Competitive market analysis is a critical component of your overall market analysis strategy. Understanding who your competitors are, analyzing their strengths and weaknesses, and conducting competitive benchmarking are essential steps to gain a strategic advantage in your market.

1. Identify Key Competitors

Identifying your key competitors is the first step in a competitive market analysis. Key competitors are those businesses that directly compete with you for the same target audience or market share. Here's how to identify them:

• Market Research : Conduct thorough market research to identify businesses offering similar products or services in your industry or niche.
• Customer Feedback: Listen to your customers. Often, they will mention your competitors when discussing alternatives or choices.
• Industry Associations: Explore industry associations, directories, or trade publications to find a list of competitors.
• Online Search: Use search engines and social media platforms to discover businesses that appear in similar search results or target similar keywords.

Once you have identified your key competitors, you can move on to a more in-depth analysis of their strengths and weaknesses.

2. Analyze Competitor Strengths and Weaknesses

Analyzing competitor strengths and weaknesses provides valuable insights into their strategies and helps you identify opportunities and threats. Here's how to conduct this analysis effectively:

Product or Service Offering

• Strengths: Determine what your competitors excel at regarding product quality, features, and innovation.
• Weaknesses: Identify areas where their products or services fall short compared to yours.

Pricing Strategies

• Strengths: Analyze whether competitors offer competitive pricing or unique pricing models.
• Weaknesses: Look for instances where their pricing may be less competitive or prohibitive.

Market Share and Customer Base

• Strengths: Assess the size of their customer base and market share in your industry.
• Weaknesses: Investigate whether they have any vulnerabilities or dependencies on a specific customer segment.

Marketing and Branding

• Strengths: Analyze their marketing strategies, branding efforts, and customer engagement tactics.
• Weaknesses: Identify any gaps or areas where their marketing efforts may be less effective.

Customer Reviews and Feedback

• Strengths: Look for positive customer reviews and feedback to understand what your competitors are doing well.
• Weaknesses: Pay attention to negative reviews and areas where customers express dissatisfaction.

This analysis will help you identify areas where you can differentiate yourself and gain a competitive edge. It also enables you to anticipate how competitors might respond to your strategies.

3. Competitive Benchmarking

Competitive benchmarking involves comparing your performance and strategies against those of your key competitors. It allows you to set performance goals, identify best practices, and continuously improve.

• Select Key Metrics: Choose the key performance metrics that matter most to your business. These could include revenue growth, customer acquisition costs, customer satisfaction scores, or market share.
• Gather Data: Collect data on these selected metrics for both your business and your competitors. This data can come from public sources, industry reports, or your own internal records.
• Analyze and Compare: Compare your performance against that of your competitors using the selected metrics. Pay close attention to areas where you outperform them and areas where you lag behind.
• Identify Best Practices: Identify the strategies and practices that contribute to your competitors' success. Learn from their best practices and consider implementing similar strategies in your business.
• Set Improvement Goals: Based on your analysis, set specific improvement goals for your business. These goals should be realistic and aligned with your overall business objectives.
• Monitor Progress: Regularly monitor your progress toward achieving your improvement goals. Adjust your strategies and tactics as needed to stay competitive.

Competitive benchmarking is an ongoing process. By continuously assessing your performance compared to your competitors, you can adapt and refine your strategies to maintain a competitive advantage in the market.

How to Conduct Comparative Market Analysis?

Comparative market analysis involves assessing your market position, understanding competitor strategies and performance, and identifying opportunities for growth. Let's explore each aspect in more detail.

What is Comparative Analysis in Market Research?

Comparative analysis involves examining your business in relation to your competitors and the overall market. It helps you:

• Gain Perspective: Understand where your business stands in the market landscape.
• Identify Trends: Recognize industry trends and shifts.
• Spot Opportunities: Discover areas where your business can excel or innovate.

To conduct an effective comparative analysis:

• Collect Data: Gather data on your business, competitors, and the market as a whole.
• Use Key Metrics: Focus on key performance metrics relevant to your industry.
• Benchmark Against Competitors: Compare your performance against that of your direct competitors.

Analyzing Competitor Strategies and Performance

Analyzing competitor strategies and performance is a critical aspect of comparative analysis. Here's how to go about it:

1. Competitor Strategies

Product and Service Strategies: Examine their product/service offerings and pricing strategies.

• Marketing and Promotion: Analyze their marketing campaigns, messaging, and customer engagement tactics.
• Distribution Channels: Understand how they reach and distribute products or services to customers.
• Innovation: Identify areas where they innovate or introduce new features.

2. Financial Performance

• Revenue and Growth: Assess their revenue figures and growth rates over time.
• Profit Margins: Analyze their profit margins and how they compare to industry standards.
• Investment and Funding: Explore whether they have secured significant investments or funding.

3. Customer Engagement

• Customer Base: Understand the size and composition of their customer base.
• Customer Satisfaction: Look for indicators of customer satisfaction, such as reviews or feedback.

4. Market Presence

Market Share: Determine their market share in your industry or niche.

Geographic Reach: Explore the regions or markets they serve.

Identifying Market Position and Opportunities

Identifying your market position and opportunities is the ultimate goal of comparative market analysis. Here's how to accomplish this:

1. Market Position

• Relative Strengths: Determine where your business excels compared to competitors.
• Areas of Improvement: Identify areas where you lag and need improvement.
• Market Niche: Define your unique value proposition and niche within the market.

2. Opportunities

• Competitive Gaps: Recognize gaps in the market that your business can fill.
• Unmet Customer Needs: Explore customer needs that competitors are not effectively addressing.
• Emerging Trends: Stay alert to emerging industry trends and adapt your strategies accordingly.

3. Strategic Planning

• Strategy Development: Formulate strategies that capitalize on your strengths and address weaknesses.
• Innovation: Consider innovative approaches to differentiate your business.
• Risk Mitigation: Develop plans to mitigate risks associated with market dynamics.

By conducting a comprehensive comparative market analysis, you gain a deeper understanding of your competitive landscape, enabling you to make informed decisions, refine your strategies, and seize growth opportunities effectively. This process should be ongoing, as the market is dynamic and ever-changing.

Competitive Market Analysis vs. Comparative Market Analysis

While these approaches share some similarities, they serve distinct purposes and offer unique insights. Let's explore the key differences and applications of each.

Competitive Market Analysis

Objective: Competitive Market Analysis primarily focuses on assessing your direct competitors and understanding their strategies, strengths, weaknesses, and overall market position. Its main goal is to help you gain a competitive edge by learning from and responding to your rivals effectively.

Key Aspects:

• Competitor-Centric: It revolves around thoroughly examining specific competitors that directly impact your business.
• Strategy-Oriented: The emphasis is on understanding your competitors' strategies, pricing models, product offerings, and marketing tactics.
• Market Positioning: It helps you define your position in relation to your immediate competitors and identify areas for differentiation.
• Direct Impact: Competitive Market Analysis is often employed for short-term decision-making, such as refining marketing strategies or adjusting pricing to respond to competitor moves.

Comparative Market Analysis

Objective: Comparative Market Analysis takes a broader perspective by evaluating your business within the context of the entire market. It aims to provide a comprehensive view of your market's dynamics, trends, and opportunities, helping you make informed, long-term strategic decisions.

• Market-Centric: It considers a broader view of the market, including competitors, potential entrants, and industry dynamics.
• Trend Analysis : Comparative Market Analysis looks at industry trends, market growth, consumer behavior, and emerging technologies that may impact your business.
• Strategic Insights: It provides strategic insights that extend beyond immediate competition, helping you identify opportunities for market expansion , diversification, or innovation.
• Long-Term Planning: This approach is suitable for long-term strategic planning, such as entering new markets, launching new products, or adapting to evolving market conditions.

How to Choose the Right Approach?

The choice between Competitive Market Analysis and Comparative Market Analysis depends on your specific business goals and the depth of insights you seek:

• Use Competitive Market Analysis when you need to closely monitor and respond to specific competitors' actions, refine short-term strategies, or differentiate your offerings within a crowded market segment.
• Opt for Comparative Market Analysis when you are making long-term strategic decisions, considering market expansion, or seeking to innovate based on broader industry trends. This approach provides a holistic view that extends beyond immediate competitors.

In practice, many businesses find value in combining elements of both approaches to gain a comprehensive understanding of their market environment. The key is to align your analysis with your strategic objectives and adapt your approach as your business evolves.

Market Analysis Template

A well-structured market analysis template is invaluable for streamlining the market research process, ensuring you cover all essential aspects and gather data systematically. Let's explore the components of an effective market analysis template and how to customize it to your specific needs.

How to Create a Structured Market Analysis Framework?

A comprehensive market analysis template typically includes the following sections:

1. Market Overview

• Market Size: Describe the current size and potential growth of the market.
• Market Segmentation: Identify key segments within the market.
• Market Trends: Highlight recent trends and developments.

2. Competitive Landscape

• Competitor Identification: List your main competitors and potential disruptors.
• Competitor Analysis: Evaluate their strengths, weaknesses, opportunities, and threats (SWOT).
• Competitive Advantage: Explore ways in which your business can gain a competitive edge.

3. Target Market Analysis

• Customer Personas: Develop detailed customer personas based on demographics, behavior, and preferences.
• Customer Needs: Understand your target audience's specific needs and pain points.
• Market Demand: Assess the demand for your products or services within your target market.

4. SWOT Analysis

• Strengths: Identify your business's internal strengths and advantages.
• Weaknesses: Acknowledge areas where your business may be vulnerable.
• Opportunities: Explore external factors that can be leveraged for growth.
• Threats: Recognize potential challenges and external risks.

5. Trends and Forecast

• Market Trends: Analyze current trends and their potential impact on your business.
• Market Forecast: Make data-driven predictions about the future of the market.
• Emerging Technologies: Assess how emerging technologies may influence your industry.

How to Utilize Template for Efficient Market Analysis?

Templates not only save time but also ensure that you cover all critical aspects of market analysis. To effectively utilize a template:

1. Identify Relevant Sections

Review the template to identify sections that are relevant to your specific market analysis objectives. Not all sections may be necessary for every analysis.

2. Customize Sections

Tailor each section to your business and market. For example:

• In the "Market Overview" section , provide market data specific to your industry or region.
• In the "Competitive Landscape" section , focus on competitors directly impacting your business.

3. Collect Data Methodically

Use the template as a guide to collect data methodically. It ensures that you gather the right information in a structured manner.

4. Analyze and Interpret Data

After collecting data, analyze and interpret it within the context of each section of the template.

This step provides actionable insights.

5. Draw Conclusions and Recommendations

Utilize the insights gained from your analysis to draw conclusions and formulate recommendations that address your initial market analysis objectives.

6. Report Compilation

Compile the information from your template into a well-organized market analysis report that can be easily shared with stakeholders, investors, or team members.

How to Customize the Market Analysis Template?

Market analysis templates should not be rigid but rather adaptable to meet your unique requirements.

• Additional Sections: If your analysis requires sections not covered in the template, feel free to add them. For example, you might include a section on environmental or sustainability factors.
• Data Sources and Tools: Specify the data sources and analysis tools you'll use for each section. This ensures transparency and accountability in your analysis process.
• Visual Elements: Incorporate charts, graphs, and visual representations where relevant. Graphic elements can make complex data more digestible.
• Timelines and Milestones: If your market analysis is part of a larger project or business plan, include timelines and milestones to track progress.
• Appendices: Consider including appendices with supplementary materials such as raw data, survey questionnaires, or detailed calculations to support your analysis.

Market Analysis Examples

To gain a deeper understanding of how market analysis is applied in real-world scenarios, let's explore a variety of detailed examples that showcase different aspects of this crucial business practice.

Example 1: Entering a New Market

Scenario: Imagine you are the marketing manager of a well-established electronics company considering expansion into a new geographic market. Let's call it Market X.

Market Analysis Objective: Your goal is to assess the feasibility and potential success of entering Market X.

Data Collection and Analysis

• Market Research: Begin by collecting data on Market X, such as population demographics, economic indicators, and consumer behavior.
• Competitor Analysis: Identify and analyze competitors already operating in Market X. Assess their market share, product offerings, pricing strategies, and customer reviews.
• Consumer Surveys: Conduct surveys in Market X to understand consumer preferences, needs, and willingness to adopt your products.
• Regulatory Environment: Investigate the regulatory framework in Market X, including import/export regulations, industry standards, and compliance requirements.

