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Aviation Market - Project Case Studies

 

  • Aircraft Retrofits-Cockpit Avionics-Pilots and Owners In-Depth Research Assessment
  • New Flight Critical, Electro-Mechanical System For Business Jets, Rotary, and Air Transport Aircraft-Market Assessment
  • Passenger Aircraft To Cargo Freighter Conversion-Market Opportunity Assessment
  • Composite vs. Metallic Aerostructures Research-Air Transport Market Assessment
  • Avionics, Flight Deck Retrofit Research-Business Jet Market Assessment
  • Aviation Market Convergence-Aircraft Systems Impact Analysis
  • Aviation Flight Management System-New Product Acceptance Analysis
  • Flight Management System-Air Transport New Product Assessment
  • Avionics, Flight Deck Retrofit-General Aviation Market Assessment

Aircraft Retrofits-Cockpit Avionics-Pilots and Owners In-Depth Research Assessment

Problem

A leading provider of avionics and integrated cockpits for commercial and military aircraft was seeking to expand its growth into an aviation segment where it did not yet have a significant position. Many of these aircraft did not have newly configured glass cockpits, but rather older gauges and separate avionics, and owners appeared to be planning some level of upgrade in the future. Although already a fairly crowded segment with several competitors, this company felt its unique solutions and integration capabilities should enable it to carve out a reasonable initial market share.

Prior to finalizing its offerings for this new segment this company was interested in comprehensive, in-depth feedback directly from pilots and owners of these aircraft across various operational areas (personal leisure, corporate charter, cargo, and schedule). The objective was to gain an accurate understanding of key capabilities these aircraft were seeking as part of a possible integrated cockpit retrofit.

This was a challenging assignment. The research had to probe the importance, with underlying reasons, of a number of capabilities (Synthetic and Enhanced Vision, TCAS, TAWS, Moving Maps, Electronic Charts, Quick Access Reorders, Heads Up Displays, Weather Radar, HITS, ADS-B, LPV and RNP SAAR approaches, and others). To understand the pilot's perspective, this research also probed for the type of aircraft operation, aircraft engine installed, airfields pilots typically use, autopilot and flight management system primary uses, prior pilot experience with glass cockpits, any problems with current systems, actual retrofit plans, and expected cockpit retrofit pricing.

Solution

Following a kick-off meeting with key client personnel to confirm research project deliverables, STS assembled registration-contact information on over 800 pilots and owners of various aircraft models in this segment, geographically dispersed across US and Canada. A multi-part telephone questionnaire was designed and tested, and three experienced STS researchers ultimately completed 75 in-depth telephone surveys with key decision makers, each lasting 45-90 minutes. Transcript verbatims were prepared from each interview, and Client progress reviews were held at the 25%, 50%, and 75% levels as the research analysis took shape. The final research sample accurately mirrored the habits, practices, current and future requirements of this broader segment.

During these in-depth interviews STS researchers encouraged pilots and owners to elaborate on key points of importance to STS Client, particularly which capabilities would be most attractive and the underlying reasons. STS final client deliverable contained all survey transcripts, detailed cross-tab analyses, and a boardroom Power Point presentation of key findings and recommendations.

Result

As a result of this research, STS Client was now able to clearly understand what capabilities were most important to pilots and owners of these aircraft, and appreciate why pilots and owners of these aircraft feel as they do and make the decisions they make with regard to future cockpit retrofit solutions.

This research also provided guidance and motivation to the internal Client engineering and design team, helping to direct technical priorities, tasking and technology investment, leading to creation of clearly differentiated value propositions of real importance to its target customers. Results from this research project helped guide marketing and sales strategies for most important customer groups in this aircraft segment. Lastly, research verbatims captured during interviews also proved highly useful to Client print and web advertising, copy development, and media strategy selections.

Overall, this research greatly accelerated this company's ability to successfully establish an initial strategic position in an important new market segment where it was able to leverage significant future growth.

New Flight Critical, Electro-Mechanical System For Business Jets, Rotary, and Air Transport Aircraft-Market Assessment

Problem

A leading supplier of flight critical, electro-mechanical solutions for business jets, rotary, and air transport aircraft was investigating a business expansion opportunity for a new in-flight control system. Changes in aircraft construction (more composites, less metallics), redesign of jet engines (more fuel efficient, lower emissions), and emergence of new safety regulations (FAA, EASA) were driving a need for new system approaches in this area. In particular, SWaP (Size, Weight, and Power) factors were key air framer considerations in evaluating new system candidates.

STS Client already felt its solution offered a major advantage over competitors, but nonetheless required an independent market research assessment validating the attractiveness of this new business opportunity prior to committing a major investment.

STS Client was particularly interested in: current and emerging technologies; airframer evaluation and selection criteria;  competitive landscape and forces (shares, pricing, strengths, weaknesses; aircraft incumbencies; average profit margin-EBIT); supply chain (greatest value add);  airframer interest in its solution; addressable retrofit and forward fit opportunities; addressable market size; most attractive airframe opportunities with realistic, available business potential; recommended market entry strategy; revenue and profit margin projections; anticipated competitor response; and, risk assessment.

