Product Intelligence
Competitor Intelligence
Market Intelligence
Customer Intelligence
The Martec Group, Inc.
Enabling Execution Through Insight
Capabilities Overview
Customer Intelligence Clinics
CHICAGO • DETROIT • FRANKFURT • SHANGHAI • BEIJING
The Martec Group
Confidential
When your list of goals looks like a Post-It explosion…
Q1 Goals
Better
marketing
and sell-in
materials
Optimize product
offerings,
placement, and
merchandising
support
The Martec Group
Support
demand
creation at
the retailers
Uncover
unique
segmentation
perspectives
2
Stronger
price
positioning
Provide
information to
retailers that
they may not
know about
their customers
Confidential
…Martec has a unique “one-stop shop” solution to gather a range of B2B
or B2C buyer/customer insights
Customer Insights
Buyer Insights
New
Product/Con
cept Testing
Purchase
Occasion
Channel/Sto
re Selection
& Loyalty
Product
Attitudes,
Usage
Customer
Intelligence Clinic
Planned vs.
Impulse
Purchases
Price
Elasticity
Brand
Preference,
Imagery and
Loyalty
Market
Basket
The Martec Group
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The core process involves multiple steps/methods of gathering
information.
Simulation
Room
Product Room
(simulated shopping)
(hands-on product
testing)
LOUNGE
11x14
VIEWING
15x26
Discussion
Groups
CLT VIEWING
24x12 - 6
Prior to arrival, respondents complete a screening
questionnaire
• Serves to recruit and pre-qualify each
respondent in terms of demographics and
attitudinal/background information
• Respondents can include endusers/customers, dealers, distributors,
installers, contractors, etc.
A participant background worksheet is completed
upon arrival to more fully understand shopping
patterns/behavior
• Preferred channels/stores; frequency of
shopping; market basket, etc.
Brand perceptions captured via PC-based exercise
PHONE
CLIENT
OFFICE
12x10
SERVICE
AREA
OFFICE
11x9
AV
11x8
VIEWING
14x17 - 6
PC-based
Exercise
Participant
Background
Self-administered surveys are used in the product
and simulation rooms
• Simulated aisles; new products; new
packaging concepts; new formats; etc.
• Ethnographic
• Merchandising and promotions testing
COPY
ROOM
16x14
RECEPTION
Respondents participate in a group discussion to
fully explore attitudes/perceptions regarding the
products/issues
24x18
ENTRY
The Martec Group
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Confidential
Case Study: Customer Intelligence Clinic
- “Product X” in the Automotive Retailer Channel -
The Martec Group
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Confidential
Project Background
• Our client sells “Product X” into multiple segments, including manufacturing (food
processing, oil/mining, and other areas of manufacturing) and vehicle service and repair,
both DIY and DIFM (dealerships, repair shops, etc.).
• Our client was developing marketing and sell-in materials for leading automotive retailers
and needed to better understand what was driving customers’ purchase decisions and
usage (past, current, and future) of similar products.
• Client management used our information and analysis to more effectively address and
impact the customer purchase decision (current and future), ultimately driving growth in
this important channel.
• The Martec Group was commissioned to conduct proprietary market research to assist
our client with the required customer insights.
The Martec Group
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Research involved 200 customers of similar products, covering a variety
of demographic and behavioral segments.
Conducted in multiple locations.
• Selected due to representative mix of demographics along with coverage of key retailers
(Advance, Auto Zone, O’Reilly’s, etc.)
Target audience: Customers who utilize “Product X” and similar products and purchase via
“retail” stores
• Auto retailers – Advance Auto, Auto Zone, O’Reilly’s, CARQUEST, NAPA
• Mass merchandisers – Wal-Mart, Sam’s Club, Sears, Dollar Stores
• Home center/hardware stores – Ace, True Value, Tractor Supply, Home Depot, Lowes
• Currently purchasing or recent purchasers of these types of products
Demographics
• 75% male/25% female
• Variety of occupations (targeted ~25% professional trades/mechanics)
Shopping behavior
• 55% of respondents “preferred” retailer = automotive retailer (remainder split between
mass merchandisers and home center/hardware)
• Mix of buyers – for work, for home, purchasing for family/business, etc.
