Singapore has reigned supreme as a lucrative market for domestic and international businesses, and according to many economists, it is the best country to do business. 

So, what makes Singapore a favourable market for international companies?

Singapore’s location makes it an ideal place for foreign investments. The world’s busiest port and a pro-business environment position Singapore as an attractive market for foreign companies to expand into the Asia Pacific. 

#1. Singapore presents an excellent balance of East and West. 

Given Singapore’s colonial past and diverse population, there is much familiarity with many Asian, European, and American cultures. As a former British colony, Singapore’s legal, administrative, and taxation models are similar to those in the UK and the US.  

“Singapore builds itself on this position of being kind of like a trading post,” said Philip Steggals, Managing Director at Kadence International Singapore. 

Furthermore, English is widely spoken, and adopting a Western lifestyle has made Singapore an ideal international market. At the same time, Singaporeans are proud of their heritage, so it’s an excellent market for other Asian countries to enter. Therefore, Singapore is an ideal mix of the east and west and embraces everyone. 

#2. Singapore’s economy is very business-friendly. 

Geographically, the island of Singapore is small and lacks natural resources. Therefore, the economy relies on international operations. It has also focused on building a large manufacturing industry, making it a significant export market for the US. 

“The Government very much has that mantra of helping people either come into the country or helping people in the country expand regionally to grow their business and improve everybody’s lives,” Philip said. 

The government has also implemented economic policies to promote international trade and has a friendly business model. Foreign businesses are subject to the same laws as local businesses. 

Businesses can also use agencies to get the help they need to secure capital and set up their Singapore entities. 

“IE Singapore or Enterprise Singapore sits under the administrative trade, and it facilitates overseas growth of Singapore-based companies, regardless of nationality,” Philip said. 

There’s another entity called Spring, which plays a similar role in growing enterprises. 

“Spring is the place to go where you get quite a lot of government grants as well — the sort of tech investments and grants, which any small-to-medium-sized company can benefit from,” he added. “Then there is the Economic Development Board that also helps businesses. So the message is that if you are in Singapore and you want to grow, then we will help facilitate that process.”

If you have a good product or service, you could quickly expand it in Singapore. And if you’ve got a product or service that you’ve replicated quite well, Singapore is a great, safe, predictable market to grow it. 

The legal help you get in Singapore is very transparent and secure. With sound finance systems, it is easy to get loans. If you are an SME, you can walk into one of the local banks and set yourself up with all the business accounts you need, likely on the same day. Many banks accept digital signatures and allow opening bank accounts online. 

 “You can also easily find advisors who will help you grow into other markets or advise you on how to grow your business in Singapore,” Philip added. 

There is a massive opportunity for external investment, and international businesses own their companies 100% when they expand to Singapore. 

Geographically, being a small market, it’s easy to meet people, even in times of a pandemic, because everyone lives in a small area. “You can network quite easily, and you can find somebody that will have the right skillsets or advice for what you need,” Philip said. 

fitness-tech-trends

#3. Singapore also offers attractive tax laws to international companies entering the City, State. 

The government offers attractive tax incentives to businesses in Singapore. 

#4. Access to ASEAN.

Despite the small market, Singapore is well-known globally for its IP strengths and easy access to the broader ASEAN region. 

Top industries in Singapore

Tech, fintech and cryptocurrency, cyber security, and mobile payments are some of the fastest-growing industries in Singapore. FMCGs and food franchises from well-established brands overseas do very well. 

“Singapore is a centre for tech and innovation excellence. We have a lot of people that would typically be involved with big multinational companies setting up innovation hubs here or bringing their regional headquarters into Singapore,” Philip said. 

Main challenges of doing business in Singapore

More than 99% of all imports enter Singapore duty-free as a free port. It levies high excise taxes on distilled spirits and wine, tobacco products, motor vehicles, and gasoline.

Other industries that pose challenges for international companies include livestock, and services barriers that restrict satellite dishes, pay television, legal services, banking, and healthcare procedural transparency.

Philip listed three main obstacles for companies trying to build a subsidiary in Singapore.

“While it’s fairly easy to set up a business in Singapore, it’s a challenge to bring in mid-to-low-level employees, which then gives you two options. You either have to come in with some top trainers, or you have to come in and know that much of the work will be done by people that aren’t necessarily familiar with the business,” he said. 

“If you want to set up a business, you should be able to show that you are going to employ locals and, you’re going to train them so that they can eventually take over running operations and have more senior roles.”

“The job creation equation is what Singapore is looking for when you set up a business, so you should have a plan on employing Singaporeans,” he added. 

There is also fierce competition with other countries trying to enter Singapore, so international companies should be aware of this. 

Impact of covid 19 restrictions

Singapore has had some of the most stringent lock-downs during the pandemic. 

As a result, some businesses have shut down during the pandemic, and others have accelerated in Singapore, despite strict COVID-19 restrictions.  

“I think the pandemic has just accentuated what was going on beforehand,” Philip said. “However, one of the issues has been a shortage of labour force coming in from other countries. Many expats have also left the country due to stringent COVID-19 restrictions.”

keeping-up-with-Gen-z

What do Singaporean consumers want?

Price, quality, and service are essential factors for consumers in Singapore. International companies entering Singapore must know that the buyers are discerning and that the competition in the market is intense. Singaporean consumers also like products and services that are well established in their home countries and have a story or history behind them. 

So from a consumer standpoint, what are the key considerations Singaporean consumers have? 

According to Philip, that depends on the category. 

“We did some research on the luxury purchases made in Singapore and Asia. Consumers want to see some heritage and a well-defined story of where the brand is from and why it exists when it comes to the high-end market,” he said. 

“The German manufacturers do very well in the automotive market, and there’s a sense of prestige associated with the well-known European luxury car manufacturers. There’s also a significant segment of people that are very practical and go for Hondas and Toyotas.”

Food and beverage outlets do very well if they are well-established in their home market. Brands with their roots in China or Taiwan for some novelty-type items and popular brands in Japan also do very well, as do Korean skincare brands. 

In a nutshell, Singaporean consumers like understanding the brand’s roots, why it’s now Singapore, and what it’s doing. They are a discerning populous and are looking for quality products and services. 

Selling and distributing products and services in the Singaporean market.

Selling techniques utilized in Singapore vary by product and are similar to sales practices in sophisticated western markets. Social media and online marketing are growing in Singapore, and it is essential for international companies that use agents in Singapore to visit them regularly. 

“A lot of our clients at Kadence have their regional offices in Singapore because of a very transparent legal system. The government is also very predictable and pro-business, so if you’re going to set up a regional base, Singapore is the perfect place for it,” Philip added. 

A favorable time zone gives it another advantage and makes it suitable for business. The commerce or the distribution networks from Singapore to the Southeast Asia and North Asia markets is pretty straightforward.

