Cases
Miele
Marketing Strategy

How does Miele increase the market penetration of its updated stick vacuum cleaner?

Miele has launched an updated stick vacuum cleaner. With it, it hopes to increase its market penetration. But how does Miele approach this smartly? The brand is collaborating with GeoMarktprofiel. GeoMarktprofiel is a specialist in profile information about all Dutch households and has created its own segmentation based on lifestyle and other characteristics, the GeoTypes. The collaboration between Blauw and GeoMarktprofiel enabled Blauw to set up a market segment study that is truly complementary and provides insight into the considerations and needs when purchasing a stick vacuum cleaner. Thus we investigated on which GeoType Miele can best focus its marketing. How the research went in cooperation with GeoMarktprofiel? You can read about that in this case study.

Challenge

You probably know Miele from different types of home appliances. Miele also has a stick vacuum cleaner in its range and wanted to launch an updated version. Beforehand, Miele wanted to know how the new version could increase its market share and sales. To do so, it would have to change something in its marketing. But what? As a client of GeoMarktprofiel, the brand was already getting interesting information about the lifestyle of Dutch households, which it could perhaps capitalize on.

Vision

GeoMarket Profile and its 14 GeoTypes

Okay, but what exactly should you imagine about the GeoTypes? GeoMarktprofiel collects a lot of data on all households in the Netherlands. This data is built periodically on the basis of current (open) data sources including the BAG, CBS and the Kadaster. In addition, GeoMarktprofiel continuously conducts market research that provides insight into the composition and lifestyle of the Dutch population.

This results in a division of the whole of the Netherlands into 14 unique lifestyle segments. Each GeoType thus has a unique lifestyle that provides information on, for example, buying behavior, media use and leisure activities. Also consider their buying behavior around household appliances. As a brand of a home appliance, you thus get more information about who your customer is and you can capitalize on this with your marketing to increase your market penetration. Miele wanted to supplement the GeoTypes with specific insights about what people look for when buying a stick vacuum cleaner.

Solution

How exactly did we investigate how Miele can increase its market penetration?

Through market segment research, our Blauw experts enrich the GeoType segmentation with consumers' needs and considerations when it comes to purchasing a stick vacuum cleaner.

First, we used our research community, which allowed us to engage in conversation with consumers. Then we checked all answers with a quantitative questionnaire among the general Dutch public.

So first of all, we used an online community. An online platform, on which we engaged with consumers. Why would these people buy or not buy a stick vacuum cleaner? What do they pay attention to when buying a stick vacuum cleaner and why is this so important to them?

Brand image of Miele and its competitors

Through an online questionnaire, we tested responses among a larger sample. For this purpose, we put out an online questionnaire. Several components emerged in this questionnaire. For example, we began with an Implicit Association Test (IAT). Participants were shown a different word or characteristic of a brand, i.e., a brand association, on screen each time. They were then asked whether or not they thought the brand association fit Miele and its main competitors. This gave Miele insight not only into its own brand image, but also into that of other players in the market.

What does the path to purchase of a stick vacuum cleaner look like?

We then depicted the path to purchase a stick vacuum cleaner. The path consumers take when buying a stick vacuum cleaner. What purchase criteria are important for this? We asked the different GeoTypes why they would or would not consider buying a stick vacuum cleaner. And if they are not considering the Miele brand, why not? And which vacuum cleaner do they end up purchasing?

In doing so, we also looked at differences between the various GeoTypes. Which households are most inclined to purchase a stick vacuum cleaner from Miele? And what do these people consider important in doing so? What are their purchasing criteria?

Identifying advantages and disadvantages of product use

Finally, we asked about the use of a stick vacuum cleaner. What exactly do the GeoTypes use a stick vacuum cleaner for? In what situation? And then why don't they use a normal vacuum cleaner? We also asked about the pros and cons of using a stick vacuum cleaner. This gave Miele even more insight into the daily lives of their target group.


Result

What did the market segmentation research yield for Miele?

Our experts analyzed all the answers. We then gave them to Miele in a clear report. From this, Miele could easily see which GeoTypes it can best focus on with its marketing, in order to increase its market penetration for the updated stick vacuum cleaner. In doing so, Miele now knows which buying criteria are important to these households. Not to mention: Miele knows its target group for the stick vacuum cleaner much better, which will certainly benefit it in the future!

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Sylvia van Ewijk
Sylvia van Ewijk
Sylvia.vanEwijk@blauw.com