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Finding a Better Strategic Plan (Case Study One)
The Problem: Accurately Evaluate Market Potential
A paper products firm needed a tool to evaluate U.S. market potential for their commercial tissue business unit by state, metropolitan statistical area, and client-specific business district. There is no market data available to provide this type of granularity. The client understood that developing estimates would be required, but did not know where to start.
Our Approach: Understand the Drivers of Market Potential
Global Insight initiated its standard Business Drivers Workshop process to develop a shared understanding of business drivers in each segment and the characteristics of product usage in each segment. Through a process of integrating a wide variety of Global Insight, customer, and third-party data, we developed usage factors for commercial tissue products across the client's six main end-markets. The usage factors were applied to Global Insight's historical and forecast information for employment and sales by industry at local areas of geography.
The Answer: Prioritize Markets, Promote Development
Our client can now prioritize market opportunities by geography and end-market and improve strategic planning for new product introduction by using the market size estimates and forecasts we created. They can understand which markets to target for growth from market share expansion, how much growth to expect from heavily penetrated markets, and where the faster growing market niches are across the country. In addition, they can use the information to facilitate more value-added discussions with distributors, directing them to hidden opportunities and encouraging them to provide more of their market insights in return.
Finding a Better Strategic Plan (Case Study Two)
The Problem: Develop More Accurate Market-Size Estimates
A machinery components firm needed a more rigorous estimate of its global market size for planning and investor relations purposes. Segmentation by product department and world region was critical. At both a corporate and department level, there was a surprisingly wide degree of differences in various internal estimates.
Our Approach: Integrate and Estimate
Global Insight integrated a wide range of available data. Starting with detailed analysis of U.S. Census data on product usage by industry, Global Insight developed a market-size model for the United States based on product category usage rates by end-market. This information was extended globally using the Global Insight's World Industry database and calibrated to existing third-party market estimates for some products/countries.
The Answer: Focus on the Target, Go for Growth
Our client gained a key understanding about how large the markets for their product departments are outside of the United States and how this is tied to the distribution of their many industrial end-markets around the world. A consistent measure of market size for share calculation purposes will refine strategies across the corporation and make for a more compelling story to investors.
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