The Farnsworth Group - Market Research for the Building Material and Hardware Industry

The Farnsworth Group has been working directly with building material manufacturers since 1989. Through decades of custom research projects, we have found many manufacturer based client needs center around seven primary research services. These types of research activities can involve quantitative and/or qualitative methodologies and are conducted among consumers and/or professional end-users. View additional information by clicking on each service or contacting us directly about your specific questions.

• Usage/Attitude Research
• Market Size/Channel Research
• Brand Extendibility Research
• Brand Image Positioning Research
• Product Development Research
• Communication Effectiveness Research
• Key Account Management Research

Each of these services include multiple phases:

• Defining project scope, objectives, respondents, methodologies
• Project design and set-up
• Data collection
• Data analysis and interpretation
• Reporting and presentation of findings, conclusions and recommendations

We conduct custom research projects among a wide spectrum of home improvement and building material consumers. By working closely with our clients we target the most applicable consumer segment based on the project objectives.

Usage and Attitude Research is used to understand questions such as where the end-user shops, how they shop, why they shop certain channels, and what drives purchases. Through quantitative methodologies we capture information on:

• End-user profiling relative to key retail
• Aided/unaided brand awareness
• Current usage
• Product used most often
• Brands used most often
• Stated and derived importance of attributes and product features
• Shopping behavior
• Outlets being shopped
• Purchases
• Key purchase drivers

Please contact us for additional information on how we can help you better understand your consumers.

Examples of output you will receive with Usage/Attitude Research:

Understanding the existing market by dollar and share is essential to discovering opportunities and defining strategic direction. By studying end-users and channels, The Farnsworth Group can provide client’s with a complete market and distribution map related to their product categories. Elements of Usage/Attitude Research are involved in addition to:

• Dollar value of market
• Market share by brand
• Sources of supply
• Margin structures
• Channel brand/product drivers
• Channel profiles
• Program requirements and standards

Please contact us for additional information on our approach to quantify the market for your product category(s).

Below is an example of one of many market and channel maps The Farnsworth Group provides its clients requesting Market Size/Channel Research.

Our clients continue to grow their businesses regardless of the current market conditions. This can be done with new customers, new channels or taking their brand to new categories. Brand Extendibility Research looks at the strengths, perceptions and awareness of a brand to better understand potential opportunities that can be leveraged utilizing an existing brand.

Through a combination of qualitative and quantitative research methodologies, The Farnsworth Group will identify your organizations’ market opportunities. The result insight to the highest potential category opportunity. Please contact us for additional information on how we can help you uncover opportunities utilizing your brand.

How is your brand viewed by consumers and/or professional end-users? What attributes must you deliver to your customers? What do you communicate to the market? How should you communicate to consumers?

Brand Image Positioning Research helps clients better understand attributes that are necessities, their competitive standing and consumer perceptions of their brand.

The Farnsworth Group will profile the market to identify opportunities, allowing executives to make key decisions on the best implementation plan. To create such plans, The Farnsworth Group utilizes several methods such as Best In Class Analysis, Stated vs. Derived Analysis and Market Matching Analysis.

For additional information on our approach and research techniques please contact us.

The new product development and product refinement processes of The Farnsworth Group assist companies from idea generation to product launch - or at a specific place in between. A company’s specific goal and current situation dictate the overall project scope and level of information required in the process. Regardless of whether a company is introducing a product concept that is new to the world or whether they are refining a product that has existed for hundreds of years, each phase of product development requires information gathering and actions from three areas: Voice of the Customer (VOC), market input, and internal company processes.

• Identifying Needs
• Concept Screening
• Concept Testing
• Product Testing
• Product Launch Testing

VOC inputs assure the product development process remains focused on solving a market need. Even highly innovative or technologically advanced products will likely fail if they cannot fill a need in the market. Market input is required throughout the product development process to evaluate competitive strengths and weaknesses, identify market or channel opportunities and ensure adequate market opportunity. Internal information and planning requirements are integrated with the VOC and market information. This ensures concepts are on track with the corporate platform and are viable from a manufacturing standpoint. Product Development utilizes a variety of research methodologies and analytical tools.

Each phase will provide you with specific actionable information. This information from each of the three areas is integrated and analyzed at each stage gate review. The stage gate review is a critical step to validate concepts and products continually reflect voice of consumer and market input. Further, the review serves as the "go/no go" approval steps throughout the process. Whether your organization utilizes product development process from TQM, Six Sigma, QFD, DFSS or others, The Farnsworth Group has integrated best practices from a variety of process formats and through decades of product development research. Please contact us for additional information on how we can help you through each stage of product development.

