Client Goals

Identify & Establish New Markets :: Case Study

Industry: Engineering

Business Profile: Mid-size engineering firm in the mid-west

Customer's Perception of Need	Challenge
This full-service engineering firm wanted to increase business and was considering two different means of achieving this objective. They wanted to find growth opportunities in their existing market and they wanted to identify and potentially enter a new market. Their existing market was located in a 300-mile radius of the corporate office in Overland Park, Kansas. Considering entry into a new market was a departure from previous growth initiatives. Traditionally this company had grown by purchasing small engineering firms in small communities.	The customer wanted Pioneer Marketing to help them determine which geographic areas would provide the best opportunity for expansion. A 500 to 600 mile radius from the corporate office in Overland Park made up the region under consideration. Based on research and our recommendations they would choose to either open a new office or absorb a company in the identified market.

Customer's Perception of Need

Challenge

This full-service engineering firm wanted to increase business and was considering two different means of achieving this objective. They wanted to find growth opportunities in their existing market and they wanted to identify and potentially enter a new market. Their existing market was located in a 300-mile radius of the corporate office in Overland Park, Kansas. Considering entry into a new market was a departure from previous growth initiatives. Traditionally this company had grown by purchasing small engineering firms in small communities.

The customer wanted Pioneer Marketing to help them determine which geographic areas would provide the best opportunity for expansion. A 500 to 600 mile radius from the corporate office in Overland Park made up the region under consideration. Based on research and our recommendations they would choose to either open a new office or absorb a company in the identified market.

Pioneer Marketing: Model Implementation

Explore	Chart
To identify potential growth areas, we composed a formula that contained specific variables to help us rate each opportunity. Variables ranged from economic growth to competitive pressures. We looked at changes in progress and changes predicted for the identified communities and determined if these changes required more expertise than local engineering firms could provide. In previous work with the company, we documented their core competencies, with a close look at what made them different or outstanding in the eyes of their customers and their own employees. We identified a new service offering and brand position based on their core competencies and the opportunities our research revealed.	Based on our formula, we identified 10 communities poised for growth for a specific reason or reasons. In some cases a change was pending that would significantly affect a particular community’s population growth, which in turn would require new infrastructure. Each of the 10 communities and their situations was presented to the client for consideration. Using a two-step process we then narrowed the list of 10 to the top three. Each of the top three communities had different reasons that were propelling growth in the community.

Explore

Chart

To identify potential growth areas, we composed a formula that contained specific variables to help us rate each opportunity. Variables ranged from economic growth to competitive pressures. We looked at changes in progress and changes predicted for the identified communities and determined if these changes required more expertise than local engineering firms could provide.

In previous work with the company, we documented their core competencies, with a close look at what made them different or outstanding in the eyes of their customers and their own employees. We identified a new service offering and brand position based on their core competencies and the opportunities our research revealed.

Based on our formula, we identified 10 communities poised for growth for a specific reason or reasons. In some cases a change was pending that would significantly affect a particular community’s population growth, which in turn would require new infrastructure.

Each of the 10 communities and their situations was presented to the client for consideration. Using a two-step process we then narrowed the list of 10 to the top three. Each of the top three communities had different reasons that were propelling growth in the community.

Results

Although the client chose not to expand at that point, we included this case study to show how research can facilitate the decision making process required to successfully enter a new market.