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Monday, 2 November 2015

Why Market research is even more important for a Start-Up?

Market research helps you to identify your customers, your competitors and your industry. It helps you to understand elaborately who are or can be your customers, whether they would be willing to use your product or service and how much are they willing to pay. Additionally you get an external view about your competitors what are they selling and what prices.

With the current Start-up scenario in India where most of the talented professionals or even final year college students are thinking to Start-up, usually the discussion revolves around the key differentiator of their ideas from the existing Businesses. Although it is brilliant to think of something that has never been done before and having revolutionary ideas which would be completely new to the market, when you are thinking of starting a business you just cannot ignore the financial aspects and focus on profitability/unit Economics.

Image credits: ellaecreative.com
Usually we see overenthusiastic Entrepreneurs spending months of their efforts and hundreds of thousands of rupees in to the developing their product or service and later on testing its feasibility in the market. Entrepreneurs usually work for their gut feelings and would not drop off their idea just because some market research report says but it does not harm to ask your potential customers their take on your proposed business in the form of questions which can gauge its viability and also not expose your concept.

Market research can be majorly categorized in to below two types:

1) Primary Market research: It is the research conducted by you or someone you hire to collect data which is specific to your objective. You are the person who is going to gather insights from this data for your required objective.

2) Secondary Market research: It is the gathering of information from some facts or figures that were collected by someone else for some defined purpose; you can find this information in journals, libraries or just search online.

Usually it is easier to do secondary market research as it does not cost you anything, seeing the name of Forbes or Nielsen conducting that research and generating that report gives a sense of confidence as well. But it is very important to identify the intent behind that content which may be radically different from your Business proposition.

Conducting a primary market research can be the only trustworthy means for a Start-up as their initial target segment is going to be a very negligible portion of the market and not the major segment which is usually targeted by these market research statistics which may be secondary for you. Also it is always advisable to target the set of people who do not know you for your primary market research as known people usually have a biased attitude (positive or negative) towards you. But again to get this done from established market researchers can burn big holes in your pocket and especially for Start-ups, also it is very difficult to verify the authenticity of the data collected by them.

We at ReviewMantra have devised a very feasible solution for all the above problems and can help you get the insights from the brains of your potential costumers before you take that big plunge without denting your wallet. Please feel free to connect and let us help you.
 
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