Market Research

 Dear Farmer,

I am glad you have decided to continue on the path of growth.  I admit it isn’t easy  but the results are worth it as I am sure you can agree. Of late I have been receiving messages from many farmers asking if I can link them up with a market because their products are at harvest or slaughter stage and  when I ask why they have operated this way. And the usual response is, I thought I would never go wrong with food.

 

So today I have decided to tackle the issue of market research. Its something people talk about being essential but few actually follow through and do it. I will unpack the what,why, when, how and who of basic market research. Trust me it isn’t as complicated as you think, I can see you roll your eyes because I always say that.

 



Sources of data can be primary ( first hand data and you have full control over the whole research process) or secondary (second hand data from the Internet, Government publications, industry bulletins, newspapers etc and you have no control over the research process). The data can be Qualitative which deals with opinions, feelings, thoughts and attitudes or it can be Quantitative which looks at numbers and facts.  Both types are valuable and essential.

 

Why bother?

Market research informs decisions regarding product development, market penetration, and competitive strategy. It also paints a picture about the performance of your current  product offering beyond sales revenue and sales volume numbers by providing details such as why consumers buy, what they like and don’t like, how else do they use you products, who is the final consumer of your product, who your competitors are, the demographics of your clientele etc. It helps become a customer-centric business and research has shown that customer- centric businesses are 60% more profitable.

 

When to do it

Before embarking on a new venture, introducing a new product, entering a new market. Think of it as a feasibility study before you go full scale. It enables you to select viable business and invest wisely before you lose money.

After introducing a new product or entering a new market. It enables you keep a finger on the pulse of the market’s reaction and any new trends to watch out for.

Periodically at regular intervals to check for brand health, market trends,or  consumer trends.

 

 

The How of Market Research

Define the goal of the Market research,it will determine whether you need Quantitative or Qualitative data or what mix of both.

Methods of market research include the use of questionnaires, participant observation, focus groups, internet research, experiments, interviews,  literature review among others.

 

Typical Questions include:

1) Who else supplies the market you want to enter,

2) How regular do they supply the market,

3) Are they supplying what the market wants, at the price the market is willing to pay, at the quantity the market wants,

4) what other products can be used as substitute for your products,

5) what else can you offer together with your products to make it more attractive,

6) how can you make accessing you more convenient,

 These are but a few of the questions you could be asking in the Market Research process.

 

Who are you talking to in the Market Research?

You need to understand your value chain as this will help you identify your key stakeholders. Identify your final consumer and work backwards.



Who else is involved in getting your product to them, Who buys from you the most (businesses or individuals)

 

I hope this has given you enough to start the process and work towards becoming more profitable as you tailor-make product development and marketing strategies.

 

Til’ next time

Rutendo

 

 

 

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