Findings and Insights

• Market Potential: Through extensive data analysis, you discover that Market X has a growing population with a high demand for electronics, indicating market potential.
• Competitive Landscape: You identify several established competitors, but their product offerings are limited in comparison to your company's range.
• Consumer Preferences: Survey results reveal a preference for high-quality, durable electronics aligning with your product portfolio.
• Regulatory Insights: Understanding the regulatory environment helps you plan for compliance, ensuring a smooth market entry.

Recommendations

Based on your analysis, you can make informed recommendations:

• Market Entry Strategy: Develop a comprehensive market entry strategy tailored to Market X, including distribution channels and pricing strategies.
• Product Localization: Customize certain product features to align with local preferences and regulatory requirements.
• Competitive Edge: Leverage your wider product range as a competitive advantage.

Example 2: Product Launch Strategy

Scenario: You work for a startup that has developed an innovative health and fitness wearable device. Your goal is to create an effective product launch strategy.

Market Analysis Objective: Understand your target market, competition, and market trends to launch the wearable successfully.

• Target Audience Profiling: Create detailed customer personas based on demographics, interests, and health and fitness habits.
• Competitor Analysis: Examine the market for similar wearable devices, assessing their features, pricing, and customer reviews.
• Market Trends and Consumer Behavior: Analyze market trends related to health and fitness, wearable technology adoption, and consumer preferences.
• Market Size and Growth: Determine the size of the wearable technology market and its growth rate.
• Target Audience: Detailed personas reveal that your primary customer segments include health-conscious individuals, athletes, and tech enthusiasts.
• Competition: While there are competitors in the market, a gap exists for a wearable that combines health monitoring with advanced fitness tracking.
• Market Trends: Trends show an increasing demand for health-related wearables due to a growing focus on fitness and well-being.
• Market Size: The market is substantial and expected to grow steadily over the next few years.
• Product Features: Focus your product's features on health monitoring and advanced fitness tracking to cater to the identified target segments.
• Pricing Strategy: Set a competitive yet profitable price point for your wearable.
• Marketing Campaign: Develop a marketing campaign highlighting the unique features of your wearable and its benefits for health-conscious consumers, athletes, and tech enthusiasts.

Example 3: Competitive Analysis for an E-commerce Startup

Scenario: You're part of a startup team launching an e-commerce platform that sells handmade artisanal products. You need to understand the competitive landscape to formulate a successful business strategy.

Market Analysis Objective: Gain insights into the e-commerce market for handmade products and identify opportunities for differentiation.

• Competitor Identification: Identify existing e-commerce platforms specializing in handmade products.
• Product Range and Quality: Assess the variety and quality of products offered by competitors.
• Pricing Strategies: Analyze pricing strategies and discount offers of competitors.
• Customer Reviews: Study customer reviews and ratings for competing platforms.
• Competitor Landscape: You discover several established e-commerce platforms in the handmade product niche, but none seem to offer a comprehensive range of unique artisanal items.
• Product Quality: Competitors mainly offer mass-produced items with limited emphasis on craftsmanship and uniqueness.
• Pricing: Pricing strategies appear to be competitive, but customer reviews indicate a desire for more affordable options.
• Product Curation: Focus on curating a selection of high-quality, truly artisanal products to differentiate your platform.
• Competitive Pricing: Offer competitive pricing while maintaining the unique value proposition of handmade items.
• Customer Engagement: Implement strategies to engage customers and gather feedback for continuous improvement.

These examples illustrate how market analysis informs critical business decisions. Whether entering a new market, launching a product, or competing in e-commerce, a data-driven approach empowers you to make informed choices and increase your chances of success.

Remember that market analysis is an ongoing process, and staying updated with evolving market dynamics is essential for long-term success.

Market analysis is your secret weapon for success in the ever-evolving business landscape. By understanding your market, customers, and competition, you gain the knowledge to make informed decisions, identify growth opportunities, and stay ahead of the curve.

Remember, market analysis is not a one-time task; it's an ongoing journey. Continuously gather data, adapt your strategies, and embrace the power of real-time insights. With the right tools and knowledge, you have the potential to turn market analysis into a dynamic force that propels your business to new heights.

How to Conduct Market Analysis in Minutes?

Looking to supercharge your market analysis? Look no further than Appinio , the real-time market research platform changing the game. With Appinio, you can harness the power of real-time consumer insights to make data-driven decisions that drive your business forward.

• Lightning-Fast Insights: Say goodbye to waiting weeks for market research results. Appinio delivers answers to your burning questions in minutes.
• Instant Decision-Making: With real-time consumer insights at your fingertips, you can make informed decisions on the fly, giving your business a competitive edge.
• User-Friendly and Intuitive: Market research doesn't have to be a daunting task. Appinio's user-friendly platform makes it easy for anyone to access and interpret valuable data.

Say goodbye to the old stigma of market research being boring, intimidating, and overpriced. It's time to unlock the power of real-time insights and drive your success.

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B2B Content Marketing: What It Is and How To Do It

July 24th, 2024 Michael Mayday

Companies that market themselves to other businesses are active participants in what’s commonly called the business-to-business — or B2B — field. And, like the business-to-consumer field, B2B marketers depend heavily on effective, measured and engaging content marketing . 

In fact, B2B content marketing plays a crucial role in the overall marketing mix, contributing to every part of the marketing and sales funnels, from brand awareness to lead and demand generation and more.

To help you on your content marketing journey, we’ve compiled a full guide to B2B content marketing. It covers what B2B content marketing is,how to do it effectively, and how you can build a strategy that works towards your business goals. 

An Introduction to B2B Content Marketing

Before building an effective B2B content marketing strategy, it’s important to understand the basics.

What is B2B Content Marketing?

B2B content marketing is the process B2B companies use to create and distribute content to increase brand awareness, web traffic or leads. That content can take many forms, including blogs, infographics, videos, emails, e-books, social media posts, webinars and more.

What Is the Difference Between B2C and B2B Content Marketing?

The key differentiator between B2B content marketing and B2C content marketing is the target audience. B2B content marketing is tailored to suit other businesses’ needs or preferences, often called “accounts.” This is because a purchase or subscription is often attached to a brand, not an individual user. B2C content marketing targets individual consumers.

This difference has many implications, affecting everything from the topics covered in content to the performance metrics used to gauge success. The table below highlights a few:

What Are the Benefits of a B2B Content Marketing Strategy?

A B2B content marketing strategy structures content marketing efforts, ensuring they align with overall business goals. Depending on what those goals are, B2B content marketing strategies can be tailored to achieve diverse objectives, including:

• Increasing brand awareness
• Improving audience engagement
• Building customer trust
• Generating website traffic
• Converting leads

Types of B2B Content

B2B companies can use diverse content to reach their audience, but these are some of the most popular B2B content types:

Webinars facilitated through digital solutions like the ON24 webinar hosting platform offer an excellent opportunity to deliver valuable, informative content to B2B audiences and engage with individual prospects.

Blog posts are a versatile type of content that can be used to overcome common objections and provide value to leads throughout the B2B buying journey while also attracting organic traffic through search engine optimization (SEO).

Case Studies

Case studies act as a form of “social proof” allowing B2B companies to demonstrate the value their product or service offers to potential customers through real examples of previous successes.

Whitepapers

Whitepapers are almost specific to B2B, often providing in-depth technical explanations or comprehensive expert insights into topics of interest to a company’s target audience.

Infographics

Infographics merge visual and textual information in a simple graphic, which can then be shared through diverse channels, including social media to capture the target audience’s attention.

Video content can serve diverse purposes, from providing product information to summarizing case studies. It can be distributed through channels like social media and is particularly effective at driving engagement, capable of generating up to 1,200% more shares than other content types.

Emails provide an opportunity to engage directly with a target audience, delivering useful content, newsletters, surveys and more straight to potential customers’ inboxes.

LinkedIn Posts

LinkedIn is the social media platform of choice for B2B companies and offers both organic and paid advertising opportunities that can be used to grow an engaged community or drive website traffic.

Podcasts are a growing force in the B2B content marketing landscape, offering businesses the chance to discuss topics of interest to their target audience and build a community of engaged listeners.

Testimonials

Testimonials are another form of social proof, like case studies, but focus solely on communicating positive feedback from previous customers to demonstrate the value of products or services. 

Tutorials, which can be delivered in diverse mediums, including videos, blog posts or live demonstrations, are designed to provide practical guidance on how to use a product.

Step By Step Guide on How to Create a B2B Content Marketing Strategy

Creating an effective B2B content marketing strategy involves careful planning and consideration. Following these steps will help ensure that your strategy is tailored to suit your broader business goals and capable of achieving them.

Conduct Audience Research

Understanding your target audience’s needs, preferences, and challenges is an essential first step in developing an impactful B2B content marketing strategy. This information will provide a basis for your content strategy, ensuring you cover topics that are relevant to your audience.

Audience research can be conducted in many different ways, including by sending out first-party surveys, conducting polls, or using freely available platforms like Answer The Public , Quora and Reddit . 

Website analytics software like Google Analytics can also be useful to get more information about your target audience’s demographics to build accurate customer personas.

Perform a Content Audit

You likely already have a collection of content that could be an untapped resource. Reviewing your existing content to identify pieces you can update or repurpose to suit your new content marketing strategy is often quicker and easier than creating new pieces from scratch.

Conduct a full content audit, analyzing content from across your website and social media accounts to find pieces to add value to your new strategy. Then, consider how you can adapt or improve them to ensure they contribute to your objectives.

Conduct Competitor Analysis in Your Industry

Looking into how your competitors are approaching content marketing and using tools like Semrush or SproutSocial to investigate what kinds of content perform best in your sector are valuable ways to inspire your strategy.

Focus on finding the best-performing competitor content for the metrics you care about, whether organic traffic or social shares, and break down what it does well and where it falls short. You can then use the findings from your analysis as the basis for your own content, adding additional value to the topic by applying your business’s unique perspective. 

Define Your Goals

Establishing specific, measurable, and achievable goals is essential to keeping your content marketing strategy on track and aligned with broader business objectives. These goals will provide guardrails that ensure every piece of content you produce contributes to performance in a way that matters to your business.

If driving more product demo signups is your overall objective, for example, your main B2B content marketing strategy goal might be to increase organic traffic to the product page on your website by 50% in 12 months. Other business objectives, like increasing brand awareness or generating more leads, will inspire different content marketing goals.

Diversify Your B2B Content Marketing Strategy With Different Content Types

Different types of content have varying strengths and weaknesses, so the best B2B content marketing strategies involve diverse content. Video content is particularly effective at generating engagement, while whitepapers are great for communicating expert insights.

As you build your content marketing strategy, consider which content types can contribute to your goals. Remember to factor in the insights you gained through the audience research process to ensure that you’re producing content that resonates with your target audience.

Distribute Your B2B Content Effectively

Creating strong content is only half of the B2B content marketing process – distributing it effectively is also critical. Channels like organic search, social media, email, content syndication networks and paid advertising platforms all present different benefits and can be combined in multichannel campaigns to increase content reach.

Build your distribution strategy around your audience’s preferences, prioritizing the channels they use most to ensure the right people find your content. And think about how you can repurpose content across different channels – chopping webinars up into shorter-form videos for social media, for example.

Measure and Optimize Your B2B Content Marketing Strategy

Taking a sophisticated approach to measuring and analyzing the results from your B2B content marketing strategy is an important part of ensuring high performance. The data you collect from tools like Google Analytics and social media analytics platforms will help you to understand which content and channels work best and which are underperforming.

Stay flexible and experiment with different tactics based on the data you collect. Focus on the methods that are delivering results and tweak the ones that aren’t. Over time, this approach will help you reliably improve campaign performance.

B2B Content Marketing Case Studies That Can Inspire You

Countless combinations of content types and distribution channels can deliver results. The challenge is to find the combination that best fits your goals and your audience’s preferences.

Merrill Corporation, a leading B2B SaaS provider, found content marketing success by applying real-time engagement data from webinars hosted through the ON24 webinar hosting platform to discover which topics resonated with their audience. 

Informatica, an enterprise cloud data management leader, generated millions in pipeline by using ON24’s content hub functionality to build self-service content hubs that offered personalized content journeys to their diverse audience segments.

To maximize the effectiveness of your B2B content marketing, follow these steps when building your strategy:

• Conduct audience research
• Perform a content audit
• Conduct competitor analysis in your industry
• Define your goals
• Diversify your B2B content marketing strategy with different content types
• Distribute your B2B content effectively
• Measure and optimize your B2B content marketing strategy

At each step, take full advantage of tools that can help you understand your audience’s preferences, generate effective content, and learn from data to improve your approach in the future.