“Moreover, the ease of commuting makes Singapore the perfect base for operations. It’s also typically relatively easy to get visas for higher-paid staff members here, and it’s not considered a hardship posting to be based in Singapore, regardless of your home country,” Philip said. 

How to strategize market entry into Singapore

If you have a successful product or service in your home country, expanding into Singapore is a good idea. One cannot emphasize the importance of a concrete market strategy and solid business plan for market entry into Singapore. 

Over 4,500 US firms have launched business enterprises in Singapore. Many international exporters use agents and distributors to enter Singapore. These agents and firms aggressively represent new products and services in Singapore. Therefore, it is invaluable to find suitable partners and utilize agents.

The top three strategies that subsidiaries can utilize when planning entry into Singapore are:

1. Identify your growth plan. Singapore as a market is not very large unless you are a McDonald’s type company. But for most industries, your potential is relatively small. The population is 5.7 million, so you must identify where else you can go. It would help to calculate your maximum potential returns based on your target audience. For companies entering Singapore, knowing that growth plan would be substantial.

2. You need to have a sound training system. As a small company with one or two people set up like a distribution hub, you will probably be fine, but as soon as you start growing, you will be expected to recruit more Singaporeans. Therefore, you will need to have training in place. 

3. Do your commercial research. The government is pro-business, so you must research who to ask for help and what benefits you can receive. 

Political and economic stability in Singapore

Singapore has had the same government since its foundation. 

One of the reasons behind Singapore’s massive growth over the past five decades is the consistency of government. “You can put long-term visions in place without your political parties, flipping it as a political winning system to get elected,” Philip said. 

Singapore has shown phenomenal growth in the last ten years and will continue to grow as it is a great place to live, and do business and is devoid of red tape or bureaucracy. 

The next 50 years will present new challenges to Singapore in the form of an ageing workforce, a maturing economy, social media’s growing influence, and increasing competition from other trade agreements and ASEAN partners. However, it remains an attractive market to enter and shows phenomenal potential in years to come.

We would welcome the chance to discuss your next market research project. Learn more about our Singapore Office here.

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Like virtually all aspects of modern life, the market research industry has undergone an explosive change in our COVID-19 pandemic era. While most of the principles of market research remain intact, brands worldwide have had to refine and modify their research methods as part of this “new reality.” 

Generally speaking, market research starts with a “wide-angle” look at the spheres of influence upon a market (including new and changing customer behaviours, emerging industry trends, etc.), then zooms in on specific nuances within a target audience. 

The data collection and analysis gained from in-depth market research offer brands “a clear and detailed understanding of what your customers want, what they already like, where they conduct their own research, and much more.” Understanding the broader context of a market enables companies to:

  • Gain insights into how customers use their products or services
  • Differentiate their offerings from competitors
  • Lay the groundwork for successful product upgrades or launches
  • Identify new opportunities for growth

These insights gained can set the tone and messaging for a brand’s marketing efforts both now and in the year to come. 

Here’s a look at key trends in the market research industry today and what lies ahead on the horizon for 2022.

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Trend #1: Agility and Technology

Despite the changes wrought by the pandemic and other global forces, one factor remains constant: the continual evolution of technology underpinning advanced market research.

Advances in artificial intelligence (AI) and machine learning, for example, enable researchers to gather information from an increasingly wide range of distinct sources. These advances also contribute to a new emphasis on agile research and speed of insight. Various elements include:

Automation of routine research practices. Automating the more routine facets of research facilitates a speedier analysis and interpretation of findings. This helps researchers save considerable time and effort while winnowing down to what’s truly essential in their work. 

Shorter and smarter polls and surveys. Employing surveys that can be positioned and distributed quickly (and which take respondents only a short time to fill out) are a further boon to the speed of analysis and insight. This approach involves identifying a “mobile-reliant” population that will actively engage in a poll or survey upon request, and within a brief period of time. 

Ongoing research. Agile research equals ongoing research. In a global marketplace that’s continuously in flux, the insights garnered from one survey can dramatically change by the time a new survey is undertaken. In the same respect, researchers can expand on findings garnered from one survey to craft a new, more specialized survey that focuses on changing factors in the marketplace.

As we have stated before, “when you know your offerings suit current and emerging customer needs, your business will develop a reputation for being wholly customer-centric that your competitors can’t match.”

Trend #2: AI, Machine Learning, and Emotion

If 2021 is any guide, we can expect the avalanche of raw data to keep increasing in the year to come. The vast array of sources promises to generate more information than researchers can ever hope to compile and analyze on their own. That’s why AI and machine learning are invaluable for research purposes.

Emotion AI, for example, seeks to “decode” human emotion by analyzing voice patterns, eye movements, facial expressions, and a range of non-verbal cues—all designed to generate data that enhances a brand’s capacity for linking emotion to consumer behavioural patterns. By evaluating consumer responses to a proposed upgrade or new product launch, emotion AI can more precisely “read” human feelings and gauge the success or failure of a new venture.

As MIT Sloan notes, “New artificial intelligence technologies are learning and recognizing human emotions, and using that knowledge to improve everything from marketing campaigns to health care.”

Trend #3: Social Listening

Interacting directly with customers often yields the most pertinent data for marketing trends. But engaging in social listening can be an equally effective research method.

Social listening involves analyzing social media conversations and trends related to your brand to your industry. This extends beyond monitoring basic metrics such as “likes” or “mentions” or “followers,” with a focus instead on the buyer’s mood behind the data.

Customers frequently express their sentiments about products and services on popular social media platforms (Twitter, Facebook, Instagram, etc.). Market researchers can look at this as real-time feedback about customer preferences, brand awareness, the inroads made by competitors, etc. 

In this respect, social listening offers a beneficial way of gauging customer sentiment (what they like and don’t like about the purchasing experience, preferences regarding how a purchase is made, and so on). 

For effective social listening, research methodology can include the following actions:

  • Search on the most popular social platforms for branded keywords, phrases, or product names.
  • Explore customer review sections on platforms. 
  • Learn about customer sentiments regarding competitors.
  • Anticipate potential new trends using Google Trends or other social media listening tools.
  • Identify relevant or industry-specific social media influencers.

Social listening should be “a critical component of any company’s marketing strategy, as it allows you to react and respond to customer sentiment — and gather data to make improvements in the way your business runs,” notes Reputation.com. In essence, social listening is like “your very own perpetual focus group, rich with constantly updated and actionable business intelligence.”

Trend #4: Longitudinal Studies

There has been a steady increase in longitudinal studies for long-range market research, and the trend will continue in 2022. This approach works most effectively when a brand wishes to continuously monitor a fixed sample of its target audience over a pre-determined timeframe.

