Market Research

Market Research Consulting

Taco Bells is a reputed fast-food chain in the United States and in many parts of the world. But the brand could not sustain itself for long in Dubai. Among other reasons, it mainly failed to see that customers in Dubai did not have a strong preference for Mexican or Latin American food, at that time. Could the company have foreseen this? An insightful retail business market research might have helped.

A good market research not only tells us how a ‘market’ is or what its vital characteristics are but it is also the gateway to formulate informed marketing strategies based on market realities:

    • Product demand, market size, market share
    • Customer behaviour, trends
    • Number of competitors, competing products
      Supply chain network, sales channels
    • Pricing factors, payment options
    • Other environmental factors affecting the market and industry, conduct of business, etc.

Few Challenges in Market Research

Understanding a new or foreign market

Understanding a market is not just about borrowing statistics and pulping out conclusions through a standard fit-for-all process which is where many market research companies in Dubai fail to offer customized solutions for specific business requirements. To understand a market, you will also need to be able to gauge customer behaviour, describe various market characteristics, and understand the functioning of the market and business ecosystem. These aspects are influenced by environmental factors like socio-cultural fabric, economic circumstances, financial services, regulatory framework, infrastructural capabilities, etc.

Mapping competition

If the size of the store and footfall were any remote indications of a business doing well, eCommerce came and changed that. With digital sales channels, competition becomes less apparent. Pricing could be deceptive as it is also used to achieve strategic business objectives. Advertising and branding mostly take care of the problem of product homogeneity. A strategic matrix of segmentation, differentiation, and personalization reflects the modern-day competition in retail and eCommerce. There are plenty of retail market research companies in Dubai but all may not be adept at mapping competition correctly.

Comprehending pricing strategies

Pricing strategies are no longer linear in nature. Companies keep playing with their pricing strategies to derive maximum sales or achieve strategic objectives. Determining the optimum price point or range at a particular point of time could be extremely challenging for a new business. Any competitive pricing strategy that puts market shares at stake will elicit a counter-strategy from the competitors.

Forecasting Demand and Trends

The first challenge with demand and trend forecasting is in knowing where to look for information. Next is the challenge of extracting and classifying the information. If your competitor is selling 10,000 units, it cannot be assumed that it is all that the market appetite is. Then, there are market segments and product categories with varying levels of performances.

Understanding the market situation and business positioning

Every market or industry comes with its unique set of pros and cons. And every business comes with its unique set of strengths and weaknesses. A business enterprise may have no control over the market and environmental factors and even its ability to adjust its own strengths and weaknesses is not unlimited. This is where the pluses and minuses fight each other at the macro level. The outcome of this power play plays a decisive role in how a business is able to position itself in a targeted market.

Actionable information

An assessment is nothing if it cannot bring out any actionable information. The same is true for any retail market research strategy. You may know that there is extreme competition in the market but if the research findings do not tell you anything more than that then it is of no good than validating what is already known. A good market research should be able to at least hint at possible pathways. Businesses that are considering availing the services of retail market research companies in Dubai must keep this in mind.

How YRC can help: a glimpse

YRC’s market research includes a thorough and comprehensive assessment of all the key market variables with the aim of specific determination of actionable insights and not just ‘how things are’. For example, our approach towards retail market research strategy is not only to study competition in a market but also to present assessments and insights to help clients adopt a better competitive stance.

Market Overview

A market overview is a segmented view of a market based upon relevant classifying criteria or segments. Various grounds for market segmentation include types of distribution channels, product lines within a product category, categories of end-users (gender, age groups, etc.), product features, etc. YRC experts will prepare a detailed market overview throwing light on market segments and market sharing for better targeting and positioning.

Competition Analysis

We realize how important it is for businesses to be able to decipher competition so that they can formulate effective marketing strategies in terms of product/service design, pricing decisions, channels of distribution, and crafting branding and promotional campaigns. We conduct a thorough, comprehensive, and updated competition analysis as a part of our retail market research services to help clients gain meaningful insights for informed decision-making and strategy formulation.

Sales Channel Analysis

Different product types elicit different performances on different sales channels. It is important to know which products go well with stores and which ones with eCommerce and how competitors have positioned themselves with various sales channels.

Demand Analysis

Demand analysis carries a significant impact on determining the commercial viability of a business idea. The scope and accuracy of demand analysis become the focal point here. We carry out demand analyses across the various dimensions of the product mix yielding a comprehensive and insightful perspective of the demand situation in a region.

Price Analysis

Margin flexibility gives businesses space to counter competitors’ marketing tactics with price variations. This margin flexibility is the optimal range within which a business can tinker with the price tag. Our price analysis is aimed at helping businesses formulate effective pricing strategies in consideration of costing, market dynamics, and specific business and marketing strategies.

Trend Analysis

Irrespective of the sales channel from which the final purchase is made, customers do carry out their own bit of research online. These general (non-personal) and geography-based statistics are vital to identify emerging markets.

SWOT Analysis

A SWOT analysis is intended to reveal what market phenomena are in favour of and against the performance and growth potential of a given industry. This is the fruit of the market research done so far.

Recommendations and CTA

A market research will not be of much value if it does not deliver any meaningful and actionable information from a business and marketing perspective. Thus, YRC will present its recommendations and the Call-To-Action based on the research findings.

image

We are a boutique retail consulting firm. To know more about our market research services or if you have any query, drop us a message and we will get back to you.

Make A Difference With The Expert Team
Let’s Work Together