Market Research

Market research is a key phase in the creation of your business. It allows you to identify the market on which you are going to launch and convince your potential financiers. This article will provide you with a method and an overview of how to do this.

For a market study to be effective, it is necessary to follow an orderly and structured approach and to respond to four major subjects: the market, supply, demand and the environment of your project.

This step can be carried out entirely by the entrepreneur himself, but it is also possible to be assisted, in whole or in part, by a professional specialized in the field.

The different types of market research

There are two main approaches to conducting market research: the quantitative approach and the qualitative approach. We will also discuss the documentary approach.

Quantitative market research

Quantitative market research is essentially based on statistics, key figures, about a market, a branch of activity, a sector. The information obtained will be global.

Through this market research technique, it will be a question of quantifying and measuring information. The problem is that this large panel may not be precise enough, unlike a qualitative study.

Qualitative market research

Qualitative market research is much smaller than quantitative research but will be much more in-depth.

The objective here is to reduce the sample questioned but to increase the amount of information collected. We will try to find out more about consumer behavior, what they are looking for in priority, what they like or don’t like, the improvements they would like to find on a particular product or service…

The qualitative study can therefore be likened to an in-depth exploration of the demand which will make it possible to obtain a lot of information. On the other hand, the sample is relatively small and therefore less representative than a quantitative study.

Ultimately, the ideal is to combine a quantitative study with a qualitative study, but this will require devoting more time and/or more money to it.

Documentary market research

The documentary market research will be done only through research of documents providing information on the market in question. One will find in particular reports on the sector, interviews and articles, documentation in the professional organizations.

Pitfalls to avoid in market research

A well-conducted market study should make it possible to fully identify the needs of customers belonging to the targeted catchment area, to learn about the main players in the market sought and to analyze the future prospects of the sector sought.

When carrying out the market study, it is important not to:

• Neglecting the step of analyzing demand in the target market: poor knowledge of the needs and behavior of your potential future customers is detrimental;
• Not correctly delineating the future catchment area. If a market study is carried out at the national level and the company ultimately offers its products or services only in its locality, the risk of failure will be higher because the behavior of a population located in one place A will not be the same as that of the population located at a place B;
• Neglecting the analysis of the competition: it is absolutely necessary to know your future competitors, the prices charged, the products and services they offer and their qualities, their commercial policy, their distribution networks… Without this, how can we know if it is possible to find a place on the market and to propose an offer equivalent or superior to others?
• Ignoring the regulation of the sector: it would indeed be a shame to set up a business project and realize late that one does not meet the requirements legally imposed to act on such or such market.
• The three pillars of market research (supply, demand and environment) must be analyzed with the greatest care. We cannot study the needs of consumers by ignoring what existing companies already offer, analyze a market without worrying about the regulations that apply to it…

4 Steps to properly carry out your market research

For a market study to be effective, it is necessary to follow an orderly and structured approach and to respond to four major subjects: the market, supply, demand and the environment of your project.

1. Define your market

Your objective here is to take a general picture of the market.

Its identification and its evolutions

You will need to answer several questions:

• In which market(s) will your company evolve?
• Who will be your customers or users (the customer, the one who pays, is not necessarily the user)?
• What is the geographic dimension of the market(s) you want to target?
• What are the market trends in value and volume?
• Directly or indirectly competing products or services
• Secondly, you will have to find out which products will be your direct competitors, but also indirect ones, that is to say which can replace your product.

Players

Competitors, customers, users, prescribers… identifying and defining the main players is important for in-depth knowledge of your market.

2. Analyze the demand

The first step allowed you to sketch the main lines of the request, but now you need to obtain more information in order to be able to make decisions later.

Overall evolution of demand

Ask yourself about the trends in demand:

• What is the size of the market and what are the quantities sold?
• What is the number of customers in the market? How is this number changing?
• Customer and user behavior

Make a precise portrait of your customers and/or your users, then try to determine their behavior:

• On what occasion does he (the customer) buy or use (the user) the product and/or the service that you offer? How ? Where ? Why ?
• Are they satisfied?
• What are their motivations? What are their obstacles?
• What is their perception of the product and/or service?
• What are the characteristics of the product and/or service that could favor the act of purchase or use?

