Situation

A manufacturer of convenience store equipment sought to expand into an uncontested market adjacency by introducing a new product that would add value to customers by helping them both use their equipment more efficiently and maintain it more proactively (i.e., avoid downtime and unexpected malfunctions).  Our client needed to know if the integrated solution that they were developing was useful to convenience store operators, and, if so, what features and functions it needed to have.  The company asked Market Strategy Group to conduct primary research with prospective buyers and users of the solution to help assess market receptiveness to the offer and determine whether or not they should go forward with it.

Solution

Market Strategy Group began by developing a detailed description of the solution and its key functionality, in order to most appropriately describe it to target buyers.  In addition, MSG segmented the convenience store market in order to identify those operators who were most likely to want a solution of this type.  Using that segmentation, Market Strategy Group performed primary research with potential buyers in various functions to assess their reactions, preferences, likelihood to buy, and willingness to pay.

Outcome

Market Strategy Group’s market study determined that although the new product concept was very attractive to target buyers, buyers expected broader functionality and much higher levels of ease of use and integration.  The assessment prevented our client from going to market prematurely with an offer that would have only partially met buyer expectations and needs.  The client is currently determining whether or not they can develop a solution that meets all the needs of the target segment, and also evaluating partnership options that may be required.