Primary / Secondary market research / regional data / Philadelphia MSA / STEM / Technology focused manufacturing research / 3D /innovation / segmentation / mind mapping / data mining / surveying

1. Slide 1
Market Research Services- Basic
Approach Overview
DVIRC
2905 Southampton Road
Philadelphia, PA 19154
The Navy Yard
Building 100 Innovation Center
4801 S Broad St, Suite 100
Philadelphia, PA 19112

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About Our Process:
DVIRC’s Market Research Approach Has Been Constructed To
help Grow Our Client’s Business Value.
As such, our research is designed to help Businesses Pursue:
Growth in Sales, Growth in Profitability and Success in
Execution.

4. Slide 4
The Roll of Market Research In a Competitive Strategy
In strategic planning it is highly recommended that components of Primary &
Secondary Research be included as tools to:
 Validate Perceived Organizational Strengths
 Scout Out – Feasible Market Opportunities
 Call out and/or Confirm Weaknesses & Threats
 Define Competitive Landscape & Intensity

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Putting The Right Resources to Work….
Using the right tools at the right time makes our projects more impactful. We
keep the following in our Growth Planning Tool Kit:
 Primary Research / VOC- Current, Former & Prospective
 Secondary Research Pools/ Data Analysis Experts
 Category Analysis Experts and simple to use tools, (i.e. Boston Matrix)
 Expert Competitive Interviews, Competitive Analysis/ Five Forces
 International Market Perspectives and Insights
 Available Experts from RTI International, NIST and more

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Primary & Secondary Research can help answer common
defining questions like:
 Where are we?
 What do we have to work with?
 Where do we want to be?
 How do we get there?

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We recommend defining your objectives then mapping an approach

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We Structure
Give yourself a defined schedule and stick to it!

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Moving forward With Primary Research:
Survey process involves:
A.Defining Survey Groups
• Current/Former Customers
• Competitors
• Prospective Customers
• Current Industry
• Industry and Market Scouting
• Industry leaders
A.Survey Creation and Client Review / Approval/ Revisions.
B.Survey Introduction to Customers
C.One-On-One customer surveying and data collection/ documentation.
D.Real time data gathering and reporting
E.Re-group on progress/address options surrounding elusive contacts
F.Survey Findings & Analysis Report & Presentation
G.Action Plan

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Primary Research is a great tool to help in understanding the value that the market
places on your unique Value Proposition.
It can also enable you to move ahead quickly, leapfrogging situations that foster
intense rivalry (or a race to the bottom with regards to price positioning).
.

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Design Your Survey Questions and Get Started
good
better
best

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Are there any areas in which our company falls short when compared to other suppliers?
What, if anything, we can do to win more of your business? “They tend to be pretty arrogant, it's their way
or the highway, so they are not very customer-
oriented. It is not any one individual. It is just
their company philosophy.” Big Client, John
Smith, Head Engineer
After the Outreach Aggregate your Data

14. Slide 14
Generic Example of our Primary Research In Strategic Planning
Please note: Comments are copied verbatim and include grammar as received from survey respondents.
“I think if they continue the sales support and new
product development, what they have been doing is
great, but their backorder issues are always a
hindrance.” (Fosters and Smith)
“Have more product
available, not zero out
my POs for lack of stock.”
(All Pet Supply)
“The obvious would be not too many price
increases, keeping their pricing
competitive. Their packaging is wonderful.
It's a good line; it's just a matter of
placement and pricing.” (Royal Pet Supply)
IncreaseIncrease
ProductProduct
AvailabilityAvailability
IncreaseIncrease
ProductProduct
AvailabilityAvailability
“I guess maybe lower their
minimums for ordering to help
us. That would probably be the
biggest thing.” (Nash Finch)
CompetitiveCompetitive
PricingPricing
CompetitiveCompetitive
PricingPricing
LowerLower
MinimumsMinimums
LowerLower
MinimumsMinimums
Add Larger
Size Bags
Add Larger
Size Bags
“Add larger size bags.” (Bradley
Caldwell)
“Open up a warehouse in
the Midwest. No, I am
satisfied with Brown's and
what they do.” (General
Pet Supply)
ExpandExpand
DistributionDistribution
ExpandExpand
DistributionDistribution
What, if anything, could we do to win more of your business?

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Among wild bird product suppliers, 44% projected 5-10% growth.
Among companion pet product suppliers naming a growth rate, most projected 5-10% growth.
What are your 12-month growth outlook and strategy for the wild bird/companion pet categories?
Please note: Percentages may not add to 100% due to rounding.
Wild Bird Companion Pet

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Understanding Secondary Research:
Most of us are familiar with secondary research from doing
library research with books and periodicals.
With secondary research, someone else has done the
actual data-gathering in the field and has written it up in a
form that's easier for you to use.
Secondary research is generally much less time-
consuming and cheaper than primary research.

