Demand and pricing research helps secure global launch of Rexel Klix Fasteners
- Unique hybrid staple / paperclip product, developed by Innoverce Engineering
- Online survey of 1,000 stationery purchasers conducted in 2008
- Price sensitivity assessed by featuring product demonstration and Gabor Granger pricing method
- Product successfully licensed, as the Klix, to leading global stationery manufacturer (Rexel, subsidiary of Acco) in 2010, with sales outstripping supply.
- Background research into market structure
- Depth interviews with industry experts
- Online survey with 1,000 business stationery purchasers
- Gabor Granger pricing method used to assess price sensitivity and establish price elasticity of demand
- Product demonstration video embedded into the questionnaire.
Assessing Demand and Price Sensitivity
Innoverce Engineering Ltd designs innovative new product solutions for a range of markets. It designed and manufactured a stationery product prototype that combined the re-usability of paperclips with the secure fastening of staples. It was aimed at users who needed to temporarily fasten documents and maintain a high standard of presentation; in particular business users, such as solicitors and construction professionals. However, it was also felt to have a number of advantages over conventional staples and paperclips, which would appeal to a range of stationery users.
Our client needed to assess the likely demand for the product at various price points. The intention was to license to established stationery manufacturers, so robust research was essential in supporting that process.
Consultation with Experts and Online Price Sensitivity Survey
Marketwise Strategies’ research involved two main stages:
First, a handful of key figures who had worked for some of the largest global stationery suppliers were interviewed, and one provided a report summarising the market size and structure of the desk accessories sector of the office products market.
We then conducted an online survey of 1,025 stationery purchasers, working within SMEs, large commercial companies and the public sector. Respondents were office managers, sole traders, and administrators / clerical staff. Marketwise Strategies worked with a leading global panel provider, to ensure that sampling was robust and that participants were in relevant roles.
The survey was designed in specialist market research software, and included a product demonstration video, enabling participants to view it in action and understand the key features. Pricing questions, based on the Gabor Granger model, were included to enable the calculation of price elasticity of demand, and pinpoint the optimum price point for the product.
Outcomes: Global launch by market leader
The research completed successfully, with the following key outcomes:
- Highlighting significant market potential within the UK desk accessories sector worth 135m (manufacturer selling price)
- Understanding of the purchase process, job roles involved and distribution channels, including identification of the main industry players
- A clear indication of purchaser interest in the product (based upon likely or very likely to try)
- Suggested optimum price level (based upon indications of sensitivity at particular price points)
- The product being successfully licensed to Acco for launch as the Rexel Klix in 2010.
The Marketwise Strategies team took a very strategic approach, working closely with me to develop a sophisticated questionnaire using an established pricing research model. This, and the thorough approach to the research, generated robust data and a sound report – which I could confidently take to stationery manufacturers. My product is now being sold around the world, and the Marketwise Strategies work certainly made a major contribution to that achievement.