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An instrumentation supplier was evaluating whether to develop a related measurement product for an emerging application. The Client believed the new product could spur growth given the growing global demand for measurement in the new application. However, uncertainties such as the following were cause for hesitation:

  • Was the potential market large enough to warrant the investment?
  • To what extent might the new product cannibalize the company’s existing instrumentation offerings?
  • Could the new product be sold through the Client’s existing channels and relationships?

In light of these and other unknowns, the Client turned to RSR Marketing Solutions (“RSR”) for assistance in gaining a fact-based assessment of the market opportunity for the new line.

Overview of RSR Engagement

Project Goals and Objectives

Objective

Quantify and segment the market for the new product, considering buying behavior and likely adoption rates among key potential customers

RSR Approach

Market Analysis

  1. Estimate the potential market size via supply side analysis (estimating supplier participation) and through a demand-based approach.
  2. Estimate underlying market growth rates by segment and geography for pertinent products.
  3. Assess the demand trends and drivers for the potential new product as well as for potential substitute products.

Customer / Competitor Analysis

  1. Test customer interest in the new product and understand the barriers to adopting the product.
  2. Understand the alternative instrumentation evaluated for the new application.
  3. Identify the key purchase decision makers within the customer organization and understand the supplier selection criteria for the new product.

Results

Key Study Findings

  1. The market was larger and further developed than the Client expected and had grown ten percent or more in each of the past three years.
  2. Competition was still very fragmented, with many regional suppliers and recent entrants.
  3. Customers appeared very receptive to buying the new product from the Client, based on the Client’s ability to provide complementary products and based on performance gaps among current suppliers.

RSR Recommendations

  1. Enter the market with a phased approach to establish an initial foothold quickly.
  2. Differentiate the new product with specific enhanced features that were identified in the customer research as most important.
  3. Target existing customers who already had blanket purchasing arrangements with the Client, as they would be easiest to convert.

 

To learn more about RSR Marketing Solutions, see our About Us page.