We recently completed some market research to help a manufacturer selling premium products to determine which geography to focus on. As a premium product, it required individuals with sufficient disposable income and psychographics that would support our client’s product.
We looked at age, family groupings, housing density, education and of course household income. One of the markets that came in high on the list was Ottawa, Canada…more PhD’s per square inch and, importantly, the highest average household income in Canada of $105,000.
Fantastic, but wait a moment. Something didn’t seem right, so we dug a bit deeper. It is true that Ottawa has an extremely high average family income, but the income range in Ottawa is quite narrow with very few at the low end and very few at the high end (‘every household earns $105,000’).
On the other hand, Toronto ranked down at 24th with an average household income of just $83,000. But the crucial difference here is that the range of incomes making up the average is very wide - lots of low income and, importantly for our client, lots at the high end.
Our advice, naturally, for was to forego Ottawa and concentrate on Toronto. When you are looking at market data no matter whether it is B2B or B2C – ALWAYS dig deeper.
Upon what research do you base you market entry and product launches?