Longitudinal studies, also known as continuous research, tracks consumer and market attitude trends over extended periods. To do so, researchers gather information from the same sources through a long-term methodology that yields insights into buying habits or consumer response to a new product or service launch. 

Trend #5: DIY

Another emerging trend is the do-it-yourself (DIY) approach to market research. The proliferation of agile or smart research tools enables in-house teams to conduct surveys and other research activities, often using a centralized online platform. Types of DIY market research include:

  • Interviews with existing and potential customers through surveys, questionnaires, or focus groups
  • Segmentation of the target audience into clearly defined groups (demographic, behavioural, psychographic, and geographic)
  • Product testing, in many cases, before a brand reaches the initial production stage
  • Measuring satisfaction with loyal customers

DIY research should aim for gaining “insights into how happy your customers are and any specific areas they like or dislike.” This enables brands to:

  • Identify any areas of current (or potential) concern.
  • Drill down to core issues by identifying (and then interacting with) dissatisfied customers.
  • Determine what’s needed to improve customer attitudes and experiences. 

One caveat worth mentioning regarding DIY marketing. As Forbes notes, “if you go to a third party [for market research], you’re going to likely get a different perspective than what you would get from your own team. There’s also a greater chance that the perspective you receive is an unbiased one, which is healthy” and potentially more insightful about what a target audience truly cares about.”

Trend #6: Aligning Brand Mission and Values with Customers

In 2022 and beyond, market research will continue to explore the value of aligning a company’s mission statement and the values of its customer base. 

Gone are the days when a brand could tell consumers what it stands for and leave it at that. Today’s savvy customers do their research to determine if a brand “walks the walk,” particularly concerning those values consumers hold dear—be it the environment and sustainability, income inequality, racial harmony, and so on. 

Consumers who prefer brands aligned with their values often become very loyal once they identify that brand. However, if and when customers detect a lack of consistency between what’s expressed in a mission statement and what actions a brand takes, they may abandon that company and seek out more compatible businesses to support.

In 2022, brands are encouraged to take a fresh look at their mission and values and how these are communicated to a target audience. Monitoring social media conversations around these values can illuminate the process of refining a company’s mission statement. It’s also an excellent opportunity to look into making a fresh commitment to support the causes and initiatives that a brand’s audience considers most valuable in their own lives.

Market research trends come and go, but the end result remains consistent from the past to the future. The primary objectives are always:

  • Improving products or services
  • Generating more sales
  • Delivering expected results
  • Enhancing customer service
  • Boosting customer retention

Market research supports the need for brands to maintain agility in an ever-shifting marketplace. Customer needs never remain static. If a brand meets current needs—and, better yet, anticipates future customer needs—its place in the global market will be stronger and more durable than that of its competitors.

Each year, an average of 30,000 new products enter the marketplace (that’s enough to fill the average grocery store!), and 70% will fail to sustain or grow sales in the first two years. 

How does a brand ensure that a new product stands out in the sea of competition? How does it increase the odds of success? 

The key is to avoid a one-size-fits-all approach and instead get the correct product in front of the right customers at the proper time.

To achieve this level of specificity, brands must use proper market segmentation. This practice allows a company to focus its product development and marketing efforts narrowly.

What is market segmentation?

At its most basic, market segmenting is breaking a broad swath of potential customers into smaller customer groups with similar characteristics. A company can then design products and marketing campaigns tailored to the needs and interests of a particular target market.

Few companies have the resources to sell to a mass market. Most must focus their efforts to meet more limited budget constraints. 

Market segmentation identifies the many different reasons people purchase products to help companies make smaller investments with more significant returns.

The more that a brand can narrow the audience for a new product, the more likely it can successfully sell to them. Rather than trying to persuade a generic customer base to buy a product they may or may not want, you can place the product in front of people who need it.

Benefits of market segmentation

Market segmentation provides valuable customer insights that can be used to create many positive business outcomes. 

●     Product development: By identifying narrow market segments and researching their specific needs, brands can create products that satisfy those exact pain points. These specialized offers will have little to no competition.

●     Business growth: The more a company understands various market segments, the more it can expand by moving into new geographic areas, offering complementary products to existing customers, or creating new products to appeal to a previously uninterested audience.

●     Optimized marketing: Using the insights from segmentation research, marketing teams can create highly targeted messages on the most relevant platforms. Even 

better, they can make calculated decisions about media spend to reduce costs.

●     Better distribution strategies: Knowing where and when your customers shop can help you change or tweak your distribution strategies to streamline and save money while improving customer satisfaction.

●     Customer retention: Done well, market segmentation can create brand loyalty. When you’re able to anticipate and address a customer’s needs at every turn, they are far more likely to become repeat buyers and brand advocates. 

A company that takes the time and energy to cultivate a deep understanding of its customers is almost guaranteed to have a competitive advantage. It’s far more likely to expand its market share and profits.

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Types of market segmentation

There are four main types of market segmentation, each of which offers a different method for identifying clear attributes unique to a particular group of customers.

Geographic segmentation

It can be helpful to group customers by a specific area—from a country down to a neighbourhood. 

This approach is particularly effective for products and services that address localized concerns. This may include items affected by the weather (lawn care, clothing) or regional preferences (cuisine, sports, or other recreational activities).

To use geographic segmentation, break down potential customers by identifying characteristics such as state, county, zip code, climate, primary language, or population density. 

Demographic segmentation

It’s helpful to group customers by quantifiable factors like age, income level, family size, religion, race, nationality, language, educational level, marital status, occupation, home ownership, political party affiliation, or income.

Demographic information is generally easy and affordable to access, which makes this type of segmentation one of the simplest to use. 

A product may use demographic segmentation to position itself as the best solution for a specific type of person (for example, married men, 30 to 40 years old, who have a full-time job earning $100,000 or more and own a home).

Demographic segmentation may not be detailed enough to create distinct product differentiation. That’s why it’s often combined with another type of segmentation to narrow the customer group further.

Psychographic segmentation

One of the most detailed forms of market segmentation divides customers based on qualitative traits. These details can’t be easily measured like demographics and include things like values, habits, attitudes or opinions, personality, lifestyle or social status, and hobbies or activities.

Gathering psychographic information requires more effort and can be achieved using surveys, focus groups, interviews, and social media monitoring.

Once you’ve identified shared psychographics for a particular market segment, turn it into a statement. For example, “we help busy moms who want to serve their young children a home-cooked meal in 30 minutes or less.” Then, ask your target audience whether the statement resonates with them.

Very often, marketers like to combine psychographic segmentation with demographic segmentation to create very distinct customer groups.

Behavioural segmentation

Finally, another popular method of market segmentation is based on customer behaviour during the buying journey. 