What are you communicating to the market place and your customers?
What should you be communicating and how should you communicate that message?

Whether it’s a magazine advertisement, product package or marketing concept, The Farnsworth Group works with building material manufacturers to identify:

• Current message perceptions
• Required messaging
• Effective messaging

Communication Effectiveness Research can be conducted through qualitative and quantitative feedback. Once the right data is collected, our team of analysts, project managers and Sr. Partners will provide the insight and answers you need to make the best tactical decision when communicating to your customers. Please contact us for additional information on our approach to help your organization understand the best communications tactics.

Key Account or Category Management Research is related to the need for a building manufacturer to work most effectively with their channel partners. Whether it’s a line review with an existing channel or the prospect of a new channel, we will work with you to improve your retail revenue.

The Farnsworth Group’s approach to improving channel satisfaction goes beyond traditional research and focuses on the creation of actionable programs that affect a manufacturer’s position within the channel. It is not enough to simply understand what channel partners want. A truly effective program isolates opportunities based on latent needs, current gaps in performance, developing trends, and more.

As a first step to The Farnsworth Group’s process, current channel partners and target channel partners are identified. Research is conducted to develop a clear picture of how the channels select vendors and the ongoing program requirements (service, marketing, sales, logistical, etc.) needed to service the account. These issues are prioritized to develop a clear understanding of the attributes that influence supplier selection. Simultaneously, information is developed to determine how suppliers are currently meeting the needs of the channel.

The information collected is analyzed to develop opportunities that will impact performance. Through market matching analysis, gap analysis and understanding latent attributes and needs, programs are developed to improve performance. Please contact us for additional information on how we can support you when working with various channel partners. Key outputs of this process are as follows:

• Opportunities by specific retailers within a channel
• Opportunities by region
• Opportunities to displace key competitors
• Opportunities to develop new products, programs and services

Since being founded in 1989, The Farnsworth Group has been working directly with Home Improvement Retailers, Building Material and Lumber Dealers, and industry Wholesalers and Distributors. Through decades of custom research projects, we have found many retail based client needs center around four primary research services. These types of research activities can involve quantitative and/or qualitative methodologies and conducted among consumers and/or professional end-users. View additional information by clicking on each service or contacting us directly about your specific questions.

• Market Development/Growth Research
• Performance Support and Improvement Research
• Advisory/Consultation
• Partnership Programs

Each of these services include multiple phases:

• Defining project scope, objectives, respondents, methodologies
• Project design and set-up
• Data collection
• Data analysis and interpretation
• Reporting and presentation of findings, conclusions and recommendations.

We conduct custom research projects among a wide spectrum of home improvement and building material consumers. Working closely with our clients, we target the most applicable consumer segment based on the project objectives.

Executives at every size of firm would like to grow their business. The Farnsworth Group can help home improvement, hardware and building material retailers, dealers and distributors grow their revenue through a variety of strategies. Through Market Development/Growth Research we can help you identify the best opportunities for growth. Please contact us directly to learn more about our ability to help your organization achieve growth.

• Trade Area Analysis
• New Store/Outlet Feasibility
• Store/Outlet Relocation
• Site Evaluations
• Store/Showroom/Facilities Expansion Study
• Market Geography Expansion Study

What do your customers think of your store, service and product assortment?
How do you rate against your competition? What services do your customers require?

These are common questions many retailers and dealers have, and The Farnsworth Group has been capturing data to provide clients with answers for over 20 years. Let us help you define the methodology and audience to provide you with insight to improve your performance when it comes to your customer’s experience. Several aspects to take in to account include:

• Customer Satisfaction Research
• Competitive Audits
• Sales Performance Analysis
• Product Assortment
• Service Optimization
• Advertising Optimization
• Market Image Analysis

If you would like information that can help your organization exceed your customer’s expectations please contact us.

How would you and your team like to have access to decades of home improvement, hardware and lumber retail knowledge at your disposal? What would you ask if you had such a resource for 10 hours or 10 days? Our Sr. Partnership is that resource. With over 100 years of combined industry experience, our management staff will utilize over a century of learning to consult with your organization on a variety of business critical issues such as:

• Acquisition Due Diligence
• Growth Strategy
• Customer Recovery
• Retail Consultation
• Facility/Store Assessment
• Educational Seminars

To learn more about consulting services we can offer your organization please contact us.

We understand many organizations keep a lean and efficient staff to maximize profits. However, that does not mean your company has to sacrifice market research and analysis vital to your success. The Farnsworth Group serves as an external research department for many building material retailers and dealers. Let us conduct the research projects while you focus on implementing the strategies the research yields.

