Market Research is primarily based on the choices that are most prospective for the area. This research assists to understand the market and determine whether enough demand exists to make each of the Ventures successful. The following form the five Key components of Market Research.
Market research by talking with key stakeholders is a perfect starting point. It helps all groups buy into ownership of the process and support the market research. It also helps the market research team familiarize itself with the project and its goals in a qualitative and open-discussion format. This is a mutually beneficial first step for both parties. These stakeholders can range from key personnel in the Women or Youth group, outside the organization, those involved in the local economy or any other stakeholders who may offer credible feedback and play a role in planning for the business.
This takes a look at competitors in the market place that will impact the new product and/or business. An expansive profile of each competitor is created to look for and realize gaps in the market that could provide opportunity for the businesses.
Business intelligence in all aspects of Supply Chain, Distribution, pricing etc is collected from the competitor businesses and products to help with decisions of the prospective manufacturing opportunity.
Demographic and Trend Analysis
This involves a lot of secondary research and analyzing the market. The primary approach is to use demographics and trends in order to qualify the demand for the new products in the market place.
Trends are short lived, but could provide a very lucrative opportunity for new products and ideas. Younger generations tend to follow Trends more and propagate it easily as in the case of Kenya.
Here, primary data is collected among the end users. This helps to quantify the potential of the product in the market place. Using the quantitative data and the demographic / trend analysis, demand models can be drawn and projections given on feasibility of the product and general business idea.
All the above components are then put together using each to generate a feasible demand model of the product. This model will help estimate the likelihood and habits of end-users for the new product. The demand estimates use predictive modeling to offer a rough figure based on the combination of known factors and assumptions.
Ultimately, a good market research will give us a “Go” or ‘No Go’ recommendation for the identified product or business.