MANUEL BONNELLY
DATA & BUSINESS INTELLIGENCE ANALYST
Market study analysis
Goal
A market study can provide information that a new company needs to begin operations. Analyzing the data will provide you relevant insights. The goal is to identify the insights that will help the company make the right decisions and prove that the potential costumer market is willing to use the service the company is evaluating to provide.
Result
Results are showcased in a report with suggestions for the company on the next steps it should take. Based on this report, the company can make well-founded decisions, products can be selected, costs and sales can be budgeted, a target can be defined, and demand can be predicted.
Case - What are the best options for the company?
For a condom vending machine startup I have done an extensive analysis to analyze and suggest what are the best options to start their operations. Since the startup wants to implement vending machines in bars and clubs as a new distribution channel for the Dominican Republic, the new venture wanted to know what segment they should target, how much is that segment willing to pay, how much is the new concept convincing for that target and who are the main competitors. The data is based on a market study of a sample of 459 potential customers made by the company.
What is the situation of potential customers?
The majority of potential customers are in a situation in which they are not in an engaging romantic status and most of those currently don't have children. This is a positive sign for the company because they have an opportunity to approach to people who are in a status which is most likely to not have children. therefore looking for keep preventing through the use of preservatives.
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Recommendation: Market to the potential customers who are single, in a romantic relationship and in a casual informal relation
What is the income of potential customers?
Most quantity of potential customers are between the ages 18 to 23 years old, and even though they are the ones who are making less money than the upper age ranges, they make in average a monthly income which is sufficient to buy the product. This means that the products has viability because potential customers can afford it.
What are the ages of people who visit bars and clubs the most?
Not only the age range of 18 to 23 years old are the biggest quantity of potential customers, but this age range is the one who visits bars and clubs the most. This showcases that the majority of potential customers actually visit the establishments in which the startup wants to implement the new distribution channel to, therefore amplifying the viability to implement a condom vending machine in bars and clubs
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Recommendation: Set a target of 18 to 23 years old
Who is most likely to consume the service?
People who have sexual relations after going out to party can give us a more precise estimate of who will actually buy the product despite of their situation, however it is important to classify it by said situations so we can understand the communication and establishments in which the company can start operations. Single people and people who are involved in romantic relationships and marriages are the ones who have the most sexual relations after going out to party. Despite those situations we will still have a reaffirmation on the 18 to 23 segment because that is the age range who maintain the most relations in that condition.
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Recommendation: Set vending machines in bars and clubs of a single and young audience and in bars and clubs of a engaged and older audience
How much are potential costumers willing to pay?
When analyzing the price customers are willing to pay the company has to take into consideration that this is the price they currently pay in their current options for buying condoms. They have to ponder the fact that in bringing a vending machine in bars and clubs they're providing an added value for the customer so the startup may have some flexibility for experimenting price increases and measuring the demand reactions on it because of it.
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Recommendation 1: Adjust costs and sales budgets to develop a pricing strategy that can allow the company to offer products in the vending machine who can match what the customers are willing to pay
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Recommendation 2: Provide vending machines who can accept both credit or debit card and cash payments
Who is the main competitor?
Since pharmacies are the biggest competitors, the startup needs to focus on communicating to the client the provided value that having a condom vending machine on bars and clubs has and represents a more safe and convenient alternative rather than purchasing in a pharmacy or supermarket.
How convincing is the service idea for non-consumers of the product?
The high acceptance of the concept from people who currently don't buy or use condoms can be useful as a resource for the marketing or publicity of the new business as well for presenting the ideas to potential investors that can finance vending machine in a variety of establishments.
What will be the unit market demand for condoms per year?
What will be the market potential and segment?
With this data pulled from the National Statistic Office (ONE) from the Dominican Republic and the Kinsey Institute, the company can discover can it will have a vast amount of units demand and a significant size of the market segment (considering the population of the Dominican Republic to be 10 million habitants). This can lead the company to evaluate strategies in which it can reach the cap of the market segment and expand the establishments in which a vending machine is present.