Demand segmentation

Your objective is to select from all of your identified customers (and/or users) which ones to target first to market your product or service.

Depending on the nature of your market, the criteria may be very varied. For individuals, you can use distinctive criteria such as: gender, socio-demographic criteria, consumption patterns and styles, etc. For companies: workforce, activity, turnover, location, etc.

3. Analysis of the offer

As with the analysis of demand, a detailed analysis of supply will allow you to establish your strategy more precisely.

Global evolution of the offer

Present the different products (and/or services) and companies present on the market as well as the leaders.

Characteristics of the offer and competing companies

Once you have presented them, analyze in detail your direct and indirect competitors. Ask yourself the following questions:

• Who are they ? Where are they ?
• What do they offer? At what prices?
• How do they sell? What are their financial results? Who do they sell to?
• How do they communicate? What are their competitive advantages?
• What is their market share?
• Are the customers / users satisfied?

4. Analyze the project environment

Finally, it is a question of identifying the factors which may or may not have a favorable influence on your market and on your activity.

The challenge is to determine whether the size of your market could shrink or grow. This work involves the analysis of the following 6 dimensions (PESTEL):

Policy

What is the political stability? Are there any particular tensions? What is the regime in place? What is the policy on taxation, trade, etc. ?

Economic

What is the current economic situation? What is the unemployment rate? What is disposable income? What is its evolution?

Social

What is the culture? What are the values ​​and norms? What is the level of education? How are demographics changing? What are the consumption habits?

Technological

What are the upcoming technological developments? Are they frequent? Which sectors are they concerned?

Ecological

What is the sensitivity to the challenges of sustainable development? What measures are taken in favor of the environment? How is waste treated?

Legal

What legislation governs your business? How can it evolve? What is the role of public authorities? What is the role of lobby groups and professional organizations? Etc.

Why do you need a Market Research? Key Points: Goals, Process, Classification

How to Conduct Market Research

Market research is the process of collecting and analyzing data about your target market and your competitive landscape. It is an essential tool for businesses of all sizes, as it can help you to make informed decisions about your products or services, your marketing strategy, and your overall business strategy.

There are many different ways to conduct market research, but some of the most common methods include:

• Surveys: Surveys are a great way to collect quantitative data from a large number of people. You can create and distribute surveys online, over the phone, or in person.
• Interviews: Interviews allow you to collect qualitative data from a smaller number of people. Interviews can be conducted in person, over the phone, or online.
• Focus groups: Focus groups are a type of interview that involves a small group of people discussing a particular topic. Focus groups can be used to generate new ideas, to test existing ideas, or to get feedback on products or services.
• Observation: Observation involves watching and recording people’s behavior in a natural setting. Observation can be used to learn about how people use products or services, how they make decisions, and how they interact with each other.
• Desk research: Desk research involves collecting and analyzing data from existing sources, such as industry reports, government data, and academic research. Desk research can be used to learn about your target market, your competitive landscape, and industry trends.

Once you have collected data, you need to analyze it to identify trends and patterns. This will help you to understand your target market better and to make informed decisions about your business.

Here are some tips for conducting market research:

• Define your goals. What do you want to learn from your market research? Once you know your goals, you can choose the right research methods and develop the right questions.
• Do your homework. Before you start collecting data, it is important to learn as much as you can about your target market and your competitive landscape. This will help you to ask the right questions and to interpret your findings accurately.
• Be objective. When analyzing your data, it is important to be objective and to avoid bias. This means considering all of the data, even if it is not what you wanted to hear.
• Be actionable. Your market research should be actionable. This means that the findings should help you to make informed decisions about your business.

Market research can be a valuable tool for businesses of all sizes. By conducting market research, you can learn about your target market, your competitive landscape, and industry trends. This information can help you to make informed decisions about your products or services, your marketing strategy, and your overall business strategy.

Example of restaurant market research survey questions

Here is a sample market research questionnaire for opening a Thai restaurant.
It is of course a model to be adapted according to your project and your activity.