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Shifting towards electric vehicles: a case study of mercedes-benz from the perspective of cross-functional teams and workforce transformation.

1. Introduction

2. market trends, future outlook, and challenges, 2.1. market growth and future prospects, 2.2. challenges and future policy implications, 2.3. automotive development process and workforce transition to evs, 3. workforce strategy at mercedes-benz, 4. research methodology, 5. results and discussion, 5.1. “corporate strategy” thematic field, 5.2. “role impacts” thematic field, 5.3. “challenges” thematic field, 5.4. “future plans” thematic field, 5.5. analysis of employee insights on the transition to electric vehicles, 5.6. managerial insights, 5.7. limitations of the study, 6. conclusions, author contributions, institutional review board statement, informed consent statement, data availability statement, acknowledgments, conflicts of interest.

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Achillas, C.; Iosifidou, P. Shifting towards Electric Vehicles: A Case Study of Mercedes-Benz from the Perspective of Cross-Functional Teams and Workforce Transformation. World Electr. Veh. J. 2024 , 15 , 325. https://doi.org/10.3390/wevj15070325

Achillas C, Iosifidou P. Shifting towards Electric Vehicles: A Case Study of Mercedes-Benz from the Perspective of Cross-Functional Teams and Workforce Transformation. World Electric Vehicle Journal . 2024; 15(7):325. https://doi.org/10.3390/wevj15070325

Achillas, Charisios, and Parthena Iosifidou. 2024. "Shifting towards Electric Vehicles: A Case Study of Mercedes-Benz from the Perspective of Cross-Functional Teams and Workforce Transformation" World Electric Vehicle Journal 15, no. 7: 325. https://doi.org/10.3390/wevj15070325

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• Published: 20 July 2024

Novel insights from financial analysis of the failure to commercialise plazomicin: Implications for the antibiotic investment ecosystem

• Nadya Wells   ORCID: orcid.org/0000-0003-4314-3506 1 ,
• Vinh-Kim Nguyen 2 &
• Stephan Harbarth 3  

Humanities and Social Sciences Communications volume  11 , Article number:  941 ( 2024 ) Cite this article

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The need for novel antibiotics to combat emerging multi-drug resistant bacterial strains is widely acknowledged. The development of new therapeutic agents relies on small and medium-sized biotechnology enterprises (SMEs), representing 75% of the late-stage pipeline. However, most SME sponsors of an antibacterial approved by the FDA since 2010 have gone bankrupt, or exited at a loss, below investment cost. Uncovering financial flows related to the development and commercialisation of a single drug is complex and typically untransparent. There is therefore a lack of empirical research on the financial vulnerabilities of these critical SMEs. The development of plazomicin by Achaogen (2004–2019) entailed financial disclosures as a public company enabling application of financial analysis methods to: determine quantum and timing of public and private investments; quantify development costs; and provide a deeper understanding of the role of capital market dependency in exacerbating pipeline fragility. Achaogen’s widely cited bankruptcy, and plazomicin’s commercialisation failure, created a perception that novel antibiotics have zero market value, causing investors to question the SME developer business model. Our analysis of Achaogen’s inability to fund commercialisation suggests three key implications for the antibiotic investment ecosystem: (1) novel antibiotics with narrow approval for small patient populations affected by severe resistant infections cannot be successfully commercialised in the current US antibiotic market; (2) SMEs need incentive payments structured to enable them to survive the commercialisation cashflow drought, and (3) these changes are necessary to restore industry and financial investor confidence in the antibiotic SME development model. Achaogen’s demise demonstrates that proposals to incentivise innovation, e.g. by providing one-off payments at registration, may be insufficient to ensure access to novel antibiotics developed by SMEs. In plazomicin’s case, moreover, US government biosecurity investments have not resulted in access, as the Indian and Chinese companies which bought post-bankruptcy rights have not widely commercialised the drug. This study is timely as new market-based incentives are currently being proposed by the US, EU, Canada and Japan. In order to make further government funding effective, ensuring access, not only innovation, these must support sustainable financial models for the SMEs critical to novel antibiotic development.

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Industry incentives and antibiotic resistance: an introduction to the antibiotic susceptibility bonus

Life sciences intellectual property licensing at the Massachusetts Institute of Technology

Medicare price negotiation and pharmaceutical innovation following the Inflation Reduction Act

Introduction.

The rise of antibiotic resistance is a major global health challenge, imperilling biomedical advances in the treatment of infectious diseases and cancer, as well as safe surgery. Experts have identified multiple challenges to research and development of new therapeutic agents to combat multi-drug resistant bacterial strains (Årdal et al. 2020 ). In 2023, in partnership with the multistakeholder Global AMR R&D Hub, WHO released a progress report for G7 Finance and Health Ministers on the novel antibacterial pipeline. They highlighted insufficient innovation, describing the clinical and pre-clinical pipeline as still inadequate to mitigate the threat of well-established mechanisms of drug resistance (Global AMR R&D Hub and WHO, 2023 ). Economic hurdles have proven particularly difficult to overcome (Harbarth et al. 2015 ; Kostyanev et al. 2016 ). Insufficient profitability led many large pharmaceutical firms to pull out of antibiotic markets (Carlet et al. 2012 ; Paton and Kresge, 2018 ; Projan, 2003 ; WHO, 2017 ). Therefore antibiotic drug development currently relies on small and medium-sized biotechnology enterprises (SMEs). SMEs dominate early-stage clinical research, and make up 75% of the late-stage pipeline (Access to Medicine Foundation, 2021 ). Of the 17 US FDA newly approved antibacterials (2010–2020), 11 were developed with SME involvement (Outterson et al. 2021 ).

However, scarcity of public funding to support commercialisation, and large pharmaceutical firms exiting antibiotic markets altogether, has left these SMEs increasingly financially vulnerable. In other therapeutic areas, large firms often serve as late-stage acquirer or licencing partner. SMEs have therefore become reliant on capital markets Footnote 1 to raise funds (equity and debt financing), leaving them exposed to investor sentiment. Yet the pipeline of new therapeutic agents has dried up partly because returns demanded by investors are unattainable (Årdal et al. 2018 ; Harbarth et al. 2015 ). Indeed, every SME sponsor of an FDA-approved antibacterial since 2010 has gone bankrupt, or had a disappointing exit at a loss, lower than their investment cost (Outterson et al. 2021 ). Several SMEs have gone bankrupt while seeking to fund commercialisation of their newly approved drug (Chris Dall, 2019 ; Terry, 2020 ) rendering many of these new antibiotics inaccessible (Outterson et al. 2021 ). However, a lack of transparency typically makes it difficult to uncover financial flows related to the development and commercialisation of a single drug (Moon, 2017 ). There is therefore little existing research on this critical relationship between financial investors and antibiotic SMEs and their impact on pipeline vulnerability.

In order to overcome this knowledge gap, this paper therefore applies financial analysis methods, to a case study of SME bankruptcy: Achaogen’s development and failed commercialisation of plazomicin (2004–2019). Financial analyses use publicly available, independently audited financial disclosures to evaluate the commercial viability of firms. Financial analysis enables evaluation of the firm’s ability to earn a return on invested capital, grow its operations profitably, generate enough cash to meet its obligations, and pursue growth in order to achieve financial sustainability. Achaogen’s funding pathway, as a publicly listed company after 2014, imposed financial disclosure requirements from the US Securities and Exchange Commission (SEC). Applying the tools of financial analysis to Achaogen’s SEC disclosures allows identification of the factors which ultimately led to Achaogen’s bankruptcy, and the demise of plazomicin, a promising new antibiotic.

Plazomicin, was one of the rare drugs in the pipeline to receive FDA approval in June 2018 under a novel regulatory route (ReAct, 2021 ). Despite targeting serious multidrug-resistant bacterial infections, including WHO priority pathogen carbapenem resistant Enterobacterales (CRE)(SEC, 2014 ; WHO, 2017 ), commercialisation failed. Achaogen was forced to file for bankruptcy in April 2019(Dunn, 2019 ). Analysing Achaogen’s bankruptcy is important because it had ripple effects across the antibiotic development ecosystem. It was seen to imply zero market value for a novel antibiotic (Rex and Outterson, 2020 ). Without a pathway to financial sustainability, investors lost confidence, putting the funding and business models of such SMEs into question. Other bankruptcies followed, resulting in a lack of access to additional novel antibiotics emerging from the pipeline (Outterson et al. 2021 ; Taylor, 2020 ; Terry, 2020 ). This study is timely as new pull incentives to stimulate the pipeline are currently being designed in the US, Japan, Canada, and the EU (Doyle, 2020 ; EFPIA, 2022 ; Mullard, 2020 ). These incentives have the current blended public-private drug development model as their foundation. They are planned to stimulate innovation, and aim to encourage the financial contribution of the private sector, including both pharmaceutical sector and financial investors. This case study shows additional measures that will need to be taken to support sustainable financial models for the SMEs currently critical to antibiotic development.

We used financial analysis methods to illucidate the development history of plazomicin. Data was extracted from regulatory documents, audited financial statements (2014–2018), the IPO prospectus (2014), accompanying commentary by management such as investor presentations or investor call transcripts (2018–2019), and bankruptcy documents (2019).

Achaogen’s regulatory and funding pathways (2005–2019) were identified through financial documentary sources including SEC S1 (SEC, 2014 ) and 10-K reports (SEC, 2017 , 2018 , 2019a ). The clinical trials were confirmed with ClinicalTrials.gov ( https://clinicaltrials.gov search term “plazomicin”). From the financial statements we generated a data set allowing us to classify funders (public, private, and philanthropic). Comparing the regulatory and funding pathways allowed us to quantify the contributions of different types of funders as well as the timing of their investments in relation to the clinical trials, approval, and commercialisation process.

The financial statements and bankruptcy reports were further scrutinised to enable analysis of the economics of failed commercialisation. A comparison was made examining the commercial goals for plazomicin outlined at IPO (2014), which formed the basis of investor expectations, versus the actual commercialisation outcome (2018–19). A close reading of the 4Q2018 earnings call transcript (Achaogen, 2019 ), between Achaogen management, investors, and financial analysts, enabled insight into the operational position of the company as well as capital market sentiment towards Achaogen (this was evidenced in analyst questions). The post-bankruptcy history was traced, from the announcement of purchase of plazomicin rights by Cipla (SEC, 2019b ), to the withdrawal of their market authorization request with the EMA (Cipla Europe NV, 2020 ), and the sale of rights in China (Kurtzman Carson Consultants, 2019 ).

Semi-structured interviews with experts active in the development and commercialisation of novel antibiotics were used to further inform our findings. These key informants in academic, clinical, biotech, financial, and non-profit drug development circles were identified using a combination of authors’ professional networks and published literature. The key informants identified were all experts with direct knowledge of the case study and US antibiotic markets. They provided expert views on the antibiotic investment ecosystem. Seven interviews were carried out, either remotely or in person, between March and July 2022: two in the UK, two in Europe, two in the US, and one in Asia.

The regulatory pathway

As shown in Fig. 1 , Achaogen developed plazomicin from a chemical modification of sisomicin (Aggen et al. 2010 ) and moved it into Phase 1 trials in 2009. Plazomicin was the first drug to receive a novel FDA fast-track designation, to accelerate regulatory review of drugs to treat serious unmet medical needs, after the Phase 2 study completed in 2012 (Connolly et al. 2018 ). The FDA granted Achaogen qualified infectious disease product (QIDP) designation for plazomicin under the GAIN Act Footnote 2 in December 2014, which would add five years to the exclusivity period post-approval. Plazomicin received breakthrough therapy designation Footnote 3 in May 2017 (SEC, 2019a ) and was approved in 2018 with one Phase 3 trial, the EPIC trial (NCT02486627). The primary efficacy endpoints of the EPIC trial were met. Plazomicin achieved non-inferiority with standard-of-care therapy for complicated urinary tract infection (cUTI), and was approved for use in adults with cUTI including pyelonephritis (US Food and Drug Administration, 2018 ). A smaller study, the CARE trial (NCT01970371), compared plazomicin and colistin-based combinations for treatment of patients with serious CRE infection. Insufficient enrollment, leading to a small sample size, resulted in an FDA response letter that denied approval for CRE indications (Eljaaly et al. 2019 ). Achaogen unsuccessfully appealed this decision, hoping to use the limited-population antibacterial drugs (LPAD) pathway. This pathway supports the approval of antifungal and antibacterial drugs to treat serious and life-threatening infections in limited patient populations with unmet needs (SEC, 2019a ). Plazomicin became commercially available in the US in July 2018(SEC, 2019a ), and was added to the WHO Reserve group of antibiotics in 2019 for the treatment of multidrug-resistant pathogens including CRE (SEC, 2019a ; Zanichelli et al. 2023 ).