Solution

In developing its analysis, STS relied heavily on primary research with key decision makers at a variety of market levels, with extensive secondary data analysis to develop a detailed business case assessment. This involved a custom research survey design, identification of a cross section of market experts, completion of 30 in depth primary research surveys, detailed competitive analysis, and custom spreadsheets of relevant new and retrofit model aircraft production over the next 20 years.

In-depth research surveys were conducted with key systems managers at major airframers including Airbus, Bell Helicopter, Boeing, Bombardier, Embraer, Hawker Beechcraft, Sikorsky, and others, as well as with relevant regulatory, testing, and technical laboratory personnel at NASA Glenn Research Center, US Army, FAA, and other organizations. Independent secondary research analysis included standard reference sources (major jet transport and business and rotary airframer outlook reports, engine manufacturer forecasts, general aviation aircraft forecasts, trade association projections), but also other selected research sources. STS further assembled extensive competitive analysis using published sources and direct observations gained during relevant trade events.

Result

As a result of this comprehensive assessment, STS Client was able to significantly increase its level of confidence and gain critical management support behind this new business opportunity. Importantly, STS Client team was able to successfully pass muster through top corporate management reviews in its presentation of this opportunity by supporting and documenting responses to key questions such as: Is this market real? Can We Win? Is it worth it? What solutions should we offer? Are the technologies we have of interest? What are our viable market entry point(s)? What is our reasonable revenue and profit margin?

Passenger Aircraft To Cargo Freighter Conversion-Market Opportunity Assessment

Problem

A leading provider of structural and prefabricated aerostructures for commercial airframes was seeking to broaden its business into the growing third-party MRO (Maintenance, Repair, and Overhaul) market. Its interest was to provide passenger-to-freighter conversion of certain airframes as well as other related heavy airframe maintenance. STS Client had many questions including feasibility and sustainability of this business model; logical, adjacent MRO services to include; competitive landscape and profitability; industry perceptions of Client as a new player in this market; key requirements for success; growth options and profitability associated with logical roll out and expansion scenarios.

Solution

In this opportunity assessment STS relied on its resident knowledge of the aircraft MRO domain, analysis of published data on the changing MRO market, and extensive primary research interviews with key aviation and airframe experts to truly understand changing requirements, competitive offerings and experience, and identify best growth pathways for client.

This also included a detailed analysis of 15 key airframes, major MRO segments, profiles of 14 US and foreign third-party MRO providers, and analysis of primary factors driving airlines to outsource MRO.

Result

As a result of this custom, in-depth analyses, Client was able accelerate its strategic planning timetable by nearly 18 months. This was a direct result of STS custom report which drew down a highly complicated and multifaceted market landscape into highly relevant and understandable areas of opportunity. This allowed STS Client to accelerate its knowledge and understanding of key business options and form supportable business directions which today are the foundation of a highly successful and sustaining business.

Composite vs. Metallic Aerostructures Research-Air Transport Market Assessment

Problem

A leading provider of metallic aerostructures was vitally interested in better understanding key airline personnel views on the relative merits of composites vs. metallics for jet transport aircraft. This was triggered by a recent announcement from a major airframer that a new passenger aircraft under development would be constructed primarily with composite material vs. metallics (used in traditional airframes). STS Client particularly needed to better understand airline maintenance and third party MRO views of composites. Client was also interested in an independent life-cycle maintenance cost calculation for the new airframe compared to an existing 767 airframe built with traditional non-composite aerostructure materials.

Solution

In conducting this analysis, STS relied heavily on primary research input from 25 key maintenance and operations contacts at leading airlines worldwide, probing their views on advantages and disadvantages of composite material from a number of angles. At the same time, STS built an original analysis, based on airline expert guidance, comparing this new airframe to the average useful life of a 767 aircraft. Over 25 key measures were included in this comparison related to aircraft dynamics, weight, flight operations, comfort, and other operating and cost issues.

Result

With STS detailed analysis, backed by in-depth insights from maintenance and operations experts at leading world airlines, this leading provider of metallic aerostructures was able to better appreciate the nature and potential impact of this change at a critical early stage. This vital "reality check" enabled STS Client to develop key counter arguments, modify its sales and marketing emphasis, and redirect its internal R&D focus.

Avionics, Flight Deck Retrofit Research-Business Jet Market Assessment

Problem

A top aviation avionics client, with a dominant market share in a number of aircraft domains, required detailed market insight from a cross-section of business aircraft owners and mod houses on anticipated integrated retrofits as well as standalone avionics unit upgrades, including adoption, timing and underlying drivers. STS client was particularly concerned about one emerging competitor who appeared poised to take market share with several new integrated avionics offerings designed to be direct replacement upgrade substitutes for STS Client solutions.

