Copyright ©2004 Global Insight, Inc. Analyzing the Home Improvement Market Market Sizing and Forecasting Mike Sweet Senior Consultant, Business Planning Solutions
Copyright ©2004 Global Insight, Inc. Agenda Capabilities and Approach Case Studies
Copyright ©2004 Global Insight, Inc. Overview We segment the market across a number of different dimensions: Products and Services End Purchasers –DIY, BIY, Contractors and Builders Structure Types –New Residential, Residential Remodel, Non-Residential Store Types/Distribution Channels Geographic markets –Global, National, Regional, State and County
Copyright ©2004 Global Insight, Inc. Premier economic analysis & consulting organization with 3,300 clients, 600 employees and 24 offices worldwide Most comprehensive coverage of countries, regions and industries available from any single source Common analytical framework and a consistent set of assumptions applied to diverse capabilities and products The BEST track record among commercial forecasters. Wall Street Journal, January 2, 2004 Expertise Serving the Home Improvement Industry Home Improvement Research Institute (HIRI) Developing an Outlook for the Home Improvement Market for over 10 years Global Construction Study Sizing and Forecasting construction activity by structure type in 55 country markets U.S. Construction Services Detailed forecasts and analysis on the U.S. construction market by structure type with state-level detail Home Improvement Retailers and Manufacturers Product line forecasts and geographic market potential models
Copyright ©2004 Global Insight, Inc. Unique Value Proposition We explain how demographics, income, the macro economy and customer trends influence future demand for your products
Copyright ©2004 Global Insight, Inc. Transforming Information into Planning Solutions
Copyright ©2004 Global Insight, Inc. Where We Fit Into the Planning Process
Copyright ©2004 Global Insight, Inc. Developing Business Planning Solutions – A Proven Process
Copyright ©2004 Global Insight, Inc. Agenda Capabilities and Approach Case Studies
Copyright ©2004 Global Insight, Inc. Average Annual Growth Average Annual Growth Slowing Markets Recovering MarketsHigh Growth Markets Lagging Markets Average US Service X Growth Average US Service X Growth Los Angeles New York Chicago Boston Atlanta Orange County Denver Tampa -St. Petersburg Washington DC Newark Pittsburgh St. Louis Cleveland Seattle Detroit Philadelphia Minneapolis St. Paul Baltimore San Francisco Oakland Kansas Houston Phoenix Dallas San Diego Case Study #1 – Segmenting a Retailer’s Geographic End Markets
Copyright ©2004 Global Insight, Inc. Case Study #2 – Paint Manufacturer
Copyright ©2004 Global Insight, Inc. Case Study #2 – Paint Manufacturer Will over exposure in this channel hurt performance? Does lower penetration signal a potential growth opportunity?
Copyright ©2004 Global Insight, Inc. Case Study #2 – Paint Manufacturer
Copyright ©2004 Global Insight, Inc. Case Study #3 – Analyzing the Demographics of the Home Market Second home demographic demand is growing nearly twice as fast as repeat demand and four times as fast as first time purchase demand As the baby boom ages, second home demographic demand growth will remain strong. First time demographic demand growth edges up as Generation Y starts forming households. Source: U.S. Census Bureau & Global Insight; age distribution data from The National Association of Realtors. Demographic Demand Growth