Client description: Fire suppression product manufacturer

Practice area: Market Research, Strategic Positioning

Geographic scope: US

Industries involved: Energy, Chemicals, Oil and Gas

Services applied: Market Opportunity Study, Voice of Customer, Competitive Intelligence, Go to Market Strategy, Online quantitative survey

Business challenge: Client manufactures a superior encapsulating agent that renders fuel non-flammable and non-ignitable but has faced several challenges in influencing significant market adoption. Main issues concerned selecting the best sales channels and countering low market penetration. Client needed to explore market opportunity for his products across 3 different markets and implement a winning go to market strategy.

Methodologies: Extensive secondary research and desk analysis complemented by 81 qualitative telephone in depth interviews (IDIs) with thought leaders, decision makers, regulatory agencies and insurance companies. Sample of 62 quantitative surveys from client’s contact list.

The result: Delivery of a detailed report with a comprehensive analysis of market size, competitive landscape, unmet customer needs, opportunities and barriers per industry. The collected data revealed mixed reactions to the product, with some seeing the product as not very compelling in terms of perceived need and time savings. Market sizes ranged from poor to good on three target markets. Numerous competitive offerings and a noisy and confusing sales environment made competition intense. Quantitative results identified most respondents use water, foams and dry chemicals as fire suppression solutions, these results also revealed scenarios where encapsulating agents are used and their performance under a variety of circumstances.

Recommendations were made to focus on power/energy markets; to go after flammable liquid storage applications given superior cooling properties; pursue endorsement of major insurance companies for special applications; and target specific high value niches. Other strategic recommendations included developing a differentiated engineering solution and business model that is difficult to replicate. Client was advised to deemphasize on degassing market and specific international locations and to explore joint ventures and partnerships in order to combine solutions. The Client was also advised to invest in the development and management of distributor base and pursue tests on applications endorsed by insurance companies. A go to market strategy was designed, focusing on a targeted digital campaign.