Through our Partnership Programs, we will customize research programs based on your needs and requests. The Farnsworth Group from start to finish will execute these tailored programs. If you are looking for an outsource solution to your market research questions, we can help. Contact us to discuss your market questions and our research-based solutions.

The Farnsworth Group is the premier market research and strategy-consulting firm serving manufacturers, retailers, wholesalers, dealers and distributors of hardware, home improvement, construction and building material industries. With over 100 years of combined industry experience, we work with our clients to collect data, perform analysis and provide insights that will drive growth and strategic direction. Our full-service research approach utilizes external market information, our clients’ internal business parameters, and strategy development to design a custom research project that meets our clients’ needs.

Whether you are a hardware retailer looking to grow or a building material manufacturer determining the best product, The Farnsworth Group will work with you to design the best custom research solution to identify your market opportunities among DIY consumers, Professional end-users or channel partners.

The information we provide our clients is generated through a unique combination of home improvement and construction industry expertise and research experience. This combination allows us to provide superior recommendations and results.

Industry Focus

The Farnsworth Group provides a high level of competency within the construction, home improvement, building materials, retail and distribution industries. The Farnsworth Group leadership has over 100 years of combined experience studying this industry. We have served hundreds of construction industry clients including: building associations, Fortune 100 companies and local independent firms.

Project Experience

Our wealth of building and remodeling industry knowledge is integrated into the results of each research project. Our history of industry-related project work allows us to provide the best approach, research methodology and industry benchmarks needed to address various objectives. The findings of your project are compared to our database of relevant work-making strategy recommendations even more powerful and actionable.

Research Expertise

Data collection is at the core of our research services. By owning and operating online and telephone data collection services we are able to ensure high quality information is captured for your custom research projects. This quality control provides clients with accurate data needed to make informed strategic decisions.

The Farnsworth Group works with a number of building material manufacturers, home improvement and hardware retailers, building and construction product distributors, dealers and wholesalers. Since 1989 we have worked with over 100 industry companies and amassed benchmarks in nearly every building product category-from faucets to windows to independent hardware stores to national retailers. No matter the category, The Farnsworth Group understands our clients’ relationship with the market place.

Questions

Founded in 1926, Graco is a worldwide leader in fluid handling systems and components. Headquartered in Minneapolis, Minnesota, Graco products move, measure, control, dispense and apply a wide range of fluids and viscous materials used in vehicle lubrication, commercial and industrial settings.

To maintain their leadership position in the industry, Graco utilizes research at all stages of product development. In the Winter of 2008 Graco approached The Farnsworth Group to begin the process to research and assist with the development of a consumer based paint sprayer. This was extensive research over that was conducted over a 12 month period. Questions Graco wanted answered included: - How are paint sprayers used and perceived among DIYers? - What are the purchase drivers of paint sprayers? - What role and perceptions does brand play? - What are the acceptable price ranges and revenue opportunities for consumer sprayers? - What product features and enhancements are necessary? - What is the best way to communicate with consumers?

Insight

The Farnsworth Group was able to utilize their in-house analysis and expertise, as well as third party quantitative and qualitative resources to provide a full service research solution. The first phase was a quantitative online study among over 1200 Do-It-Yourself homeowners in the U.S. The Farnsworth Group designed a questionnaire that provided data to segment consumers in to four groups. Analysis was then conducted by looking at each consumer segment to better understand their usage/perceptions towards power painting equipment, shopping behaviors, brand perceptions and pricing expectations.

Once the quantitative data was analyzed and presented, Graco developed product prototypes aimed to capitalize on indentified opportunities. The Farnsworth Group then conducted several focus groups among various consumer segments. This qualitative research simulated a store shopping experience, compared various products currently in the market place, evaluated product features and attributes, addressed communication preferences and reviewed pricing expectations. These focus groups resulted in a refined product that met consumer expectations for a price that met Graco’s margin requirements.

Answers

Necessary data was captured due to a properly designed questionnaire. The Farnsworth Group’s data analysis and industry expertise was then able to provide Graco with reliable information on the potential revenue of a new product and the consumer profiles of the target market. Once Graco understand the market size and structure they were confident in proceeding with the development of prototypes.

The Farnsworth Group conducted focus groups throughout various product development phases that helped Graco refine their products to maximize margins and consumer satisfaction. The end result was a product design that met DIYer expectations, offered features not available in the current market place at an accetable price point, and all of this was communicated with effective packaging.

Today, Graco has national distribution of its new product line throughout Lowe’s and Home Depot, and has increased their presence and revenue among Do-It-Yourself consumers.

