Training Researchers to think in 360 Perspective

1. August-September 2003
Insightful MR profiles since 1998,
Research
from the publisher of
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www.rflonline.com Best Practices of the World’s Successful MRDs—Plus Key MR Industry Providers
Roche Diagnostics of Polenchar’s exploits spread across the enterprise and he was
told to clone his efforts to other divisions, including Victoria’s Secret.
Melding B2B, B2C Direct and B2C Not long after, he moved to corporate to oversee a company-wide
MR program.
“Indirect” MR into Market Strategy In April 2001, Polenchar joined Roche Diagnostics, a consumer-
focused U.S. manufacturer and distributor of glucose monitoring
Most pharmaceutical market researchers at the very least might instruments for diabetics. Diabetes has had unabated linear growth
politely disagree, but Roche Diagnostics’ (Indianapolis, IN) VP- both in the U.S. and globally since the 1960s, with the Center for
Business Planning for Patient Care, Brett Polenchar, says there is Disease Control estimating that about 8 million of 16 million diabetics
little difference running a MRD for a pharmaceutical in the U.S. regularly test their blood sugar. The division
company versus any other company. He’s one of a that employs Polenchar accounts for approximately
select few who have succeeded in MR inside and out- 65% of worldwide profit. “The business is very com-
side pharma. And he feels this way because Roche plex,” he notes, “with multiple customer segments
Diagnostics’ customers represent, “perhaps the widest and distribution channels, forcing us to spend three
array in any industry.” Accenting the situation, he adds, times more, in proportion of revenue, than the typical
“there aren’t many businesses that need to manage B2B, pharma company.”
B2C Direct and B2C Indirect research as we do. In the glucose meter category, the instrument’s bells
“External constituencies might be different outside and whistles (notably speed of results and blood drop
pharma, but in running a department the same profes- size) are to impress influencers (physicians, diabetes
sional and technical skills must prevail. My job as head of Brett Polenchar educators, pharmacists, etc.) and attract and maintain
research in any company is teaching people to think strate- diabetics’ attention in order to prolong an individual’s
gically about the business they serve, translating those issues into use of the glucose monitor. This scenario unveils one of Polenchar’s
meaningful research and negotiating action items from the research most imposing tasks: elevating Roche Diagnostics’ Accu-Chek glu-
with their internal clients,” he told RDR. cose monitor as a brand in an essentially commoditized category.
Since early 2001, he has reshaped, tutored, cajoled and molded Polenchar’s position at Roche is his first to entail more than MR.
Roche Diagnostics’ MR group into a professional organization that He admits ambivalence about this role, where he controls business
has won the plaudits of marketing partners. It’s not a bit surprising planning and strategy (embracing many functional areas--primary
given Polenchar’s career achievements. After making the grade at and secondary MR, market and sales forecasting, pricing, program
Burke Marketing Research (1985-1988), he proved his worth as a evaluation, product testing, sales force tools, competitive intelligence
market researcher at Hershey Foods (where he copped a corporate and long-range planning) and is charged with creating insightful
productivity award), Pfizer (he managed global veterinary pharma and actionable perspectives on the business. “Coming here was very
MR) and Fahlgren & Martin (he built a MRD for the ad agency). At interesting but also a real challenge because my career had been very
that juncture, his vibrant statistical and research skill sets and know- focused on traditional marketing research,” he confided. “I love MR.
how led Polenchar to Limited Brands, Inc. (Columbus, OH). There is no end to my enthusiasm about even the most basic market
It provided seven years of unforgettable episodes, twists and turns.
In 1994, Polenchar was hired as MR Director for Bath & Body Works
(a Limited) subsidiary, but he was cautioned to undertake every “Learnings” In This Roche Diagnostics Profile
MR initiative out of corporate’s view because Limited’s founder
and chairman was a MR skeptic. Polenchar encountered managers • Reorganizing the inherited MRD from top to bottom
with such scant exposure to MR that the division’s CFO asked why • Your internal clients want the assistance of their MR peers
Polenchar needed a department budget, thinking he was personally • A novel method of making a MR staff “consultative”
going to conduct MR interviews. Overcoming such obstacles, he • Bringing “quality” to preparation of all your research work
built internal champions through accomplishments. He constructed • Dealing with B2B and two distinct types of B2C research issues
a Bath & Body Works customer panel that compressed new prod-
uct development time and pared MR costs by 33% (saving $800,000
over three years). Somehow remaining invisible from corporate research, doing it right and seeing it impact decision making. But for
while producing quality MR, he hired a pair of associates in 1996. Roche Diagnostics, I have to ‘roll down my sleeves’ when it comes
His stealth position ran its course when Limited Brands’ strategy to MR and not get into all the details. I still like to call myself a mar-
group canvassed each division’s brand and customer knowledge. ket researcher because it’s what I’m good at. But MR is the job of
Inevitably, they ran across the researcher. His cover blown, word the director who works for me. And the 24 people in my area are