Solution

STS identified a list of key experts in each aircraft class of interest, developed specific questions tailored exclusively to client information needs, and completed extensive primary research on a number of key topics to accurately and reliably understand aircraft owner plans and underlying motivations with regard to a number of subjects. This analysis also included key calculations such as retrofit market size, adoption rates, timing, decision process, product preferences, and other key metrics.

Result

Based on STS custom research, analysis and conclusions, Client was able to identify areas of real potential weakness, better understand competitive threats, and adjust its internal R&D priorities and marketing and sales emphasis to protect and grow its business.

Aviation Market Convergence-Aircraft Systems Impact Analysis

Problem

A supplier of commercial aircraft systems for all major segments (Air Transport, Regional, Business) required a detailed assessment of the emerging "point to point" trend compared to traditional "hub and spokes". This trend was extremely significant in that it was a key driver as to which airframes would be in demand for future airline fleet acquisitions. Accordingly, STS Client required a clear understanding of the extent to which "point to point" air travel would drive major airline future fleet compositions.

Solution

STS assembled a wide variety of research data by world region and airline operating routes, conducting primary research with key individuals responsible for airline fleet planning and aircraft acquisition. Reliable statistics were gathered in combination with direct feedback from airline operators, airports, major OEMs, and leading air travel trade associations. This allowed STS to statistically quantify future market changes, growth, and segmentation; predict most-likely fleet planning and aircraft acquisition outcomes; and relate this back to strategic business implications for STS aircraft systems client.

Result

Based on STS customized research and analysis, STS Client was able to complete its "point to point strategic assessment-implications” portion of its Annual Strategy Plan eight months ahead of required schedule. STS research also gave Client greater confidence in making decisions regarding both offerings and sales strategies in its business plan.

Aviation Flight Management System-New Product Acceptance Analysis

Problem

A supplier of many different avionics systems for large passenger aircraft was extremely concerned about slowness of sales and lack of customer interest in a new upgrade-replacement flight-management system launched 18 months prior. Customers appeared reluctant to adopt this new offering and sales were significantly below plan. STS Client had some suspicions based on its sales force input, but desperately needed third-party insight from an outside aviation market research expert to understand and attempt to quickly remedy the situation.

Solution

In approaching this custom research, STS independently assembled its own secondary statistics on current installations, competitive positions, and other data to recalculate available market size and growth estimates. STS interviewed 35 key airline decision makers in various functional roles (maintenance, flight ops, engineering) to assess their reactions to this new system and similar offerings, as well as background issues such as market conditions and changing needs.

Result

Based on STS research, client realized there were several key drawbacks in its design and sales strategy, and was able to make necessary modifications to restore critical sales momentum. Detailed, independent feedback from STS research enabled client to better understand the problem, and ultimately help reassure customers with a timely and relevant response. As a result, STS Client was able to recover and achieve 90% of its original sales projection after making key changes.

Flight Management System-Air Transport New Product Assessment

Problem

A major manufacturer of aerospace electronics and display systems was seeking to diversify its business in the advanced passenger airline systems' market. Internal marketing and engineering had developed a preliminary system concept which incorporated GPS , SATCOM, Internet, and other airborne and ground-based links for both passenger and aircraft management applications. Client management however was resisting further internal investment until a detailed market assessment was conducted to determine potential acceptance.

STS worked with Client to compose a detailed illustration of its system concept, covering features, functionalities and benefits to the user. STS then conducted in-depth market research with 50+ key decision makers to gain insight on potential interest, applications, and features and functionality at multiple levels.

Solution

STS research assessment directly helped to guide client's decision making behind this potential entry at a critical development stage. Several key design features were modified as a result of research input, specific customer target segments were spotlighted as having greatest purchase interest, and feedback on pricing and other revenue stream potential greatly assisted internal client efforts.

Result

Project provided critical guidance for company's diversification and set stage for new business expansion beyond traditional core avionics market.

Avionics, Flight Deck Retrofit-General Aviation Market Assessment

Problem

A provider of avionics solutions for Air Transport, Regional, and Business aircraft required an assessment of available market size and competition in the growing general aviation, owner-flown segment which it had not previously emphasized. This included light singles, heavy-performance singles, and twin engine airframes. STS Client interest was driven by increasing sophistication of small aircraft avionics which was creating a larger, higher margin opportunity segment, and STS client needed to better understand key underlying factors and begin to define a possible new business roadmap.

Solution

In approaching this custom research, STS developed a logical partitioning of the market including six key private aircraft segments, broke this further into seven avionics categories, and developed a detailed roadmap report based on available statistics and direct interviews with aircraft OEMs, installation and mod houses, and other retrofit experts. Final report included a detailed summary of current and future market size, underlying market drivers and constraints, competitive positions within both products and segments, relevant conclusions and specific recommendations.

Result

As a result of this client-tailored research, STS was able to accurately define the highest margin and sales opportunity spaces where STS Client should place greatest emphasis, accelerating Client internal strategic planning process by over nine months.

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