The document discusses Thomson Reuters' transformation of its customer strategy through market segmentation. It first segmented the financial information market broadly into three categories, but found this didn't provide enough insight. It then used front-end customer strategy to identify eight well-defined segments. Through surveys, customer workflow studies, and other research, it explored customer needs and identified pain points in each segment. This helped determine product development priorities and differential pricing strategies.

1. (BY HARVARD BUSINESS REVIEW)
PRPARED BY:

2.  Introduction
 Methodology used for segmentation
 Strategies and their implementation
 Key leanings
 Conclusion
 Sources
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3.  Thomson Corporation was established in 1989
 CEO Mr. Jim Smith
 Worlds largest in information provider to industries.
 Publishes more than 200 newspaper, text books and journals in 2008
 Shifted from print media to digital media
 Company purchased reuter group in 2008 and now known as Thomson
Reuters
 Reuters was a British multinational media and financial information
company (known as Reuters news agency).
 Its current Revenue was $12.2 Billion.
 Currently provide services to Pharma and tax accounting and science
sector.
 Company is listed in Toronto and New York share market.
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4.  The company decided to transform its customer strategy.
 The strategy was focussed on the individual behaviour in an industry.
 The company went through several stages.
 Map out the real market.
 Understand the customer.
 Product development priority.
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5. 1.
 Company Began the analysis at Thomson Financial, in 2001
 To estimate the market size
 Financial information market broadly split into 3 categories:
1) Firms on the buy side
2) Firms on the sell side
3) Corporate client
 Broader segmentation didn’t help to understand the market position as
well as opportunities in market.
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7.  Company used front-end customer strategy for segmentation
 Concentrated on ultimate user of product & services rather than sales
channel or geography
 Find out eight well identified segments
 Company worked with Parthanon group
 To estimate company’s relative market share & growth potential in each
segment
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9.  Firstly company used macro level segmentation
 It gives broad picture of market segment
 Further company used micro level segmentation
 It helped to get clear & more detailed picture of market segment
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10.  Alibaba e-commerce B2B company
 Macro level segmentations :
Automobile
industry
Fashion
industry
Electronics
industry
Chemical
industry
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11.  Further micro level segmentations :
Micro level
segmentation
of users
Tiers
manufacturer
Fabrics and
textile players
Mobile and
laptops
manufacturer
Laptop
manufacturers
Paint,
detergents,
soaps maker
Car
manufacturer
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12. 2.
 After segmenting the market the company explored the needs of each
segments. The company observed the customers behaviour by using
following strategies:
A. Quantitative survey method with day in the life.
B. Three minutes approach.
C. Customers workflow study
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13. A.
 In-depth Interviews
 Taping the users activity at job
 Visiting users own customers to understand the need and
requirements.
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14. B.
 Interview with some users to understand what they do three minutes
before and after using the product and service.
 And then next three minutes and so on to understand the share of mind
and share of time the company has.
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15. C.
 Tracked the activities of the users of a particular segment
 Helped in identifying the work flow and the needs at each stage.
 The company examined its own positions as compare to its
competitors.
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16. Glasses
Air
conditioning
gas
Alluminium
sheets
Head lamps
Nuts and
bolts
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17. 3.
 Determine the pain point in work flow process and they have used
statistical techniques to interpret the result.
 Thomson financial surveyed 1200 investment manager customer about
the product features.
 Then they conducted conjoint analysis and identified 3 clusters of
customers.
 It help them in knowing how preference differences help in product
development priority and in differential pricing.
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19.  Buyers and end users are two different parte.
 Research and marketing strategy development is a critical process
which includes the involvement of higher authorities of the
organisation.
 macro level segmentation gives broad picture of market segment
whereas micro level segmentation helps to get clear & more detailed
picture of the same.
 Real time comparison with competitors gives a clear picture of the
current position of the company
 Develop product on the bases of users objective
 Continually evaluate and refine your customer strategy
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20.  thomsonreuters.com
 Harvard business review 2008 article
 B2B Marketing (Cengage Learning)
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