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Sample Case Study of Analyzing Consumer Market

Updated on October 11, 2015

Case Study of Market Analysis and Targeted Advertising

What motivates a consumer to purchase a particular product? Is it price? Perceived quality? Ease of access? If your product is not selling as well as you'd like, you may think you need to change or improve it. However a recent consumer packaged goods advertising case study by a marketing analysis firm showed one paint company that their problem wasn't the product, it was how it was marketed.

Paint Company Marketing Case Study

paint swatch
paint swatch | Source

Does Targeted Advertising Work?

Companies usually know they need brand recognition, but not all companies understand that they also need to have usage studies done of their consumers so that they can understand what causes a customer to choose their brand or a competitor's. In the case of this paint company, the marketing analysis was important because it showed that consumers were aware of the brand and thought it was of high quality. However, the largest possible market segment for this product was casual, hobbyist painters. Those consumers did not choose the product because they thought it was hard to use and only for professionals. Re-targeting marketing to answer the questions and concerns of these hobbyist, casual painters helped this paint company capture a large untapped market segment of casual, hobbyist painters.

Hobby Painter

Watermelon House
Watermelon House | Source

Market Analysis of Paint Company

The business challenge this paint company faced was the fact that although they had a high loyalty among some users, their market share was small. Contrary to the company's expectations, awareness studies showed that the products of this company had high brand recognition. In addition, the products were known to be of high quality.The problem was that the products were viewed to be utilitarian and used mostly by professionals. The non-professional painters didn't choose these products because they thought they couldn't use them.

What Did the Advertising Case Study Show?

Consumer with the most buying power was the hobbyist, not the professional

In order to identify the motivations of potential consumer segments, the advertising case study included usage studies of consumer groups. These studies showed that the top consumer group with the largest buying power for paint products of this type was not the professional, as might be expected, but rather the casual, hobbyist do-it-yourself enthusiast.

Hobbyists Care more about Color and Style, which can be Advertised

Moreover, these casual hobbyist painters were most interested in style and color, rather than quality and price. In the case of this paint company, the case study showed that consumers already perceived this brand as one of high quality. The perception problem was that consumers thought that this brand was difficult to use. Moreover, they perceived this brand as somewhat boring in colors and for experts rather than DIY. The advertising case study advised that consumers be targeted with ads which showed how the products could easily be used by do-it-yourselfers. Moreover, they should focus advertising on showing the variety of colors and styles which could be done with the paints already available.


What was their Targeted Advertising Strategy?

  1. Aggressively market key products to casual painters.
  2. Market products by showing they are easy to use by non-professionals.
  3. Reinforce available options on colors, finishes and types of paint.

Effective Advertising Case Study Must Examine Customer Motivation

Often, a company will spend a lot of money to try to improve or change their products without studying exactly what consumers think about their product. By having their brand recognition and consumer motivation studied first, this company avoided costly solutions which would not have actually helped their market share.

Many studies stop at brand recognition, assuming that if consumers know a brand, they will purchase it. However, this company case study revealed that studying the underlying motivations for consumer purchases is vital in order to correctly target advertising and product improvement decisions.

Effective Advertising Case Study Helps Plan Future Product Development

In this case, the company was able to identify that their largest potential market was a group of consumers they had not considered. By targeting advertising to this group, they were able to tap into this consumer market with products they already had.

Moreover, by doing customer usage studies along with market analysis, this company was also given the information they needed to plan future product development. In order to get a larger share of the market, this company needs to focus on developing products for hobbyist and do-it-yourselfers, not just the professional painters.

Help Your Business with Correct Market Analysis

Be sure if you are having a market analysis done that your look not only at brand recognition but also what your customers are doing with your product. Many companies assume they need to advertise more, or even that they need a better product. A better strategy can be to find out what current customers think about your product and how they use it. That will allow you to target your advertising dollars more effectively.


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    • VirginiaLynne profile image

      Virginia Kearney 5 years ago from United States

      ChanellChilds--You are right. As consumers, we have so many choices sometimes that it is bewildering. I mean, do I really have to choose between 200 different salad dressings? Or 20 different brands of ketchup? Sometimes I really do want the advertising to tell me plainly what the product is good for and who would like it and why!

    • VirginiaLynne profile image

      Virginia Kearney 5 years ago from United States

      Hi Alisha--Yes, I was very interested in this case study because it made sense to me. I'm a careful consumer and I usually try to investigate the things I'm buying but I really don't know the difference between a lot of the hobby paints I buy. I do depend on the labels and information around the paint stand to tell me which works best for my do-it-yourself project.

    • ChanellChilds profile image

      ChanellChilds 5 years ago

      Hi Virginia, thanks for the Marketing information. I agree that marketing a product effectively includes making the consumers lives easier. If consumers are intimidated by the product they will probably go somewhere else.

    • profile image

      Alisha Mustafa 5 years ago

      Hi. I think you made a very valid argument If we don't understand the concept of WHY consumers buy in the first place, then I think we have lost the uphill battle of understanding how and why our consumer eats and breathes in the first place.

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