Existing Market Analysis

• Is our strategic plan based only on internal data and assumptions?
• Do we really know the actual market size and, more importantly, the market potential for your products and services?
• Are we missing profitable market segments because we do not know enough about them?

Unfortunately, most strategic business plans are overly optimistic and do not contain objective market intelligence. No matter how hard you try to remain objective, strategic plans contain a bias based on your company’s internal paradigm.

The Allegheny Marketing Group (AMG) helps companies by conducting market assessments from an objective, third party perspective. With years of practical experience in industrial markets, AMG is able to collect market information and convert it into market intelligence that is actionable and helps improve clients’ top and bottom lines.

AMG collects market information from a variety of sources including available secondary research, competitor intelligence, and primary research with the entire value chain (e.g., sales and distribution channel, OEMs, integrators, end users, etc.).

AMG’s market analysis projects have involved more than 200 different markets and more than 300 different product lines. Whether the assignment involves obtaining tactical information (e.g., market size and competitor shares) or involves strategic direction (e.g., determining what the company’s strategy should be based on objective market intelligence), AMG is able to help.

Case Study 1

A leading international petroleum producer was planning to add significant plant capacity, essentially doubling the production of high-quality lubricants and base oils. Clearly, existing markets would not provide all of the demand and new markets would have to be explored.

The Allegheny Marketing Group was contracted to investigate the market size, opportunity, competitive environment, and necessary sales channels needed to reach new markets in food processing, cosmetics, polystyrene production, and mineral oils. Through primary market research, Allegheny Marketing Group was able to identify the main customers in these markets, the current market environment, and the opportunity for a new supplier. Within one year, all new plant capacity was utilized.

Case Study 2

A major supplier of mobile refrigeration units for on-highway trucks and buses was looking for new markets in rail transit. They had spent considerable time entering the market and had already made inroads with some key customers. However, as a whole, the market was not profitable and there were questions on whether the company could obtain a dominant, and profitable, position in the market.

The Allegheny Marketing Group thoroughly investigated the market through a combination of secondary research, government research, telephone and face-to-face interviewing. Based on the recommendations of the research, efforts were focused on two market segments which offered the greatest opportunities.

Case Study 3

A major electrical equipment manufacturer wanted to assess the opportunities to market their products to electric utilities. As a leader in the industrial and residential markets, a natural extension would be to target large Investor Owned Utilities. The question was what marketing plans/programs would be successful.

Through both telephone and face-to-face interviews with key utility decision-makers, several different alternatives were evident. After considering suppliers' strengths and weaknesses, the requirements to enter the market, and the potential payoff, our client decided there was not as much opportunity as they originally thought and elected not to enter the market.