Market research is the process of gathering information to evaluate if there is a necessity for a specific product or service, taking into consideration a variety of aspects. Market research is utilized to figure out which groups of the audience will be most likely to buy the product, based on maturity level, identity, locality, financial status, and other criteria. Based on survey findings, corporations may establish potential customers, who are customized groups of consumers with defined demands or preferences for the goods or brand (Wilson, 2018). After analyzing this data, producers will have a clear picture of where to focus their investments most effectively (Lok, 2019). Knowledge of market research assists prospective businesses in developing profitable business plans.
Marketing Research Proposal
This is a marketing research project proposal that will discover consumer demands. The proposal also assesses customers’ contentment with the company’s commitment to launch a breakthrough cereal as a fresh commodity. The study’s goal is to determine the new product’s effectiveness, and we will get feedback from a variety of consumers. After researching surveys conducted among people, it is necessary to provide information about customers and their preferences.
Objective and Scope of Research
The launch of new products provides organizations with the possibility to expand profits and hence improve their competitive stance and survival capability. While developing new items can be profitable, it can also be hazardous. The main goal of new product development is to create items that provide consumers with anticipated advantages. Many new products on the market are at risk of failure, which can lead to serious economic losses. The factors for success have been well investigated and published. In order to most objectively evaluate the market, it is necessary to scale the study to a large number of products. In other words, all risk factors must be foreseen and calculated based on the economic and resource capabilities of the company.
Organizational strategy
Formulate a plan for product development management creativity to improve the industry’s cereals market, expedite the establishment of the convenient food industry, build a more disciplined workforce, continue to minimize operational expenses, and surpass consumer requirements (Doğru, 2018). The leadership team must strive to establish a multinational approach that provides brand-differentiated identification and value, spends on fresh products exploration and development, expands advertising promotion efforts, and reduces administrative expenses.
Product Market Strategy
Establishing the right commodity for the marketplace is one of the most important phases of development. Marketing strategy supports management in identifying the appropriate item and presenting it in the grip of the appropriate client, ending in higher sales and profits. It is critical for your company’s growth, especially when it comes to developing a go-to-market strategy and ensuring product-market fit. To develop a proper market strategy, they should be well conversant with the following terms (Lok, 2020). Product development is the continuous search for product innovation and it involves introducing new products to present to clients. Market development on the other hand refers to understanding the competition and maintaining global position and diversification which simply means introducing new products to fit the needs of new customers. It is necessary to analyze in more detail the steps of product market research:
Putting together the marketing blend
The marketing mix refers to how a firm intends to promote its goods. The company must combine the 4 Ps (product, price, place, promotion) of marketing in the most effective way possible. The marketing blend must be gathered as a component of the promotional assignment. Here, several considerations must be reached, including:
- What type of marketing plan should be used in the market segment?
- In a specific circumstance, what is the best combination of the four Ps?
- What should the pricing scheme look like?
- Which marketing intermediaries are accessible and should be used?
Selecting potential customers
We refer to the potential customers as the group of people to whom the company wishes to deliver its goods. For a business, not all marketing sectors are profitable. Some business niches promise immediate riches, and others that may have a lot of prospective but have significant entrance hurdles. The company must make a well-informed decision. The consumer’s characteristics and specific needs in the potential customers must be researched thoroughly.
Product Positioning and Repositioning
This pertains to a market portfolio’s standing in customers’ minds on critical features when compared to competing commodities. How fresh and existing commodities in the product variety are perceived by consumers, highlighting the significance of perspective. Advantages of new items must be presented, while advantages of current items must be emphasized. Adjustments in the advertising mix and strategy are frequently used to achieve fresh positioning and distinctiveness. Businesses frequently initiate advertising strategies aimed at rebranding an item or brand while making minimal, if any, modifications to the commodity or company itself (Adad, 2018). These rebranding attempts are frequently aimed at persuading an existing target market to reconsider an item or brand and perceive it from a different angle. Repositioning seeks to change entrepreneurial traits to make an item more desirable to a larger audience.
Methodology
Several elements influenced the study strategy used, such as:
- Your target market’s proximity
- What kind of merchandise is being developed by your company?
