When to Conduct Market Research

Timing is everything. That’s not just a cliché; it’s the key to success in business. Have you ever wondered why some products seem to hit the market at exactly the right moment while others fall flat? It all comes down to one crucial step: market research, and knowing when to conduct it.

But here’s the catch – there’s no single "right" time to do market research. Instead, it’s a matter of understanding the different stages of your business and knowing when research can provide the most value. Let's dive into those pivotal moments that could make or break your product's success.

1. Before launching a new product Launching a product without conducting thorough market research is like jumping off a plane without checking your parachute. You might land safely, but the odds aren’t in your favor. Before you even think about launching a new product or service, you need to know who your target audience is, what problems they are facing, and how your product can provide a solution.

This phase is where preliminary market research comes in. You want to gather insights on your potential customers, the competition, and the current market trends. This isn't just a "nice to have"; it's a must. By understanding what your audience needs and how your competitors are solving (or failing to solve) those needs, you can tailor your product to stand out in the market.

For example, take the case of Steve Jobs and the iPhone. Before launching the revolutionary product, Apple conducted deep research into what customers wanted but weren’t getting from existing smartphones. The result? A product that not only filled a gap but set a new standard in the industry.

2. Before entering a new market It’s one thing to launch a new product; it’s another thing entirely to take your existing product into an unfamiliar market. Expanding to a new region or country requires a deep understanding of that market’s unique customer behavior, regulatory environment, and competitive landscape.

Before you start making big moves, ask yourself: Do I really know this market? If the answer is no, then it’s time to conduct market research. You’ll want to analyze the demand for your product, the cultural and economic factors that could impact sales, and any barriers to entry.

Consider Netflix’s expansion into international markets. Instead of rushing in blindly, Netflix adapted its content strategy based on market research. In India, for instance, they realized that mobile streaming was dominant, so they launched a mobile-only subscription plan. This move was directly driven by their research into how Indians consumed media.

3. When your sales plateau You’ve launched your product, and sales were great at first. But now, growth has slowed, and you’re not sure why. This is the perfect moment for market research.

When sales plateau, it’s often because something in the market has shifted – maybe your competitors have improved their offerings, or perhaps customer preferences have changed. Market research can help you identify the root cause of the slowdown and guide you toward a solution.

Let’s look at Coca-Cola, which faced a decline in soda sales as consumers became more health-conscious. Instead of just throwing money at marketing campaigns, the company conducted research and pivoted to offer healthier drink options like sparkling water and zero-calorie beverages. This research-driven strategy helped the brand stay relevant in a changing market.

4. Before rebranding or repositioning Rebranding or repositioning is not a decision to take lightly. Done well, it can rejuvenate a brand and attract a new audience. Done poorly, it can confuse existing customers and alienate your core audience.

Market research is essential when considering such a drastic move. You need to know how your current brand is perceived, what your target audience values, and how they will react to a rebrand. Research can also reveal whether your rebranding efforts will resonate or fall flat.

Think of Burberry, a brand once known for its classic trench coats but that later became associated with “chav” culture in the UK. Burberry’s rebrand was grounded in extensive research. By re-positioning itself as a luxury brand and partnering with high-fashion designers, it was able to shed its negative image and re-establish itself as a top global fashion brand.

5. When entering a new industry Sometimes businesses pivot into entirely new industries. If you’re venturing into uncharted territory, market research is your guiding star. You need to understand the nuances of the new industry – from customer needs to regulatory requirements and industry trends.

Take the example of Tesla. Initially known for electric cars, Tesla expanded into the solar energy industry. Before making the leap, the company conducted extensive research to understand the market potential for solar panels and energy storage solutions. This research gave Tesla a roadmap to navigate the highly regulated and competitive energy industry.

6. In response to a crisis A PR crisis can hit any company, big or small. Whether it’s a product recall, negative publicity, or a legal issue, how you handle a crisis can determine whether you bounce back or fade away. Market research during a crisis can provide critical insights into how customers perceive the issue and what steps you can take to regain their trust.

After Chipotle faced a food safety scandal in 2015, the company conducted research to understand how deeply the crisis affected customer trust. The insights they gathered helped shape their response, including new food safety protocols and a transparent marketing campaign. Over time, Chipotle managed to recover from the crisis, and market research played a key role in that recovery.

7. When planning for the future The best businesses don’t just react to the present – they plan for the future. Market research can help you identify emerging trends and customer behaviors that could shape your industry in the years to come. Whether it’s AI, sustainability, or remote work, understanding where the market is headed can give you a competitive advantage.

For instance, the rise of e-commerce is not just a trend – it’s the future of retail. Companies like Amazon and Alibaba have invested heavily in research to stay ahead of the curve. Their ability to predict and adapt to shifts in consumer behavior is what keeps them at the forefront of their industry.

Data-driven insights: Key metrics for market research Conducting market research is not just about gathering information – it’s about analyzing key metrics that can guide your decisions. Here are some key metrics to consider when conducting research:

• Customer Satisfaction Scores (CSAT): This measures how satisfied your customers are with your product or service. A drop in satisfaction can signal the need for improvements.
• Net Promoter Score (NPS): This metric helps you understand how likely customers are to recommend your product to others.
• Market Share: By understanding your market share, you can identify how well you’re performing compared to competitors.

By keeping an eye on these metrics, you can ensure that your research is actionable and leads to tangible improvements in your business strategy.

In conclusion: The timing of your market research depends on your business needs and goals. Whether you’re launching a new product, entering a new market, or responding to a crisis, market research provides the insights you need to make informed decisions. Remember, successful businesses don’t just rely on intuition – they rely on data. And that data comes from conducting market research at the right time.