Plazomicin was developed from a chemical modification of sisomicin.

Achaogen was thus left with approval only for cUTI in patients for whom there was no existing alternative treatment. The FDA approval came with 10 conditions outlining further costly regulatory requirements (Sagonowsky, 2018 ; Taylor, 2018 ) including two paediatric studies: a pharmacokinetic and safety study versus standard of care in hospitalised under 18 s; and a trial specifically for cUTI in under 18 s. Post-marketing requirements included: US surveillance studies for five years to monitor emerging resistance; a clinical study to evaluate the pharmacokinetics of plazomicin in subjects on hemodialysis; and establishment of an FDA-cleared or approved in vitro diagnostic device for therapeutic drug monitoring in cUTI patients prescribed plazomicin (FDA, 2018 ).

The funding pathway

The company navigated the successive trials prescribed by the regulatory landscape with a combination of public and philanthropic grants, and capital market funding (Fig. 2 ). In 2004, a $15.7 m Series A capital raise kickstarted the company, with further venture capital rounds (Series B 2006, Series C 2010, Series D 2013) raising $101 m (SEC, 2014 , p. 1). Before the 2014 IPO, the company also relied on Non-Dilutive Financing (NDF). Grants from US government agencies Footnote 4 , eager to develop novel antibiotics for biosecurity purposes, contributed $106 million (2006–2013). Such non-dilutive funding is prized in biotechnology circles because, unlike equity capital market funding, it does not require additional share issuance. This allows existing shareholders to retain their share of any potential upside (Hollway, 2010 ). Indeed, the Wall Street Journal said “Few have raised “non-dilutive” financing better than Achaogen Inc.”(Austin, 2009 ). Two philanthropic organisations also invested: $13.6 million from the Wellcome (2009–2010), and $10 million from the Bill and Melinda Gates Foundation (BMGF) alongside financial investors in 2017. But in December 2018, Achaogen was forced to repay $5.7 million which had been earmarked for non-plazomicin related R&D Footnote 5 due to a change in the Foundation’s internal priorities. In addition, $7.1 million which had not been drawn down from a $10 million grant agreed with BMGF in 2017 was cancelled (SEC, 2019a ). In 2018, Achaogen received an initial $1.3 million from a $2.4 million CARB-X award.

We analysed funding into Achaogen on a cashflow basis. The funding streams shown in Figure ii, therefore, include cashflows into the company from public grants, which Achaogen reported in their financial statements as ‘contract revenues’, and cashflows into the company from equity investments and debt financing from banks.

After the Biomedical Advanced Research and Development Authority (BARDA) Phase 3 grant in 2013 (which provided $96 million in cash inflows 2014–2018), the firm became almost exclusively reliant on capital markets for additional fundraising. The IPO in 2014 brought in $74 million from new public market investors, followed by $287 million (2015–2018) in equity capital raises. The IPO and post-IPO equity capital allowed the company to raise debt from 2015 onwards. By 2018 they had a $49.8 million loan agreement with Silicon Valley Bank. Fearing Achaogen’s worsening cashflow situation once the firm began commercialising plazomicin, the bank restructured the loan in December 2018. This restructuring left Achaogen with only $26.4 million available from the bank. In February 2019, the firm sought further funding from capital markets, aptly described in an article entitled: “Last Capital Raise Signals Desperation”(Johnson, 2019 ). They raised $13.6 million (having targeted $15 million), aiming to cover expenses for one more quarter. As a result, capital markets, primarily equity investors to the tune of $550 million, were critical to the development of plazomicin. Financial investors provided 71% of Achaogen’s funding, dominating later stages from 2016 onwards.

Commercialisation

Commercialisation costs.

Achaogen’s fortunes took a dramatic turn for the worse as their cash needs increased with the costs of commercialisation (Fig. 3 ). A dedicated US sales force began targeting resistance hotspots and licensing agreements were planned to “maximise the value of plazomicin” in Europe, Asia, and Latin America (SEC, 2014 ). General and administrative expenses rose by $30 million to $71 million in 2018 as they attempted to build marketing and sales infrastructure (SEC, 2019a , b )(Fig. 4 ). R&D expenses peaked at $103 million, reflecting the high cost of late-stage clinical trials. These costs included pre-approval manufacturing of plazomicin (to satisfy the regulatory process), medical affairs, and pharmacovigilance. Financial commitments related to the FDA approval involved a milestone payment to Ionis Pharmaceuticals of $7.5 million, a success fee payment to Solar Capital of $1 million, and imminent manufacturing costs with Hovione for future production of plazomicin, which would amount to $43 million during 2020–2024. In a workshop after the bankruptcy, an Achaogen executive presented post-approval costs for one indication as follows: post-approval regulatory commitments ($27 million); surveillance ($3 million); development of automated antimicrobial susceptibility testing ($5 million)(Cirz et al. 2019 ). The executive called these the “fixed costs of doing business”.

Peak Costs arrived with Trough Revenues by 2018.

Achaogen suffered a Cashflow Drought in 2018 (SEC, 2019a ).

Revenue Constraints

In a 2014 report for investors, a financial analyst forecast US revenues of $63 million and additional EU royalties of $3 million post-approval (Credit Suisse, 2014 ). In fact, by 2018 Achaogen’s revenues were $8.7 million, lower than any other year. These revenues were primarily from public grants, which Achaogen recorded as ‘contract revenues’. Post-approval plazomicin sales revenues were $0.8 million (Fig. 4 ). Achaogen could not generate enough revenue in the US to cover their commercialisation costs. Both the price and volume assumptions on which the company and its investors had based their revenue expectations turned out to be unachievable.

Firstly, expectations of plazomicin’s pricing proved overly optimistic. Achaogen estimated that incremental per-patient hospital cost for antibiotic-resistant healthcare-associated infections was over $15,000 (SEC, 2019a ). This figure justified a potential price point of $15,000 per treatment course for new antibacterial agents for resistant infections, according to a 2013 Pew Charitable Trusts Forum panel (SEC, 2014 ). The IPO financial analyst’s “conservative estimate” in 2014 was $1,300 per day (Credit Suisse, 2014 ). Including the maximum New Technology Add-On Payment (NTAP), which allowed additional payment above the Medicare DRG payment if used in hospital settings, this would have implied a 5-day treatment price of $9,750. In fact, at commercialisaton in 2018, the market entry price was $4955.11 per treatment course (Althobaiti et al. 2023 ). Plazomicin pricing was set with reference to other recent antibiotics including ceftazidime-avibactam, the first new agent with anti-CRE activity, approved in 2015. Wholesale acquistion costs for plazomicin of $945 per day in 2019, based on dosage for a 75 kg patient, compared with ceftazidime-avibactam ($1076) and meropenem-vaborbactam ($990). Exisiting treatments were much cheaper: colistin ($56 per day) and polymixin B ($21.78-$45)(Clancy et al. 2019 ).

Secondly, sales volumes were constrained by several local factors. US healthcare system reimbursement rules encouraged the usage of cheaper existing alternatives. This presented a structural barrier to the use of new agents. The FDA approval also restricted volume by specifying that plazomicin was only to be used in cUTI patients with limited or no alternative treatment options (FDA, 2018 ). Uptake slowed further when Achaogen was forced to restructure to counteract falling revenues and rising costs. The firm began to eliminate field-based sales and medical scientist positions, entailing additional costs of $23 million in the process (SEC, 2019a ). In the US pharmaceutical market context, these sales roles were critical to establishing plazomicin in clinical settings, and the medical team to obligatory post-approval clinical trials. The staff cuts meant only 70% of existing plazomicin purchasers were covered. Market creation and revenue generation were made even more difficult.

Aiming to support their longer-term cash needs, Achaogen extended their debt maturity by five years taking a $49.8 million loan from now-defunct Silicon Valley Bank (SVB)(SEC, 2019a ). However, due to high commercialisation costs and the constrained revenue generation situation, the company’s cash balance fell from $145 million at the end of 2017 to $31 million by the end of 2018 (SEC, 2019a , p. 10). In December 2018, the situation deteriorated further when, fearing the constrained cashflow position, SVB collateralised part of the loan. This left $25 million of Achaogen’s cash blocked. SVB also imposed covenants related to ongoing operations. This meant that if Achaogen failed to achieve certain financial targets, SVB could exercise their right to seize cash, all the company’s physical property, and initiate bankruptcy proceedings. These measures would be triggered in the event of a ‘material adverse change’ in the collateral value, an adverse change in business operations, or a deterioration in the prospects of the company to be able to repay its debt. This conditionality surrounding their debt restructuring in 2018 proved decisive giving the bank the power to force Achaogen into bankruptcy. Management believed they had sufficient cash to survive until June 2019, but would need a further cash injection to survive for longer (Achaogen, 2019 ).

But the cashflow drought at commercialisation scared investors away (Fig. 4 ). Without a path to financial sustainability, capital markets became nervous and funding began to dry up. It became impossible for Achaogen to achieve the bank’s financial targets. Bankers pulled the plug, forcing bankruptcy on April 15 2019 (SEC, 2019b ). Achaogen’s assets (drug rights and lab equipment) were auctioned for $16 million (Carroll, 2019a ). Cipla bought the worldwide rights to plazomicin (excluding China) for an upfront cash payment of $4.65 million with potential additional royalty payments until 2029 in the case of successful commercialisaton (SEC, 2019b ). Cipla subsequently withdrew their planned EU market authorization due to a lack of commercial prospects (Cipla Europe NV, 2020 ). In contrast, Sihuan Pharmaceutical Holdings Group, buyer of the Greater China rights for $4.5 million, shared a prediction of $313 million plazomicin sales for 2022(Sihuan, 2020 ). In fact they did not proceed to Chinese commercialisation, selling exclusive rights for API and formulation in Greater China to New Asia Pharmaceutical in June 2022(SihuanPharm, 2022 ).

Post-bankruptcy

To date plazomicin has not been widely commercialised, but several recent initiatives suggest its potential has not been written off. Cipla started a new clinical trial in the US (NCT04699656) in 2021, and attempted to import and market the drug in India, but Indian regulators rejected the request for a local clinical trial waiver (Medical Dialogues, 2021 ). A Chinese meta-analysis of existing trials was published on efficacy and safety for Enterobacterales(Yan et al. 2022 ). In 2022, a clinical evaluation of a new gradient diffusion method for antimicrobial susceptiblity testing of Enterobacterales was reported by BioMerieux for plazomicin, which could facilitate future prescribing (Blanchard et al. 2022 ). At the time of writing (early 2024), plazomicin can only be ordered through specialty distributors from CIPLA USA Inc. who recently launched a Named Patient Program Footnote 7 with Tanner Pharma Group to provide access for adult patients in countries where plazomicin is not commercially available(Cipla USA, 2024 ; Tanner Pharma, 2023 ).

Our study shows that over 15 years Achaogen raised $770 million while developing plazomicin (Fig. 2 ). Of this 26% came from public grants, 3% from philanthropy (BMGF and Wellcome), and 71% from capital markets (Fig. 5 ). Public funding, primarily from US biosecurity focussed funding agencies, did the heavy lifting during the earlier clinical trial phases. Capital markets were crucial at the beginning and end of the development trajectory. Financial investors funded the launch of Achaogen, became increasingly important as plazomicin trials progressed, and were the only funding source available for commercialisation. Using financial analysis we have identified reliance on financial actors, and at which stage their support is critical. We thus provide a methodology to quantify the dependency of the novel antibiotic pipeline on capital markets. We discuss our findings and their implications for future pull incentives and the antibiotic investment ecosystem in more detail below.

The split of public/philanthropic (29%) and private (71%) funding varied over time with Achaogen increasingly reliant on capital markets in later stages.

US Commercialisation Challenges

Firstly, it is important to explore the challenges driven by Achaogen’s choice of the US as its initial location to commercialise plazomicin. The majority of new antibacterial first registrations between 2010 and 2020 came in the US via the FDA, rather than through alternative regulators. However, economic failure has hit most SME developers of newly FDA-approved antibiotics. Despite the well-documented clinical need for novel agents, the FDA route delivered approval, but not access (Outterson et al. 2021 ). Our analysis has found that regulatory context, clinical practice, reimbursement models, and the epidemiology of resistance all impacted the potential for successful US commercialisation. Was plazomicin the wrong drug, in the wrong place, at the wrong time?