You can download this for free (Ms Word): Example of restaurant market research survey questions

Questionnaire

1. Do you often go to a restaurant?

2. Are there any special occasions when you go to a restaurant?

3. How many times per month on average do you go to a restaurant?

o Lunch:
o In the evening:

4. Who do you usually go to a restaurant with?

o Lunch:
o In the evening:

5. What type of restaurant do you go to?

o Midday on weekdays:
 Fast food
 Workers restaurant
 Bar-Brasserie
 Restoration of the world
 Gourmet restaurant
 Other type of restaurant: …………………………………………………
o Evenings and weekends:
 Fast food
 Bar-Brasserie
 Restoration of the world
 Gourmet restaurant
 Other type of restaurant: …………………………………………………

6. What is your average budget?

o For lunch:
o For the evening:

7. What are your criteria for choosing a restaurant? Rate from 1 to 10

o Lunch:
 speed of service
 the price
 quantity
 the choice or renewal of the card
 taste quality
 the quality and origin of the ingredients (freshness for example)
 easy access to the place of work or residence
 the presence of a car park
 the pleasant setting, the calm
 Other criteria: ……………………………………………………
o In the evening:
 speed of service
 the price
 quantity
 the choice or renewal of the card
 taste quality
 the quality and origin of the ingredients (freshness for example)
 easy access to the place of work or residence
 the presence of a car park
 the pleasant setting, the calm
 Other criteria: ……………………………………………………

8. Do you like Thai food?

o Yes
o No
o I don’t know
o I would like to discover

FYI: Thai or “Thai” cuisine is quite similar to Chinese, Indian and Burmese cuisine. It stands out with original flavors and ingredients such as curry, mint, lemongrass, coriander or even basil. It is often accompanied by sauces and fish, but not only. It has met with great international success.

9. Do you like spicy food?

o Yes
o Me yes, but not necessarily my entourage
o No
o Me no, but my entourage maybe
o I would like to have the choice between spicy and non-spicy dishes

10. Would you be willing to try Asian beers?

o Yes
o No
or maybe

11. Would you be interested in a loyalty card entitling you to a half-price menu on the 6th visit to the restaurant?

o Yes
o No
or maybe

12. Would you be interested in a children’s menu?

o Yes
o No
or maybe

13. What kind of games or entertainment for children would you like to see in the restaurant?

14. If a Thai restaurant opened in the neighborhood, would you be willing to try it?

o Noon:
 Yes
 Rather yes
 Rather not
 No
 Why? ……………………………………………..
o Evening:
 Yes
 Rather yes
 Rather not
 No
 Why? ……………………………………………….

15. Would you like to be invited to a restaurant inauguration party?

o Yes
o No
or maybe

16. Would you like to be kept informed of the opening of the restaurant?

o Yes
o No
or maybe

17. Your personal data:

o Surname, first name:
o Address:
o Telephone:
o Email:
o Age:

18. Other Suggestions: …………………………………………………

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Example of product market research questionnaire

You can download this for free (Ms Word): PRODUCT MARKET RESEARCH QUESTIONNAIRE

1) Is this your first time using our product?

o Yes
o No

2) If you have already used our product, how likely are you to repurchase this product within a week?

o Extremely likely
o Highly likely
o Moderately likely
o Unlikely
o Not at all likely

3 ) Did you find using the product easy, neither easy nor difficult, or difficult?

o Extremely easy
o Very easy
o A bit easy
o Neither easy nor difficult
o A bit difficult
o Very difficult
o Extremely difficult

4) How likely are you to recommend our product to someone you know?

o Extremely likely
o Highly likely
o Moderately likely
o Unlikely
o Not at all likely

5 ) During the past week, have you used our product at least once?

o Yes
o No

6 ) Overall, to what extent are you satisfied, neither satisfied nor dissatisfied, or dissatisfied with our product?

o Extremely satisfied
o Very satisfied
o Neither satisfied nor dissatisfied
o A little dissatisfied
o Very dissatisfied
o Extremely dissatisfied

