A furniture company was looking to expand its footprint. However, before entering new markets, the company needed to better understand the competitive landscape, as well as the opportunity in different regions. This case study will outline the multiple-phase research methodology used.
A furniture company was available in New York and California, but looking to expand their service to new regions. Although the furniture industry is competitive, it occupied a niche offering trendy, high-quality furniture to rent.
The company was interested in understanding how its brand stood against both traditional and non-traditional competitors. It also wanted to understand the size of the opportunity and learn who has the highest propensity to purchase the service.
The company commissioned Provoke Insights to conduct a two-step phase research process to understand the marketing opportunity.
The objectives of the research included:
- A competitive analysis of rental furniture companies and traditional furniture retailers;
- A market analysis of American cities that would be best suited for expansion; and
- A survey segmentation of the company’s target audience.
Market Research Solution
Provoke Insights conducted a two-phase research solution. The first phase used secondary research. Provoke Insights used its list of 50+ databases to profile the top 15 designated market areas (DMA’s) for the company. A competitive analysis of traditional and direct competitors was conducted using social listening, offline and online advertising analysis, and other available information.
Phase one determined the top-ten markets the brand should focus on for its expansion. The subsequent phase was a quantitative survey among 2,000 participants across ten DMAs. A market segmentation was conducted to determine who had the highest propensity to select its brand. Segmentation research categorizes consumers into distinct groups moving beyond basic demographics and behavioral characteristics. Using advanced analytics, this research method efficiently targets consumers who have the higher propensity to rent high-end furniture.
The first step was to uncover themes using an advanced analytics technique called factor analysis. To generate the segments, Provoke Insights then conducts a cluster analysis. Provoke Insights created cohorts that are manageable and sizeable, making them sufficient to warrant the investment.
In both phases of the research, Provoke Insights determined the highest opportunity cities for the brand to expand their business into, and the overall state of the market. The segmentation research was able to highlight the ideal personas to target, information into the buying process for those targets, and a clear message and media plan to target where their ideal customers will find them.
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Finally, read some of our past case studies here:
- Food Category Brand Launch: Secondary Research
- Marketing Strategy for a Major National Fitness Club
- Annual Ad Testing Campaign for OTC Drug Company
- Jewelers of America: Mixed Methodology Market Research Study
- Brand Strategy Research for a Rental Truck Company
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