case study - market research

The Brief

Cleansing Service Group (CSG) were considering a multi-million pound investment in tyre recycling equipment and needed a combination of impartial advice, analysis and up-to-date market information to inform their decision.  They had already been advised by “interested parties” to go ahead with the investment. 

Outcome

Surprisingly, in the light of the tyre mountains which blight areas of the countryside, tyre recycling capacity in the UK is under-utilised and a number of companies engaged in this area have ceased trading.  With increasing demand for tyres to fuel cement kilns, it is probable that, in the future, recyclers will no longer be paid for tyre disposal, which will put a very different emphasis on the business model.  Armed with our report, CSG decided against this costly investment which could have been very damaging to the business. 

Methodology

A combination of desk research and telephone interviews was used to obtain current and predicted information on:

• quantities of tyres for recycling
• demand for recycled tyres
• recycling capacity

Analysis was both qualitative and quantitative, including market modelling, interview review and an analysis of additional secondary research.  Findings were subsequently supported by independent peer review.

Client Feedback

Nova Connection provided us with a professional and cost effective approach to understanding an unknown market. This allowed us to continue with our day-to-day business, but to look carefully at what seemed to be an opportunity.  

The conclusion to the project by Nova Connection suggested strongly we re-think a part of our strategic development plan. Mike and his team presented their findings and made clear and unequivocal recommendations – something often missing with marketing consultancy reports! 

Gary Harrison – Group Marketing Manager

Cleansing Service Group