Market Research

Market Research

Li (Lily) Liu

Self Introduction

Business AdvisorHelp people start their own business!

Settlement and Integration Services Organization (SISO)[email protected] ext.3406

Owner & Project ManagerBridge technologies with China!

AerieScope Energy & Environment Tech [email protected]

M.E.E.I., Sept.2006-Apr.2008M.Sc., ChemistryB.E., Materials Sci. & Eng.

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 Home with solutions

AQM in car

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 questionnaireFood Basics clients, Parents with young children

• Online surveyEmail 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

Desk Research Primary Research

• Big Picture • To generate

assumption• To support the

conclusions

• Test assumption right or wrong

• Find problems• May indicate solutions

Market Research: validate an assumption and /or find problems in the assumption

Market Research Flow

Desk ResearchAssumption

Primary Research

Yes

Desk Research

No

Why? Problem?

Brainstorm

Solid Conclusion

Desk Research

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 Seems good market po

tential Primary research:Face-to-face interview: Food Basics Email survey: friends in ChinaProfessor’s feedback

ProblemNo solution offered to customer when bad air detected

Brainstorm Solutions

How Market Research Guide My Project

Chinese market trend

Air Quality Monitor in Home

AQM in car

Primary research:Online survey

ProblemNot good market

Brainstorm SolutionsAQM in Home

with solutions

Solutions Brainstormed

HVAC Service Companies

Solution 1: Partner with HVAC Companies

• More than 200 HVAC service companies in Canada

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

• Questionnaire: parents with young children

• In-depth interview: allergy & asthma patient

• In-depth interview: HvAC company

Primary Research

Market Potential

Letter of Interest & business partner

Leader user

Desk research:Support the conclusion

Firm Market Potential & Business Mod

el

Results

R&D,Tech.

Suppliers Distribution Partner End users

Equity Investment for license

$ 20 $80$35New Company

Finance Plan Value Chain - Profit Calculation

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!

[email protected]

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 MonitorParents Need Air Quality Monitor

Established Partners

Lead UserAudrey 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 MonitorPatients Need Air Quality Monitor