Research Competitors & Collaborators
The process of researching the merits of a business idea is equally important for all businesses large, medium or small. The probability of business success greatly increases when decisions are made based on facts supported by evidence.
We need to stay focused on refining the idea by gathering market intelligence on whether there is a consumer need for what is being proposed. Equally important is the assessment of whether we can profit from the idea.
For a business that offers multiple products it is essential to identify the true profit generator. In the United States a major food franchise sells doughnuts with coffee. Despite having a wide range of doughnuts on offer, the true profit generator is the coffee sold. Yes! The money is in the coffee.
Do your research on the size of your potential market. An individual who designed an improved bag for lawn mowers approached a company to manufacture the bags for him. His plan was to sell them to a major national distributor. The manufacturer gave him research data that showed a bigger market selling in just one state south of the border. It would be more profitable to sell there instead.
The following guidelines for market research and analysis are worth spending time on:
Determine Your Business Image
What does your business name represent to consumers?
Who finds your business image appealing?
Research your target market and work out a communication strategy to attract customers.
A company targeting a younger market segment should want to adopt messaging that speaks directly to that audience. The music industry hires people who understand the culture influencing the music audience.
A T-shirt design company targeting teenage music listeners successfully created a market demand by getting a band to wear their T-shirts. Additionally, the company keeps their name in the news by using social media to reach out to their target market by providing constant updates daily on the music scene.
Cultivate Your Customers, Consumers & Advocates
Baby products are consumed by babies but it is the parents who are the customers. Parents tend to listen to health care professionals and other parents recommendations as to which brands are beneficial and safe for their babies.
We find baby product manufacturers constantly conducting surveys and producing informative literature targeting health care professionals and parents. A lot of investment is made in establishing an interactive relationship with customers and their trusted advisers because they are effective advocates for baby products.
Understand Competitors & Utilize Collaborators
Evaluate your business, your competitors and potential collaborators utilizing a SWOT analysis. This requires analyzing the strengths, weaknesses, opportunities and threats posed by competitors and collaborators. Build on the strengths that you and your collaborators have. At the same time you need to act of the advantages arising from the weaknesses of the competition.
A local bakery was able to exploit the fact that they offered breads baked fresh on the premises to accompany their lunch time soups and salads to compete effectively against the other food outlets in the neighborhood. There was always a longer lunchtime line of customers at the bakery as compared to the other outlets.
To be highly competitive, constantly seek out market information, analyze the data and act decisively.
International Business Consultant
Reboot your business plan for sustained high growth
Click For Link To:
CENTRE FOR EXCELLENCE
BUSINESS EXCHANGE MALL DIRECTORY
Do share this article on social media and with those interested