Client description: Global independent safety science company

Practice area: Market Research, Strategic Positioning

Geographic scope: US, Canada, Germany, Italy, UK, China

Industries involved: Aerospace, Chemicals, Electrical Components and Devices, Industrial Equipment, Metals, Oil and Gas, Pulp and Paper, Transportation, Mining

Services applied: Market Opportunity Study, Voice of the Customer, Competitive Intelligence, Brand Perception & Awareness, Brand Equities and Identities, Go-to-Market Strategy.

Business challenge: Client’s commercial & Industrial business unit is looking to include non-certification testing services in its offering. Given that a number of competitors provided non-certification testing services, client wanted to assess the opportunity in terms of types of services, market size, price points, competitive landscape and market willingness to buy non-certification services from them. Ultimately, should the opportunity be validated, they would need recommendations on how to go to market and how to strategically position themselves.

Methodologies: Exhaustive secondary research enhanced with 34 qualitative in depth interviews (IDIs) and 413 quantitative surveys with decision makers in industrial products manufacturing companies and subcontracted laboratories.

The result: A thorough report depicting the types of non-certified testing categories, ancillary services and outsourcing practices across all industries. Report included comparative graphs on tests done in house; tests outsourced by industry, by country, reasons for doing non-certified tests, testing behavior per country. Also included were the estimated spend on testing (certified and non certified) per industry, country, major suppliers of testing services. An assessment of the path to purchase included sources of information, departments that influence decision making, reasons for keeping certifications in-house or outsourced. An analysis of the competitive landscape described supplier selection drivers, market share, unmet needs, supplier brand awareness, performances, satisfaction and compared supplier attributes.

After presenting concept to respondents, findings revealed that there is an attractive market for non-certified testing, especially in the field of environmental, chemical and non-destructive testing in the Chinese, US and UK markets. There was a strong reaction to concept, especially among outsourcers. Research determined that there was a sizeable global opportunity, competition is fragmented and that client should be able to leverage its global assets and capabilities better than most competitors. Recommendations were made to target the best prospects with the most in-demand testing requirements; create a culture and identity that is more entrepreneurial, nimble, and customer-centric; leverage ancillary services help build customer intimacy; focus on customer intimacy, service, and rapid turnaround; and create differentiated value proposition to induce switching behavior.