- Service:Exit strategy
- Sector:Consumer goods and services
Issue
AMR’s client was an innovative provider of sports technology with a strong customer base amongst elite athletes and professional football clubs. It was now planning to launch into the consumer market and was seeking market due diligence in support of second round financing.
Approach
AMR performed a detailed analysis of the market potential based on sports participation in the US and Europe. AMR segmented sports participants by frequency of participation and by type of exercise (eg cardio-vascular training, strength training, and team sports) and provided data on the age and income profile of each segment. AMR also investigated analogous products and services targeting highly motivated fitness enthusiasts, such as cardio-vascular training equipment, heart rate monitors and sports nutrition products.
Recommendations
AMR validated the market potential and general pricing of the new product and made clear recommendations concerning routes to market. AMR advised our client to concentrate initially on a direct online sales model supported by distribution in specialist retailers, and to pursue strategic distribution partnerships with sports apparel makers, fitness equipment manufacturers and fitness clubs.
Result
AMR’s research helped the client refine its target market definition, customer proposition and channel strategy. AMR also provided valuable insight into the market and the business for prospective investors.
Insight from AMR’s research
Highly motivated fitness enthusiasts are passionate about their chosen fitness activity and are prepared to devote considerable resources to measuring and improving their performance.