Regulatory context

Our findings suggest the regulatory context contributed to limiting market size. At its initial public offering (IPO) in 2014, Achaogen told investors they hoped to establish a market niche for plazomicin for the treatment of severe CRE infections including hospital-acquired bacterial pneumonia, ventilator-associated pneumonia, catheter-related bloodstream infections, complicated intra-abdominal infections, and complicated urinary tract infections (cUTI) (SEC, 2014 ). However, it proved difficult to recruit sufficiently to the CARE trial, resulting in the FDA rejecting the CRE indications. Achaogen was left with the narrow cUTI approval based on results of the EPIC trial(Clark and Burgess, 2020 ). This oucome reflects debate among experts that the clinical trial pathway itself, increasingly focused on being “leaner and meaner”, contributes to very narrow label approval(Bradford, 2020 ). Some stakeholders, therefore, suggested that plazomicin’s US commercial failure was the market acting appropriately, because sufficient additional clinical merit versus existing alternatives had not been demonstrated(ReAct, 2021 ). Other newly approved antibiotics, which have similarly failed to establish themselves, have been similarly criticised, but can they really all be ‘bad drugs’? In plazomicin’s defence: it was directed at multi-resistant gram-negative bacteria, a critical novel antibiotic need according to the Pew Pipeline Study(PEW Trusts, 2019 ; Shaeer et al. 2019 ), and was included in the WHO Reserve group of antibiotics. Additional studies have noted that in the CARE trial plazomicin demonstrated potential against CRE (Eljaaly et al. 2019 ), with a lower all-cause mortality or significant disease-related complication rate compared with colistin(Shaeer et al. 2019 ).

Clinical practice

Potential market size may also have been impacted by US clinical practice. Our informants suggested US prescribers may have been hesitant to prescribe a new aminoglycoside due to the complexity of administration, and risk of adverse events (Chaves and Tadi, 2022 ). Clinical uptake may have been limited by potential toxicity issues (nephrotoxicity and ototoxicity), a requirement for laboratory capacity for blood level determination, and US clinicians’ unfamiliarity with aminoglycosides as a monotherapy in critically ill patients. Additionally, accurate antimicrobial susceptibility testing, essential for the timely updating of treatment guidelines, may not have been available (Patel et al. 2023 ). The US National Antimicrobial Susceptibility Testing Committee argued that susceptibility test interpretative criteria (STIC) needed re-evaluation. The absence of automated susceptibility testing was found to hamper the uptake of newer antibiotics including plazomicin (Clancy and Nguyen, 2019 ). For example, researchers found that three new agents for the treatment of CRE were used in only 35% of cases where they might have been expected instead of existing polymixins. This is despite CRE being defined by US CDC as ‘nightmare bacteria’(CDC, 2013 ). The application of a more appropriate STIC comparator could demonstrate the clinical superiority of plazomicin, supporting its use by clinicians (Ambrose et al. 2020 ). In addition, the review of new antibiotics before inclusion on hospital formularies takes many months, slowing sales in the years after launch.

Reimbursement models

Moreover, local reimbursement policies worked against plazomicin. In the US, the Centers for Medicare and Medicaid Services (CMS) provide healthcare insurance coverage for over 100 million Americans(US Government, 2024 ). CMS rules on the use of diagnosis-related groups (DRGs) drive reimbursement decisions within healthcare facilities. Under the DRG system, a single lump sum payment is made to hospitals for all the care a patient receives, including the cost of any antibiotics administered. Our informants suggested cost allocation within clinical settings, potentially pushing this cost onto the hospital pharmacy’s budget, could incentivise prescribing existing cheaper alternatives. A more expensive novel drug may push the cost of care over the DRG reimbursement limit. As Outterson stated: “Losing $10,000 per DRG because a physician chose to use a newer antibiotic puts the hospital budget at risk” (Outterson, 2019 ). After Achaogen’s bankruptcy, a CMS spokesperson acknowledged that plazomicin’s commercial failure “occurred in part because Medicare’s volume-based approach to payment was insufficient at capturing the full public health benefit of the antibiotic, causing taxpayer dollars to be used inefficiently”(Verma, 2019 ).

Epidemiology of resistance

Meanwhile, the epidemiology of resistance means that novel agents are only needed for small populations in the US where, currently, severe antibiotic resistance is relatively rare. Achaogen estimated a cUTI patient population of 1 million, and CRE of under 100,000 (Achaogen, 2018 ). In terms of revenue, the entire US market for new antibiotics targeting CRE infection was estimated to be $289 million per year(Clancy and Nguyen, 2019 ). Yet experts estimated that a novel antibiotic developer would need revenues of $350 million over 10 years to break even without covering “repayment of investors, clinical studies, additional indications” (Rex and Outterson, 2020 ). On this basis, plazomicin would have needed a significant market share within these patient populations to generate sufficient revenues to reach financial sustainability. This begs the question of whether novel agents with narrow approval are viable in countries where severe antibiotic-resistant infections are rare (i.e.typically high-income countries), and whether this new antibiotic was ever going to be commercially viable in the US.

Wrong drug, wrong place, wrong time?

This case study has shown that local factors played an important role in Achaogen’s demise. Potential market size was driven by: the regulatory pathway, which contributed to restricted revenues through limited indications; existing clinical practice; cost-conscious healthcare providers using less expensive and still effective existing antibiotics; and the epidemiology of resistant infections. Such commercialisaton factors differ across geographies. However economic challenges in the US antibiotic market were echoed in Cipla’s withdrawal of their European approval request on commercial grounds, despite a significantly lower initial market entry price of $4.65 million(SEC, 2019b ). Cipla’s attempt to get approval in India in 2021, and Sihuan licencing in China in 2022, suggest these firms may see some future for plazomcin in middle-income contexts (MICs) (Medical Dialogues, 2021 ; SihuanPharm, 2022 ). Time will tell whether the Chinese or Indian markets for plazomicin prove commercial, or whether different incentive models or state intervention in those countries will support alternative access models.

The plazomicin case study shows the choice many companies make to begin commercialising in HICs can have downstream implications for global access. Plazomicin and several subsequent FDA-approved antibiotics remain inaccessible due to SME bankruptcies following failed US commercialisation(Outterson et al. 2021 ). In this case, the wrong drug, considering US aminoglycoside prescribing preferences, was commercialised in the wrong place, i.e. the US (for all the reasons previously discussed), at the wrong time, considering the epidemiology of severe resistance. Despite the considerable contribution of US public funders to plazomicin’s development, and the even greater contributions of capital market investors throughout the 15-year development trajectory (Fig. 2 ), due to the constraints of US antibiotic market conditions, it was impossible for plazomicin to prove commercial viability.

Antibiotic market failure: SMEs cannot fund their cashflow needs

Secondly, financial analysis of the development of plazomicin has evidenced in detail the revenue constraints faced when launching a new antibiotic and the high and immediate cashflow challenges of commercialisation. Use must necessarily be restricted to protect the precious novel agent from emerging resistance (i.e. stewardship practices) but health systems are not structured or incentivised to pay for the societal protection of having a novel agent available only when necessary. Unlike other therapeutic areas where novelty is typically rewarded with pricing power, in antibiotics there is downward pressure on both volume and price. This is widely viewed as market failure(Busfield, 2020 ; Spellberg et al. 2012 ). Stewardship limits market size, encourages shorter treatment courses, and cheap generic use pressures profitability across the therapeutic area(Outterson, 2009 ; Tillotson, 2012 ). Incentivising sales volume under patent protection in the early years of commercialisation is not acceptable anymore for novel antibiotics(Gagnon, 2013 ; Harbarth et al. 2015 ; Outterson, 2014 ).

SMEs need to have sufficient cashflow to make multi-year manufacturing and distribution agreements, establish themselves in clinical settings, and fund necessary post-authorization trials. The cashflow gap in 2018 was stark with only $0.8 million in revenue generated from plazomicin sales (Fig. 4 ). Based on our data we estimate by 2019, Achaogen’s annual cash burn was over $60 million just for operational expenses. Additional marketing and regulatory expenses, at and after approval, arrive simultaneously when the revenue stream is too small to sustain SME viability through the years needed to establish the new product. While larger firms can choose to cross-subsidise launch expenses, covering losses with profits from their already established products, SMEs cannot do this and need to continue to raise external funding to support the launch and establishment of the product. For an SME to reach financial sustainability they would need one of two scenarios: either sufficient revenues from prices and/or volume high enough to cover the costs of commercialisation; or, visibility that this will come over time. Expectations that financial sustainability is achievable in future encourage equity investors to continue to speculate on commercial success. Equity investments in turn allow the company to take on bank loans to plug the cashflow holes. This case study shows Achaogen’s cashflow drought became irreversible when investors took fright and funding dried up.

Speculative innovation requires investor confidence

Thirdly, investor fears proved contagious, spreading across the antibiotic investment ecosystem. As one expert put it: “The future development of antibiotics is currently at risk, with investors leery after Achaogen’s bankruptcy filing” (Årdal et al. 2020 ). During the 2018 Achaogen earnings call, a financial analyst said “large pharma companies are just not seeing the value proposition of the economic returns on developing antibiotics” (Achaogen, 2019 ). Experts have acknowledged the consequences for antibiotic R&D (ReAct, 2021 ). For Achaogen this absence had two important additional negative financial effects. Firstly, in other therapeutic areas large pharmaceutical firms typically potentiate SME success, as they often step in at commercialisation and build the new market(Melchner von Dydiowa et al. 2021 ). When Achaogen needed capital, however, large firms were exiting antibiotic markets(Paton and Kresge, 2018 ; Plackett, 2020 ). Secondly, the industry investor exit in 2018 exacerbated capital flight from the antibiotic investment ecosystem(San Franciso Business Times, 2018 ). “Speculative innovation, capital market liquidity, business model complementary narratives and favourable capital market conditions are required to keep it all going”(Andersson et al. 2010 ), especially where there are no profits, as is the case for the majority of small antibiotic developers.

A belief in the future value of the business model, validated by an industry partnership or acquisition, is vital to support the route whereby “massive government spending on knowledge-creation combines with stock market speculation to attract finance into biopharmaceutical companies” (Lazonick and Tulum, 2011 ). Indeed, Achaogen’s bankruptcy itself worsened the environment for attracting capital into the antibiotic pipeline (Chris Dall, 2019 ; Mullard, 2019 ). The crisis of investor confidence in the business model generated a 95% fall in equity valuation in the year before bankruptcy (Farrar, 2019 ) leaving Achaogen unable to continue to tap capital markets. The ensuing cashflow drought and bankruptcy generated negative sentiment in the antibiotic investment ecosystem, with ramifications for other SMEs’ ability to survive (Mullard, 2019 ). Bankruptcy followed at Aradigm and Melinta, further denting investor confidence (Taylor, 2020 ; Terry, 2020 ). Continuing to lose SMEs to bankrupcty would be a poor outcome. In addition to their role in innovation, the DRIVE-AB survey found that European SMEs seek to deliver novel antibiotic development up to phase 2 at lower costs than large pharma (Årdal et al. 2018 ).

But rebuilding investor confidence requires a track record of positive outcomes, which can take the shape of “exit events”. In financial terms, exit is either by bankruptcy, M&A, or by IPO (Burns et al. 2009 ). The exit prospects indicate positive or negative outcomes: fewer exits mean firms surviving, more exits suggest acquisitions and room for new entrants unless the exit route is dominated by bankruptcy, which has unfortunately been the case in antibiotic innovation by SMEs ( Carroll, 2019a ; Mullard, 2019 ; Taylor, 2020 ; Terry, 2020 ) . Showcasing the possibility of successful and profitable exit by investors, can spur innovation and the new product pipeline (Burns et al. 2009 ). The dependency of antibiotic developers on capital markets found in this case study, indicates that industry and financial investor confidence must be robust if we are to continue to rely on SMEs as the engine of the pipeline.

Implications for New Pull Incentives

Industry and financial investors often claim that bringing in more public funding at commercialisation would restore investor confidence. Several governments are exploring new financial models. The UK, Sweden, and more recently Japan and Canada, have either proposed or launched access-driven pull models to build the pipeline while protecting existing medicines (Infectious Diseases Society of America, 2020 ; Outterson and Rex, 2023 ). These are subscription models, fixed annual payments or an agreed minimum revenue, in return for guaranteed supply of an antibiotic over a specified time period, while delinking revenue from volumes sold. Such models improve cashflow visibility and seem to be enhancing access to antibiotics included in the pilot schemes such as cefiderocol (Outterson et al. 2021 ).