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Specific insights gathered…
Understand typical usage and purchase patterns for these products, brand(s) purchased
• Preferred retailers and brands – with reasons (why do you shop at _____?)
• Purchase frequency and occasion
• Intended place of use and frequency
Understand the customer Decision Tree
• Key purchase criteria and importance (brand, make-up/format, container size, price, etc.)
• What does the end customer know about the product, how do they get their information?
Measure brand perceptions and performance
• What are the drivers or triggers that cause a Customer to consider and purchase specific
brands?
Evaluate new products/concepts
• Current competitive set of products on hand for evaluation by respondents
• Included product trial and fragrance testing
Measure price elasticity for current competitive set as well as product concepts
The Martec Group
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Confidential
Sample Insights
Key takeaways/
insights are
highlighted
The Martec Group
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Confidential
There is significant cross-over between product usage at home and at
work, particularly among men (~48%).
Predominantly an “individual” purchase – not a significant share for “family use” or “employee
use”.
• Also evident in attitudinal responses – don’t see much reliance on “others” for advice, etc.
Which of the following best describes your purchases of these types of
products within the past 12 months?
100%
1%
2%
5%
4%
Percent of Respondents
90%
15%
80%
70%
40%
48%
18%
4%
60%
50%
5%
5%
40%
30%
20%
59%
49%
45%
Overall
Male
10%
0%
Use at Home
The Martec Group
Use at work
Use at home & work
10
Female
Family Use
Employee Use
Confidential
Purchase Occasion Insights
How often do you purchase for home/work?
40%
The more frequent buyers
(weekly/monthly) are less
prices sensitive, more
brand loyal and prefer to
shop at auto retailers.
Percent of Respondents
35%
36%
30%
25%
20%
21%
19%
15%
16%
10%
7%
5%
0%
Weekly
The Martec Group
1%
Monthly
Every 2-3
months
2-3 times per
year
11
About once per
year
Less than once
per year
Confidential
Shopping Behavior Insights
Please rate your level of agreement with each of the following statements regarding your purchase, and usage, of the
product. One to seven scale – where one indicates completely disagree and seven indicates completely agree.
Top 2 Box (6 or 7)
Bottom 2 Box (1 or 2)
I buy from more than one store
I often take samples of these types of products, when they are
available
Customers are
purchasing from
multiple stores.
I check the prices on what I purchase
I am familiar with several different brands
Once I find a product or brand I like, I stick with it
I want to be able to try samples before buying a new brand or
type
Although familiar with
many brands, they seem
to be fairly brand loyal.
There is a large difference among brands
I find these products are the same so it makes sense to buy
the cheapest
0%
20%
40%
60%
80%
100%
Percent of Respondents
The Martec Group
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Purchase Insights
(e.g. “Impulse” and “Planned”)
Which of the following best describes your purchase?
Planned buyers tend to
buy less frequently; tend
to shop more often at
auto retailers; buy larger
sizes; are more loyal to a
“store” and brand
I decided/planned this purchase at home or
before I entered the store
I decided to purchase this product while I
was shopping, but before I reached the
aisle/display
Impulse buyers tend to buy
more frequently; shop more
often at mass merchandisers;
buy smaller sizes; are not as
loyal to a “store” or brand
I decided to purchase this product when I
saw it on the shelf
0%
20%
40%
60%
80%
Percent of Respondents
The Martec Group
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Store/Brand Selection and Loyalty Insights
Approximately 55 percent of the participants “preferred” purchasing at auto retailers
(AutoZone, Advance, O’Reilly’s, NAPA and CARQUEST).
From which of the following places have you purchased within the past 12 months?
Which is your preferred source?
AutoZone
Wal-Mart
Advance Auto
Many retailers widely
shopped, but a couple of
clear favorites.
Lowes
NAPA
Dollar Stores
O'Reilly's
Home Depot
Client didn’t realize nonauto (i.e. Wal-Mart) was so
prominent.
Sam's Club
Other
Tractor Supply
Ace Hardware
Percent of Respondents
CARQUEST
0%
10%
20%
30%
Purchased past 12 months
The Martec Group
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40%
50%
60%
70%
Preferred
Confidential
Market Basket Insights
When you are purchasing, how frequently do you purchase the product categories below at the same time as
the product in question?