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What Do You Need to Know For Your Growth Plan?
Start With a Look at Who is In Your Market

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Industry Trends and Outlook
Food manufacturing
Annual Indicators Units 2008 2009 2010 2011 2012
Revenues
Revenues - Public Companies Mil. $ 100,487 100,101 111,724 130,338 142,748
change year ago % 11.0 -0.4 11.6 16.7 9.5
Cement Production Mil. $ 9,925 8,645 9,099 10,188 11,172
change year ago % -16.1 -12.9 5.2 12.0 9.7
Crushed Stone Production Mil. $ 17,638 17,145 16,726 18,684 21,643
change year ago % 34.5 -2.8 -2.4 11.7 15.8
Sand & Gravel Production Mil. $ 8,072 7,965 8,101 8,570 9,162
change year ago % 8.9 -1.3 1.7 5.8 6.9
Chemicals
Quarterly Indicators Units 2008 2009 2010 2011 2012
Revenues
Revenues - Public Companies Mil. $ 582,752 558,355 615,954 699,963 784,308
change year ago % 16.2 -4.2 10.3 13.6 12.0
Shipments - Basic Chemicals Mil. $ 725,427 730,576 760,822 807,459 847,880
change year ago % 9.2 0.7 4.1 6.1 5.0
Shipments - Agricultural Chemicals Mil. $ 43,158 47,861 50,677 53,716 56,821
change year ago % 31.4 10.9 5.9 6.0 5.8
Shipments - Paints & Adhesives Mil. $ 33,641 34,997 36,209 37,760 39,354
change year ago % -0.9 4.0 3.5 4.3 4.2
Knowing The Industry Drivers Can Keep You In Front of Growth Trends

19. Slide 19
High-Level Industry Segmentation (continued)
Top 20 industry segments by number of establishments (reference table to aid in calculating CONNSTEP’s market
penetration)
Line of Business Primary SIC Establishments
Printing, Publishing, And Allied Industries 27 1819
Industrial And Commercial Machinery And Computer Equipment 35 1570
Miscellaneous Manufacturing Industries 39 1118
Fabricated Metal Products, Except Machinery And Transportation Equipment 34 1090
Lumber And Wood Products 24 754
Electronic And Other Electrical Equipment And Components, Except Computer 36 721
Measuring, Analyzing And Controlling Instruments 38 585
Chemicals And Allied Products 28 514
Food And Kindred ProductsInclude Criteria 20 406
Transportation Equipment 37 368
Apparel And Other Finished Products 23 346
Rubber And Miscellaneous Plastics Products 30 307
Stone, Clay, Glass, And Concrete Products 32 284
Paper And Allied Products 26 230
Furniture And Fixtures 25 217
Primary Metal Industries 33 215
Textile Mill Products 22 146
Leather And Leather Products 31 80
Petroleum Refining And Related Industries 29 47
Tobacco Products 21 7

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Compile Relevant Secondary Data Points for your Strategy
Aerospace and Defense - Annual Forecast Table
Annual Indicators Units 2009 2010 2011 2012
Revenue
Sales Revenues Mil. $ 415,931 433,620 448,576 483,721
change year ago % 8.7 4.3 3.4 7.8
Major Diversified Companies Mil. $ 218,647 226,099 226,862 240,880
change year ago % 8 3.4 0.3 6.2
Aerospace & Defense Suppliers Mil. $ 197,284 207,521 221,714 242,840
change year ago % 9.6 5.2 6.8 9.5
Company
Total Revenue
(US$)
Domestic Revenue
(US$)
Total
Employees
Boeing $64.3 Billion $38.1 Billion 160,500
AgustaWestland $50.5 Billion N/A 10,433
Lockheed Martin $45.8 Billion $38.4 Billion 132,000
Northrop Grumman $34.7 Billion N/A 117,000
General Dynamics $32.4 Billion $28.5 Billion 90,000
BAE Systems $32.6 Billion N/A 98,200
Bombardier Aerospace $17.6 Billion 1.0 Billion 65,370
Cessna Citation $10.5 Billion N/A 8,500
Sikorsky $6.318 Billion N/A 17,000
Eurocopter $6.4 Billion 784 Million 15,000
Piasecki $5.0 Million 5.0 Million 56
Bell Helicopter/Textron 4.2 Billion 599.2 Million 8,172
Top Regional Firms
New York, with a total of 30 aerospace players claims the largest share in the five-state area. Pennsylvania is second, with 13.
Government reduced their spending on
defense…

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A Quick look at Competitive Benchmarking:
Please note: Competitor metadata descriptions include those of Hartz, D&D Commodities, Kaytee, Nunn-Better, and
Red River Commodities
CompetitorsCompany X

