Introduction
Smart Build is a limited partnership company owned and operated by Mitchell Bobrowski and Danae Simard. It is headquartered at 123 Main Street, Mitchell´s full-time residence. The company plans to become operational in the second half of 2019. Initially, the company will target new homeowners and elderly individuals, providing construction services and offering home repair classes. Having both services offered by one entity makes it easier for customers to find everything they need in one place, which makes the business unique in the market.
The construction services will offer any sort of contracting for the repair, renovation or new build in the carpentry, painting, plumbing, and electrical sectors. The services will be provided by the company´s owner (Mitchell Bobrowski) in the beginning, and after the consolidation of the business, new contractors will be added to the team.
The educational courses on home maintenance will be the other service the organization offers. It will be directed at individuals who have the desire or need to learn basic home maintenance skills. The classroom component of these courses will be held in community centers and will be instructed by qualified and experienced contractors/instructors. Each class will cover one main topic while touching on others to offer all around skill building for participants. This offers diversity and allows participants to be intrigued by more than one course. This will both increase attractiveness, and overall sales, as people will be led to enroll in more than one course. These classes will be offered across Winnipeg and will not be limited to one specific neibourhood or area of the city.
As the target market, potential market share, and potential number of people willing to participate in courses was undetermined, a survey was conducted to further gain information on the market. This survey allowed the firm to set objectives and obtain a clearer picture of the potential market. It also allowed inquiries regarding the market mix including demographics, psychographics, geographic’s, and behaviors of potential customers. Other aspects such as price, seasonal demand fluctuations, household income, and expected value received from the business/contractors was also unclear to the enterprise. These factors were also a main focus of the extended market research.
In the following pages of this report, a description of the research method, a detailed analysis of the survey results, and the next steps for the organization will be presented. These steps will lead to the completion of the requirements of starting a successful new organization.
The description of the research method will begin by explaining the methodology used during the market research and explain how the questionnaire was designed. It will also include the objectives that the business set out to achieve through the completion of the survey. Prior to the full survey process, a pre-test was completed to test the questionnaire and receive feedback on what could be done better. The business then made improvements and alterations to the questionnaire and created a comprehensive version for the final survey. The questionnaires results offer support to all the market research processes that are attached in the following pages.
After the research method description, it is highlighted that the questionnaire may be found in the appendix. The findings section of this report highlights the past conclusions that were drawn by the firm based on secondary research. It then moves on to explain what was concluded through he survey process. The next steps portion of this report highlight the necessary steps that will need to be taken by the firm in order to complete the research, and then prepare the information for the organizations implementation in the new year (2019). The data collection process was completed in a codebook that will be included separately as an excel document in dropbox. This codebook features a percentage results page, code entry page, and values page. The codebook is designed to accurately capture data from the questionnaire, demonstrating the surveys results in a simple and useful format. It will be used as an effective tool to better understand the market the company will be facing.
In summary, the purpose of this market research is to determine the market demand, target market, and market expectation of the services to be provided. In the following pages all information gathered through the research process will be analyzed in order to draw conclusions and continue in the process of creating a successful company.
Research method
Objective Hypotheses
The initial hypothesis statements were used by the Smart Build to create objectives for the survey. These objectives were layed out, in order to help confirm or disprove the businesses hypotheses through the completion of the survey. The following table highlights the objectives, as well as the hypothesis statements made by the business.
OBJECTIVE HYPOTHESIS STATEMENTS
TO DETERMINETHE PRICE TO BE SET FOR EDUCATIONAL COURSES
The price that will be charged for home maintenance courses will be set at $45.00.
TO DETERMINE THE MOST DESIRABLE LENGTH OF EDUCATIONAL COURSES
The individual home maintenance courses will be approximately 3 hours in length.
TO DETERMINE WHAT HOME MAINTENANCE SKILLS THE GENERAL PUBLIC ALREADY HAVE
The general public has little to no to basic knowledge of home maintenance skills and will therefore need our service.
TO DETERMINE HOW OFTEN PEOPLE WILL REQUIRE THE BUSINESS’ SERVICES
People will be requiring our services on a monthly to annual basis.
TO DETERMINE WHEN PEOPLE WILL MOST NEED THE BUSINESS’ SERVICES
People will be needing the business’ services most during the Spring/Summer time.
