Supply Chain Connections and the Triple Bottom Line in the Global Wine Industry (original) (raw)

Abstract

Purpose: In the current business environment, more uncertain than ever before, understanding consumer behaviour is an integral part of an organization’s strategic planning and execution process. It is the key driver for becoming a market leader. Therefore, it is important that all processes in business are customer centric. Capturing, categorizing, warehousing, mining, analysing and making sense of data is a real-time challenge for all marketers. Organizations embracing digitization are seeing Big Data getting bigger. Investments are being made in IT infrastructure, Internet of Things, machine learning and artificial intelligence in business decision-making. Marketers need to harness big data by engaging in Data Driven Marketing (DDM) to help organizations choose the 'right' customers, to 'keep' and 'grow' them and to sustain 'growth' and 'profitability'. This research examines DDM adoption practices and how companies can aim to enhance shareholder value by bringing about ‘customer centricity’ through better use of data. Design/Methodology/Approach: An online survey conducted in 2016 received 180 responses from junior, middle and senior executives. Of the total responses 26% were from senior management, 39% from middle management and the remaining 35% from junior management. Industries represented in the survey included Retail, BFSI, Healthcare and Government, Automobile, Telecommunication, Transport & Logistics and IT. Other industries represented were Aviation, Marketing Research & Consulting, Hospitality, Advertising & Media and Human resource. Among the respondents, 34% represented companies with less than 30millioninannualrevenues,1530 million in annual revenues, 15% between 30millioninannualrevenues,1530 - 50 million and 50−100million,3250 - 100 million, 32% between 50−100million,32100 - 500 million, and the remaining 19% with $500 million and above in annual revenues. In terms of company size, 60% were companies with 1 - 500 employees, 13% with 500 - 1000 and 26% with 1000 and above employees. The survey was done in Dubai which represents a blend of several global economies and hence, can be generalised. Findings: Success of DDM depends upon how well an organization embraces the practice. The first and foremost indicator of an organization’s commitment is the extent of resources invested for data driven marketing. Respondents were divided into four categories; Laggards, Dabblers, Contenders, and Leaders based on their ‘current level of investments’ and ‘willingness to enhance investments’ soon. ‘Leaders’ are from Retail, Banking & financial services, transportation & logistics and Telecommunication sectors. The major sources of information are point-of-sales data, social media and other published sources. They use data to understand what and why customers are buying, what their consumption patterns are and what makes them satisfied or dissatisfied. ‘Dabblers’ are players who have realized the importance of data and have just begun to incorporate it in their marketing in a limited way. ‘Contenders’ are far more regular in using data for measuring and taking marketing decisions. ‘Laggards’ are at the other extreme when it comes to using data for customer analysis. Practical implications: The results of the study offer interesting implications for managing the growing sea of data. An iterative and incremental approach is the need of the hour, even if it has to start with baby steps, to invest in and reap the fruits of data driven marketing. The intention to use any system is always dependent on two primary belief factors: perceived usefulness and perceived ease of use, however attitudes and social factors are equally important. Investments in the right people, infrastructure and processes early on can result in better marketing due diligence and contribute to higher return on marketing investment, necessary to sustain an organization’s growth and profitability. Originality/Value: All organizations, irrespective of size and sector, need to engage in data driven marketing for customer centricity. In this era of digitalization, a marketer needs to wisely handle the volume, velocity, variety and veracity of data. Roger’s diffusion of innovation theory identifies factors leading to the adoption of innovation by both individuals and organizations. The theory argues that willingness and ability to adopt depends on awareness, interest, evaluation, trial and adoption (Rogers, 2003). There is a dearth of knowledge with regards to who is and is not adopting DDM, and how best big data can be harnessed for enhancing effectiveness and efficiency of marketing budget. It is, therefore, imperative to build a knowledge base on DDM practices, challenges and opportunities. Better use of data can help companies enhance shareholder value by bringing about ‘customer centricity’.