The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.Learn More
Market research is a crucial step in strengthening and supporting plans or hypotheses for business opportunities. In the process of evaluating these opportunities for our clients, we are often asked the same questions about potential opportunities and next steps with these being the most common.
Strategic market research provides qualitative and quantitative information to evaluate mid and long term strategic decisions. It provides a comprehensive view of the market for the past, present and future, validating hypothesis and providing trends to better define and adapt corporate plans.
Using strategic market research, we identify a view on the total market of the product to be sold and/or exported, historical market performance and forecasts. This assessment helps answer whether the market is attractive or not.
If the product you want to sell is already a success in another country, but has not yet reached your new target market, look for information on a product resembling it in your target market to find perspective on the size of the opportunity. For example, assuming there is no quinoa market information, strategic information about cereals and rice can be taken as a reference. It is not exactly the same, but quinoa is a healthier substitute for both and with this information we have a better view on product potential.
Using strategic market research information, including estimated market sizes and company shares, you can understand how monopolized or segmented the category and/or product is in the target country and whether the product would be well received. In addition, you can identify companies that have performed well to take as a reference and learn from them.
If the company is already operating with a certain product in a country, a scan data provider will give periodic information to understand the regular behaviour of the product, how the brand is doing against the competition and what prices are being handled.
The surveys or focus groups help understand the brand perception of a certain product through a representative sample of the population.
Through strategic market research, identify how a product moves within different channels. For example, the channel with 40% of target product sales are convenience stores, which grows 7% on average a year. However, supermarkets concentrate 22% of sales and will grow an average of 12% annually in the next 5 years. This helps to make the decision between selling in a more developed channel, with the highest concentration of sales, or, betting on a channel with lower sales but with higher forecasted growth.
Once the channel is identified, the following sources of information can also be useful:
A focus group allows you to understand why the consumer prefers to buy the product in convenience stores versus supermarkets, as well as attitudes and reactions of the same subject.
A household panel takes a sample of households and indicates the frequency of purchase in one channel versus another, products purchased for a family and details of the products.
The scan data provides periodic information on the movement of the product in each channel, sale prices and behaviour of the company versus the competition.
Big data or data mining combines internal and external information about consumer behaviour to help adapt and tailor their offerings as well as create consumer loyalty.
When launching a new product there are infinite possibilities as to what ingredients, flavours and packaging it can have. Let´s say you are launching a baby food product. Strategic market research can provide information on the total market sizes of packaging types and flavours to identify the largest and fastest growing categories for baby food. For example, pouches versus glass jars, fruit versus vegetables or meat.
You can complement this data with: