Background and Client Objectives
A national manufacturer came to TrendSource Trusted Insight in anticipation of a new product rollout with a retail partner. Specifically, they wanted to determine which of this retail partner’s 1,800 national locations offered the best opportunity for a successful pilot launch. This meant they needed to understand which stores stood in areas heavily saturated with potential customers most likely to purchase this new product. Launching the product first in these specific locations would ensure its early success and popularity, making for a strong initial rollout.
Program Development and Methodology
TrendSource Trusted Insight developed a two-stage research solution for the manufacturer. In order to locate and construct a composite of potential customers with the highest likelihood for purchase, they determined national panel surveys would be indispensable and conducted roughly 1,000 surveys over a five-day period. After determining appropriate prerequisites, qualified participants were given surveys measuring their interest in and likelihood to purchase the client’s new product, as well as their opinions on the importance of certain product features.
From these surveys, a demographic profile of customers most likely to purchase emerged; said differently, with these surveys, the Insights team came to develop a composite of the manufacturer’s most likely customers. This demographic profile included (but was not limited to): household income and education level, marital status, home value and size, years in current residence, and a spend profile based on their self-reported economic outlook.
With this composite, the analytics team launched the second stage of its research solution. Using Experian’s Mosaic segments, they determined which national zip codes housed the highest concentration of this ideal demographic, and aggregated them into metropolitan areas where possible to reflect appropriate shopping areas. Household counts could then be plotted geographically around the retail partner’s stores to determine which were surrounded by the greatest concentration of potential customers.
Analysis and Results
TrendSource Trusted Insight pinpointed 10% of the retail partner’s 1,800 locations in which the client’s new product would debut in areas most densely populated by those most likely to purchase it. Furthermore, the client emerged armed with a bevy of demographic information related to their customers, their purchasing habits and intentions, and their geographic distribution.