Today’s markets are increasingly competitive. Companies constantly want to improve the profitability of their structure, in particular via the positioning they have on the market. To achieve these objectives, it is essential to identify all the characteristics of the market in question. This is where market research comes in.
In short, market research is an essential tool for businesses. By understanding the characteristics of their target market, companies can better tailor their product and service offerings to meet consumer needs, assess competition, and identify growth opportunities.
Do a documentary search
The first step to accomplish is documentary research on the market you wish to enter or develop. The objective of this research is simple: to understand the keys to the target market .
Most of the information can be found in the specialized press, professional databases, websites, etc. This research is accompanied by an analysis to enable you to answer various questions.
This research has a vocation of skimming to prune the market on which you wish to position yourself. You need to know it down to the smallest detail to avoid unpleasant surprises.
1 – Define the research objectives
Before embarking directly on research, it is essential to think about the objectives of the request . This allows, among other things, to delimit the work so as not to go all over the place. More broadly, it is a question of questioning your expectations. Indeed, the volume of information to which we all have access is exponential, so it is easy to scatter. A fortiori, the information will not be the same depending on the project.
To do this, it is necessary to develop a research guide to structure the research that will follow. It is also a means of facilitating searches.
Finally, it may seem obvious, but the date of the information as well as the inherent source of the latter are essential, so as to guarantee the quality of the data collected.
2 – Find the information during its documentary study
There are essential themes such as:
- The area of the activity
- Key market factors
- Geography
- Regulations
The most important indicator concerning the sector of activity is the evolution: growth, trends, past crises, perspectives, actors…
The market must answer several questions, those about consumers (who, how many, where, etc.) and competition (turnover, how much, positioning, prices, etc.).
Geography naturally corresponds to all the characteristics of the targeted geographical area, with indications such as the number of inhabitants, habits, average income, etc.
Before starting a business or developing a new product in a new market, you have to take care of the regulatory framework . Some professions require (and fortunately) prior training to practice or even strict rules (hygiene, sales prohibited to minors, etc.).
All the information (suppliers, distribution, etc.) that seems useful to you developed in the research guide must find an answer! It is also at this time that hypotheses can be made to gradually refine its offer.
Analyze the competition
Competitive analysis, also called competitive benchmark. This competitive study must make it possible to obtain exhaustive information on the players present on the market. Whether direct or indirect, your competitors have strengths that you need to know to position your offer well.
This study should answer several questions:
- How many direct and indirect competitors are there?
- What is the positioning of the competitors?
- What are their differentiating factors?
- What are their financial data? (turnover, market share, etc.)
Ultimately, this study of the competition should allow you to obtain a global view of the competition in your market in order to get started knowing all the details of it.
Confront potential demand (field study)
1- Do a qualitative study
A qualitative study makes it possible to evaluate parameters which are not by definition quantifiable. The points to be studied obviously depend on the target, but these are for example the buying habits of consumers, what they think of a sample… There are different ways to do this:
- Semi-Directive Interviews
During a long individual interview with a person (40 min or even 1 hour), the objective is to answer the questions previously defined in an interview guide. It is therefore the possibility of going into depth on subjects according to the initial problem and of bouncing back as soon as possible.
This interview favors more limited open questions during quantitative studies. Thus, the answers will be provided and interesting. But they do not allow to decide.
Important point: the interviewer does not just write down the answers. It must also describe the behavior, emotions and demeanor of the interviewee to detect rich and relevant information. He therefore writes a complete record (report) of the interview.
- Focus Groups
This format is a little more special because it is done by several people (about 4 to 10 people). Naturally, a session of this type is prepared in advance to define the themes to be addressed and the objectives. What differs is the interaction between the participants , this allows them to compare ideas, give opinions and therefore enrich the exchanges.
Be careful not to ramble too much so as not to lose your bearings. It is also not recommended to deal with sensitive subjects because this does not allow free speech. In addition, this session is less appropriate when it comes to an individual experience.
2- Do a quantitative study
Logically, quantitative studies are complementary to the qualitative aspect. These studies determine the main trends of a market.
Preparation also plays a vital role in focusing his investigation. It is essential to define one or more specific groups and to focus on them. A group is a collection of people who have similar characteristics (for example law students).
With a rigorous methodology and a judicious interpretation of the results, a well carried out demand study can guide strategic decisions and promote the growth of the company.
Write a Final Report
The drafting of the study report makes it possible to synthesize all the information gathered beforehand. Now is the time to draw all the conclusions. This is what we call the Operational Recommendations at ESCadrille Toulouse Junior Conseil . It is in fact a question of bringing out all the key data of the market and its stakes.
Concretely, carrying out a market study is one of the essential steps of any project and a good way to analyze its market.
Planète Grandes Ecoles talks about us: the article right here.