Market research
Primary and secondary research designed around the questions a board, management team or investor needs answered, from expert interviews and quantitative surveys through to industry screening and company research.
Overview
Most of our strategy and due diligence work rests on market research of one kind or another, whether the question concerns the size and growth of a market, the basis on which customers choose between suppliers, or the position of a business against its competitors. We also undertake research as a standalone engagement, where a client requires evidence on a specific question without a broader strategy program around it.
Each program begins with the questions to be answered and the hypotheses to be tested, and the choice of methods follows from these. In practice this usually involves a combination of secondary research, which establishes the market context quickly, and targeted primary research, which provides evidence that is not available from published sources. We work with specialist expert networks and survey panel providers where appropriate, while the research design, oversight of fieldwork and synthesis remain with our senior team.
The output is a clear account of what the evidence shows and what it is likely to mean for the decision at hand, with the main findings drawn out from the underlying data. Each finding is presented with an indication of the confidence that can reasonably be placed in it, and areas where the evidence is mixed or incomplete are identified as such.
Primary research
Methods are selected and combined according to the questions being tested, the audience to be reached and the time available.
Industry perspective within a short timeframe.
Structured interviews are held with former executives, competitors, customers, suppliers and other market observers, sourced through expert networks and our own contacts, with each candidate screened for relevance before the interview takes place.
Depth research with customers and intermediaries.
Depth interviews and focus groups with customers, and with the intermediaries who influence their decisions such as agents, distributors and designers, are used to understand purchasing behaviour, unmet needs and perceptions of competing suppliers.
Customers, prospects and trade channels.
Surveys are designed to produce results that can be analysed by segment and geography, with sample sizes set according to the level of precision the decision requires and fieldwork managed through specialist panel providers.
Trade-offs between features and price.
Choice-based studies estimate the value customers place on individual features and their sensitivity to price, which allows propositions and pricing structures to be tested before they are taken to market.
Willingness to pay and price structure.
Research into current and preferred fee structures, price sensitivity and the likely response to price changes draws on established survey techniques, and is often cross-checked against analysis of historical pricing data.
Net Promoter Score and purchasing criteria.
Satisfaction, loyalty and switching intent are measured alongside the performance of a business against the purchasing criteria that customers regard as most important, relative to competing suppliers.
Secondary research
Secondary research usually comes first, since it frames the questions that primary research is then used to test.
Size, growth and drivers.
Estimates of market size and growth by segment and geography are built from industry, economic and company data, cross-checked from more than one direction, and accompanied by an assessment of the factors likely to shape demand.
Prioritising sectors and geographies.
Industries, sectors or countries are screened against agreed criteria, such as market potential, fit with the business and ease of entry, to arrive at a short list that would benefit from closer examination.
Competitors, targets and partners.
Profiles of competitors, acquisition targets and potential partners cover their offer, positioning, financial performance and strategy, and are drawn from filings, company materials, business press and data providers.
Pricing, performance and operating models.
A business is compared with its peers on pricing, service levels, cost structure and operating model, to identify where it appears to hold an advantage and where its performance may fall short.
Lessons from comparable markets.
The development of business models, regulation and competitive structures in comparable overseas markets is reviewed, as an indication of how the local market may evolve.
Evidence already held within the business.
A client’s own customer, sales and pricing data, including cohort, retention and profitability analysis, is often an underused source of insight and can provide a useful cross-check on external research.
How the work runs
The same stages apply whether the research forms part of a wider engagement or stands alone.
The decision to be informed, and the questions that matter most to it, are agreed before any research is commissioned.
Methods, audiences, sample sizes and providers are selected to answer those questions within the time and budget available.
Experts and respondents are screened, early results are reviewed, and the program is adjusted where the evidence points in an unexpected direction.
Findings are drawn together across sources, with the implications for the decision set out plainly and the strength of the evidence behind each one stated.
Selected work
Named clients are withheld. Each program was designed, overseen and synthesised by our senior team.
Market entry
International market review to prioritise expansion options.
Due diligence
Commercial due diligence for a private equity investor.
Customer research
Customer research to inform a cloud migration and pricing model.
Starting a conversation
Most research programs begin with a short conversation with a principal about the decision in front of the business and the evidence that would best inform it.