Behavioural segmentation considers actions like when shoppers become customers (acquisition), how customers use the product or service (user journey), how frequently they use it (engagement), how long they continue to use it (retention), and how often they make new purchases (loyalty).

This method can be complicated to execute but is likely to generate beneficial insights. It’s often the best way to identify opportunities for new products or markets and for improving existing offerings.

How to validate a segment

To be worthwhile, a segment must be clearly defined and unique. To test whether your potential market segment makes the grade, ask yourself these questions:

  1. What does this segment value most about a product like ours?
  2. What is the number one reason this segment chooses to buy a product like ours?
  3. What is the buying journey for this segment (what content, platform, features are crucial)?

The answers to these questions must be based on data from actual research, not just your intuition or anecdotal experiences. 

If you can easily and with great detail answer each of these questions, then your segment has great potential to be actionable and profitable.

If you don’t have clear answers, however, then you likely need to do more research or further refine the segment.

How to segment the market for a new product

The market segmentation process isn’t complicated. There are two major components—creating segments and executing a go-to-market plan—and a few significant considerations at each stage:

Customer Segments

  1. Set an objective for what you hope to achieve through market segmentation (create a new product, better serve existing clients, find more profitable customers, etc.).
  2. Identify which segmentation type or combination of types you’ll use, and assess the viability of your proposed market (Is it too large? Is it large enough?)
  3. Conduct research by collecting hard data and anecdotal evidence related to your preferred segment. Avoid rushing this stage because it is the most crucial component of quality segmentation. 
  4. Compile your research and use it to determine which new products or marketing approaches you’ll use to target this segment. 
  5. Validate the offer or messaging with a representative sample of the segment using surveys, focus groups, and polls.

Go-To-Market Plan

  1. Develop a launch plan using marketing and sales strategies relevant to the target segment. 
  2. Test the effectiveness of your strategy by implementing conversion tracking early.
  3. Continue to execute the plan and monitor the results over time, adjusting as necessary.

To ensure the best results, companies may want to invest in marketing software. Many products will automatically segment customers into relevant groups, analyze the segments using interactive charts, and provide third-party data to improve results.

Market segmentation best practices

As you execute a market segmentation plan, watch out for these common mistakes that can negatively affect your results:

●     Unaligned segments: The markets you target must harmonize with your company’s strategy and structure, rather than trying to conform your brand and offer to suit the segment.

●     Segments that are too broad: Failing to make the segment narrow enough will allow the competition to gain an advantage by targeting a more clearly defined and like-minded portion of your segment.

●     Segments that are too narrow: Focusing on too small of a segment will significantly limit the return on investment of your time and money.

●     Too many segments: It’s tempting to pursue all of the potentially profitable segments you identify, but this can dilute resources and negatively affect revenues.

●     Targeting people, not money: A perfectly aligned and well-sized segment is useless if its members don’t possess sufficient buying power. Focus on market segments that will create a positive ROI, even if they aren’t the largest or most glamorous.

●     Never updating segments: People change, and those changes can come quickly in today’s global, tech-savvy world. Frequently revisit your segments and adjust as needed to remain relevant and competitive.

Market segmentation is a highly effective strategy, and it isn’t complicated. It can be time-consuming, however, and may be challenging if it’s a new approach for you and your marketing team. Expect mistakes as you execute this new approach.

Stick with it, though, because segmentation is an incredibly valuable process that shows customers that you genuinely understand them. Providing tailored products and messages that resonate with your customers’ specific needs will help your brand grow exponentially.

How well do you know your consumer base? Can you accurately predict how the design and function of your products will best serve your targeted audience? If the time has come to upgrade your product or service, do you have a strong sense of how your customer base will respond to these changes?

These and related questions form the foundation for user studies. Gauging the quality of the user experience should always be a top priority for organizations. This is particularly true both today and in the short-term future since the global pandemic has resulted in a “dislocation to consumption patterns [that] may have lasting effects for particular brands and products.” 

A user study is a market research method where the target audience is observed and analyzed to understand their behavior, preferences, and opinions. It often involves collecting qualitative and quantitative data through various methods such as surveys, interviews, and usability testing.

The benefits for brands to conduct user studies are:

  • Gaining a deeper understanding of their target audience
  • Improving product design and user experience
  • Validating product assumptions and market opportunities
  • Identifying areas for improvement and innovation

User studies are sometimes referred to as “user research” or “user testing.”

The history of user studies in market research can be traced back to the 1940s and 1950s when companies started using focus groups and surveys to gather information about consumer behavior and preferences. Since then, user research has evolved and expanded to include a variety of methods and techniques to gain insights into the user experience.

User studies are used by a wide range of industries, including:

  • Technology: companies in the software and hardware industries use user studies to understand user needs and preferences, improve product design, and validate market opportunities.
  • Consumer goods: companies in the consumer goods industry conduct user studies to understand consumer behavior and preferences for their products, such as food and beverage, personal care, and household products.
  • Healthcare: user studies are commonly used in the healthcare industry to evaluate and improve the design and functionality of medical devices, drugs, and healthcare services.
  • Automotive: the automotive industry uses user studies to understand consumer preferences and needs in the design and functionality of vehicles.
  • Finance: financial institutions use user studies to understand customer behavior and preferences in their products and services, such as banking, insurance, and investment.
  • Retail: retailers conduct user studies to understand customer behavior, preferences, and satisfaction in their brick-and-mortar and online shopping experiences.

These are just a few examples of the many industries that use user studies. Overall, any industry producing consumer products or services can benefit from user studies.

The right user study can challenge and reset baseline assumptions of user behaviour at the earliest stages of product design changes. According to the computer software firm Secret Stache, the four main types of user research:

  1. Primary. Information is acquired through interviews, surveys, usability tests, etc.
  2. Secondary. Design concepts are confirmed through a review of existing research materials.
  3. Exploratory. A design hypothesis is tested through experimentation.
  4. Evaluative. Determine the benefits and shortcomings of a design prototype.

“Deciding which research method to use depends on what data you’re trying to gather and where you are in the design process,” Secret Stache concludes. This information enables companies “to make informed design decisions and create better user-centered products.”

Start the Process with Specific Objectives in Mind

It’s essential to know what you’re looking for with each type of user study. Brands embarking on a user study often frame their goals around:

  • Knowing what to do (about a product upgrade, new product launch, etc.) before making a major decision
  • Challenging existing assumptions about design and customer appeal
  • Creating benchmarks for the proposed change (new product, proposed expansion, etc.) 
  • Understanding how changes in the global marketplace impact the organization

At its core, a user study “is designed to give you a firm foundation for almost any decision around a brand or product.”

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Here’s a closer look at each type of user study and their related methodologies:

Use Primary Research to Better Understand Your Customers

The ideal time to conduct primary research is before crucial decisions are made about a brand or product. The process involves compiling raw data focusing on what consumers say they want. 

