What is the Importance of Customized Market Research while Entering New Markets?

For businesses planning to expand their operations in a new geographical location, conducting thorough Market Research is mandatory. It helps them assess the ongoing industrial trends, demographics, and a lot of other factors that will help them with successful market entry and expansion.

Now, this kind of market analysis can be challenging as it requires local resources to conduct surveys and find out relevant information. This is especially the case when foreign firms are trying to enter a country like India, which has a vast population with varying demographics. Thus, to solve this issue, businesses can get help from marketing consulting firms in India to do the job.

Different Aspects and Importance of Market Research

There can be various aspects to a market observation plan. Some of them are as follows:

• Determining the Business Goals

When a market research procedure is initiated, consulting firms first determine the business goals of their client’s organizations. This helps them understand the company’s objectives and frame a strategy to keep them aligned with their purpose. Moreover, it also helps the client understand what gaps they may have in their current way of conducting business and bridge them to achieve their desired results.

• Finding the Right Information

After determining the business objectives, the next step for consulting firms is to select data sources in order to provide market information to their client. Usually, these organizations have reliable information sources in multiple industrial sectors that help them provide data for a variety of businesses.

For instance, management consulting firms in India have reliable information sources in all the market sectors that help them source accurate data.

• Analyzing the Customer’s Needs

Next comes analyzing the customer’s needs. Every market around the world has customers with a unique set of requirements; businesses need to analyze them in order to achieve their goals.

Consulting firms help their clients understand the needs and wants of the consumers. They usually conduct this process via surveys, focus groups, observations, and interviews. This helps client organizations understand the customer’s pain points and find effective solutions for them. Furthermore, this process also helps build a loyal customer base.

• Determining the Market Potential

For any organization to start a new project, finding out the market potential is a key aspect. It helps them determine the profitability of their enterprise and the probability of expansion in the long run.

In this regard, consulting firms help clients assess the demand for a particular product or service in the current market scenario and also provide projections on its future growth.

• Conducting Competitor Analysis

When a foreign firm enters a new market, there is a high chance of top-performing companies already being present in that sector. Thus, consulting firms provide information to their client on the existing players in their chosen market sector. They inform them of their strengths and weaknesses and also help devise effective strategies.      

• Setting the Right Price

For a company’s business operations to be successful in a new market, it has to set the right price for its products and services. This is because the demography of a country may consist of people from varying economic sectors.

Consulting firms assess the demographic data of the consumer base and help their clients determine an attractive price range. This helps in making their products and services attractive to a wide range of customers.

• Assessing Locational Details

The location of a business plays a key role in determining its success. Thus, consulting firms help their client determine the perfect location for starting new projects. They help choose plots based on the process or product of the client. Additionally, they also take care of factors like land costs, regulations, tax implications, etc.

Additionally, here is a list of comprehensive reasons why market research is important:

• Helps companies identify opportunities while entering a new market
• Assists in understanding the consumers’ requirements and building a strategy to address their needs

Lowers the investment risk of starting a new project by providing concrete data, analysis, and future prospects.

Benefits of Market Research for Businesses

Businesses can gain the following benefits from market research:

• Develop Strategies Based on Data and Analysis

The market research gives businesses access to a range of market data and analyses. This helps them find out gaps in their current strategy and take the necessary steps to rectify them.

For example, data-based strategies can help firms modify the prices of their goods and services to increase their demand among consumers.

• Understand the Target Audience

A major hurdle that foreign companies must face while entering a new market is understanding the target audience. It is based on this aspect that business can plan their product development, positioning, marketing, etc.

Management consulting firms help their clients find out the demographics, product search trends, audience loyalty, etc., to build an accurate consumer profile.

• Save Time and Costs

Conducting market research can help businesses save time and costs in various ways. They can prevent the entry of a company in a market that is already saturated, reduce customer acquisition costs by targeting the right audience, make new partnerships that help promote their business, etc.

• Find Areas of Opportunity

A thorough market analysis can really help organizations identify areas of opportunity. This can happen in the form of finding new market niches, customers, creative ways to market their offerings, and more.

These are the benefits that businesses can get from conducting market research. However, this process involves allocating a lot of time and energy. Thus, hiring a marketing consulting firm is an excellent choice. They have the necessary expertise and in-depth knowledge of the market to facilitate this service.

Custom Market Research for Businesses Planning to Enter India

As per the 2020 report, India, the world’s largest democracy, has a population of nearly 1.39 billion and comprises a GDP of more than USD 3.05 trillion.

Custom market research enables businesses in India to meet the challenges by providing reliable and considerable insights to support major decisions. They provide strategic planning, boost new product development, guide businesses through new vertical and geographical market expansion, and help capital expenditures. Apart from that, custom market research also provides the following insights:

• Help with market segmentation, sizing, and forecasting as per market requirements. This helps estimate the amount of profit they could earn from new products and services. This also helps decide whether to invest further in the products and services.
• Understand the technology trends and the necessary factors that can boost business. Using data and custom market research will help businesses enhance resources and productivity and generate revenue.
• Market research helps a business detect its target audience and get feedback on whether they are interested in a particular service or product.
• Market research helps in distribution channel analysis that tracks stock availability in various marketplaces. This allows businesses to understand the exact brand positioning of their products.

Therefore, custom market research dives deeper into the market to study the scenario and resolve issues that may appear in the future.  Top marketing consulting firms in India conduct telephonic interviews with industry leaders and suppliers to understand the changing aspects of the market that is not found in the typical syndicated market research.

Role of Business Management Consulting Firms in Conducting Efficient Market Research

Management consulting firms in India, such as Tecnova, conduct efficient market research in various sectors, such as industrial, pharmaceuticals, automotive healthcare, etc. They act as a neutral body in analyzing the various aspects of a company and identify the challenges to chalk out a strategic business plan.

By comprehending the market dynamics, these firms carry out a SWOT analysis to identify the possible risks and threats. Thereafter, they use their expertise to help businesses understand the competitor’s progress and plan accordingly.

Reference

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