Business Feasibility Study - Market Research

Uncovering opportunities in a Post-COVID 19 world

The Situation:

A leading petrochemical trading company headquartered in Singapore (ChemCo), whose business’ over the past 8 years has been on the upstream petrochemical chain – manufacturing and supplying key raw materials primarily for Personal Protective Equipment (PPE). ChemCo is looking to diversify and create new sources of growth.

As global supply chains continue to be disrupted by the pandemic and the security and supply of PPE is challenged across the world. ChemCo is interested in strategic supply arrangements for the region and to develop a “Made in Singapore” PPE product. Given the uncertain economic impact and market outlook due to COVID-19, ChemCo approached KeyHole Insights to better understand the feasibility of this business model.

Our team was tasked to conduct a market feasibility study spanning 5 different countries, namely China, Singapore, Malaysia, Indonesia, and Vietnam. In addition to conducting a social and economic impact study, KeyHole Insights has been tasked with identifying the different scenarios and examining not only the demand and supply but also most importantly the optimal pricing for each scenario.

At a Glance

Number of countries covered

>4,500

Number of survey respondents

2/5

Countries that pass feasibility study

Our Approach

Utilizing technology, KeyHole Insights collected dynamic real-time sales volume and prices of PPE products on key ecommerce marketplaces across the region. With this information, we were able to analyse the competitive landscape as well as plot the industry demand curve. Using economic principles, KeyHole Insights were able to advise on the revenue and profit maximisation prices.

Through our proprietary 2B and 2C surveys, we collected information regarding the consumer journey, PPE preferences, usage habits, optimal pricing as well as top of mind and conversion by geographics, industry, income, and demographics from over 4,500 consumers. These were then triangulated with the data and research conducted online, to provide more accurate and comprehensive insights. The supply and demand model were used extensively to inform ChemCo on the feasibility and entry strategy for each country.

Utilizing sentiment analysis, KeyHole Insights extracted usage habits and core product attributes consumers were most concerned about when purchasing PPE for daily use. The study resulted in the recommendation of a new PPE packaging/ count size that not only captures multiple customer segments but also optimize their revenue.

Some of the analysis and solutions delivered as part of this engagement include:

• Supply and demand balance analysis for every country (market sizing)
• Competitor landscape analysis
• Pre and Post COVID 19 demand curve analysis
• Country demand and pricing scenario recommendations
• Product strategy
• Country strategy
• Channel strategy
• Product positioning recommendations
• Product packaging marketing recommendations
• Van Westerndorp price sensitivity meter
• Product development feedback

Recommendations

Some of the recommendations provided to ChemCo include:

• demand forecast model for different Post COVID-19 scenarios
• product pricing model across 5 countries
• product assortment mix, including packaging messages, marketing collaterals to better appeal to end customers.
• a new quantity/ count size to capture multiple customer segments and optimize revenue
• a country and channel strategy as well as a marketing strategy

* While the name of our client have been changed for confidentiality reasons, the results are real.