To achieve this objective, it is essential to speak directly with members of that targeted audience.

Find out what buyers (current and prospective) really think by conducting interviews with a single consumer or in small groups. Put together a list of interview questions that:

  • Help put the interviewee at ease
  • Encourages them to share their individual “shopper’s journey” stories
  • Highlights what is considered the most valuable or effective aspects of a customer’s experience 

Open-ended questions are the most effective at eliciting the kind of information you seek, i.e., “What is the process by which you decide what to buy?” and “Can you describe a time when you received an unexpected benefit from the use of this product?” Avoid asking “yes” or “no” questions since they are unlikely to uncover any useful data.

Also, make sure someone on the team takes copious notes during the interview process, so no valuable responses are lost.

Field studies are another potentially rich avenue for user studies. Also known as contextual interviews, these observations and interactions focus on users in their “native habitat.” This can supplement individual and group interviews, with an emphasis on observing how customers use a company’s products in their environment. 

Primary research often yields new insights with respect to:

  • Learning more about challenges users encounter with a product or service
  • Enhancing those offerings to provide a richer user experience

Use Secondary Research to Confirm Your Findings

As noted, primary research will uncover a significant amount of information to evaluate. Interpreting all this data becomes more effective when it can be validated by secondary research. 

Forms of secondary research include relevant material obtained from:

  • Books
  • Articles
  • Market research
  • Internal studies
  • Project reports
  • Industry data

In general, most of this information is readily accessible online and through organizational archives.

Use Exploratory Research to Confirm a Design Hypothesis

Primary and secondary studies are effective user research methods, especially when combined with other types of research. 

In the exploratory research phase, the focus is on pinpointing specific buyers’ needs and objectives. The objective is to craft a design hypothesis and then test it with the target audience. Techniques to employ when you want to validate that hypothesis include:

  • Interview and survey loyal customers
  • Gauge buyer feedback through focus groups
  • Undertake usability testing

Whatever the product or service, it’s essential to know precisely what you want to gain from the research (general background or specific user behaviour). Also, you need to understand what can realistically be altered in a product or service based on the feedback obtained. 

A survey of competitors’ brands can also enhance your understanding of the chances for success with your product or service.

Employ Evaluative Research to Assess Value to Consumer

With the ample amount of data gained from previous user studies, companies can conduct evaluative research to better grasp what users think of the new design or product upgrade.

Usability testing (sometimes called “product testing”) is designed to “tell us how people respond to an actual product—including how they use it and what they think its qualities are—allowing brands to decide whether and how to market it.”

Usability testing is conducted with a moderator present. This individual works directly with those taking part in the testing process, leading them through pre-determined in-person or video conferencing tasks. The moderator should be someone experienced in active listening and correctly recognizing and responding to non-verbal cues. These sessions are often recorded for later analysis. 

In the end, usability testing will enable brands to:

  • Find out a close-to-final version of a new product will work.
  • Fine-tune the product for ideal performance at launch.
  • Test the effect of changes to product design or presentation.
  • See how well consumers in a new market will accept an existing product.

Following the evaluative phase, brands might uncover insights into establishing a better marketing pitch, determining the best pricing, identifying the ideal target audience, and so on. The focus is not on whether a product works but how that product will work best.

Always Be Listening

Throughout the entire scope of a user study, the key is listening to what targeted buyers have to say. Improve the listening process by making it easy to gather and compile user feedback. Methods include analysis of:

  • Online search queries to determine what users want
  • Questions, comments, and complaints coming in through customer service and other existing feedback channels
  • Inviting feedback at trade shows and industry conferences

Your target audience can often be both sceptical and sophisticated. Generic marketing methods don’t work with them; they want to see results from your brand. 

Comprehensive user studies enable you to understand better what drives the buyer’s journey and their ultimate buying decision. These studies also assist in anticipating future needs and challenges. 

Armed with this in-depth understanding of consumers, a brand can exploit the weaknesses of their competitors and rise to the top of the market—and, hopefully, stay there indefinitely. 

Opponents of cannabis legalization often cite concerns about cannabis’s effect on public health, warning that increased accessibility will likely result in an increase in the abuse of cannabis and other substances. However, for a country in the midst of an opioid crisis, with an estimated 47,600 opioid-related deaths in 2017, research is needed to understand the relationship between cannabis and pharmaceutical use, as cannabis is often cited as an alternative to opioids for pain management. Research conducted by Kadence International, a global boutique market research agency, indicates a nation-wide increase, in the past year, in adult use of cannabis to treat pain and other medical issues, often as a substitute for pharmaceuticals or alcohol.

In a national survey with over 2,000 adults, Kadence found that one in five (20%) adults report they have used cannabis in the last 12 months. Of those cannabis consumers, eight in ten (81%) use cannabis for at least one medical reason, an increase from 72% in 2018. Compared to 2018, significantly more adult cannabis users reported using cannabis to help treat anxiety (48% to 58%), sleep issues (39% to 53%) and pain or inflammation (40% to 49%). Many say they use cannabis for more than one of these therapeutic reasons.

While the vast majority of adult cannabis consumers believe that consumption of cannabis is safer than alcohol (92%), people who say they use cannabis for at least one therapeutic reason are more likely to state that their alcohol consumption has decreased as a result of their cannabis use (51% pain users, 48% anxiety users, 49% sleep users vs. 42% average). They are drinking less because they perceive cannabis to be less harmful, healthier and state that cannabis helps them feel better than alcohol. When asked whether they would prefer to consume cannabis or alcohol while doing different popular activities, the vast majority of these users would prefer cannabis over alcohol in nearly all situations. How else do these therapeutic users differ from the average cannabis consumer?

Profiling therapeutic cannabis consumers vs the average U.S. cannabis consumer

More than 1 in 4 (27%) adult cannabis consumers report that they use cannabis as a substitute for at least one prescription or over-the-counter medication. They are most commonly replacing pain medications with cannabis (21%), followed by sleep aids (17%) and anxiety medications (17%). Many choose cannabis over traditional pharmaceuticals because they feel it effectively relieves a combination of their symptoms. A notable 14% of adult cannabis consumers are using cannabis as a substitute for prescription pain killers/opioids, largely due to perceptions that cannabis is a “much safer”, “more natural” way to treat pain with “fewer side effects”. Interestingly, although there is no difference between opioid replacers and other cannabis consumers, with three in four living in states where cannabis is at least medically legal, opioid replacers may be obtaining their cannabis from the black market more than the average US cannabis consumer, as 61% said they usually buy from somewhere other than a dispensary, compared to 52% of total cannabis consumers.

