If you are an Entrepreneur that wants to start a business or an existing company that want to expand, in that case, you need to research the potential market. As a result, this will help you identify who are your competitors, who are your client and how attractive is the business (market). Then, it will identify problems before they happen and it might save your company. Imagine you consider selling ice in the North Pole, or sand in Egypt? Yeah, right? Look at “The Ansoff Matrix”, and if you are in any of the 4 situations, you need market research and analysis.
Considering this, the purpose of market research is to help companies make better business decisions about the development and marketing of new products. Therefore, as a result, the Market research should give answers: What is the market? How is it segmented per different criteria? Who is your ideal client? What are their needs, fears, pains, hopes, dreams? Who is your competitor? Is someone else serving the same need to your clients? What lessons can we learn from history and what are the trends? How do consumers talk about the products in the market? Is there any gap on the market?
To put it briefly, the answers to these questions will give you an understanding of your market. In any case, you might need one or all of the steps we can offer to help you:
Initially, entering a new country has challenges on its own accordingly. PESTEL analysis (Political, Economic, Social, Technological, Environmental and Legal analysis) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. This is a part of the external analysis when conducting a strategic analysis or doing market research and gives an overview of the different macro-environmental factors the company has to take into consideration. It is useful to know the situation of the government, economy, as well as legal and environment posture where you start a business. In conclusion, it is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.
Hence, entering a new industry is also challenging. Knowing a country is one, but knowing your industry is completely different thing. That being the case, Porter’s five forces is a model that gives a comprehensive overview of each of the aspects of the industry:
1) Threat of new entrants,
2) Substitute products/services threat,
3) Bargaining power of clients,
4) Supplier’s power of bargaining, and
5) Intensity of competitive rivalry.
Subsequently, knowing this 5 components gives you a better understanding of the industry you are trying to enter and might prevent you from making crucial mistakes.
Additionally, we can also offer you business intelligence on where the industry is headed. We can screen the industry, backwards up to 10-20 years, understand how the industry progressed and offer you a reasonable forecast on the next 3-5 years as a result.
The competitor analysis is aimed at companies that need to see where they are positioned. With this in mind, we can screen your competitors based on several criteria. We can also identify direct competitors (company offering same product/service to the same market), indirect competitors (companies offering substitute to your product/service to the same market) or benchmarking from insight from companies that offer similar services, but not to your market.
We can understand that you want to offer your service to the world. But in most cases that will require much time and resources. In addition, that will mean offering your solution to people that do not need it at all, therefore creating a wastage for your company. Considering your product/service, we can offer market segmentation (grouping your various clients into segments that have common needs or will respond similarly to a marketing action), then followed by market targeting (choosing the right market segment for your company) and market positioning (creating a product and brand image for that segment) altogether.
As a final point afterwards, finding contact information of specific market segments is a separate service we offer, called Lead Generation. To resume there, please also visit our the link before to see what we can offer regarding Lead Generation services.