Additional market-based solutions are currently under discussion. In the US, the PASTEUR Act, if passed by Congress, would establish a subscription-style model offering successful antibiotic developers an upfront payment for access to novel antibiotics (Doyle, 2020 ). In the EU, a proposed transferable exclusivity extension (TEE) would grant the successful antibiotic developer a patent extension applicable to an already approved drug, which could either be kept or sold to another firm (EFPIA, 2022 ). Experts have outlined reasons why they believe these incentives are flawed, forcing society to pay more while reducing access to already commercialised patented drugs, and do not yet go far enough for incentivising antibiotic development (Årdal et al. 2023 ). Indeed, some experts believe that pull incentives privilege the conventional market driven paradigm despite evidence that the commercial market model has stopped functioning (Glover et al. 2021 ; Klug et al. 2021 ). These experts believe public funds are mobilised to sustain a currently unviable ecosystem.

In light of these claims, our financial analysis provides lessons for avoiding further government and philanthropic funding being spent on innovation without ensuring access (Farrar, 2019 ). In plazomicin’s case, US government biosecurity investments, which supported development up to Phase 3 trials and FDA approval, have not resulted in access. Plazomicin failed the US commercialisation test and remains inaccessible. This case study demonstrates the risk that one-off payments at registration may incentivise innovation, pulling antibiotics through to regulatory approval, but will not necessarily support the longer-term cashflow needs of commercialisation and sustainable access. Knowing that establishing a novel antibiotic market can take up to 10 years post-authorisation, an open question is whether currently proposed pull incentives will provide sufficiently long-term cashflow support. The plazomicin case study suggests that for these incentives to work for SMEs, they will either need to provide sufficient long-term public funding to cover costs for the multi-year commercialisation and market creation period, or be structured to crowd in capital market and/or industry investors, or both.

As reliance on debt funding with strict covenants exacerbated the cashflow crisis for Achaogen, our study also suggests there may be a benefit in creating incentives tailored to supporting bank financing for SMEs. For SMEs to receive sufficiently long-term loans to support commercialisation, banks could for example, be reassured by revenue guarantees from multi-year subscription agreements akin to advance market committments used in other therapeutic areas such as vaccines. Alternatively, incentive structures which guarantee cashflow visibility over the ten-year commercialisation period could also support the development of bond-like structures in the current context of increasing focus by mainstream investors on their social mission and global systemic risks. Investors in ‘antibiotic bonds’ could be repaid through guaranteed purchase contracts backed by public health funders. Such longer-term cashflow support initiatives could contribute to the ability of the ecosystem to leverage grant and equity financing, thereby generating a multiplier effect of any public money forthcoming in new incentive structures.

Structuring new incentives in order to enable antibiotic SME developers to survive and play their role in the pipeline is one piece of the puzzle. Our study highlights that it will also be critical for policy makers to ensure new pull incentives are structured to incentivise context appropriate access, incorporating global stewardship (Outterson and Rex, 2023 ). Clinical need for new agents has become more acute after the pandemic (CDC, 2022 ). Therefore launching plazomicin may prove relevant, for example, in countries with well-established aminoglycoside usage as well as high CRE rates. The buyers of plazomicin rights may choose to commercialise, potentially in India and China, the homes of Cipla and Sihuan. Considering the higher AMR burden outside HICs (Wellcome, 2020 ), to protect plazomicin for future use against emerging antibacterial resistance, deployment of this new agent would need to be done within global stewardship frameworks. Incorporating conditionality into any new incentive structures, such that access and stewardship objectives are included, will be important considerations. Our study suggests that these should continue to apply as a condition of having received public funding, regardless of whether the antibiotic subsequently changes hands in a sale of rights, or is deployed in new geographies.

A Successful Pathway

This case study demonstrates one outcome of the current antibiotic investment ecosystem: SME bankruptcy, which has unfortunately been all too common. Further financial analysis of the trajectories of other recently approved antibacterials within SMEs, which have publically disclosed their financial data, would be helpful to elucidate a contrasting case study of successful commercialisation. Three other SMEs launched new products in 2018/19 after plazomicin and similarly reported revenues dwarfed by the costs of commercialisation: Paratek Pharma’s omadacycline, Tetraphase’s evracycline and Nabriva’s lefamulin(Bhavnani et al. 2020 ). Tetraphase was sold in 2020 at a valuation close to the company’s cash balance which put no value on evracycline (Bhavnani et al. 2020 ) while Nabriva declared commercial failure in 2023 (Nabriva Therapeutics PLC, 2023 ). Omadacycline, also struggled initially, generating $3.1 m in revenue versus $32.6 m in losses in Q3 2019(Bhavnani et al. 2020 ) before financial sustainability was boosted with a US government BARDA post-approval award in December 2019 under Project BioShield. Both the drug and the firm survived with Novo Holdings and financial investor Gurnet Point Capital announcing their acquisition of Paratek for $462 million in September 2023 (novo holdings, 2023 ).

Project Bioshield was established in 2004 to accelerate the R&D, purchase and availability of medical countermeasures for national security threats (Larsen and Disbrow, 2017 ). Paratek’s award, valued at $304 million by 2023, supported US onshoring of manufacturing, all FDA post-marketing requirements related to the initial approval, and the procurement of up to 10,000 treatement courses for anthrax (Contract Pharma, 2022 ). In contrast to Achaogen, the large post-approval fixed cost base for commercialisation would be covered by a government grant. Revenue and cashflow certainty came from a purchase agreement for a specific volume of omadacycline. Indeed, in Novo Holdings’ announcement of their acquisition they heralded: “Paratek’s successful commercialisation platform”, proven last mile distribution, and sustainability in the US market (novo holdings, 2023 ). Omadacycline is also used in both hospital and community settings, but in contrast to plazomicin received approval for a wider range of indications, and is reportedly benefitting from off-label use for the treatment of Mycobacterim abscessus infections(Duah and Beshay, 2022 ; Mingora et al. 2023 ). Future research using financial analysis methodologies to understand the critical inflexion points which allowed Paratek with omadacycline to achieve financial sustainability would generate additional lessons which could inform future policy action on support for the SME led antbiotic pipeline.

Implications for the antibiotic investment ecosystem

In April 2019 a financial commentator starkly stated: “The larger story of the Achaogen bankruptcy is that the financial structures that sustained antibiotic development for decades are broken” (McKenna, 2019 ). Indeed in the past, as our case study highlights, public funding has been more focussed on pre-authorisation ‘push’ stages, while the poor profitability of antibiotic markets means the commercialisation “exit” route for an SME to ‘Big Pharma’, as licensing partner or acquirer, has diminished as several large firms exited antibiotics altogether. In turn, the absent financial pull factor of potential industry investment has a detrimental effect on finanical investor sentiment, while simultaneously leaving the SME driven antibiotic pipeline dependent on capital market financing. Yet investors demand iron-clad financial incentives to continue to speculate on commercial success. Without sufficiently long-term cashflow visibility, and a route to SME financial sustainability, speculative capital markets cannot be relied upon to invest in commercialisation. A vicious cycle putting the blended public private funding model for SME antibiotic developers at risk. Three key implications for the antibiotic investment ecosystem are: (1) novel antibiotics with narrow approval for small patient populations affected by severe resistant infections cannot be successfully commercialised in the current US antibiotic market; (2) SMEs need incentive payments structured to enable them to survive the commercialisation cashflow drought; and (3) these changes are necessary to restore industry and financial investor confidence in the antibiotic SME development model.

Following Achaogen’s bankruptcy, the Wellcome Trust called for governments to “send an immediate signal to companies and investors that the future is not as bleak as the present” (Farrar, 2019 ). Plazomicin proved to be the wrong drug, in the wrong place, at the wrong time. In this case commercialisation “location”, i.e. the US, proved fatal. Post-bankruptcy, rights were bought out by companies from India and China, whose recent actions suggest they may attempt to commercialise first at home rather than in the US/EU. While the clinical need and potential for commercial success may indeed prove greater in China and India, this would nevertheless be paradoxical for a drug developed with considerable US government biosecurity funding. For other global health needs, such as recent COVID vaccine development, partnering between the public and private sector has not only focussed on funding R&D, but also on market shaping, and is increasingly incorporating global access conditionality. For antibiotics, such focus has so far been insufficient and is critical considering the need for global stewardship to protect precious new drugs from over use. This case study therefore has important implications for currently proposed pull incentives, which will need to support commercialisation of context appropriate drugs beyond approval, providing SME developers sufficient visibility on cash flow to survive commercialisation. The critical global health need for novel antibiotics relies on an SME dominated pipeline, action to support SME financing is urgent to enable them to deliver sustainable access, not only innovation.

Data availability

The data analysed in this study are available in supplementary materials.

In this paper we use the term capital markets to mean financial markets where SMEs have raised funds from financial investors, selling equity (shares in the company), and/or taking on bank loans to finance the immediate cashflow needed to fund later stages of drug development and commercialisation.

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Acknowledgements

The authors would like to thank participants at the ‘Boom, Bust and Antibiotics’ opening conference of the DryAp project in Oslo, June 2022 for their feedback on an early presentation of this case study and Professor Kevin Outterson for his comments on an earlier draft of this manuscript. We would also like to thank researchers Alisa Gessler and Seraina Kull for their early input in development of the case study. This research was funded by the Swiss National Science Foundation, grant number 189186.

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Wells, N., Nguyen, VK. & Harbarth, S. Novel insights from financial analysis of the failure to commercialise plazomicin: Implications for the antibiotic investment ecosystem. Humanit Soc Sci Commun 11 , 941 (2024). https://doi.org/10.1057/s41599-024-03452-0

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Seizing growth opportunities in a dynamic ecosystem

• 21 minute read
• July 16, 2024

As the E&M industry grows to US$3.4 trillion by 2028, large new revenue pools—in advertising, streaming and emerging markets—are forming.

In 2023, the entertainment and media (E&M) industry recovered its balance. In the face of economic headwinds and technological disruptions, total global revenue rose 5% to US$2.8 trillion in 2023—easily outpacing overall economic growth. Over the next five years, the E&M complex will grow at a more muted 3.9% CAGR; in 2028, total revenues will top US$3.4 trillion.

In aggregate, the industry’s ship seems to be sailing through calm seas on an even keel. But the surface is continually roiled by cresting waves and deep troughs, with dangerous shoals and reefs lurking everywhere. Disruption, presenting opportunities and risks, continues to break over the sector. Linear value chains are disaggregating as we move into a world dominated by digital ecosystems. The content boom driven by rapid streaming growth has come to a halt. Generative AI is promising to deliver efficiency and productivity gains while powering new ways of doing business across and between multiple industries. It all adds up to widespread uncertainty. In PwC’s 27th Annual CEO Survey , 57% of E&M CEOs, compared with 45% of all CEOs, said their current business path would no longer be viable in ten years.

The good news? In 2028, an additional US$597 billion in revenues will be available to E&M industry participants, compared with 2023. And the key to taking a share of these growing revenue pools will rely on business model reinvention (BMR), which has evolved from a strategic option into an existential imperative. BMR goes beyond tinkering around the edges to boost margins by a few basis points or seek incremental growth. Rather, the necessity is to reimagine how your company creates, delivers and captures value . This involves fundamental changes to how businesses make money, serve customers, and address the geographic and business sectors that are growing most rapidly.

PwC’s Global E&M Outlook 2024–2028 provides a compass for leaders as they navigate the coming years. It serves as a comprehensive global guide to which segments and markets will grow, which will founder, and which are in danger of sinking. As companies reinvent their business models, they have to understand precisely where—in which regions and in which subsectors—new pools of revenues will form. We’ve identified four major areas of opportunity.

Opportunity #1: Advertising

It’s increasingly challenging to drive revenue growth by selling E&M products directly to users. Of the three major categories—consumer spending, connectivity, and advertising—consumer spending is both the smallest and slowest growing. The connectivity category, what people pay for fixed and mobile services, topped US$1.1 trillion in 2023. Growing only modestly through 2028—as people remain willing to spend more to ensure they have access to all that the E&M industry has to offer—it will continue to be the largest category. (Note: Reported and forecast data for connectivity are higher this year than in previous versions of the Outlook. The definition has been expanded from an imputed share of service revenues to include all service revenues as reported by the largest industry players.) But the real growth story, the biggest opportunity, lies in what companies are willing to pay to reach consumers, whether they are on phones, playing games, on the road, or on e-commerce sites. Advertising, which surpassed consumer spending in 2023, is projected to top US$1 trillion in 2026, and will grow at a 6.7% CAGR through 2028—when ad spending will be nearly double the 2020 total.