Kadence’s data indicates there may be an opportunity for medical professionals and dispensaries to help combat the opioid crisis by targeting these black market cannabis purchasers, particularly in light of the recent vaping illnesses, thought to be coming more from black market products than regulated products available in dispensaries.

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Across all of these findings, there are no significant differences between cannabis consumers in medically or recreationally legal and non-legal states. Furthermore, the research found that not only cannabis consumers but the majority of adults nationwide believe that we are just beginning to discover the power of the cannabis plant for medicinal purposes (69%) and state that cannabis should be taken off the schedule 1 drug list so that its medical benefits can be explored more freely (69%).

The key point is this: regardless of whether or not they live in legal states, the data shows that adult consumers are already turning to cannabis for symptom relief, often choosing cannabis over pharmaceutical treatments or alcohol.  With increased accessibility, product sales could be more effectively converted from the black market into legal channels where they can be regulated appropriately and taxed handsomely. This also makes more thorough research possible for pharmaceutical companies, medical professionals and public health researchers, and expands product innovation opportunities for brands and manufacturers across a wide range of categories. After due diligence, ultimately, the potential health and well-being benefits of cannabis can be made available, through appropriate channels, to more adult consumers in need.

 Download the full research to learn more about trends in cannabis usage in the US. 

One of the most important tasks for any business is making sure your customers are satisfied. Without customers, your business is nothing, and dissatisfied customers are unlikely to stay customers for long.

There are many ways to measure how satisfied your customers are with your current products, service, and brand. This article will take a look at why it’s so important to measure customer satisfaction, some of the methods available for doing it, and finally we’ll explore 5 of the top metrics to pay attention to.

Why it’s important to measure customer satisfaction

Today’s customers have more choices than ever before. The internet has made it possible to find dozens of competitors to a product or brand at the click of a button. If a customer has an unpleasant experience with a product or service, it’s never been easier for them to move on.

Here are some of the reasons it’s so important to prioritise customer satisfaction.

Bad news spreads

But losing a customer isn’t the worst outcome of poor customer satisfaction — they might also tell their friends. When products or services fall short, almost 13% of customers spread the bad news to over 20 people. If you fail to prioritise customer satisfaction, the ripples could spread out much farther than one unhappy person, and in the age of the internet, they could spread very far and fast indeed.

Learn how happy you are making your customers

Measuring customer satisfaction allows you to gain insights into how happy your customers are and any specific areas they like or dislike. By following up on this feedback, you can identify any concerning areas, talk to dissatisfied customers, and find out what you need to fix to improve your customers’ experience.

Identify loyal customers and promoters

Loyal customers are the lifeblood of any business. Those who keep coming back and spending money with your brand are incredibly valuable and should be treated as such. By measuring customer satisfaction you can locate the customers who like your brand and reward them with things like discounts, loyalty points, and other treats.

There’s one group that’s even more valuable than your loyal customers — promoters. These are the people who not only use your brand regularly but also tell their friends and others about you, essentially growing your business for you, for free. Your promoters should be rewarded especially highly and incentivised to keep spreading the word.

Improve revenue

It’s a simple equation: the more customers you retain, the more money you make. If your customers are constantly satisfied with your brand, it’s much more likely they will stick around, keep making purchases, and contribute to your revenue growth. Measuring customer satisfaction helps you take concrete steps to keep your customers happy and your company growing.

Compete with other businesses

Many brands fail to prioritise customer satisfaction, and many don’t measure it at all. This means that by getting to know your customers and their concerns, you can go beyond what your competitors are doing and gain a valuable edge.

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How to measure customer satisfaction

Focusing on customer satisfaction helps you deliver better customer experiences, attend to your customers’ needs and concerns, and ensure you retain more customers and continue to grow your business. But how do you measure it?

Face-to-face interviews

Talking to your customers face-to-face is one of the most effective ways to measure customer satisfaction (and almost anything else). You’ll get direct answers in real-time, with the option to follow up immediately. 

In face-to-face discussions like interviews and focus groups, you’ll also be able to see body language and take note of the quirks that get lost in less personal forms of communication. The challenge is finding a physical space to host these discussions, and incentivising your respondents to take the time out of their day.

Web app surveys

Whether on desktop browsers or mobile apps, online surveys are a quick and easy way to get feedback from your customers. You’ll likely get much more of a response compared to face-to-face interviews, and at a much lower cost to you. However, these surveys are much simpler by nature, and you’ll need to offer some kind of reward for participation (which can be as simple as a small discount code).

Email surveys

Almost everyone has an email account today, and it’s easy to collect email addresses from your customers during the sign-up process. This makes it easy to send quick surveys and questionnaires to your subscribers to measure customer satisfaction.

Telephone surveys

Telephone surveys used to be one of the most common ways to contact customers and get feedback. Today, they have to compete with newer media like email and mobile apps, but they’re still a popular choice for many brands and work especially well with older demographics.

Postal surveys

Postal surveys are one of the slower ways to get customer feedback and tend to result in low response rates, but they are cheap and allow you to contact a very wide pool of respondents.

Top 5 metrics for measuring customer satisfaction

Whatever method you use to contact your customers, you’ll still want to focus on measuring the same metrics. Here are 5 of the most important metrics to focus on when measuring customer satisfaction.

Customer Satisfaction Score (CSAT)

Perhaps the most straightforward metric to measure, Customer Satisfaction Score involves simply asking your customers to rate their level of satisfaction with your brand, product, or service.

It typically involves a scale, usually 1-5 or 1-10, and customers are asked to give a score in a number of areas like ease of use, value for money, and customer service. In addition to a numerical scale, you can also use words like “very satisfied” and “somewhat dissatisfied”.

This metric is simple, direct, and easy to compare with other brands’ results. However, it’s also subjective and easily influenced by lots of factors, not least your choice of wording in the survey itself. It may also be biased towards positive responses over negative and neutral ones.

Net Promoter Score (NPS)

Net Promoter Score is a measure of how likely customers would be to refer you to another person. Usually, it involves an index ranging from -100 to 100, and it can be highly impactful.

Measuring NPS allows us to find out how likely customers are to recommend us to their friends and hone in on specific promoters who we can then reward and ask further questions to determine why they are so keen to spread the word.

The results can be powerful. American Express used an NPS survey to understand their customers better. The insights they gained from the survey led them to implement changes which resulted in a 10-15% increase in customer spending and a 4 to 5 times higher retention rate.

Customer Effort Score

Customer Effort Score measures how much effort a customer felt they had to put in to achieve a given desired outcome. It’s calculated similarly to the other metrics here by asking customers to provide a score on a scale.

CES is a valuable metric because the level of effort customers have to put in is strongly related to their loyalty. In the book The Effortless Experience by Matthew Dixon, Nick Toman and Rick DeLisi, we learn that 96% of customers who invested a lot of effort to resolve issues are more disloyal. In contrast, only 9% of those who did not invest high effort were disloyal.

