Making market research count

Want to validate your new idea in the market and test its viability? Or you already have a product in

the market but are not seeing the expected results? Else your product is present in a few markets and

you want to expand its reach further? These are questions for which a business needs to find

answers to from time to time. And market research offers a reliable way to understand the market and

plan your next steps.

At Prayag, we are in the midst of two market studies, both for start-ups looking to launch new

concepts in the market. One study is an early market validation exercise where the client wants to

introduce a new and improved food product in a specific city in India. The objectives of the survey are

–validate the product concept, estimate demand and understand the typical buyer profile in depth.

The other study is to determine the demand for an existing product, a hobby kit for children, pan-India

and the objectives were similar. It was encouraging to see two s tart-ups invest time and money in a

market study that will definitely influence their decisions and planning.

Why are these studies important? Because they help:

a. Identify the right profile of target audience including age group, education and professional

background, and other demographics

b. Determine positioning for the product based on expectations and views of prospective buyers

c. Highlight reservations about the product from the buyers

d. Suggest channels for selling the product – this is where the target group expected to find the

product

e. Throw light on pricing and provide understanding of what would prevent the buyers from

purchasing the product

In the case of the client with the hobby kit, the findings are especially critical as it as an “in-use”

product and the study showed that they were certain aspects that they had not considered before.

Companies tend to view a product from their understanding and what they think the market would

expect. More often than not, this may not tie in with the actual situation. Rather than give up on the

product as a failed venture, taking the time to understand the market and fine tuning your approach

may hold the key to success. Similarly for the new product venture, the market study offers clear

insights in to who is likely to become a buyer and how to reach them. For a start -up, I would think that

is valuable information.

I will highly recommend considering inputs from a market study before making a major business

decision. Use this as one of your inputs in your strategy planning along with your experience and

business situation – it is worth it. Also see more info @ http://www.prayag.com