With advertising accounting for 55% of total E&M industry growth over the coming five years, it is poised to become a more important part of companies’ business models—even for those that had previously avoided ad revenues. For strategic reasons, all participants in the E&M industry need to become more proficient at selling ads—and more effective at making them generate value for all participants in the ecosystem. Changes to the way businesses approach the ad business will be seen in three key areas: The monetisation of data will fuel more sophisticated advertising models. There will be closer connections between the discovery of products and services and their purchase and consumption. And companies will have to understand how global privacy regulations impact growth.

Despite headwinds including limited ad budgets, discussion of regulation, and continuing geopolitical and economic uncertainties, internet advertising grew 10.1% in 2023, adding US$52.5 billion in new revenues. After rising at a 9.5% CAGR through 2028, internet advertising will account for 77.1% of total ad spending. And of the ten Outlook components projected to exhibit the fastest growth over the forecast period, most fall under the umbrella of internet advertising. The fastest-growing is retail/other display internet advertising revenue, which consists mostly of non-video display ads on retailers’ apps and websites. This pool is growing especially fast in more mature e-commerce markets like the US, where it will rise at a CAGR of 21.6% to US$31.7 billion in 2028, from US$11.9 billion in 2023.

This broad advance of ad revenues underlines the wider opportunities for other E&M players. Addressable, measurable ads delivered on TV screens will become a vital contributor to the revenues of direct-to-consumer online video providers. Online connected TV (CTV) ads, which are served during video programming, are projected to double, from US$20.5 billion in 2023 to US$41.2 billion in 2028. Retail media players are increasingly experimenting with ‘shoppable TV’ advertising, which makes it possible for consumers to buy products direct from ads on television and on videos—an opportunity underlined by US retailer Walmart’s purchase of smart TV manufacturer Vizio in February 2024. As more consumer attention migrates away from traditional television to user-generated, short-form content, advertisers may need to follow this migration with approaches that go beyond the 30-second or 15-second spot. These may include relying more on influencers, offering experiential promotions, and tapping into new technologies that enable creative messaging.

Opportunity #2: Rethinking business models

The streaming world, the subject of so much attention in recent years, neatly encapsulates the industry’s broader challenge. Usage and consumer uptake of the core offering is continuing to increase—albeit at a lower rate than in recent years—but companies are having greater difficulty getting people to pay more for digital goods and services. As the number and range of streaming services proliferate, a form of market saturation has begun to kick in. Global subscriptions to over-the-top (OTT) video services will rise to 2.1 billion in 2028 from 1.6 billion in 2023—representing a 5.0% CAGR. But global average revenue per OTT video subscription will barely budge, rising from US$65.21 in 2023 to US$67.66 in 2028.

This plateauing effect is already pushing leading streamers to reshape their business models and find new revenue streams beyond subscriptions. The big three Western global players in the streaming sector—Disney+, Netflix and Amazon Prime Video—all rolled out ad-funded ‘hybrid tier’ offerings, in which consumers agree to view ads in return for paying a lower subscription fee. In an expanding number of markets worldwide, many smaller or regional players are following suit. The introduction of an ad-based variant is often accompanied by other measures to boost revenues, ranging from cracking down on sharing of passwords to investing in ‘appointment viewing’ content, such as live sports, to attract both subscribers and advertisers.

As subscription revenue growth levels off, global advertising VOD (AVOD) revenue will continue to grow at double-digit rates through 2028—for a five-year CAGR of 14.1%. By 2028, advertising will account for about 28% of global streaming revenues, up from 20% in 2023.

The business model reinvention underway in the OTT space also includes a wave of consolidation and rationalisation initiatives. Disney+ Hotstar in India was created in 2020, after Disney acquired Star India’s parent company, 21st Century Fox. After several challenging years, in February 2024, Disney’s Star India struck a US$8.5 billion merger with Viacom18, a unit of the conglomerate Reliance Industries, which owns the larger Jio OTT platform. India’s fragmented OTT market—which will be the world’s fastest growing in the next five years, with total revenue hitting US$4.3 billion in 2028—is ripe for consolidation, with around 101 million paid subscribers and 58 OTT platforms, about half of which are regional players operating in local languages. Speculation about deals is being fuelled by the increasing involvement of international E&M companies in India. To name one example, Warner Bros. Discovery opened its GCC (Global Capability Center) in Hyderabad in September 2023.

OTT consumers in China subscribe on an individual basis by channel rather than paying a subscription for the whole household—for example, a person buys a membership for a first-window screening of a drama or variety show. A single compelling show can dramatically boost a streamer’s memberships and share prices. Content that has achieved that effect this year includes Tencent’s drama Blossom Shanghai . The first television series from famed director Wong Kar-Wai not only attracted new members, but it also featured more than 200 product placements and boosted tourism to Shanghai.

In developed markets, by contrast, a different form of consolidation is taking place: the return of the bundle. With customers reluctant to endlessly expand their subscription purchases, major players are slowly reconstituting a version of the cable offering. In the US, Disney and Warner Bros. Discovery have teamed up to offer a Disney+-Hulu-Max bundle, and Disney, WBD and Fox Corp. are launching a live sports bundle called Venu Sports . Comcast is offering its TV and broadband customers a service called StreamSaver , bundling Peacock, Netflix and Apple TV+. And in a complete reversal, we are starting to see early indications that IP owners/creators are migrating back to potential licensing deals with streaming competitors to generate incremental margin.

Opportunity #3: Gaming

The global obsession with gaming continues to produce rising revenues, even as some companies that expanded rapidly in the covid era have reduced employment. Global video games revenue—which includes esports, still a very small component—reached US$227.6 billion in 2023, up 4.6%. It’s among the fastest-growing large sectors in the E&M universe, with revenue on track to top US$300 billion in 2028—more than double its level in 2019. Although the pace of annual growth will decline as the segment matures, in 2028, gaming will account 9% of the entire E&M industry.

Historically, revenues from video gaming have been dominated by subscriptions and purchases of games. But advertising is gaining prominence. Of the two main revenue sources, app-based social/casual gaming revenue (US$82.9 billion) was narrowly ahead of in-app games advertising revenue (US$72.4 billion). By 2028, the latter will rise at a 15.4% CAGR globally to US$147.9 billion in 2028, while the former will grow at just a 5.15% CAGR, to US$106.6 billion. By 2028, social/casual gaming will account for more than three-quarters of the overall global video games and esports market.

Gaming is a global business. But the culture of gaming—and the business models that support it—varies significantly from country to country. The biggest region globally for total video games and esports revenue is Asia Pacific. (The Asian Games, held in Hangzhou in the fall of 2023, included esports as an official medal event for the first time.) In 2023, video gaming in the region generated revenues of some US$109.6 billion, 48.1% of the segment’s global total. By 2028, the region will account for US$181.8 billion in gaming revenues, or 54.4% of the total.

The leading region is not a monolith. Within Asia Pacific, total video games and esports revenue in Indonesia is projected to rise at a CAGR of 16.0% through 2028, which makes it the third-fastest-growing video games market (tied with Pakistan). The Indonesian Government is strongly supporting the industry’s development in the country, working to help it resolve challenges in areas such as funding, talent, infrastructure and regulation. In Japan, where video gaming is hugely popular across all age groups, gaming benefits from its close association with the traditional Japanese anime content that’s gaining a growing global audience.

As the gaming sector grows, investments in new products, new technologies and new business models will increase. Nintendo is likely to release the next generation of its popular Switch console in 2025. To appeal to younger demographics, companies are focusing on more compelling collaborative, social game play. And in February 2024, Disney and Epic announced a deal to work together to create an ecosystem that would envelop Fortnite and the worlds of Pixar, Marvel and Star Wars.

Opportunity #4: High-growth geographies and segments

Just as the growth potential in video gaming varies by region and country, the same divergence of opportunity applies across different E&M markets more generally. The matrix below charts country-by-country E&M revenue against its projected growth rates. (It’s important to note that this chart excludes connectivity revenue, which we feel would blur the picture.) The biggest pools of revenue growth lie in two principal areas: regions that are already big and growing relatively rapidly, and those that are relatively small and growing extremely quickly. And for many major players, low per capita spending power in some markets poses a challenge.

The US, representing more than one-third of global spending in 2023, remains the world’s biggest E&M market for the combined advertising and consumer spending markets by a wide margin. But this scale brings with it maturity and hence relatively slower growth, which is projected to run at a 4.3% CAGR through 2028—behind the global rate of 4.6%.

Among the larger markets showing rapid growth, the clear stand-outs are Indonesia and India, followed by China, at a 7.1% CAGR. By 2028, China’s advertising and consumer spending revenues (US$362.5 billion) will be less than half of those in the US (US$808.4 billion). Each of these territories has its own distinctive market dynamics. India will be the world’s fastest-growing OTT video-streaming market over the forecast period, serving its vast, diverse and widely dispersed population—many of whom are obsessed with sports content in general, and cricket in particular: Reliance’s JioCinema app attracted a record 32 million viewers for the 2023 Indian Premier League (IPL) final between Chennai Super Kings and Gujarat Titans. And China’s continued strong growth means it’s steadily closing the gap on the US in terms of market size, although tight government regulation can make investing there more complex than in other territories.

Among the relatively small markets that show extremely rapid growth, Nigeria (10.1% CAGR through 2028) leads the way. It has a predominantly young population of 220 million consumers, and is widely acknowledged as Africa’s leading E&M hub, home to the world-renowned Nollywood movie industry, which produces around 2,500 films annually . Growth in Turkey’s E&M industry (9.5% CAGR through 2028) is bolstered by widespread use of social media .

E&M is a realm in which real-life, in-person, increasingly tech-enabled experiences—music performances, theatre, cinema, sports and more—matter a great deal. And in the wake of the covid pandemic, IRL (in real life) events have been enjoying something of a revival. Live music revenues rose by 26.0% in 2023, and accounted for more than half of the overall music market. The growth in live music was skewed towards large events such as the tours by Taylor Swift, Beyoncé, Coldplay and Elton John. The opening of the Sphere in Las Vegas in September 2023 highlighted the ways in which live experiences are getting an immersive tech upgrade. Alongside a strong showing from live music, cinema also performed well globally in 2023, with a 30.4% year-on-year increase in spending at the box office. The ‘Barbenheimer’ combo of Oppenheimer and Barbie grossed a total of US$2.4 billion. Together, movie box office and live music ticket sales represented well over one-third—38.6%—of 2023’s net increase in consumer spending on E&M worldwide. Global cinema revenues are poised to surpass their pre-pandemic, 2019 levels in 2026.

A new driver of reinvention: Generative AI

Having exploded onto the scene in the past couple of years, generative AI (GenAI) brings major implications—including both opportunities and challenges—for companies across E&M. The US cut of PwC’s most recent CEO Survey shows that nearly half of US CEOs see GenAI boosting profits this year, with 61% expecting it to improve the quality of their products and services.

Thus far, much of the discussion surrounding AI in E&M has focused on reducing and controlling costs—rather than driving new revenue streams. GenAI-driven text generation tools can translate concepts into stories and generate credible human dialogue, turn text into visuals and storyboards, and create animated 3D models from 2D videos or static images. GenAI can also add value in post-production by making editing quicker and easier. In Japan, anime and comic producers are using AI to streamline and accelerate their production processes. In Indonesia, too, GenAI is being deployed as a productivity engine for creative processes .

The need to control the use of AI tools and AI-generated content—and to avoid undercutting creators’ rights and payments—were key factors in the 2023 Hollywood writers’ strike, and in the subsequent deal struck with the Writers Guild of America. Going forward, the speed at which high-quality content can be produced will continue to increase as the related costs decline.

The open question remains precisely how GenAI will translate into higher revenues and help companies accelerate their pursuit of revenue pools. One high-potential area lies in the highest-growth sector: advertising. GenAI is increasingly being integrated into content creation and advertising tools. Here its application has tended to focus initially on extracting small pieces of information and generating summaries in subsectors such as sports media.