@ Auto Parts Retailers
Rarely/Never
Sometimes
Often/Regularly
Oil change products
Fluids
Brake parts
0%
20%
40%
60%
80%
100%
@ Home Centers/Hardware Stores
Customers often bundled
the subject product with
other products.
Paint supplies
Landscaping/gardening materials
Kitchen/bathroom repair products
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
@ Mass Merchandisers
Automotive repair products
Paint & paint supplies
0%
20%
40%
60%
80%
100%
Percent of Respondents
The Martec Group
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Confidential
Quantitative Usage Insights
Predominantly an “individual” purchase – not a significant share for “family use” or “employee
use”.
Which of the following best describes your purchases within the past 12
months?
100%
Percent of Respondents
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Overall
Use at Home
The Martec Group
Male
Use at work
Use at home & work
16
Female
Family Use
Employee Use
Confidential
Quantitative Usage Insights
Leading activities where the product is used…
100%
Auto repair
Restore
classic cars
Home Improvement
Usage
Percent of respondents that “regularly” use after this activity
Automotive
Initial focus was on
Automotive Retailers
only…research
highlighted need for a
dual channel strategy
50%
Hunting
Ceramics/p
ottery
Snowmobiling
Painting
Furniture
refinish
Plumbing
Gardening
Camping
Motorcycles/
Arts &
dirt bikes
crafts
4x4
off road Hiking
Home repair
Fishing
Landscaping
Appliance
repair
Biking
Boating/
Jet ski
0%
0%
50%
100%
Frequency of Activity
Percent of respondents that “sometimes” or “often/regularly” participate in…
The Martec Group
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Key Purchase Criteria Insights
Stated vs. Derived Importance Quadrant Analysis
2
Entry Tickets
1
Critically Important
5
Stated Importance – Top 2-Box Ratings
3
14
15
Several purchase criteria
were classified as “critically
important” that were
previously thought to be
“entry tickets”
7
6
17
18
16
19
25
22
24
4
8
10
9
20
11
12
23
26
21
13
Undeveloped
Intrinsically Important
Derived Importance (based on overall satisfaction)
The Martec Group
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Price Elasticity Insights
Acceptable Price Range
~$4.25 to $6.50
100
90
80
70
60
Optimal
Price
~$5.75
50
Analysis of multiple brands
40
30
20
Customers consistently had
higher acceptable price
ranges for client brand vs.
competition
PME
PMC
10
0
Inexpensive
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Expensive
Too expensive
19
Too inexpensive
Confidential
Additional merchandising and improved packaging for the offering are
needed.
Merchandising is required to take advantage of the high percentage of impulse purchases.
• Merchandising issues seem to focus less on deals (coupons, sales, etc.) and more on
samples ("get them to try it")
• Bundling with other products could improve top-of-mind awareness in general and
specifically for our client
 Multiple “baskets” are possible – automotive (cleaning, oil change, etc.); indoor
home; outdoor home
“I would consider purchasing a package with oil, an oil filter and a small bottle of heavyduty hand cleaner.”
• Samples are essential – meet customers at the door of the retailer with opportunities to
try product
 Most arrive in need of your product
The Martec Group
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Confidential
Purchase Intention Insights
How likely would you be to purchase the brand/product at the price you identified as “expensive, but
still a possible purchase”?
Bottom 2 - Box
Top 2 - Box
36%
16%
Confirmed that there was
purchase activity at the
high end
24%
24%
12%
15%
11%
9%
5%
1 - Not at all
likely
The Martec Group
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3
4
Percent of Respondents
21
5
6
7- Extremely
likely
Confidential
Contacts
Thank you for this opportunity.
Detroit
27777 Franklin Road
Suite 1600
Southfield, Michigan 48034
(248) 327-8000
Chicago
105 West Adams Street
Suite 2125
Chicago, Illinois 60603
(312) 606-9690
China
121 Yanping Road
Sanhe Plaza 10B
Shanghai 200042
China
+86 (21) 6246-2121
Europe
Berliner Strasse 219
63067
Offenbach/Main
Germany
+ 49 69 80903 60
martecgroup.com
The Martec Group
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Confidential