TO DETERMINE WHO WILL NEED THE BUSINESS’ SERVICES
First time home owners between the ages of 20-35 will be the target market for the business’ courses. Elderly people will be in need of our contracting services.
TO FIND OUT WHAT SERVICES ARE NEEDED
People are in need of knowledge regarding home maintenance methods and the skills required to perform them correctly.
Methodology for Secondary Research
In order to uncover information that was not available firsthand, Smart Build took to using information provided by secondary sources. These sources included; websites, stores, reports. This information was used to better understand the potential target market for the firm. The main source of industry information was found at the Government of Canada websites, where it was found that there are 98 unincorporated businesses in the construction industry in Manitoba.
Public websites, such as winnipegfreepress.com, were valuable sources for determining current market trends. By knowing what is happening in the community day to day, Smart Build will be able to better serve their customers. The business will then be able to cater to both of their customers needs. This means the customers who are not able to do the work on their own and thus need to contract out the work. As well as those who would like to learn how to perform the renovations/repairs themselves and are willing to learn the skills needed.
In order to obtain the most detailed and relevant information related to the organizations clients, the demographics, geographic’s, psychographics, and behavioristics were deemed paramount. The discovery of these personal characteristics allows for a better understanding of how decisions may be made by these individuals. In this instance, that decision is, “Does this project warrant contracting out the work, or is it worth it to learn how to do this on my own?”. By properly analyzing the information provided by these characteristics, Smart Build will have a better understanding of the target market, and how best to cater to it.
Methodology for Primary Research
Members of the Smart Builds team randomly surveyed 52 individuals. These surveys were carried out in the form of a questionnaire that focused on homeowners as the relevant participants. If the individual was not a home owner, there would be no need to inquire further about their thoughts on home renovation/repair, and educational home maintenance courses. The questionnaire was initially developed, then tested upon 13 persons, who would provide feedback about the structure, complexity, and relevancy of questions, layout, formatting, etc. of the survey.
The business team then used the feedback to improve upon the questionnaire, ironing out details, removing unnecessary wording/questions, and improving its readability to further refine it. This was done so that so more people would better comprehend the survey and be able to answer the questions more accurately. Through the surveying process, Smart Build came to understand that there is noticeable variance in respondents’ answers; younger generations could already own their first home and know how they need to maintain it, or they could be very unaware of what may need to be done, and contract out nearly all their repair needs. The same could be said for middle-aged or older individuals. There were many combinations of answers that warranted this survey to tell Smart Build that potential clients/customers could be from any mixture of variables and factors.
Questionnaire
Smart Build interviewed a broad spectrum of the population. The surveys were conducted at a variety of location such as churches, libraries, and a networking event. Going to these locations helped gain a more diverse group of people to interview. Respondents included;
o Family members
o Church members
o People gathering in public places
o Friends
o Middle-aged and older individuals
o Randomly selected individuals
By interviewing such a wide age range, the firm was able to determine who would be using the different aspects of the business. The surveys were completed over the phone, by email, and in person questionnaires.
Please refer to the appendix for Smart Build’s Questionnaire.
Findings
Existing findings from previous secondary sources
Information Smart Build gathered prior to conducting primary research to make the most effective market decision included:
• Immigration
• Aging population
• Low skilled people
• People with no desire to perform construction tasks themselves
When interviewing Derek Olschevski, a manager with Habitat for Humanity, the business was able to conclude that there is a market for the construction classes offered. Derek told Smart Build that there are many young, first time homeowners with little to no construction skill. This pertains to the company’s objective to confirm target market. Derek also recommended the courses offered should revolve around basic home repair services. Home repair courses that will allow these new homeowners to become competent in basic household repairs, so they do not have to call a contractor for basic fixes.
Research done by Mitchell Bobrowski, ex-carpenter and partner at Smart Build, provided insight on specific services that may be in higher demand than others. In Mitchell’s experience electrical, plumbing and carpentry were the main services required by Winnipeg homeowners. This pertains to the objectives to determine service and class features. Mitchell also expressed that most of the clients he worked with required construction services due to lack of knowledge and no desire to perform the tasks themselves.