7) If this product brought you satisfaction, how far would you be willing to go to buy it?

o From 0 to 5 km (O to 3.10 miles)
o From 10 to 20 km (6.2 to 12.4 miles)
o From 20 to 30 km (12.4 to 18.6 miles)
o More than 30 km (18.6 miles)

8) Would you buy this product 25% more expensive?

o Yes
o No

9) How did you hear about our product?

o Word of mouth
o Advertising
o Internet

10) Would you like to be kept informed when the product is launched on the market?

o Yes
o No

11) Would you like to receive a sample of this product?

o Yes
o No

12) Your personal data:

o Surname, first name:
o Address:
o Telephone:
o Email:
o Age:

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GENERAL HEALTH QUESTIONNAIRE

You can download this for free (Ms Word): GENERAL HEALTH QUESTIONNAIRE

1) What is your gender?

o Male
o Woman

2) What is your age group?

o < 20 years
o From 20 to 25 years old
o From 25 to 30 years old
o From 30 to 35 years old
o From 35 to 40 years old
o From 40 to 45 years old
o From 45 to 50 years old
o > 50 years old

3) Please indicate your size:

Enter your size here

4) Please indicate your weight:

Enter your weight here

5) Do you have a regular GP (General Practitioner)?

o Yes
o No

6) How is your general health?

o Very good
o Good
o Fairly good
o Bad
o Very bad

7) Are you currently undergoing medical treatment?

o Yes
o No

8 ) Do you suffer or have you suffered from a cardiovascular disease?

o Yes
o No

9) Do you suffer or have you suffered from joint disease?

o Yes
o No

10) In a typical week, how many days do you exercise for at least 10 minutes continuously?

o 1
o 2
o 3
o 4
o 5
o 6
o 7

11) Do you drink sugary drinks every day?

o Yes
o No

12) How often do you eat vegetables or salad?

o 1 or more times per day
o Between 4 and 6 times a week
o Between 1 and 3 times a week
o Less than once a week
o Never

13) How many kg / pounds would you like to lose (if you wish)?

14) How often do you drink alcohol?

o Never
o once a month or less
o 2 to 4 times a month
o 2 to 3 times a week
o 4 to 6 times a week
o Daily

15) Are you a smoker?

o Yes
o No

16) How many packs (20 ciggarets per pack)of cigarettes do you smoke?

o Less than 1 pack per week
o 1 packet per week
o 2 packs per week
o 3 packs per week
o 4 packets per week
o 5 packs per week
o 6 packets per week
o 7 packs per week
o More than 7 packs per week

17) Do you take more than one drug at a time?

o Yes
o No

18 ) What drug(s) do you use?

Opium derivatives
o Barbiturates
o Marijuana
o Amphetamines
o Cocaine
o Hallucinogens
o Others

19) When was the last time you took drugs?

o One week
o One month
o Six months
o Between six months and one year
o More than a year

20) Have you ever asked for help with your problem with: cigarettes / alcohol / drugs?

o Yes
o No

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Example Market Research questionnaires for hotel business

Here is an example of a market research questionnaire for a hotel business:

Demographics

• Age
• Gender
• Income
• Occupation
• Country of residence

Hotel Experience

• How often do you stay in hotels?
• What types of hotels do you typically stay in?
• What are your most important factors when choosing a hotel?
• What are your least important factors when choosing a hotel?

Satisfaction

• How satisfied were you with your recent stay at our hotel?
• What did you like most about your stay?
• What did you like least about your stay?
• What suggestions do you have for improvement?

Recommendations

• Would you recommend our hotel to others? Why or why not?
• What would you need to see in order to recommend our hotel to others without hesitation?

This is just a sample questionnaire, and you can customize it to fit your specific needs and goals. For example, you may want to ask additional questions about specific amenities or services that your hotel offers. You may also want to ask questions about your hotel’s location or pricing.

By conducting market research, you can learn more about your target market and their needs. This information can help you to improve your hotel business and to attract more guests.

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Sources: CleverlySmart, PinterPandai (in Indonesian language), Sogolytics

Photo credit: terimakasih0 via Pixabay

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