Read the case study and solve these questions.

1. Explain the difference between primary and secondary market research.

2. How does market research help Portakabin understand its customers and market?

3. What does qualitative data tell Portakabin that quantitative does not?

4. How do the 'added-value' services Portakabin offers give it competitive advantage? What might be the drawbacks?

How market research helps CURRICULUM TOPICS Portakabin to remain at the - Primary market research cutting edge - Secondary market research - Market research and development - Customers and their expectations Introduction For over 45 years, Portakabin has been producing modular buildings that can be constructed quickly and simply. The business was founded in 1961 by Donald Shepherd. He believed in innovation and development to meet the varying needs of a wide range of different customers. It is this flexibility and attention to the customer that ensures Portakabin is a leader in the field with 17% of the UK market for modular buildings. GLOSSARY Portakabin has a wide range of products. These are designed to meet the needs of a wide Brand: a name, symbol range of different customers. The business designs and creates accommodation solutions for or design used to identify a anything from one to up to 1,000 people. The Portakabin brand is synonymous with the specific product and to concept of modular and portable buildings and has become a household name. The differentiate it from its company employs 1,300 people throughout the UK and Europe. The business is set up to ensure a rapid response and a comprehensive support service for all its customers. Understanding the Portakabin market Portakabin has a broad customer base with complex and diverse needs. Examples of its typical customers include: - growing businesses that do not want to relocate choose to add a Portakabin modular office to existing space - doctors' surgeries or childcare centres which need specialised features, such as easy-clean surfaces or child-level windows - schools that have a temporary growth in numbers or are in the process of having new buildings constructed. They need modular buildings to house students whilst such changes are taking place. Whatever the reason, the accommodation Portakabin provides must be safe, comfortable and pleasant for people to use. Its products are flexible, attractive and provide solutions for all of its customers' needs. Businesses seeking to purchase or hire state-of-the-art modular buildings have several key requirements. The buildings must be: - quality products that will provide both employees and customers with a healthy and plecsing work environment - completed on time - within the designated budget. Portakabin operates in a very competitive market. In order to maintain its leading edge it must: a) deliver exactly what existing customers want b) ensure that when their needs change it will be able to provide them with a new solution c) continue to attract new customers. Portakabin adds value to the service it offers its customers by providing a 'one stop shop' service. This means it helps the customer to obtain planning permission and design the layout of the building. Portakabin advises customers on hiring the right furniture for the buildings. This furniture has to be suitable for the clients' needs and the building. Portakabin also includes as part of this package extra business solutions. These include features such as climate control, fire and security systems. This extra support ensures that companies have complete peace of mind when hiring or buying a Portakabin building, with all these features and benefits available from the Portakabin network. Portakabin is aware that customers' needs will change as technology develops or their TIE TIMLS 100 businesses grow or change direction. It is essential that Portakabin carries out extensive www.thetimes100.co.uk new and innovative ideas. Primary and secondary market research GLOSSARY Customers' needs for accommodation change because of many factors. The main factors are GLOSSARY changes in new technology, demands of health and safety, stricter legislation and the need to Market research: the respond to different working patterns. Businesses have to find solutions quickly to keep up to collection of data from date. They also need to allow for further changes in the future. Portakabin has to be able to both primary and understand and respond to these changing needs to remain competitive. secondary sources in order to plan a marketing In order to do this, Portakabin is committed to ongoing and in-depth market research. strategy or campaign. This provides two main benefits: - Portakabin understands what existing and future customers want Primary research: - Portakabin can put in place new product development and added-value services to meet information obtained customers' needs. the field. There are two main types of market research. Both involve the collection of data that is used Secondary research: to find out about customers' needs and buying habits. Primary research is data collected information or data that is in the field, directly from the customer. Secondary research is data that already exists or collected from books, may have been collected for another purpose. This can be used to back up primary research. government or other official sources, the Internet The data collected may be qualitative. This means that facts, feelings and opinions are or other similar sources. collected. This type of information helps to develop new products that customers want. It also This kind of research is ensures that customers are satisfied with the service they have received. Other data may be quantitative. This focuses on statistics and figures. These provide a business with information that can be represented in a table, graph or a chart. Qubjective research where the researcher will ask a Primary research at Portakabin customer for their opinion Research into aspects of the work environment is important for Portakabin. It needs to ensure that or thoughts. its products and services meet the diverse and changing needs of customers. Portakabin is aware Quantitative research: that the customers who buy or hire its buildings have employees and customers of their own. It research that uses a large must ensure that the people who use or work in the buildings have a high level of satisfaction. sample of people to gather Recent research has shown that if the work environment is good, employees are more likely to statistical information. be productive. This is very important for the companies who buy Portakabin products. Focus groups: people To be successful in its research Portakabin has to find effective ways of extracting accurate who have been brought information. This