Mapping a Market to Determine Where Opportunities Exist

Senex has spent 20 years trying to measure appliance market share with consumer surveys and watched the decline in quality and accuracy of all consumer surveys. As such,…

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Market Share cannot be accurately measured with consumer surveys

Purchases of luxury appliances cannot be tracked by consumer surveys.

Despite repeated attempts to get very high-income households who fit the profile of the luxury end of the market, survey approaches could not reach those buying luxury appliances.

We designed our approach to avoid dependence upon consumer surveys and focus on our 360-  approach.

This approach consolidates insights from many different players and influences in the market.

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IT IS REPEATABLE AND DESIGNED TO MEASURE MARKETS ON A MONTHLY OR QUARTERLY BASIS.

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Our Approach for a Luxury Appliance Manufacturer

A. Demand side - Residential Analytics

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1. New Residential Construction

+ Measured inclusion of Luxury Appliances into newly constructed homes by researching builders.

+ Measured brand shares by researching builders.

+ Used Senex data warehouse on new residential construction, including value of home, location of home, size of home, along with information on all builders, and determined market sizes for luxury appliances in the new construction.

+ Further, our ongoing working relationships with builders allowed us to identify decision makers within builder firms making appliance decisions.

+ Our approach yielded market sizes and brand shares among luxury appliances.

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2. Existing Housing Stock

+ Measured incidence of ownership of Luxury Appliances in existing homes.

+ Measured appliance replacement rates among existing homeowners by reasons for purchase -remodeling, upgrade to luxury or replacement of luxury.

+ Used Senex data on kitchen remodeling activity, we sized segment for luxury appliances.

+ Research done with remodelers  to determine type of luxury appliances being installed, dealers used, and role of kitchen designers in project.

+ Research done with kitchen designers about their use of luxury appliances by projects, by dealers and by types of homes.

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B. Supply Side - Retailers, Dealers, Distributors, Buying Groups

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1. Retailers & Dealers

+ Identified retailer dealer locations that sell luxury appliances and their geographic reach in their market.

+ Mapped retailers and dealers to residential sales sized in prior work in demand side analyses.

+ Worked with dealers to discuss their sales of luxury appliances and their views on their competitors’ sales, as well as their estimates of market share.

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2. Distributors & Buying Groups

+ Identified distributors and buying groups supplying luxury appliances to retailers and dealers.

+ Assessed their sales of luxury appliances into retailers and size total sales and by brand.

+ Worked with distributors and buying groups to gather estimates of their competitors’ sales, as well as their estimates of market share.

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