Oligopoly profile: VNU
Netherlands-based VNU is by far the largest market and media research company in the world. It's $5 billion yearly income is five times as big as its nearest rivals, which include such companies as the US-based Kantar Group (a division of advertising giant WPP Group), US-based Information Resources, and UK-based Taylor Nelson Sofres.
VNU recently solidified its position with an announced a deal to take over US-based IMS Health. The $7 billion stock swap gives VNU the leading sales and marketing information source in the pharmaceutical and health care fields with revenues of over $1.5 billion. That's a fast-growing area, on in which VNU was already competing.
VNU has come a long way since its origins in 1964. It was mostly a publisher of European consumer and trade magazines, along with books and newspapers.
- In the 1980s, the company expanded operations to the US, while dropping out of book publishing.
- In the 1990s, it went into the telephone and business directory business.
- In 1999, it became a media information company with acquisition of US-based Nielsen Media Research.
- In 2000, it got out of the newspaper businesses and got into the trade show business (by acquiring US-based Miller Freeman).
- In 2001, the company became a marketing research company by acquiring AC Nielsen.
- In 2004, it got out of the directory business.
After this long series of acquisitions and de-acquisitions, settled in on three key areas of activity, namely;
- Marketing Information
- Media Measurement
- Business Information (magazines and trade shows)
The Marketing Information area provides services to companies manufacturing and retailing consumer packaged goods. It also provides marketing information for a number of other industries, including travel, pharmaceuticals, and financial services. The flagship company in this category is AC Nielsen, which specializes in tracking and polling consumer trends and behavior. oTHE RDIVISIONS INCLUDE:
- BASES New product launch consulting
- Spectra Marketing Works with small- to mid-size manufacturers and retailers
- Claritas Customer demographics
- HCI Pharmaceutical marketing research
The Media Research area collects data on consumer media habits and consults with companies based on that data. Its most well known service is Nielsen Media Research, which measures US and world TV-watching habits and TV advertising spending. Other Divisions include:
- Nielsen/Netratings does research on Internet usage.
- NielsenEDI tracks movie box office receipts
- NielsenNRG market research for the movie industry
- Nielsen Reel Research tests TV advertising and programs on focus groups
- Nielsen SoundScan does marketing research for recording companies
- Nielsen BookScan does market research for publishers
- Nielsen VideoScan does market research for the video industry.
- SRDS validates rates and circulation figures for advertisers
- IMS provides software tools for tracking advertising campaigns
- Scarborough Research consumer media and shopping demographics
- PERQ/IHCI Pharmaceutical and healthcare promotion research
Business Information area is a publisher of almost 140 periodicals and the host of a number of business-related Web sites. Areas of concentration include computing, media, health, retailing, and many others. US magazines include Billboard, Adweek, and The Hollywood Reporter. In Europe it publishes such titles as PC Professional (Germany, Computing (UK), and Management Team (Netherlands). It recently bough the European publishing arm of US company Ziff-Davis. In Addition, VNU Expositions puts on 52 major trade shows and also has part interest over 100 more worldwide.
With its worldwide reach (now in over 100 countries) and its menu of products, VNU has become almost indispensable for large company marketing campaigns, at a time when more and more companies are committing themselves to a worldwide reach. Smaller companies on the marketing info field are at a disadvantage when facing such campaigns. It stands between in-house marketing departments and media, serving both sectors and having a store of detailed knowledge about what is going on across the board. With the magazine and trade show operations, they have yet more links to marketing departments, as sponsors, exhibitors, and as subjects for articles. The IMS move cements in yet another key worldwide industry.