2. R E S E A R C H D E P A R T M E N T R E P O R T
pretty busy with all manner of projects. I can’t stop to really dwell director is now a VP to whom all segments report, which integrates
on any one of them.” brand and communications platforms. When we talk to a doctor,
Although managing Roche Diagnostics’ MRD is only one of several we want the physician to hear and reflect the same things we tell
duties, Polenchar reorganized and restructured the MRD and its 15 the patient through our DTC advertising. The Consumer Marketing
persons upon his arrival. “I inherited a group of very siloed people. VP had to control everything because at the end of the day our
business is, with some
minor exceptions, a con-
sumer business even
though other constituen-
cies are our direct cus-
tomers.”
In 2003, the Consumer
business segment (notably
DTC advertising) now
The primary researcher, for instance, did nothing but manage exe- accounts for the largest proportion of Roche Diagnostics’ market-
cution of project requests in their area,” he shared. “These very ing budget, followed by other influences in consumers’ choice of
talented researchers knew how to write questionnaires, analyze MR glucose monitors--retail pharmacists and medical professionals.
data and write reports. The main problem was they were reactive “Our market research budget reflects those interests,” remarked
and not proactive because they had little detailed knowledge of any Polenchar. Explaining length and breadth of influences on consumers,
of the business segments or critical business issues. Our marketing Polenchar said, “Patients have lots of choices and options. Con-
people told me I had great people in the department, but that they sumers want choice, employers want to be seen as offering choices
didn’t understand their businesses strategically. It wasn’t their fault; in their medical plans and, in reality, managed-care companies are
they hadn’t been trained to think in this way. I told them that each becoming less restrictive about what glucose meters a patient can
MR manager had to understand the particular business segments have. In addition, doctors are trying to appease patients to encour-
I assigned them to.” age greater compliance, resulting in better control of diabetes.”
In addressing this dilemma, Polenchar thought, “since they weren’t Aside from the business alignments and new consumer focus,
strategic thinkers, perhaps some MBA-level courses were appro- Polenchar had to effect other changes on the MR staff. He knew
priate. But the solution was simple. They were not aligned with he had to lay the MRD’s reactive behavior to rest and revamp MRD
specific marketing segments and hadn’t participated in marketing members’ thought processes about business contributions. He
meetings. All they had been told to do was execute research.” So, introduced, preached, taught and ingrained a consultative approach,
step number one was assigning managers to each business segment, which took many forms, including hiring several former consultants
with the admonition to learn everything about their segment and the as research managers. He preached nine essential Core Values
diabetes business. “We gave them the chance to integrate with the (strong business ethics, professional style, communication, client
marketing people and to limit their scope of responsibility,” he service, knowledge, quality work, insight, delivery and respect) to
explained. One manager was directed to work with each of the pave the way to ideal, internal client relationships. He also infused
business segments: Health Care Professionals (physicians, educators), a need for improved quality control, evinced by team effort in daily
Retail Pharmacies, Managed Care, Hospitals and Consumers. tasks, such as questionnaire preparation and presentation readiness.
As this shakeup took place, marketing was undergoing its own Roche Diagnostics’ MRD takes into account more considerations
metamorphosis, having had a revelation about needing to intimately than any of Polenchar’s previous employers. It juggles B2B (working
RDR impressions of Brett Polenchar is a man of action. He takes on every new challenge with
Brett Polenchar from gusto. He is also a voracious examiner of winning ideas and philosophies
his interview that he enthusiastically investigates and will bring to his own organization.
understand consumers. “Marketing had no Consumer function a few with managed care companies and key retail accounts), B2C Direct
years ago,” revealed Polenchar. “Then it developed the need to go (supporting DTC television advertising) and “B2C Indirect” (research
direct to the consumer and created a directorship to oversee this. into those who influence the choice of glucose meters--from physi-
But she had little control over other segments of the business, so cians and diabetes educators to pharmacists, etc.). All are in the
2 there was little integration of effort. That model changed and that domain of MR managers, who are accustomed to crisscrossing areas

3. R E S E A R C H D E P A R T M E N T R E P O R T
of interest in the pursuit of knowledge for their business segments.
“Our consumer-segment manager, because consumers are influ-
enced across a lot of areas, might talk with physicians one day and
with consumers the next,” detailed Polenchar.
“Working backwards, in our direct marketing to the consumer, we
do advertising research and communications development research,”
he elaborated. “If you come up the ladder and see B2C Indirect, we
do lots of MR with medical professionals--doctors, nurses, diabetes
educators and pharmacists. And for B2B, we have traditional MR--
supply chain, customer satisfaction or delight, market segmentation,
product development, in-store research and more.”
The MRD has historically leaned toward quantitative work, though
Polenchar sees his qual-quant balance as “good and appropriate” for
the business. The most notable reverse in MR is in continuous versus
ad hoc research. After he pointed out the folly of condensing more
than 60% of the MRD’s annual workload in one-time studies that
were all completed in the same three-month period (for purposes
of yearly planning), the department shifted a comparable percentage
of its effort to continuous tracking. “It enabled us to track progress
of our marketing initiatives,” he remarked. MRD contact with prod-
uct development is limited, as R&D research is handled globally out
of Roche Diagnostics’ office in Germany. “We’re a selling, not a
manufacturing operation,” notes Polenchar. “My research aims at
commercializing the products that our R&D groups develop.” A
Portfolio Development Board and global MR representatives based
in Indianapolis provide European HQ with new product input.
Polenchar is pleased with progress to date. “Two years ago, we
simply provided information for the strategy process. One year ago,
we began participating in that process. This year, we are strategy
team members. I think there’s another step to be had as drivers of
the process,” he summed up.
Reproduced from the September 2003 issue of Research Department
Report by RFL Communications, Inc. (Skokie, IL), which also publishes
Research Business Report, Research Conference Report and Pharma
Market Research Report, three other market research newsletters. For
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