Market potential and Market Demand

Summary of Marketing Research and Strategic Analysis Fall 2015 and Spring 2016

Buyer Behavior and Market Analysis, MKT 450, and Marketing Analytics and Strategy, MKT 455 School of Business Administration, University of Dayton

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Crown Equipment Corporation

The Small Fleet Firm Segment Purchase Behavior of Firms in this Segment

Estimates of Market Potential Forecast of Demand and Share for Crown Equipment

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By Dr. Randy Sparks Department of Management and Marketing

Fall 2015 Revised by Dr. Rebecca Wells, September 2015 and January 2016

Crown Equipment Corporation Crown Equipment is one of the world leaders in the manufacture of materials handling equipment ranging from forklifts to lift trucks. Headquartered just north of Dayton in New Bremen, Crown is a privately held company with annual sales revenues estimated at around 2.5 billion dollars. While its largest geographical market is in the United States, Crown has a significant global presence.

Managerial Decision

To understand the market potential of consumers with small fleets, Crown initiated this marketing research and strategic analysis project. Crown defines “smaller” as fewer than twenty trucks. Because of their size, small fleet customers frequently receive less attention from equipment manufacturers. Manufacturers' resources are more likely to be devoted to large fleet and more financially attractive customers. However, Crown believes that significant growth opportunities exist by cultivating small fleet customers, understanding their needs, and growing their share of Crown's business. Assisted by this research, Crown will decide the strategic viability of investing for growth in this segment.

1 Adapted from Crown, Delivering a Consistent Customer Experience: Everywhere, Everyday, Revised January

2015, PDF presentation

Summary of Marketing Research and Strategic Analysis Fall 2015 and Spring 2016

Buyer Behavior and Market Analysis, MKT 450, and Marketing Analytics and Strategy, MKT 455 School of Business Administration, University of Dayton

2

Research Questions

Crown would like to know more about the characteristics of these small fleet customers. They believe that within this sizable segment of companies, several segments may exist. To understand these customers, their needs, and their characteristics, Crown has interest in the following general research questions:

1. What are the drivers of satisfaction in materials handling equipment among small fleet consumers? What do they want from a materials handling solutions provider?

2. What is the customer life cycle process of the typical small fleet customer? How does the decision processes change as a customer progress through the different life cycle stages? (See model on page 3.)

3. What are the business characteristics of the small fleet customer as it relates to materials handling?

Time Frame

Over the course of two semesters, University of Dayton marketing students will conduct

secondary and primary research and complete qualitative and quantitative data analysis to

describe the small fleet consumer segment, determine the potential in this segment, and

estimate future demand and share for Crown Equipment. During the fall 2015 semester,

students will develop a marketing research plan. Faculty will coordinate with Crown to

administer the marketing research in December 2015 and January 2016, with students

completing the data and strategic analyses and formulating recommendations during the spring

2016 semester.

Summary of Marketing Research and Strategic Analysis Fall 2015 and Spring 2016

Buyer Behavior and Market Analysis, MKT 450, and Marketing Analytics and Strategy, MKT 455 School of Business Administration, University of Dayton

3

Customer Acquisition and Development

Crown Equipment, Inc. uses this model of customer acquisition and development to assess the customer life cycle stage. This model integrates with the purchase decision process analyzed during the fall 2015 semester in MKT 450. The Awareness step is analogous to the Problem Recognition stage and the next four steps correspond with the subsequent stages of the purchase decision process.

Where this model

differs is in the detail

given to buyer behavior

after the purchase.

Much of this is critical

to understanding

opportunities for Crown

Equipment to grow the

small fleet customer

market.

Model adapted from Crown, Delivering a Consistent Customer Experience: Everywhere, Everyday, Revised January 2015, PDF presentation