Case study - A gym equipment manufacturer

Overview

The context

Our client is a global high-tech manufacturer of sports equipment based in the USA that sells internationally through country-based sales offices or intermediaries.

The market for gym equipment is changing rapidly. Traditional commercial gyms remain an important market, but gym equipment is in high demand in many other markets.

Employee well-being is important to many companies, particularly those that involve high levels of physical effort.

The introduction of streamed-to-the-home training classes means that users are prepared to purchase high tech equipment for the home as they can experience social benefits without the travel to the gym.

When users do go to gyms, they want to experience a range of exercise routines, so gym designers and installers must justify the floor space taken by each piece of equipment based on its revenue earning potential.

Client objectives

Improve sales in EMEA countries by prioritising the most commercially attractive countries to enter and identifying suitable intermediaries.

The market intelligence problem

Good quality data on market sizes existed for European countries but specific data on Africa and the Middle East was required.

To decide which new countries to prioritise and target, additional data was needed to understand how easy each market would be to enter – what barriers to entry existed, how much competition already existed in each market, etc.

Our client had no direct contacts in many of the markets being considered and needed more details on potential intermediaries they could work with.

The Marketvista Dataset and Research

The Marketvista Dataset and Research was delivered to the EMEA regional Sales Director. The dataset was delivered via our Marketvista Portal to enable them to use and analyse the data long after its delivery. An executive report was also provided to provide answers and recommendations on their main questions.

The intelligence we delivered:

  • Identified and sized markets for high-tech sports equipment across all sectors
  • Prioritised countries within the EMEA region to focus sales and identified potential intermediary partners
  • Assessed competitive threats
  • Established an improved performance measure for their existing intermediaries

Overcoming the market intelligence problem

Establishing evidence to estiamte market size

We ran statistical analyses over 45 metrics published by authoritative sources such as the UN and the World Bank to identify strong correlations to known market size data. We were able to identify metrics that provided a strong statistical correlation (>0.95) that could be used to asses and prioritise the markets in Africa and Middle East.

Foundation Dataset

A foundation of data was extracted from the extensive and detailed data we have built from thousands of sources giving intelligence on:

  • The identity and locations of training facilities provided by the armed forces, emergency services, employee facilities in large companies, rehabilitation providers, health spas, hospitality and universities
  • Existing providers of competing products globally with details of their propositions, customer groups targeted and channels to market
  • Characteristics of the product range carried by each distributor to identify diverse variation in both product focus (design and installation of gyms vs. maintenance of gym facilities) and market sector engagement (e.g. leisure and fitness clubs, armed forces, etc.)
  • Map of competitor distributor networks, their office locations and an assessment of the different types of distributor that act in each market and their target sectors

The identify of potential sales leads for key accounts such as hotel chains and leisure clubs

We f.......

We......

The Marketvista Dataset

MarkevistaTRBdatasetv3

Additional value

Our analysis of the EMEA markets enabled us to go further than the client’s original requirements.

We were able to measure the performance of each intermediary against the market strength, ease of trade, strength of competition and target sectors available by combining internal data from the client’s sales system with the Marketvista Datasets,

Our client was able to identify:

  • The best performing intermediaries, understand what they were doing well and then share best practice with their other intermediaries.
  • The under-performing intermediaries and work with them to improve or, ultimately, replace them with better performers.