Market Research
Li (Lily) Liu
Self Introduction
M.E.E.I., Sept.2006-Apr.2008
M.Sc., Chemistry
B.E., Materials Sci. & Eng.
Business Advisor
Help people start their own
business!
Owner & Project Manager
Bridge technologies with
China!
Settlement and Integration
Services Organization (SISO)
lliu@sisohamilton.org
905.385.6192 ext.3406
AerieScope Energy &
Environment Tech Inc.
li.liu@aeriescope.com
905.745.69047
MEEI Project – Air Quality Monitor
Agenda
• Market Research
• How Market Research Guide My Project
• Financial Plan - Market Size Calculation
Project Development Process
Chinese
market trend
Air Quality
Monitor in Home
AQM in car
AQM in Home
with solutions
Market Potential Tested
• Clearly defined customers with urgent need
• Good market size
• Viable business model
• Business partners established - Letter of
Interest
• Lead customer involved for further market trial
Development Status
• Prototype and testing done
• Interface design finished
Market Research Done
• Direct questionnaire
Food Basics clients, Parents with young children
• Online survey
Email to friends, Survey monkey
• In-depth interview - experts
Home renovation companies, car mechanic technician, HVAC companies, Air
purifier companies
• In-depth interview – customer
Allergy patient & asthma patient
• A lot: desk market research, discussion and
brainstorming with professors, friends, someone met in the street…
Market Research Objectives
• Who are your
customer?
• Where are you in
the value chain?
Urgent
Need
Value
Market Research Tools
Market Research: validate an assumption
and /or find problems in the assumption
Desk Research
• Big Picture
• To generate
assumption
• To support the
conclusions
Primary Research
• Test assumption right
or wrong
• Find problems
• May indicate solutions
Market Research Flow
Assumption
Desk Research
Brainstorm
Desk Research
Primary
Research
Yes
Desk Research
Solid
Conclusion
Why?
No
Problem?
How Market Research Guide My Project
Chinese
market trend
Air Quality
Monitor in Home
AQM in car
Desk research:
New homes purchase
People’s concern of indoor air quality
Primary research:
Face-to-face interview: Food Basics
Email survey: friends in China
Professor’s feedback
Problem
No solution offered to customer when
bad air detected
Brainstorm
Solutions
Seems
good
market
potential
How Market Research Guide My Project
Chinese
market trend
Air Quality
Monitor in Home
Primary research:
Online survey
Problem
Not good market
AQM in car
AQM in Home
with solutions
Brainstorm
Solutions
Solutions Brainstormed
Solution 1: Partner with HVAC Companies
• More than 200 HVAC service companies in Canada
HVAC Service
Companies
Air Quality
Monitor
Solution 2: Add communication function to AQM
Solution 3: Refine target customers with urgent need
• Parents with young children
• Allergy or asthma patients
How Market Research Works
AQM in Home
with solutions
Primary Research
• Questionnaire:
parents with young children
• In-depth interview:
allergy & asthma patient
• In-depth interview:
HvAC company
Desk research:
Support the conclusion
Firm Market
Potential &
Business Model
Results
Market Potential
Leader user
Letter of Interest &
business partner
Finance Plan
Value Chain - Profit Calculation
R&D,
Tech.
Equity Investment for license
Suppliers
$ 20
New
Company
Distribution
$35 Partner
$80
End users
Finance Plan - Market Size Calculation
• Household Ownership Air Quality Products Rates in USA
(Air Quality Products Market Research 2007 based on 25,375
respondents made by Simmons Market Research Bureau)
– Air cleaner = 9.9%
– Humidifier = 11.7% (half for air quality monitor)
– Dehumidifier = 16.5% (half for air quality monitor)
• Estimated Household Air Quality Monitor Rate:
(9.9%)+(11.7%/2)+(16.5%/2)=24%
Finance Plan - Market Size Calculation
Market size in North America:
– US and Canada Metropolitan Population (not counting homeless):
= 238 million people
– Average family members = 4
– Families = 238 million / 4 = 60 million
–
Market Size (units)
= 60 million Families *24% (Air Quality Monitor Household rate)
= 14
–
million units
Market Size
= 14 million*$80
= $1
billion
Summery- Market Research
Only until you do it,
you won’t make it!
Resource
• Sample Questionnaire
• Resources often use
Thank You!
I would like to help…
Please feel free to contact me!
li.liu@aeriescope.com
905.7458.6047
Voice-of-Customer
• Survey of Air Quality in Baby Rooms from Hamilton,
Toronto & Ottawa
 59% parents consider air quality when setting up baby rooms

55% consider indoor air quality can affect children’s heath “very much”

45% think it is urgent to control air quality in children’s room and they
would “Immediately take action”

“Chemical off-gassing ” ranks #2 top concern

65% would like to purchase an Air Quality Monitor
Parents Need Air Quality Monitor
Established Partners
Lead User
Audrey Armour, multiple allergy patient
• Perceived Values for having an Air Quality Monitor
–
–
–
–
Actively prevent problems before suffering
Increase filters’ lifetime and save cost
Check the effectiveness of air quality products
Make decision of choosing products and environments
• “I care about the features (of such an air quality monitor),
no matter how much is the price, I need to prevent my
suffering”
• Almost 50% of households have one or more members
suffering from allergies (EPA)
Patients Need Air Quality Monitor