Market sizing for concerts and sound systems

Sound systems manufacturer wanted to evaluate the potential of Eastern Europe markets, which resulted in CIVITTA performing a market sizing for Poland and Russia.

The result included the distribution of potential clients among Polish and Russian cities, as well as quantitative (e.g. ticket prices) and qualitative (venue characteristics) data.

Evaluating the business case for geographical expansion

CIVITTA’s client was a speaker and sound systems manufacturer from Western Europe which wanted to expand the geographical reach for some of its product lines to Eastern Europe. The main need was finding out if there is enough demand in the target customer segment, and if so, in which countries and which cities. The project focused on two target markets, Poland and Russia.

Agile market research

Due to the uncertain quality of data accessible, CIVITTA applied an agile approach. In the first step, only one city has been analyzed as a pilot, and the results were discussed with the client.

After implementing the changes suggested by both sides, research was expanded to other Polish cities. In the third step, the second country (Russia) was also included in the project’s scope.

Regarding the data gathered, CIVITTA analysts compiled a database of potential customers (among others, bars, clubs, cafés), including both qualitative and quantitative data, such as:

  • customer segment,
  • ticket pricing,
  • venue size,
  • presence of competitors,
  • prevailing music genres.

Data was gathered mostly through desk research, with some complimentary telephone interviews.

Market entry strategy based on data coming from the market sizing

The comprehensive analysis allowed the client to make decisions about the market entry based on detailed data and comparisons with benchmarks. The client has not only received data needed to develop an informed decision but also gained an insight into the characteristics of market segments in Eastern Europe. CIVITTA has also provided the client with the raw database as a long list of potential clients in case of market entry.

When thinking about expanding the geographical reach to a new country, it is critical to get a good understanding of the granular market structure. It is often not enough to estimate the size of the market in the whole country or base estimations only on quantitative data. The project described above showed the client various market structures in various European countries and cities. As CIVITTA discovered, those differences were explained by urbanization processes and differences in sizes of venues. Reducing uncertainty about such variation between countries can make or break a market entry strategy, saving resources that would be otherwise misallocated. That is even more true in the current post-pandemic markets.

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