particularly applies to the sales process. There are several ways for together to discuss a Portakabin to obtain primary research from its customers or their staff. The sales team particular subject in order regularly collects information through discussions with existing and potential customers. to solve a problem or Portakabin uses focus groups to find out how the working environment affects workers' suggest ideas. performance and productivity. These results have been used to assess user views and develop Surveys: examination of new products and services. opinions, behaviour, etc by asking questions of a Portakabin regularly use surveys to extract quantitative data. This has helped to discover why representative number of customers chose Portakabin over its competitors. The results of these surveys showed that the people. majority of customers welcomed the unique Portakabin offers of both high-quality buildings and extensive service support to provide them with peace of mind when ordering a building. Secondary research at Portakabin Secondary research has helped Portakabin to create new products that ensure a productive and engaged workforce. This gives them a competitive edge. The company used the results of a recent Gallup Management Journal survey of U.S. employees to help them to design and produce two new buildings called the Ultima Vision building and the Portakabin Solus building. The survey looked at which aspects of the work environment had most impact on improving employee performance. It produced data on how employees reacted to their working environment and found three types of employee. The table shows the breakdown of the results: GLOSSARY The Gallup survey also reported that: - 28% of people were unable to see outdoors from their work space - these employees are Added-value: the 86% more likely to be unhappy and disengaged at work - 23% felt that the work area temperature was uncomfortable - these employees are only process of adding value to a product or service (e.g. a half as likely to be 'engaged' supermarket adds value to dirty carrots by washing, - 33\% said that noise disturbed their work - these employees are four times more likely to be disengaged. Other secondary research has reported that 66% of British workers feel the quality of the working environment is important. Employees stated that this is one of the most important factors in providing job satisfoction and career contentment. It suggests that natural lighting influences human performance in the work environment. The study further suggests that it is more satisfying to work in a modular or portable building that has the appearance of being permanent. This is very important for Portakabin to know and respond to. The conclusion from this research is that improvements to the natural lighting and the interior and exterior appearance of the workspace can increase employee satisfaction and business productivity. This type of quantitative data has provided an opportunity for Portakabin to design solutions to clients' needs. It has consequently provided buildings that contribute to a happier and more productive workforce. Product development Ongoing primary research examining customer satisfaction has provided Partakabin with a wealth of information. Developing effective services for its customers to meet their key needs means it remains market leader. Research into the effect of the environment on workforce productivity and satisfaction has enabled Portakabin to offer further added-value options in its product range. Portakabin uses a number of processes to ensure that it can deliver high levels of service and high quality products. These include: - research and development of new product ideas and added-value solutions - effective strategies for marketing and sales aimed at specific market segments - quality assurance and quality control procedures to ensure a high level of service and product quality - assessing reliability of suppliers and levels of service to ensure that materials and supplies arrive on time and to a high level of quality. Portakabin has used the data obtained from the market research to develop two new products THE TIMES 100 to meet customers' needs. The buildings have features that take account of the research findings. These include temperature control facilities and more glazing, allowing more natural light into the building. The original concept of a modular building remains the same. The added features are product extensions. These add value at a cost that is acceptable to the customer and does not compromise the company's ability to make a profit. GLOSSARY For example, Ultima Vision has one wall that is fully glazed. This gives it a more contemporary appearance and provides a pleasant working environment with more natural light. Product extensions: changing an existing The other new product, Portakabin Solus, has large architecturally designed windows and product in some way to doors to ensure maximum light. The building also complies with disability and health and prolong its life cycle. safety regulations. The materials and design have taken into account many of the findings of the Gallup research. This provides pleasing working conditions. These contribute towards the creation of a happier and more productive workforce. Conclusion One aim of Portakabin is to maintain its position as the leading manufacturer of modular buildings in the UK. To achieve this Portakabin needs to deliver the right service and products to its customers. This requires that it is aware of the changing nature of its customers' needs and responds to them in a cost effective and innovative way. Using market research into the needs and profiles of their customers has proved successful. Portakabin uses research to understand the needs of its direct customers who buy its products. It regularly investigates the requirements of the end users of those products, the people who use or work in the buildings. As a result, sales of the new Portakabin Solus and Ultima Vision ranges continue to grow. Portakabin pays keen attention to creating new product ideas. This has helped it to meet its own high standards and to ensure that customers remain loyal. Its buildings and solutions meet the ever changing demands of business customers, their employees and their wider stakeholders. As a result it has maintained its position as market leader in the UK. Questions 1. Explain the difference between primary and secondary market research. 2. How does market research help Portakabin understand its customers and market? 3. What does qualitative data tell Portakabin that quantitative does not? 4. How do the 'added-value' services Portakabin offers give it competitive advantage? What might be the drawbacks? www.portakabin.co.uk