Case Study
Local Market OpportunityLocal Market Opportunity
Identifying Underserved Market Niches to Fuel Growth
Understanding local demographics, preferences, and challenges and engaging with customer feedback provides direct insights into what local customers want, value, or feel is missing in their current options. Assessing gaps in the competition helps pinpoint areas where the market is under-served or where existing providers fall short. By combining these insights, businesses can uncover new opportunities, develop niche offerings, and establish themselves as leaders in their local market.
LOCAL MARKET OPPORTUNITY
Identifying an Under-Served Market to Fill a Local Market Need
Challenge
An entrepreneuer had an idea to establish a personal services business in a local market to cater to a high-end market niche. There were numerous businesses providing generic services to the lower end of the market. The businesses were competing on price for local market share. The potential business owner wanted to understand the dynamics of the local market and determine if a high-end service offering would draw a sufficient customer base to support a profitable business.
Solution
To determine the size of the untapped market, geeographic boundaries were set. Primary research was conducted among the targeted area audience to determine the characteristics of clients would pay a higher price for a premium service offering. Personas for these clients were then developed and demographic research was conducted using key parameters indentified in the personas to determine that there was a sufficient potential client base to support the new business. Findings from the primary research also helped define the premium service offering that would be offered to clients of the new business.
THE RESULTS
The entrepreneuer established a business using insights from the research to guide branding, services and products offered, pricing, and amenties provided to clients. The business entered the local market positioned as a premium provider. The ambience of the business coupled with the quality of services offered, allowed the business to successfully enter the market and attract its target market even though its price points were 50% higher than prices charged by competitors serving the lower-end of the market.