Market research: Part 1. Analysis and Question to ask

• Market research is a process of collecting and analyzing information with the aim of identifying the characteristics of a market. (Environment, supply, demand, ...)

Its main objective is to enable the project proponent to evaluate the potential of the market in order to validate the viability of its project and then to adopt a competitive positioning. This is likely to reduce the risk of failure by allowing the entrepreneur to take appropriate measures to integrate permanently into his market and, in the longer term, to better identify the forces involved. However, before the creation, market research has other equally important objectives, such as:

• Check the business opportunity to get started,

• Evaluate its estimated turnover,

• Make the right choices to bring the project to fruition,

• Credibility with partners.

The 7 questions to ask

• What? What will I sell? And why? What does my offer meet?

• Who? To whom shall I sell it? Is my market local, regional or international?

• Or? Where will I set up my business?

• When? Is it the right time?

• How? How will I sell this product or service?

• How many? How much will I sell my product?

• Why? What are my direct and indirect competitors?

Analysis of demand

• Do you have any indication of the general volume (in CA or number of products) of your market (the one you are targeting precisely).

• What has been the evolution in recent years of the volume of this market?

• What is the foreseeable evolution?

• Is this a declining, stagnating, growing market?

• What is the annual growth rate in%?

• What is the rate of equipment of customers in my products?

• What is the customer base of this market: individual consumers, communities, wholesalers,retailers, manufacturers, administrations, etc.

• Specify what each type of customer represents in the market in% of sales and, if possible, in number of customers.

• Will you have in the customer target many or few customers, big or small?

Analysis of supply and competition

• Who are your competitors? What are they doing ?

What are their strengths and weaknesses?

• Their seniority in the activity;

• Their size expressed in turnover, number of employees ....

• Their geographical location;

• Their geographical coverage;

• Their work schedules;

• the range of products they offer;

• Sales prices;

• Their market share