To learn more about Graco visit Graco.com

Questions

ITW Brands was formed in 1992 as a decentralized business unit of Illinois Tool Works Inc. (NYSE: ITW). Based outside of Chicago, Illinois, ITW Brands was created to meet the growing demand from consumers and remodeling contractors for high-quality home improvement and do-it-yourself construction products. ITW Brands’ products are used and trusted by industry professionals and carried throughout a variety of channels. ITW Brands’ top-quality tools and fasteners include: Tapcon, E-Z Anchor, Red Head, Ramset, Teck, Rock-On, Backer-On, Tornado and Racor.

ITW Brands relies on market research to guide their product development and merchandising efforts. In the Fall of 2009 ITW Brands approached The Farnsworth Group because they wanted to capture information from professionals and Do-It-Yourself homeowners regarding decorative hooks. They wanted data that would answer several questions:

• What are the purchase drivers of decorative hooks?
• What is the most important factor when purchasing decorative hooks?
• How are consumer using decorative hooks?
• What are the like/dislikes of decorative hooks currently available in the market?

Insight

The Farnsworth Group was able to utilize their in-house analysis and data collection resources to provide a full service research solutions. The Farnsworth Group first consulted with ITW Brands on a questionnaire draft they provided to ensure it would yield information needed to answer their questions. Clients often utilize The Farnsworth Group’s industry knowledge in order to refine how, where and what questions should be asked. Second, The Farnsworth Group used its internal B2B data collection service, Specpan, to program and host ITW Brands’ survey online.

Next, through their proprietary online B2B panel, Specpan, The Farnsworth Group accessed 150 targeted Residential Remodeler and General Contractors. They also utilized third party alliances to collect an additional 500 responses from Do-It-Yourself homeowners of various ages and experience levels. Programming and data collection was completed within two weeks.

Answers

Once fielding was complete the final step was data analysis and reporting. The Farnsworth Group and Specpan coded all open-end responses, tabulated the data using several banners and provided ITW Brands with a summary report. This report included respondent profiles, graphed results segmented by end-user type and a summary of findings based on data analysis.

By understanding usage habits, key purchase drivers, and unmet needs ITW Brands made product feature enhancements and improved package communication. ITW Brands has recently launched its new line of decorative hooks throughout big box retailers in the United States. They are quickly gaining consumer approval and market share due to the features that address consumer and professional needs, which were uncovered through The Farnsworth Group’s research.

To learn more about ITW Brands visit ITWBrands.com

Questions

Tree Island Industries produces wire products for a diverse range of construction, agricultural, manufacturing and industrial applications. Its products include bright wire, stainless steel wire and galvanized wire; a broad array of fasteners, including packaged, collaged and bulk nails; stucco reinforcing products, engineered structural mesh, fencing and other fabricated wire products.

Tree Island has a dominant share in Western Canada, but new competitors are beginning to emerge. Tree Island has less presence in the U.S. due to their distribution and company strategies. In order to maintain their Canadian presence and increase their U.S. share they needed to understand:

• What is the customer mix by channel?
• What volume goes through each distribution step?
• How do suppliers view brand, and imported products?
• What must they deliver to their channel partners?
• What are key purchasing drivers?
• What is the revenue at each step of distribution across DIYers and Professional by product type?

Insight

Given the nature of the product, and The Farnsworth Group’s experience in researching commodity-based goods, the best method to capture reliable data was to field a quantitative study among five key channels. Quantitative research would also provide the sample sizes needed to properly define the market size and channel distribution of specific products Tree Island produces. All interviews were conducted via The Farnsworth Group’s call center, which regularly contacts building material suppliers, construction professionals and hardware consumers. A study was designed to quantify the answers Tree Island needed, while providing numerical data, which allowed for proper analysis on market and channel structure.

Answers

The Farnsworth Group was able to analyze the data captured from hundreds of respondents across the U.S. and Canada in order to answer all of Tree Island’s questions. The most important section of the report presented to Tree Island executives was a detailed map of each product that displayed product flow-through by volume from manufacturing to end-user. The Farnsworth Group was able to identify those areas of opportunity to grow Tree Island’s revenue, whether it was targeting a customer segment or partnering with a specific channel.

Tree Island also gained an understanding of the behaviors and attitudes of their suppliers. This identified areas of competitive advantage for Tree Island, their competitor’s strengths, and areas the marketplace does not perceive to be a high priority.

The data and report provided by The Farnsworth Group is a key element used by Tree Island to make long-range strategic decisions on the direction of their organization.

To learn more about Tree Island visit TreeIsland.com.