Immigration and the aging population are areas the firm plans to take advantage of. Many immigrants coming to Winnipeg are requiring home repairs but lack the skills to perform them. While the aging population is dealing with physical barriers and therefore not able or willing to perform tasks themselves. This information pertains to confirming the target market.
In-depth interviews gathered by Smart Build concluded that price of classes should range between $40 - $60 for a 1 – 3 hour course leading to the confirmation of price objective.
Conclusions and lessons learned through preliminary research
Target market
Through the completion of our surveys we can draw multiple conclusions about our target market. Some hypothesis made before the surveys were completed still stand, while others have been proven otherwise.
Of the population surveyed 20% were ages 18-25, prior to the survey it was believed that the classes would be geared towards new home owners in that potential age bracket. The statistic for the number of individuals interested in the course however was 70% meaning the range of individuals interested in the course is not only limited to the younger population, but a broader range up to approximately 55 years of age.
The business was also able to conclude through surveying that of the population of homeowners, the most interest in terms of services needed included plumbing and electrical work. Results for information and training for the home maintenance courses included high interest in electrical work, painting, and carpentry.
Market needs
When looking at survey results for the home maintenance course, the conclusions that were drawn were very helpful. They were close to, but slightly different than the company’s original thoughts and assumptions. The course was originally proposed to be 3 hours or longer and offered at a price of $45. The survey results showed that the population preferred a shorter course ranging from 1-2 hours in length. The price was a relatively even split with 56% of the population agreeing to the $45 price. When questioned a second time regarding a preferred price however, it was seen that 40% preferred a $31-$40 price, and only 34% still preferred the $41-50 price. The survey also led to the conclusion that the best time to run these courses would be in the spring and summer, on weekends, in the evening. The consensus regarding skills participants would want to learn included at the top of the list; electrical and plumbing.
When survey results were observed for the service of the business, multiple conclusions could be drawn. Going in, the business was unsure of what the market wanted, and the survey did a good job of figuring out the markets needs for specific services, frequency of need, and customer expectations of contractors. The services most were plumbing and electrical work. This would mostly be needed semi-annually or annually, and mostly in the summer or winter months. Customer expectations included waiting 1-3 days for a price estimate, and 5 or less business days for the contractor to start the work after the estimate had been completed and approved. Expectations in terms of contractor service were that the work would be completed on time, on budget, and with a high degree of quality and professionalism.
Contact, Post Service Survey, and Advertising
When the surveyed population was asked about their preferred method of contacting the company, both for the home maintenance courses and services, the conclusive preferred method was email. Very few individuals still preferred telephone contact, and only some preferred chat lines.
The post service survey results were interesting to Smart Build as they thought more individuals would be willing to complete a post service survey, however after questioning it was made clear that only 50% of the population would be willing to fill out this survey.
The home renovations will be advertised through social media and the internet as the population showed conclusively that newspaper and television ads did not sway them nearly as much. For the service aspect of the Smart Build, social media again was the top preferred and effective advertising method, however this time referrals were also highly regarded. This was also proven when the population was asked about how they had found out about and hired contractors in the past; 75% responded that referrals were the channel of communication.
Next steps
Based on the information collected in the survey process, Smart Build was able to determine that most hypothesis originally made were related to the real responses of surveyed individuals. This includes target market, target needs, and service specifications. For EP2, the firm plans on surveying a more equal and larger population, geographically area across the city. the surveys will continue to be focused on the general population, but some focus will be directed toward young individuals who are new home owners, and elderly people who still live on their own who may be requiring the company’s services. This will offer a more accurate idea of the needs for the target market.
The continued survey process will be completed at highly populated locations where the target market will presumably be located. These locations will include malls, home improvement stores, and community centers. One main focus will be to survey locations throughout the city that may have been missed or unevenly represented in the initial survey. These surveys will be completed with the participation of the entire business team. As the projected survey number will be increasing, it will be vital to have strong communication as a team to determine which members will be located at which locations to determine equal distribution.
Appendix
Group 29 Questionnaire – Smart Build
Smart Build
Introduction:
We are Business Administration second year students enrolled at Red River College. Our entrepreneurial project, which spans the entire second year of our studies, consists of developing a business idea and completing a business plan. We are currently gathering findings on market research for our service. The individuals surveyed will be chosen at random and not specifically targeted. Any answers you provide for this questionnaire will be deemed confidential.