To date, many of the applications of GenAI have focused on speed, efficiency and reducing costs. As we look ahead, in a dynamic that the forecast doesn’t quite capture yet, industry participants will have to focus on how this powerful technology can lead to greater value creation. GenAI offers users a powerful flywheel for experimenting, iterating, and scaling new solutions and processes . In advertising, GenAI can be used to quickly develop creative approaches for different contexts—and then to iterate and refine rapidly in response to consumer attention and uptake. If GenAI can be harnessed to offer new experiences, and create new revenue streams, the growth potential is even greater.

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The state of AI in early 2024: Gen AI adoption spikes and starts to generate value

If 2023 was the year the world discovered generative AI (gen AI) , 2024 is the year organizations truly began using—and deriving business value from—this new technology. In the latest McKinsey Global Survey  on AI, 65 percent of respondents report that their organizations are regularly using gen AI, nearly double the percentage from our previous survey just ten months ago. Respondents’ expectations for gen AI’s impact remain as high as they were last year , with three-quarters predicting that gen AI will lead to significant or disruptive change in their industries in the years ahead.

About the authors

This article is a collaborative effort by Alex Singla , Alexander Sukharevsky , Lareina Yee , and Michael Chui , with Bryce Hall , representing views from QuantumBlack, AI by McKinsey, and McKinsey Digital.

Organizations are already seeing material benefits from gen AI use, reporting both cost decreases and revenue jumps in the business units deploying the technology. The survey also provides insights into the kinds of risks presented by gen AI—most notably, inaccuracy—as well as the emerging practices of top performers to mitigate those challenges and capture value.

AI adoption surges

Interest in generative AI has also brightened the spotlight on a broader set of AI capabilities. For the past six years, AI adoption by respondents’ organizations has hovered at about 50 percent. This year, the survey finds that adoption has jumped to 72 percent (Exhibit 1). And the interest is truly global in scope. Our 2023 survey found that AI adoption did not reach 66 percent in any region; however, this year more than two-thirds of respondents in nearly every region say their organizations are using AI. 1 Organizations based in Central and South America are the exception, with 58 percent of respondents working for organizations based in Central and South America reporting AI adoption. Looking by industry, the biggest increase in adoption can be found in professional services. 2 Includes respondents working for organizations focused on human resources, legal services, management consulting, market research, R&D, tax preparation, and training.

Also, responses suggest that companies are now using AI in more parts of the business. Half of respondents say their organizations have adopted AI in two or more business functions, up from less than a third of respondents in 2023 (Exhibit 2).

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Join Lareina Yee and Roger Roberts on Tuesday, July 30, at 12:30 p.m. EDT/6:30 p.m. CET as they discuss the future of these technological trends, the factors that will fuel their growth, and strategies for investing in them through 2024 and beyond.

Gen AI adoption is most common in the functions where it can create the most value

Most respondents now report that their organizations—and they as individuals—are using gen AI. Sixty-five percent of respondents say their organizations are regularly using gen AI in at least one business function, up from one-third last year. The average organization using gen AI is doing so in two functions, most often in marketing and sales and in product and service development—two functions in which previous research  determined that gen AI adoption could generate the most value 3 “ The economic potential of generative AI: The next productivity frontier ,” McKinsey, June 14, 2023. —as well as in IT (Exhibit 3). The biggest increase from 2023 is found in marketing and sales, where reported adoption has more than doubled. Yet across functions, only two use cases, both within marketing and sales, are reported by 15 percent or more of respondents.

Gen AI also is weaving its way into respondents’ personal lives. Compared with 2023, respondents are much more likely to be using gen AI at work and even more likely to be using gen AI both at work and in their personal lives (Exhibit 4). The survey finds upticks in gen AI use across all regions, with the largest increases in Asia–Pacific and Greater China. Respondents at the highest seniority levels, meanwhile, show larger jumps in the use of gen Al tools for work and outside of work compared with their midlevel-management peers. Looking at specific industries, respondents working in energy and materials and in professional services report the largest increase in gen AI use.

Investments in gen AI and analytical AI are beginning to create value

The latest survey also shows how different industries are budgeting for gen AI. Responses suggest that, in many industries, organizations are about equally as likely to be investing more than 5 percent of their digital budgets in gen AI as they are in nongenerative, analytical-AI solutions (Exhibit 5). Yet in most industries, larger shares of respondents report that their organizations spend more than 20 percent on analytical AI than on gen AI. Looking ahead, most respondents—67 percent—expect their organizations to invest more in AI over the next three years.

Where are those investments paying off? For the first time, our latest survey explored the value created by gen AI use by business function. The function in which the largest share of respondents report seeing cost decreases is human resources. Respondents most commonly report meaningful revenue increases (of more than 5 percent) in supply chain and inventory management (Exhibit 6). For analytical AI, respondents most often report seeing cost benefits in service operations—in line with what we found last year —as well as meaningful revenue increases from AI use in marketing and sales.

Inaccuracy: The most recognized and experienced risk of gen AI use

As businesses begin to see the benefits of gen AI, they’re also recognizing the diverse risks associated with the technology. These can range from data management risks such as data privacy, bias, or intellectual property (IP) infringement to model management risks, which tend to focus on inaccurate output or lack of explainability. A third big risk category is security and incorrect use.

Respondents to the latest survey are more likely than they were last year to say their organizations consider inaccuracy and IP infringement to be relevant to their use of gen AI, and about half continue to view cybersecurity as a risk (Exhibit 7).

Conversely, respondents are less likely than they were last year to say their organizations consider workforce and labor displacement to be relevant risks and are not increasing efforts to mitigate them.

In fact, inaccuracy— which can affect use cases across the gen AI value chain , ranging from customer journeys and summarization to coding and creative content—is the only risk that respondents are significantly more likely than last year to say their organizations are actively working to mitigate.

Some organizations have already experienced negative consequences from the use of gen AI, with 44 percent of respondents saying their organizations have experienced at least one consequence (Exhibit 8). Respondents most often report inaccuracy as a risk that has affected their organizations, followed by cybersecurity and explainability.

Our previous research has found that there are several elements of governance that can help in scaling gen AI use responsibly, yet few respondents report having these risk-related practices in place. 4 “ Implementing generative AI with speed and safety ,” McKinsey Quarterly , March 13, 2024. For example, just 18 percent say their organizations have an enterprise-wide council or board with the authority to make decisions involving responsible AI governance, and only one-third say gen AI risk awareness and risk mitigation controls are required skill sets for technical talent.

Bringing gen AI capabilities to bear

The latest survey also sought to understand how, and how quickly, organizations are deploying these new gen AI tools. We have found three archetypes for implementing gen AI solutions : takers use off-the-shelf, publicly available solutions; shapers customize those tools with proprietary data and systems; and makers develop their own foundation models from scratch. 5 “ Technology’s generational moment with generative AI: A CIO and CTO guide ,” McKinsey, July 11, 2023. Across most industries, the survey results suggest that organizations are finding off-the-shelf offerings applicable to their business needs—though many are pursuing opportunities to customize models or even develop their own (Exhibit 9). About half of reported gen AI uses within respondents’ business functions are utilizing off-the-shelf, publicly available models or tools, with little or no customization. Respondents in energy and materials, technology, and media and telecommunications are more likely to report significant customization or tuning of publicly available models or developing their own proprietary models to address specific business needs.

Respondents most often report that their organizations required one to four months from the start of a project to put gen AI into production, though the time it takes varies by business function (Exhibit 10). It also depends upon the approach for acquiring those capabilities. Not surprisingly, reported uses of highly customized or proprietary models are 1.5 times more likely than off-the-shelf, publicly available models to take five months or more to implement.

Gen AI high performers are excelling despite facing challenges

Gen AI is a new technology, and organizations are still early in the journey of pursuing its opportunities and scaling it across functions. So it’s little surprise that only a small subset of respondents (46 out of 876) report that a meaningful share of their organizations’ EBIT can be attributed to their deployment of gen AI. Still, these gen AI leaders are worth examining closely. These, after all, are the early movers, who already attribute more than 10 percent of their organizations’ EBIT to their use of gen AI. Forty-two percent of these high performers say more than 20 percent of their EBIT is attributable to their use of nongenerative, analytical AI, and they span industries and regions—though most are at organizations with less than $1 billion in annual revenue. The AI-related practices at these organizations can offer guidance to those looking to create value from gen AI adoption at their own organizations.

To start, gen AI high performers are using gen AI in more business functions—an average of three functions, while others average two. They, like other organizations, are most likely to use gen AI in marketing and sales and product or service development, but they’re much more likely than others to use gen AI solutions in risk, legal, and compliance; in strategy and corporate finance; and in supply chain and inventory management. They’re more than three times as likely as others to be using gen AI in activities ranging from processing of accounting documents and risk assessment to R&D testing and pricing and promotions. While, overall, about half of reported gen AI applications within business functions are utilizing publicly available models or tools, gen AI high performers are less likely to use those off-the-shelf options than to either implement significantly customized versions of those tools or to develop their own proprietary foundation models.

What else are these high performers doing differently? For one thing, they are paying more attention to gen-AI-related risks. Perhaps because they are further along on their journeys, they are more likely than others to say their organizations have experienced every negative consequence from gen AI we asked about, from cybersecurity and personal privacy to explainability and IP infringement. Given that, they are more likely than others to report that their organizations consider those risks, as well as regulatory compliance, environmental impacts, and political stability, to be relevant to their gen AI use, and they say they take steps to mitigate more risks than others do.

Gen AI high performers are also much more likely to say their organizations follow a set of risk-related best practices (Exhibit 11). For example, they are nearly twice as likely as others to involve the legal function and embed risk reviews early on in the development of gen AI solutions—that is, to “ shift left .” They’re also much more likely than others to employ a wide range of other best practices, from strategy-related practices to those related to scaling.

In addition to experiencing the risks of gen AI adoption, high performers have encountered other challenges that can serve as warnings to others (Exhibit 12). Seventy percent say they have experienced difficulties with data, including defining processes for data governance, developing the ability to quickly integrate data into AI models, and an insufficient amount of training data, highlighting the essential role that data play in capturing value. High performers are also more likely than others to report experiencing challenges with their operating models, such as implementing agile ways of working and effective sprint performance management.

About the research

The online survey was in the field from February 22 to March 5, 2024, and garnered responses from 1,363 participants representing the full range of regions, industries, company sizes, functional specialties, and tenures. Of those respondents, 981 said their organizations had adopted AI in at least one business function, and 878 said their organizations were regularly using gen AI in at least one function. To adjust for differences in response rates, the data are weighted by the contribution of each respondent’s nation to global GDP.

Alex Singla and Alexander Sukharevsky  are global coleaders of QuantumBlack, AI by McKinsey, and senior partners in McKinsey’s Chicago and London offices, respectively; Lareina Yee  is a senior partner in the Bay Area office, where Michael Chui , a McKinsey Global Institute partner, is a partner; and Bryce Hall  is an associate partner in the Washington, DC, office.

They wish to thank Kaitlin Noe, Larry Kanter, Mallika Jhamb, and Shinjini Srivastava for their contributions to this work.

This article was edited by Heather Hanselman, a senior editor in McKinsey’s Atlanta office.

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Chaos and Confusion: Tech Outage Causes Disruptions Worldwide

Airlines, hospitals and people’s computers were affected after CrowdStrike, a cybersecurity company, sent out a flawed software update.

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By Adam Satariano Paul Mozur Kate Conger and Sheera Frenkel

• July 19, 2024

Airlines grounded flights. Operators of 911 lines could not respond to emergencies. Hospitals canceled surgeries. Retailers closed for the day. And the actions all traced back to a batch of bad computer code.

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“This is a very, very uncomfortable illustration of the fragility of the world’s core internet infrastructure,” said Ciaran Martin, the former chief executive of Britain’s National Cyber Security Center and a professor at the Blavatnik School of Government at Oxford University.

A cyberattack did not cause the widespread outage, but the effects on Friday showed how devastating the damage can be when a main artery of the global technology system is disrupted. It raised broader questions about CrowdStrike’s testing processes and what repercussions such software firms should face when flaws in their code cause major disruptions.

How a Software Update Crashed Computers Around the World

Here’s a visual explanation for how a faulty software update crippled machines.

How the airline cancellations rippled around the world (and across time zones)

Share of canceled flights at 25 airports on Friday

50% of flights

Ai r po r t

Bengalu r u K empeg o wda

Dhaka Shahjalal

Minneapolis-Saint P aul

Stuttga r t

Melbou r ne

Be r lin B r anden b urg

London City

Amsterdam Schiphol

Chicago O'Hare

Raleigh−Durham

B r adl e y

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Reagan National

Philadelphia

1:20 a.m. ET

CrowdStrike’s stock price so far this year

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