The Long-Term Impact of the delivery of Marketing Intelligence on Small Agri-Business Marketing: Implications for Policy & Practice

Research Aim/ Question: This research paper aims to explore and discuss the ‘sustainability’ and impact of Big Data for small agri-food businesses five years after the completion of a longitudinal in-depth evaluation of... [ view full abstract ]

Research Aim/ Question:

This research paper aims to explore and discuss the ‘sustainability’ and impact of Big Data for small agri-food businesses five years after the completion of a longitudinal in-depth evaluation of digital loyalty card data. The original project began in 2008 initiated between the Department of Agriculture and Rural Development (DARD) in Northern Ireland, Ulster University and a marketing consultancy firm dunnhumby, who provided small agri-food businesses with free access to Tesco Clubcard and follow up analytical support.

Initial research on this project (Donnelly et al., 2015) proposed that a complementary relationship did exist between the formalised nature of digital loyalty card data, and the informal nature of small business market orientation. The research also ‘revealed a new-found structure and precision in small firm marketing planning from data exposure; which complemented rather than conflicted with an intuitive feel for markets’ (Donnelly et al., 2015: p.421). Further discussion on the wider implications for SMEs’ was highlighted within the Harvard Business Review in relation to ‘Small Businesses Need Big Data Too’ as well as ‘Is there Hope for Small Firms, the Have-Nots in the World of Big Data?’

On review, this project was completed between 2008- 2011 only, with limited insight into the longer term impact of the big data exposure on the businesses. This research therefore revisits the original seven case studies five years on to explore the real impact experienced from the Big Data and the question of sustainability of Big Data.

 Design/Methodology/ Approach:

The original project ran for three years providing data access and analysis to over 360 agri-food businesses (Donnelly et al., 2015). During this project, further in-depth research was undertaken, with seven pre-selected case firms who provided insight on the current impact of the big data on their business over a longitudinal one-year period. To ascertain the sustainability and value of this Big Data (project), the follow on research project therefore chose to revisit the same seven firms five years later (between November 2015 – June 2016) using the same semi- structured question template, with addition questions employed to assist with the changes in the businesses over time.

The interviews’ where conducted by the same researcher who had undertaken the longitudinal research five years earlier. This facilitated for a consistency and rigour in the research design as well as enjoying the benefit of existing trust, respect and pre-existing knowledge about the business from the original research. However, there were changes in some of the seven case studies, with new management personnel and restructuring taking place. Understandably, significant changes had occurred in some firms in the five years that had passed.

Findings:

The findings five years after this project ended demonstrate the real impact from the Big Data and questions the sustainability of Big Data within the small business context. 

The original project had lasting impact on the small case firms, in a positive and negative way. The perceived long-term value of the project was the understanding and knowledge that access to this data for small businesses was crucial to their market development. The firms had come to appreciate the data, but felt suddenly abandoned and dejected when this access ceased... “I feel very much as if I’m very much in limbo land" (Case 3), and highlighted the dented confidence, “In a way I suppose I feel that I am maybe a little bit disadvantaged in that I’m not as confident in myself in going to speak to them and say “This is what we need to do because of X, Y and Z” I am going on a wing and a prayer; is the reality".

As a result, the case firms attempted to find access but the prohibitive cost was too much in many cases for the dunnhumby data. The negative impact was the return of most case firms to their ‘old’ informal ways, relying on gut instinct and hearsay to drive their business forward. 

“Which sounds as if I’m going backwards but I’m not. It’s just … it’s just I don’t have the time or the money; which is wrong. I know everything is wrong of me that I need to have that information, you know, rather than just gut feel” (Case 3)

Whilst some case firms still held on to the original data, using it for current activities despite being outdated...

“We just thought it’s (the data) not going to change that much so we didn’t go in and do any more research apart from Sainsbury’s, Tesco’s and just those visits we’ve made” (Case 6).

Others had no trace of the data with personnel moving on...

“No it (the data) probably wasn’t (used properly), but then he (original manager) is no longer here and he was the only one involved and it wasn’t followed on”. (Case 1)

It became evident that the support initiatives put in place originally, did not plan for long term roll out as they did not seek to assist case firms after the withdrawal of the Big Data. 

“I think a lot of it is trial and error and also training is very important to how people understand… Its fundamental to have access to it; I mean we haven’t had access to it and like our business is growing but I think our business would be much better if we had access to the consumer data” (Case 4).

This was detrimental to the overall planning and development of case firms after the original project ended, despite case firms receiving the initial increase in marketing awareness - understanding their actual customer - this education was constrained before it's full value could be extracted with case firms feeling penalised as a result.

Limitations:

This research is based on one type of big data (digital loyalty card data) and applied to small agri-food case firms in one region of the UK. This original project was deemed as a pilot project and it could be argued that all pilots do end at some stage. Despite these limitations, there are several significant implications for all stakeholders who engaged in this project. The question of sustainability of data and a similar project is questioned. It is clear that the confidence gained by the case firms in the original project was impacted post project. The need therefore to ensure that the educational awareness and confidence of these small firms are supported are crucial. Possibly, it is the role of the Business Schools and support agencies to feed this innovation through a better management service of the data as well as a long term directive on provision of continued access to data and analysis. 

Originality / value:

The value of this research is the deeper evaluation on the original project five years on, providing insight into the actual impact of the original data as well as the reflecting on the sustainability of the project. Given the current volatility of the UK market, this project serves to highlight the pressing need for continued access to a sustainable data delivery project for small businesses in particular.

Contribution:

We perceived that the research covering two-time periods allows for a more reflective evaluation and reflection of the original project as well as addressing the current activities of the small agri-food businesses today. There are wider implications on how Universities direct and support information exchange and collaboration with business (House of Commons, BIS, 2014); and particularly  with SMEs in relation to effective brokerage and continued support, through people and trusting relationships supporting successful collaborations (Dowling, 2015). Despite these themes, there are questions surrounding a sustainable business model for the deployment of Big Data via University research collaborations. Given the current conscious discussions on Brexit, this project certainly has implications for our whole food island, north and south of Ireland and has been an issue for over ten years in several wider Government policy reports exploring initiatives to support collaboration, information exchange and ultimately, innovation (Business University Collaboration, 2014-2015).

References

Business University Collaboration (2014- 2015) House of Commons, Business, Innovation and Skills Committee, Sourced on Friday 2^nd February 2018, from https://publications.parliament.uk/pa/cm201415/cmselect/cmbis/249/249.pdf

Donnelly, C., Simmons, G., Armstrong, G. and Fearne, A. 2015. Digital loyalty card 'Big Data' and small business marketing: Formal versus informal or complementary?, International Small Business Journal, Vol. 33, No. 4, pp. 422-442.

Donnelly, C. and Simmons, G. (2013) Small Businesses Need Big Data, too, Harvard Business Review, https://hbr.org/2013/12/small-businesses-need-big-data-too

Donnelly, C. and Simmons, G. (2013) Is there hope for small firms the have nots in the world of big data, Harvard Business Review, https://hbr.org/2013/12/is-there-hope-for-small-firms-the-have-nots-in-the-world-of-big-data