My City Woman's blog on how-to-research-the-market-you-want-to-enter

How To Research the Market You Want To Enter

So you got a perfect business plan with you… you are passionate about the idea and convinced that it would work. In times like these where digital media marketing, social media and internet rule the world, blindly investing your time, money and energy on it will lead you nowhere. You need to  do a practical market research to know if there is a demand for your product or service and if people are willing to pay for it as well. This is the basic concept of an early stage market research. Lets walk through a more detailed and structured way of approaching it.

#Step 1 Who do you want to cater to

Identifying your target audience is extremely critical to the success of your business. For instance, if its laundry business you want to enter, define the kind of customers you want to cater to primarily. Is it premium dry cleaning that inspires you or the wash and clean model for families. This would also help you in identifying the marketing strategy appropriately so that it reaches the audience you are targeting to cater to.

#2 Step 2 Gauge the competition

How many players are already there in the market, how favourable are their reviews, how well are they meeting the market demand and is there an unfulfilled customer expectation that you can use to your advantage – these are just few of the many questions that you need to find answers for.

The best way to approach this is to talk to people, seek reviews on social media groups and most importantly try their product or service. Study your  competition. Visit their shop, check their pricing, look at their ads, check out their website and social  media profiles. Collect all that information that you can on them.

 

#3 Understand the size of the market

Understand how many people are there in the market who are your potential customers. What is the rate of growth of this market and evaluate the capacity that you can undertake to meet this demand efficiently. This would also help you determine your scale of operation and your capital investment.

#4 Define your USP

What is it that only you can provide and which competition does not. Defining your unique selling proposition is critical as it would help you customise your service to target your customers effectively.

#5  Do a market test/soft launch

Start with a small group of people, not necessarily your friends and family, but may also include people in your neighbourhood or vicinity. Actively seek feedback on the product and, Try and get information on the below parameters:

  • How would they rate your offering on an overall basis
  • Do you want to suggest any alteration to it,
  • Is the pricing appropriate,
  • Which service are they using presently,
  • What do they feel is lacking in the present service they are using.

Go on to act on it too and if possible, go back and make that product or service alteration to accommodate their suggestions.

#6 Take a feasibility decision

Based on the data collected so far, you should be in a position to understand pricing, costing and marketing expense that would be needed to set foot in the market of your choice. Clearly getting hold of these information key points is a must before embarking on the business of your dreams.

Also take a note of the below pointers too:

  1. Do not solely rely on family and friends for review. For impassionate reviews, approach people outside of your immediate circle.
  2. Do not just go by data available on Google. Try and find out real data by interviewing your target customers and doing online surveys.
  3. Ensure that the data you are using is not outdated in anyway.

 

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