Questions: (please circle all answers)
Screening:
Do you own a home?
a. Yes b. No
Are you loyal to any current contractors?
a. Yes b. No
What is your age?
a. 18-25 b. 26-39 c. 40-55 d. 56-65 e. 65+
What area of the city do you live in? (please circle your residential area)
a. Northwest
b. Northeast
c. West
d. Central
e. Southwest
f. Southeast
g. Outside of Winnipeg (please specify below)
Survey:
Smart Build Courses
Explanation: This section of questions deals directly with educational classes that our customers will find valuable.
Would you participate in a home maintenance course?
a. Yes b. No
How often would you attend a seminar?
a. Monthly b. Quarterly c. Semi-annually d. Annually
How long do you think a class should be?
a. 0-1 hours b. 1-2 hours c. 3+ hours
What do of the week is it most convenient for you to attend an educational course? (please circle all that apply)
a. Weekdays b. Weekends
When is the best time of day to attend an educational course? (please circle all that apply)
a. Mornings b. Afternoons c. Evenings
Would you be willing to pay $45 for an educational course on home maintenance?
a. Yes b. No
What would you be willing to pay for an educational course on home maintenance?
a. >30
b. 31-40
c. 41-50
d. 51-60
e. 60+
What classes would you be interested in attending? (please circle all that apply)
a. Electrical b. Plumbing c. Painting d. Carpentry e. Other
On what kinds of media do you find out about new events? (please circle all that apply)
a. Social media b. Newspaper c. Television d. Internet e. Other
How would you prefer to get in contact with our business about courses?
a. Telephone b. Website c. Email d. Other
In which seasons do you think you would be most likely to attend educational courses?
a. Spring b. Summer c. Fall d. Winter
Finding Customer Needs
Explanation: This section is used to find information on Smart Builds potential customers’ needs as it relates to basic home maintenance and repairs.
What services would you be requiring for home maintenance? (please circle all that apply)
a. Plumbing b. Electrical c. Painting d. Cabinetry e. Concrete work f. Carpentry g. Roofing h. Other
What are your reasons for not completing home repairs on your own? (please circle all that apply)
a. Tools b. Time c. Skills d. Knowledge/Experience
Are you confident in your abilities when using construction/repair tools?
a. Yes b. No
What skills might you hope to learn or improve on in a course for home maintenance and repair? (please circle all that apply)
a. Electrical b. Plumbing c. Painting d. Flooring installation e. Use of power tools f. Other
How often do you require home maintenance and contracting services?
a. Bi-monthly b. Monthly c. Quarterly d. Semi-annually e. Annually f. Other
How would you prefer to get in contact with our business about contracting services?
a. Telephone b. Website c. Email
In which seasons do you require the most home maintenance/repair services?
a. Spring b. Summer c. Fall d. Winter
Would you be willing to fill out a post service review/survey?
a. Yes b. No
Past Contractor Information and Expectations
Explanation: In this section Smart Build will find out information pertaining to customers’ expectations of what they would like to see in a contractor.
Have you hired a contractor for home repair in the past?
a. Yes b. No
How have you found contractors in the past? (please circle all that apply)
a. Online b. Bulletin boards c. Newspaper e. Referrals g. Billboard ads
h. Other i. N/A
What are key expectations that you have for contract work? (please circle all that apply)
a. On time b. High quality work c. Professionalism d. On budget e. Met all deliverables f. Friendliness
How long do you expect to wait until the contractor can get to your home to do an estimate?
a. Same day b. 1-3 days c. 4-6 days d. 7+ days
How long do you expect to wait until the contractor can start the work, after the estimate?
a. Next day b. > 5 business days c. > 10 business days d. > 20 business days e. > 40 business days
Demographics
Explanations: The demographic section is used to find specific information on gender, income and other characteristics that our target market shares. This information will be used to effectively target customers mainly for promotion purposes.
Please identify your gender.
a. Male B. Female c. Other
What is your annual household income? Lists/ ranges
a. Under 20,000 b. 20-30,000 c. 30-40,000 d. 40-60,000 e. 60-80,000 e. 80-100,000 f. 100,000+
What form of advertisement would resonate most with you?
a. Newspaper b. Billboard c. Television f. Social media g. Referrals h. Online
Sample Solution