Objective: To determine potential demand of natural gas.
Methodology: Face to face interviews.
Industry: Oil and Gas.
Target group: Commercial and industrial establishments.
Is one of India’s leading natural gas distribution companies. They are currently supplying natural gas to over lakhs of household and hundreds of commercial and industrial establishments. They wanted to expand their operations to other potential locations in India. Such foray into new regions involve huge capital outlay as it involves cost of setting up the network for distribution, sunk cost for loss of natural gas during transmission, purchase commitment for natural gas to meet the potential demand of the region, etc
o To determine potential demand of natural gas in the regions they were planning to enter.
o To capture willingness of the current users of other type of fuels to switch to natural gas in future.
o To forecast the future demand so that the client can estimate the financial attractiveness of the market and can also get idea about their own breakeven point.
Market Search India converted this challenge into two parts – identifying the market size of Switchers – those customers who will switch from current supplier to our client and Identifying the market size for Converts – those who currently do not use natural gas as a fuel.
Desk research was also carried out to identify potential industries which can be future users of the natural gas. Our face to face interviews with the target audience consisting of various commercial and industrial establishments in the proposed locations, gave us the data needed to estimate the size of the market.
From the study insights,
o Industries which can be potential users of the natural gas were identified.
o Issues faced with current fuels which can prove to be trigger for their conversion to the natural gas in future were also identified.
o Pros and cons about natural gas helped the client to approach potential users effectively and helped the client in building their marketing activities around.
o The current demand for natural gas and the estimated growth in future along with price sensitivity, helped the client to fix the price point.