Case 6: Industrial Company
Context of the market research
Our client is an industral company, international leader in safety equipment. Our client aims at introducing their products and services into the fast growing China market. They wanted Daxue Consulting to help them pilot their entry into the Chinese market.
Steps of the market research
The market research followed 5 phases:
Phase 1: Documentary research
In phase 1 of the project, our consultants conducted a documentary research (or desk research) in order to have a broad understanding of the market and the industrial context in China. By the end of the phase, our consultant were well aware of our clients’ competitors in China, their location, the specificities of their products and so on. The comprehensive research done by our consultants aim at understanding every piece of the safety equipment market in China as well as the industry segment and the key stakeholders for a successful entry in China.
Phase 2: Qualitative interviews
In this step 2 of the project, our consultants interviewed 12 experts of the safety equipment industry. The aim of those interviews was to get in-depth knowledge on the market. Therefore, we targeted professionals as well as competitors of our client to get as much quality information as possible.
Phase 3: Store-checks & mystery visits
12 store-checks were performed in 1st tier and 2nd tier cities: Hangzhou, Chongqing, Chengdu, Guangzhou, Shenzhen and Shenyang. At the same time, during the store-checks, we also performed mystery shopping, so that we could gather even more information from the sellers. Then, our consultants were able to cross the information collected from the store-checks with the qualitative interviews in Beijing and Shanghai and draw a comparison analysis.
Phase 4: Feasibility and business planning
In order to assess the feasibility of our client’s project, our consultants interviewed 20 head hunters, lawyers, accountants and PR professionals. As a result, we were able to price the cost of their market entry and understand its steps, as well as analyse deal-breakers. Then, our consultants wrote the business plan for our client’s market entry strategy. The business plan included the objectives, the expectable prospects, strategies for a successful development, as well as the financial statements of their project.
Phase 5: Analysis and synthesis
Last but not least, the final analysis of all the data gathered during the project results in a complete and detailed report of the security equipment market, including the business plan and recommendations to help our client with the strategic decisions they are likely to face in the near future.