MARKETING STUDY FOR THE OPENING OF A NEW AGENCY: CASE OF A MICROFINANCE

Better understand its target in a new Cameroonian city to develop adapted activities, more efficient than the competition, at the opening of the new agency. This was the wish of one of our customers. A large Microfinance with French shareholders, which called on our team to conduct a market study aimed at defining the typical profiles of its target audience (personas) and having recommendations for adjusting its offer.

IN BRIEF : _

IN DETAIL

THE NEED TO UNDERSTAND THE EXPECTATIONS AND NEEDS OF THE TARGET AUDIENCE BEFORE OPENING A NEW AGENCY

When the actions taken by an organization (company) do not have the expected results, a questioning is necessary. The gap between the intended results and those actually obtained depends on a large number of factors. Sometimes this may be due to the fact that the expectations and needs of the target audience are not really understood, the solutions proposed do not meet the needs and, therefore, the actions carried out are not adapted and have not so little impact.

A MARKET STUDY TO DEFINE PERSONAS

Faced with this type of situation, the members of the Management of a large Microfinance with French shareholders asked our firm to understand what to do for the opening of a new agency in a new Cameroonian city for their activity. Their wish was to better understand the real needs, expectations and behavior of the target. Our mission was to design and conduct a market study that provides concrete answers as well as recommendations to meet the expectations of the target and / or improve future activities and a business model.

At first glance, we defined the precise objectives: our ambition was to define the size of the market, ie the number of activities. It was a question of having an estimate of the market in terms of micro-entrepreneurs, SMEs present in the city.

We then designed the design of the study by determining:

• The type of investigations that were to be carried out
• The number and type of respondents that would lead to meaningful results
• Methods of collecting information (survey, interviews, observation)
• The tools used

We have developed the tools used for data collection (questionnaires, canvas, common thread of interviews, etc.). Then, our team launched the census which allowed us to study the size of the market of this city. And, in order to ensure that our entire approach corresponded to expectations, we integrated the project manager from the side of the client company at all stages of the process.

THE COMBINATION OF QUANTITATIVE AND QUALITATIVE DATA TO BETTER REFLECT THE REALITY OF THE MARKET

Before starting to collect data, we did research to better understand our client's activity and its positioning, then set the framework for the mission. We collected different types of data:

• Qualitative data collection: these consisted of interviews conducted with professionals in the branch, identified within our network and from competing companies. Profiles known as key players in the sector, working for both private and public companies
• Quantitative data collection: the objective was to gather data from the field. We raided the city and interviewed all the entrepreneurs present: around 30,000.

Using a methodology and analysis tools from the IIBA (International Institute of Business Analysis) and the PMI (Project Management Institute), we then proceeded to analyze the data collected. It was mainly to study:

• Demand: who are the potential customers, what is their size and what are their needs?
• Perception: what is the portrait of the clientele and their perception of the financial services offers? what are the elements of satisfaction, what are the selection criteria?
• The offer: What players and offers are already present on the market? In what forms are the services offered? What place could our client occupy?

A COMPLETE REPORT THAT CLEARLY RESPONDS TO CUSTOMER QUESTIONS

All the analyzes and results obtained were compiled in reports - one synthetic, the other complete - and presented to the Directors. Thanks to proven processes, experienced consultants and a particularly extensive network, our work has enabled the client to obtain concrete answers.

The various analyzes carried out enabled us to identify the level of maturity of the market as well as its potential, the offer which is made on the market, and the perception of financial services by the actors of this market. Major constraints linked to aspects of feedback from competition and cultural aspects constituted a brake on the development of the market. However, the absence of actors ready to respond to this demand constituted a real opportunity.

In conclusion, for our client's growth strategy, developing its activities in this new city represented an interesting option. Thus, we presented him with a list of the most relevant areas of development.

AWARENESS AND RECOMMENDATIONS TO ADAPT THE OFFER

At the end of our mission, the Management had a market study carried out from A to Z, summarized in a document and presented orally, containing clear and concrete answers. Results that allowed an awareness of the market, a discovery of the potential to be developed and recommendations that would help to correct the situation quickly and effectively in order to exploit the opportunity.

IN NUMBERS

• 4 months elapsed between taking charge of the mission and the final presentation
• +10,000 questionnaire respondents;
• Survey of approximately 30,000 candidates (entrepreneurs);
• +30 focus group participants;
• 4 defined personas;
• 5 qualitative interviews with key people in the sector;
• 11 recommendations for improvement based on the results of the various analyzes and the defined persona;
• 11 possible and relevant areas of development identified;
• A customer contact database of more than 1000 prospects

IN CONCLUSION:

Meeting the needs of the target is a fundamental principle of marketing.

However, sometimes we are so focused on day-to-day tasks that we forget to listen to the market and risk drifting away from this fundamental principle. The result is an unsuitable offer and actions which, even if they are well carried out, have only a weak impact. Therefore, it is essential to gain perspective, listen to needs and understand market expectations.

Whatever the sector, environment and business potential, entering new markets requires prior analysis. And, as illustrated in this case, the latter will be particularly meaningful if it is based on both quantitative and qualitative data.

Our intervention was intended to allow our client to get a first idea of the market before opening a new agency and to explore the existing possibilities. He now had all the information to make the best strategic decisions to grow his business.

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