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Hartz
Kaytee
Hagen
Red River Commodities
D&D Commodities
Higgins Premium Pet Foods
Vitakraft Sunseed
Wagner’s
Company X
Nunn-Better
Performance Seed
Website Grade
• The website www.fmbrown.com ranks 2,079,411 of the 4,054,028 websites that have been ranked so far.
• A website grade of 49/100 for www.fmbrown.com means that of the millions of websites that have previously been evaluated, an algorithm has
calculated that the F.M. site scores higher than 49% of them in terms of its marketing effectiveness.
• The algorithm uses a proprietary blend of over 50 different variables, including search engine data, website
structure, approximate traffic, site performance, and others.
• F.M. Brown has 183 pages indexed or stored on search engines (to support web optimization) in comparison to rivals like Hagen with their 23,000
and Hartz with over 5,300. Aside from the outliers in this category, the average index ranking was 231.5.

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Competitive Benchmarking - Market Research Tools
Word Cloud Tools:
www.tagxedo.com
Free Website Assessment Tools:
.
•Examples include SEO Scores (http://www.seoscores.com/),
•Pear Analytics (http://www.pearanalytics.com/), and
•Website Grader (http://websitegrader.com/)
Moving Forward:
Use these Assessment Tools On Your Site and Your Competitions.

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Connecting Research into Your Strategy

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If properly performed your efforts will answer the
age old question:
How Are We Unique?
And, your efforts will also inform you of how to use
that to your advantage.

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Threats
•Free services provided by IDCs and SBDCs
•Manufacturers’ business associations
•WIB
•Continued funding cuts
•Non-consumption of IMC services
•Expanding pool of direct competitors
Strengths
•Established reputation as a resource broker; connected to a broad
range of manufacturers in a concentrated region
•Known for a focus on small businesses, yet capable of working
with clients of various sizes
•Known for its ability to successfully execute a range of challenging
project types
•Solution selling expertise
•20-plus years of experience with the ability to service approx. half
the region’s manufacturers
•Ability to successfully identify and obtain grant funding
•As many as 90% of projects delivered with third-party talent
•Perceived “White Hat” positioning
Weaknesses
•Limited ability to attract new clients to IMC
•Database may not capture all large players
•Projects tend to be grant-driven
•Limited number of repeat clients
•Lack of focus on cluster data
•Internal struggle to clearly articulate Value Proposition
•Lack of internal resources/content experts (i.e. business
growth)
•Historic lack of focus on project revenue and margins
•Frequent inability to justify markup
Opportunities
•Double market penetration
•Establish presence among industries with high growth
potential
•Prioritizing market opportunities, targeting clusters
•Develop a consistent message for business world
•Develop a team behind a new IMC brand
•Bundling services; highlight top-line growth capabilities
•Create a new, dedicated strategic planning team

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Supplier (Third-Party Partner) Power – Low
- Growing number of third-party
suppliers
- Various sizes/structures of
suppliers
- Relative ease switching
partners
- Limited distinction across third-
party groups
Substitutes – High
-Low cost of switching
-Non-consumption
-High buyer flexibility/low perceived
difference among consulting groups
-High degree of service alternatives
Buyers – High
-Low cost of switching
-Very price sensitive
-Low perceived difference among service
providers
-High degree of service alternatives
Competitive Landscape
Randomly Selected IMC
Rivals:
1. RPA Inc.
2895 South Reach Road
Williamsport, PA 17701
http://www.rpainc.org/
2. ESA Marketing, Inc.
416 Pine Street #201
Williamsport, PA 17701-6228
No website/employees 1-10
Revenue – $96K
3. Kolb Net Works (Web-based
marketing)
334 East 4th Street
Williamsport, PA 17701
http://www.kolbnetworks.com
4. Manufacturer & Business
Association
(Headquarters in Erie, PA)
2401 Reach Road, Suite 102
Williamsport, PA 17701
http://www.mbausa.org/
5. North Central Pennsylvania
SCORE
Williamsport, PA 17701
http://www.lycoming.org/score/
Competitive Rivalry – High
-High number of competitors
-Limited differentiation
-Risk margins for project volume
-Varying levels of service sophistication
-Varying levels of key account
“connectivity” and service migration
Barriers to Entry – Low
- Services are knowledge-based
and require expertise, but most professional
service companies strive to be more than
one-trick- ponies, as such full-service
consulting is an area that offers mass appeal.
- Brand identity builds confidence;
this limits the real-world growth potential for a
one person shop, but the downsizing of many
former execs has placed many new
owner/operators out in the field.
- Minimal investments in
technology and infrastructure are required; a
website, shared office space, and
little more are all most players need to be in
business.

30. Slide 30
Your Market Research Should Deliver Key Market Insights
The innovative, niche players and those who are
heavily financed take market share over those who
live day-to-day
The Alpha Position is a result of giving the market
what it wants faster and better than a rival
supplier

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SYLVIA WOWER
Thank you