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1.INTRODUCTION

The client company were an international concern seeking to understand the nature and characteristics of a certain sector of the UK plumbing pipes and fittings market, with a view to establishing a position in the market.

The company had formulated a new product which they claimed offered a number of advantages over existing systems.

The company are keen to undertake a situation assessment on the UK pipe and fittings market in terms of the market size, structure, processes, attitudes and in terms of the opportunities and threats for a new product.

2. INTRODUCTION & OBJECTIVES

The key objectives of the research were as follows:-

• To establish the size of a specific pipe and fittings sector.
• To establish the mix of materials.
• To assess the key suppliers and the distribution structure.
• To establish the distribution mix, merchants, DIY Multiples etc.
• To understand market trends in all sectors of the market.
• To establish price levels at merchant buying prices.
• To determine the mix of product used by size and to determine the mix of fittings to pipes in the market sector.
• To identify the share taken by different applications.
• To understand the perceptions of existing systems in terms of strengths and weaknesses, as perceived by distributors, installers and contractors. To assess reactions to the company system in terms of advantages and disadvantages as perceived by the plumber.
• To identify the key routes to market for a new product, in particular the opportunities through Builders Merchants. To suggest appropriate strategies to approach the market.
• To assess the likely competitor reactions.

3. METHODOLOGY

The research was undertaken in two parts, firstly research into the market size and structure of the pipe and fittings market and secondly, research into contractors and merchants attitudes to plastic piping systems - both existing and the proposed new system.

Market Size and Structure Research

The key objectives of this stage of the research were to assess the market size, the supplier structure, the distribution structure and the product mix. The methodology for this was as follows:-

We undertook desk research to establish any existing research on the topic, through trade associations, trade magazines, relevant Government statistics, other publications etc.

We undertook telephone research and contacted manufacturers and merchants and established their views on the market definition, the market size, product mix, distribution mix and key suppliers.

The company's name was not disclosed at this stage. We undertook some 40 interviews with manufacturers, merchants, distributors, trade associations and journal editors to establish background statistics and current views on market sizes, trends etc.

We gathered competitor literature, and posed as potential buyers/users to develop an understanding of the product range, pricing and manufacturers' strengths and weaknesses.

We collated the findings from the above, which were incorporated in the report.

Opinions and Perceptions

The key requirements of this section of the research, were to identify perceived strengths and weaknesses of piping systems as perceived by contractors. In addition, to develop an understanding of the likely impact of the product advantages incorporated in the new system.

We undertook five 'focus groups' which were designed and operated to generate an open and frank discussion on the merits of certain plumbing systems. This was structured around a broad discussion schedule to ensure the objectives of the research were adhered to. This included introduction and discussion of the new plumbing system.

The key elements addressed in the focus groups included:

• Attitudes to material changes.
• Opinions of various, influence of cost versus convenience.
• Views on existing systems - perceived advantages and disadvantages.
• Views on the new product - advantages relative to existing systems and the contractor reaction.
• The use of special tools - advantages and disadvantages.

We undertook 4 focus groups within different geographical areas, in order to establish a wide range of views and opinions.

4. LOGISTICS

The timescale of this kind of project is driven by the focus groups which can take some time to organise. This particular project took some 8 weeks, as it involved a range of desk and trade research, which was required to generate some of the points for discussion ahead of the focus groups being set up.

The cost of a project of this kind would comprise of the focus group costs allied to the market research.

The market research would cost between £8000 and £12000, covering the desk research, trade interviews and analysis of the information gathered.

The focus groups would cost between £1700 and £2500 per group depending on the size of the incentive to the attendees, the nature of the room in which the group takes place and the difficulty in recruiting attendees for the group.

Of course these cost will vary on a project to project basis, depending on the issues of complexity of market and products, number of interviews to be conducted, etc though we would provide a quote in each case to take account of these issues.

We always seek to provide a quote which is fixed, assuming the basic project objectives remain unchanged. However, in some cases, the situation is more complex and it can be impossible to provide a fixed quote, for example where we are required to buy other research information and at the commencement of the project we are uncertain as to the ultimate cost to us.

5. OUTCOMES

The outcome of the research was a combination of a detailed report on the size and nature of the pipe and fittings markets in the UK, with particular focus on the company’s sector of interest. Key aspects covered included:

• Market size, structure and trends.
• Key companies, major characteristics.
• Key competitive products and systems, their advantages and disadvantages. Key companies strong by sector.
• Distribution characteristics and opportunities.

The report also covered the attitudinal research through the focus groups, though this was supported by video and audio tapes. This addressed the characteristics of the key competitive product systems and the new product system from the viewpoint of the installers.

The company were able to determine how to target their product into the UK in terms of distribution and which key advantages to focus their marketing upon, using the findings from the group research.