- The entire financial plan
Our new product assessment covered both quantitative and qualitative research, which provided statistically accurate conclusions and thorough comments. The descriptive research process is applied, which includes conducting interviews, focus group discussions, and analyzing consumer information. The data gathering and analysis are the most important aspects of the study. This is explained by the fact that even at the planning stage, this approach allows to avoid potential losses, as well as calculate the benefits in the long term.
Secondary Research
Secondary research incorporated the data gathering from consumers of the company, market shares, and the competitive environment. Through the secondary search, the proposal will identify the market scope for cereals and the company’s strategies for serving customers with the new cereal product. At the same time, such a study will help to calculate and prepare the company’s resources for the subsequent implementation of the output. This is vital in order to prevent underproduction or failure to achieve over-volume targets.
Focus Groups
Focus group is used to test new products concepts; with the help of one-way mirrors, the consumers’ reactions will be observed. Such group is under the control of a professional moderator, who asks the questions to alleviate bias. The information provided by the customers in the focus group would help the company manager in tweaking the product. Focus groups are a type of qualitative market research that is exploratory (Oates & Alevizou, 2017). They offer a highly flexible and alternate method of gathering customer data without the use of a survey. Focus groups will have the particular advantage of assisting our team in gaining useful, actionable information about the new product.
Survey Plan
Further research of the company’s new revolutionary cereal product will be conducted through surveys. Type of survey used in this research is phone survey and internet survey. The phone survey is a very common way, company person talks to consumers to utilize the price and features of the product. This survey helps to understand the purchase intent of the customers. A phone survey is a good barometer to investigate the product’s potential success.
Comparative Criteria
It is necessary to highlight several comparative criteria for the final assessment of the planned product. It is worth noting that for new cereal products, competitors are Kellogg, Sanitarium and Uncle Toby’s. Accordingly, price analysis will help to achieve a competitive advantage by setting a cost that is beneficial for the consumer. In addition, sugar content, fiber content and fat content are also key aspects as they are valuable data for many potential buyers. In addition, the analysis of the above criteria is necessary to establish the quality of the raw materials to be used by the corporation.
Conjoint Analysis
Conjoint analysis is motivated by the item, qualities are used to describe items or market notions, and each characteristic might have two or more tiers. The survey’s purpose is to determine the characteristics and attribute concentrations customers demand, as well as how much they regard each feature. The products in the conjoint analysis are mostly imaginary, therefore consumers are more or less acquainted with them (Blokdyk, 2018). The conjoint analysis was carried out on behalf of a major food manufacturing company that planned to launch a breakthrough cereal product. The characteristics of several items are listed below.
As shown in the diagram, the average consumer is primarily attracted to the brand and the amount of fat in the product. This suggests that it is necessary to develop the authority of the corporation, since it is the name of the product that contributes to customer loyalty. The amount of fats is relevant because of the desire of people to lose weight or monitor nutrition, which means that it is necessary to bet on low-calorie content. Finally, customers are concerned about price, which means that they need to find the best possible price.
Budgeting Strategy
It is necessary to build the actual budget after acquiring all of the necessary data. We thoroughly evaluated the risks and benefits of the research project we intend to undertake. To save expenses, we re-evaluated current processes and contemplated removing those that no longer served the direction of the business. Thus, the budget strategy allows you to save a large amount of money that can be spent on improving the technologies used in production.
References
Adad, A. (2018). How to build a winning brand: A handbook on developing brand positioning that works and advertising that sells and avoiding the pitfalls of line extensions. Christian Faith Publishing. Web.
Blokdyk, G. (2018). Conjoint analysis complete self-assessment guide. Emereo Pty Limited. Web.
Doğru, Ç. (2018). Handbook of research on contemporary approaches in management and organizational strategy. IGI Global. Web.
Lok, J. C. (2019). Marketing strategies of large enterprises case study analysis: For marketing student. Independently Published. Web.
Lok, J. C. (2020). Health product marketing strategy. Independently Published. Web.
Oates, C. J., & Alevizou, P. J. (2017). Conducting focus groups for business and management students. SAGE. Web.
Wilson, A. (2018). Marketing research. Macmillan International Higher Education. Web.