Client description: Consumer goods company

Practice area: Market Research, Strategic Positioning

Geographic scope: US

Industries involved: Automotive

Services applied: Market Opportunity Study, Competitive Intelligence, Brand perception and awareness

Business challenge: Client is gaining traction in the auto repair and maintenance space. Building on its success, client wants to understand the purchase process/dynamics of the new tire workwear segment; define market opportunities in the new tire only; assess brand awareness; identify and evaluate key strategic marketing messaging; and identify optimal activation tactics for each new segment.

Methodologies: Broad secondary research on tire market complemented by 43 qualitative in depth interviews (IDIs) with prequalified decision makers of tire OEM-owned stores, independent tire dealers, retail merchandisers, warehouse/club, aftermarket auto retail, and large auto dealers.

The result: A complete report of the market opportunity that contained understanding of market segments, size, health, channels, leaders by segments, trends and unmet needs. The path to purchase was mapped out in terms of decision makers, decision drivers, tempo/time line, and franchisor-franchisee policies /guidelines. Also included in the report was an assessment of brand awareness; employee perceptions of uniforms; supplier change triggers; information sources; and an evaluation of messaging and positioning statements.

Study findings revealed a big challenge for client. All segments were highly competitive; most are mature and offer low profit margins. The industry was value focused and not ripe for innovation. The decision process is usually centralized and uniform selection and sourcing was not top of mind. Client was advised to identify and target independent tire dealers buying group, employee-focused groups and private companies; be aware that contract renewal requires time; send samples; and address pain points. Strategies and tactics were carefully planned to reach clients in terms product innovation, marketing/branding and business development.