Customer Churn Rate

This metric measures how many customers you lost over a given period. To calculate, you define the period you wish to measure (like a month, quarter, or year). Take the number of customers at the end of that period and subtract it from the number at the start. Then, divide the result by the number at the start.

This is one way to find out how many customers are happy with your brand — happy customers tend not to leave. Of course, there could be other factors at play like a poor marketing strategy that fails to stay connected with customers. Like all the other metrics on the list, CCR is just one piece of the overall puzzle.

Customer Retention Rate

On the other side of the coin to Churn Rate is Customer Retention Rate. Of all the customers you acquire, how many are you actually retaining? 

You calculate this by taking the number of new customers acquired during a period (weekly, quarterly, monthly, etc) and subtracting it from the total number of customers you had at the end of that period. Then, divide the result by the number of customers you had at the beginning of that period to find the CRR.

Customer Retention Rate is an important metric because it costs 5-25 times more to procure a new customer than it does to retain an existing one. Keeping hold of your customers is always much better than finding new ones (although you should of course be doing both). CRR also gives a good indication of how satisfied your existing customers are.

Measuring Customer Satisfaction is an essential activity for companies. Choosing the right metrics to track is a crucial component of this, and can make the difference between an accurate understanding of your customers and confusion. Doing this job right can be a major factor in the growth and success of your business.

Contact us to learn more about how Kadence can help you better understand your customers and conduct important research in a range of areas.

The market research industry in India is thriving, but it is not without its’ own challenges and complexities.

Size of the Market Research industry in India

According to Statista, the size of the market research industry globally is around US$74 billion, with more than half (US$47 billion) coming from within the U.S. At roughly Rs.1500 crore or US$15 billion (2017-18), the Market Research industry in India may be smaller in comparison. Still, it is the fastest-growing market globally, growing by an average of 10 per cent per year, compared to the industry’s global growth of just over 2 per cent in recent years. Most of India’s market research comes from overseas brands.

What makes India a favourable outsourcing destination for Market Research firms?

The overseas demand is mainly due to the enormous cost advantages of conducting market research in India. The processing of data is about 50% cheaper in India than in developed nations. Therefore, the outsourcing business is doubling in value every year.

The rising middle class comprises young people who are very familiar with U.S. brands. India has the second-largest population of English speakers globally, coupled with a relatively stable political backdrop. These factors make India an attractive country for international companies.

India has also developed a pool of trained market research professionals who can provide companies with superior study methodologies, data processing, analysis, and reporting, making India an attractive outsourcing destination. 

What are the high-growth sectors in Market Research in India?

India is evolving into a ‘Service Economy’ with telecom, retail, and financial services as the high-growth market research sectors. Marketing research in India has been focused more on fast-moving consumer goods (FMCG). Besides these, India’s most significant growth area for the market research industry is the media measurement business, followed by the auto, telecom, healthcare sectors, durable goods industries, and the public sector. Market research is mainly focused on customer insights and satisfaction in all industry sectors. 

What are the challenges of conducting Market Research in India?

India faces unique, complex challenges because it can be viewed more as a continent than a country. This is because of many diverse cultures, customs, behaviour, languages, and even regional dialects. 

In India, one size does not fit all. Researchers need to understand the cultural nuances peculiar to different parts of the country when designing surveys and studies and selecting local markets. 

To obtain data for nationwide studies, market research firms in India have to target multiple cities, each with its language and cultural nuances. While Indian market researchers understand and know how to work within the complexities, it becomes challenging to warrant the high costs of conducting national studies to clients. 

On the plus side, this has helped Indian researchers attain higher standards of conducting studies. However, it is also true that it is difficult to attract high-quality research talent in India due to relatively lower salaries. While Indian companies understand the importance of Market Research and use it effectively, they are amongst the most demanding but lowest paying countries for market research.

One of the biggest challenges is the size of the country. In the past, with fewer households having access to phones, it was challenging to conduct market research. In 1997, less than one percent of the population had access to a telephone, and with low literacy rates, telephone and mail surveys were non-existent. However, in recent years, technology has lifted many barriers to market research in India.  

India’s digital journey has been remarkable. The number of internet users grew from 0.62 million in 2010 to 843.06 million in 2021 (the second-largest in the world). Estimates suggest that this figure would reach over 1.5 billion by 2040, and Smartphone usage far surpasses desktop and laptop usage. Today, smartphones are present in 84% of households. (Source: Statista)

These developments are a massive advantage in a country the size of India because the cost savings from using the internet or phone over face-to-face interactions are enormous. The rise in social media usage has also immensely helped the growth of market research in India. 

Face-to-face research was dominant before the pandemic; however, the first wave of COVID-19 pandemic and the lockdown helped speed up digitization, making it easier to use technology and social media for research studies.

beverage-trends-report
What is the state of market research in Rural India?

Nearly 70% of India’s population lives in rural areas, and the rural market has been growing five times as much as the urban market. However, doing market research in the rural areas of India remains cost-prohibitive due to the size of the country and its hugely diverse population. Additionally, largely rural population groups have not seen the technological breakthroughs and are beyond reach in many ways. 

During the pandemic, there has been an upsurge in digitizing rural India. The government has been pushing the adoption of digital technology in rural areas for many years now, but during the lockdown, it gained momentum. 

During the first pandemic wave, many jobless migrant workers had to go back to their villages from the cities, which triggered a rise in rural digitization. 

Still, market research firms face many challenges when it comes to the evolving, post-pandemic rural population. Furthermore, the complexities of hyper localization in languages, dialects, and traditions are even more pronounced in rural areas than urban centres. 

How did the sudden spike in mobile internet penetration further help the growth of the market research industry in India?

The availability of cheap smartphones in India since 2010 laid the foundation for digital literacy and adoption. Furthermore, the Indian government understood the importance of investments in its telecommunications sector and further deregulated the industry. 

In 2016, Reliance Jio disrupted the Indian telecommunications market by offering cheap 4G, high-speed data plans with free voice calling. This competitive data pricing pushed other telecom providers to drive down their pricing and led to a cumulative growth in affordable mobile internet accessibility amongst the Indian masses. 

What challenges do Indian Market Research companies (in particular) face?

In India, market research firms deal with the most demanding but lowest-paying clients in the industry. This makes it very difficult to attract top talent of market research professionals as the salaries are relatively lower. Industry attrition in Indian market research firms is high at about 30%, and people leave due to low salaries. 

The Future of Market Research In India

The growth of Market Research in India is clearly on the rise and shows no signs of stopping, despite the challenges. The market research industry in India is over three decades old. In recent years, there has been a rapid rise in the number of Indian Market Research firms and the interest of U.S. and European firms in outsourcing market research work to India. Companies in developed nations have 40-60% cost savings when they outsource market research to India. 

