Market Research
Tim Johnson ATTRA Program Specialist
Appropriate Technology Transfer For Rural Areas (ATTRA) P.O. Box 3657 Fayetteville, AR 72702 1-800-346-9140 (English) 1-800-411-3222 (Espanol) http://attra.ncat.org
Market Research
Take Home Message:
Gathering information about your market is critical to your company’s success
Knowledge is power. - Sir Francis Bacon
Market Research
Market Research lets you discover how your company actually meets, exceeds or falls short of customers’ expectations. (Big Trap) Market Research can also identify competitive threats and opportunities
Market Research
Two categories
Primary market research
Based on data collected from your customers, competitors, employees, and suppliers
Secondary market research
Based on data collected from industry studies, books, research, and other published sources.
Experience is the name everyone gives to their mistakes - Oscar Wilde
Secondary Research
Identify a Customer Profile
Demographics
Who buys Where do they live, level of home ownership Income Age Race Marital Status Education
Secondary Research
Secondary information already exists
Efforts spent locating and gathering Most info is available from various government agencies, local libraries, and the internet.
North Carolina District Office 6302 Fairview Road, Suite 300 Charlotte, NC 28210 (704) 344-6563 Phone | (704) 344-6769 Fax
Secondary Research
Rowan County, NC
19% growth last decade, total population 131,825 70% residents own their homes, median age is 36.6 >50% of households make >$35K $38,261 is median income 41% white collar jobs Freightliner, Schools, Food Lion
Secondary Research
Charlotte, NC
26th largest city in U.S. 594,176 people in city, 1.4 million in metro area Ave. household effective buying income $58,862 63% of households have EBI > $35K
Primary Research
The information probably does not exist
Conduct surveys Questionnaires Focus Groups Interviews First hand observation
Ask your current customers Observe customers in retail establishments
Customer Characteristics
Four Essential Characteristics They have a need Resources to buy what you are selling Decision making power Easy access to product or service
Research Outcome
Increased Understanding of …
Identified customer needs and wants Determine if product meets the customers needs Identifies potential target markets Determines the best advertising technique
In the business world, the rearview mirror is always clearer than the windshield. - Warren Buffett
Benefits
Guides communication Identifies opportunities Minimizes risk Identifies potential problems Provides benchmarks
Market Research
Market Research is also a continual process, conducting research for the business plan is not enough. You’ll have to do it again, and again, and again, to stay attuned to your customers needs and address the customer characteristics you have identified as a target market.
Market Research
It is worth it?
84% of those who used it said yes 58% said yes to identifying new opportunities Can you really afford not to?
Case Studies
Tallgrass Prairie Producers Co-op
Ten families in Kansas Marketed grass-fed beef for 5 years Process verified, nutritional testing Won national attention for their products Conducted market analysis, had a detailed business plan.
Case Studies
Tallgrass Prairie Producers Co-op
Management of Co-op took too much time away from what they really wanted to do… run the farm Niche marketing may not be all that it appears Expertise in marketing and management needed Price and convenience really do matter Natural foods? –many contradictions How much education of consumers can you afford? Quality of life and sustainability on personal level
Case Studies
Fresh Air Pork
Group of producers in Northeast Iowa Started in 1999, closed in 2002 Marketed hogs that met the Niman Ranch criteria of no antibiotics, and Animal Welfare Institute certified Worked with experts in direct meat marketing Target market-local sales, health food stores, and institutional buying
Case Studies
Fresh Air Pork
Success w/ two health food stores and locally Never sold any product to an institution Could not sell the value cuts – loins, hams Complex nature of meat business Asset : developed relationship with professionals
Market Research
Take Home Message: Gathering information about your market is critical to your company’s success
Knowledge is power. - Sir Francis Bacon
My “other job”
www.ozarkpasturebeef.com