Market Segmentation
Client: A Pre-IPO mid-tier storage networking firm
Situation:
- The client had recently introduced storage networking solutions optimized for the enterprise “edge” market
- A horizontally-focused sales efforts was achieving the desired revenue goals, and Marketing believed that strong incremental growth could be achieved in selected verticals
- Additional “edge” market information was needed for use with analysts and investors in establishing market potential and valuing the company
Objective:
- Develop background information for investors, for marketing initiatives, and for sales activities in the retail industry
- Determine a cost-effective means of segmenting and sizing the “edge” market, using the retail industry as the test vertical
- Quantify the number of store locations within the top 100 retail firms
- Identify the storage decision-maker(s) in each company
Methodology:
- Two retail industry marketing consultants completed this project in two weeks
- 105 retail chains were researched through website visits and analysis of Hoovers information
- Segmentation and sizing was accomplished according to a research design agreed upon with the client
Outcome:
- Retail market sizing confirmed a huge potential “edge” market for the client’s product
- Six segments were identified, three of which were divided into subsegments, to reflect groups of retailers with common characteristics that could be leveraged by Marketing
- Names and contact information for storage decision-makers for all 105 firms were reported from the BusinessLaunch database, giving the client direct access to key customers for sales activity
- BusinessLaunch decided to expand the scope of the project at no additional expense to the client. “Compliance” was identified as a primary driver of storage purchases, the impact of which was then detailed for each segment in order to facilitate sales messaging
Result:
- Within six months, this firm was acquired by one of the leaders in the storage industry