Telecommunication disruptions, technological developments, the rising middle class, a young country familiar with International brands, and lower research costs in India have led to growth in the market research industry. 

Market research is critical to building a robust business plan, and while many companies understand this, it is costly and time-consuming to undertake market research. Market research firms are more pressed than ever to deliver accurate insights and solutions to help companies make the right decisions while keeping turnaround times shorter and costs lower. 

guide-to-product-marketing
Artificial Intelligence (AI), machine learning, and big data are changing how Market Research is carried out.

Organizations use many traditional market research techniques to learn more about their customers. Traditionally, these include interviews, surveys, focus groups, and market reports, which are costly and time-consuming. The Market Research industry in India now has access to and is adopting new technologies to collect, analyze, and present data faster yet accurately. 

Indian market researchers are using social media, advanced analytics, and data collection. 

New developments like Artificial Intelligence, machine learning, and ‘big data‘ offer a viable solution. This also means expanding the skill set of the researchers so they can effectively employ these market research methodologies for streamlining and automating data collection and analysis. AI can also scan market data in any language, which can be invaluable in a multilingual country like India. 

The rapid rise in the number of Indian Market Research firms and the growing demand from international agencies in outsourcing to India show promising potential for the future growth of Market Research in India.

Although many challenges lay ahead, there will always be a need for high-quality, flexible market researchers. While technology and automation may be invading the market researcher’s territory, you still need people to uncover data and insights. The best market research teams of the future will combine techies and problem solvers, who will use technology to streamline and speed up their studies. A good quality, accurate, fast, and lower-cost research workforce will ensure India’s future growth as a market research provider to the western world. 

With the growing global demand for cost-effective and high-quality market research, the rising trust in Indian researchers, and the value of the Indian market, the future of market research in India looks promising.

Selecting an Indian Market Research Agency 
Kadence India

With many providers to choose from, appointing an agency for your next market research project that understands your unique research needs is crucial. If you are looking to conduct market research, selecting an agency with national expertise is a must. 

At Kadence International, we have offices in 10 countries, including India. Our office in India is recognized as one of the leading market research companies in the country.

With a Head Office in New Delhi, our diverse team has hundreds of years of collective market research expertise and speaks 12 different dialects.

We would welcome the chance to discuss your next market research project. Learn more about our Indian Office here or submit your market research project here.

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Download the summary of our latest report

The pandemic has led to irreversible changes in consumer behavior. As consumers stayed home for the better part of 2020, they have formed a new set of preferences, habits, and F&B expectations. 

Today, what consumers are looking for from the food and beverage industry is very different from pre-pandemic times, and these new expectations are here to stay beyond 2022.  

The “Food & Beverage Trends to Watch in 2022 and Beyond”  report examines the trends that will shape the food and beverage industry in the years to come. In this report, we look at four emerging trends around the globe:

  • Plant-based foods, 
  • Immunity-boosting ingredients, 
  • Tastes of home, and 
  • Transparency, safety, and sustainability.

Trend #1: Plant-based Foods

While there is considerable evidence of people choosing to avoid animal products as far back as 2,000 years ago, today, 4 billion people live primarily on a plant-based diet. 

Globally, the plant-based meat market will be worth $85 billion by 2030. The pandemic has only pushed the meat and dairy substitute product growth. 

Click here to see the extraordinary increase in plant-based meat sales in the USA during the nine weeks ending May 2, 2020, as the pandemic caused meat shortages and price spikes, shutting down meat-packing plants.

Read the full report to find out how the virus caused regular meat-eaters to make the switch, with many becoming permanent converts. 

Beyond Meat and Impossible Foods have become very popular and are a force to reckon with in the plant-based meat industry. While they are not the first in the market, they have created meat substitutes that taste like real meat. 

Plant-based foods such as snacks, dips, sauces, cheese, spreads, and creamers will see a double to triple growth within the following year.

Read the full report to discover plant-based attitudes and trends worldwide, including India, U.K., China, and the U.S. 

Trend #2: Immunity Boosting Ingredients

The market for functional foods has been growing for years. However, demand has boosted since the onset of the COVID-19 pandemic.

As COVID-19 made the immunocompromised population more vulnerable, consumers became more interested in healthy foods that boost their immune systems.

Known as “functional foods,” these ingredients claim to possess an additional function. For gut health, examples include probiotic foods that contain beneficial microbiota, including fermented foods like kefir, yogurt with live active cultures, pickled vegetables, tempeh, kombucha tea, kimchi, miso, and sauerkraut. For inflammation, ingredients like turmeric, honey, green tea extract, fish oil, and ginger provide relief.

According to Beneo, an estimated 75% of consumers plan to eat and drink healthier due to the pandemic. The global market for these ingredients is expected to grow to $117 million by 2021.

Read the report to learn more about the demand for functional foods or nutraceuticals around the globe, specifically in the E.U., USA, and India. 

Trend #3: Tastes of Home

During times of unease, unrest, and uncertainty, consumers seek comfort in foods that remind them of happier, less turbulent times.

According to The International Food Information Council, many consumers are re-creating the restaurant experience at home by using meal kits, restaurant-branded products, and more sophisticated or flavorful ingredients from artisan food producers. 

  • Meal-kit service: In 2017, the industry was valued at US$4.65 billion, representing a 300 percent growth over the previous year. Read the full report to discover the estimated growth potential of this market by the year 2022. 
  • Speedy appliances: Another popular trend reveals many consumers purchased in-home appliances to make meal preparation easier.

The dinner with the family trend seems cemented in our behaviors and habits. Before the pandemic, 18% of households ate dinner together at home every day. Read the report to see the percentage of households that eat dinner together now, post-pandemic. 

Trend #4: Transparency, Safety, and Sustainability

According to a 2020 Innova Consumer Survey, three in five global consumers say they are interested in “learning more about where their food comes from and how it is made.” The term ‘clean label,’ therefore, goes beyond ingredients. There is a need for transparency around the food being organic or additive-free, and companies need to show consumers they produced the food sustainably and humanely.

An increasing number of technologies are emerging to improve transparency, including radio-frequency I.D. tracking of ingredients throughout the supply chain and wireless/ smart technologies such as invisible barcodes.

Read the report to find out how food producers increasingly use blockchain and Internet of Things (IoT) technologies to provide information to consumers.  

Now that F&B producers and consumers are more experienced living with the pandemic, the focus is expected to shift toward sustainability. 

ADM, a food technology company, observed that nearly two-thirds of consumers want their food choices to impact the environment positively. Lux Research’s report The Food Company of 2050 also lists “increasing sustainability” as a critical factor for increasing brand awareness and market share.

Read the full report for critical insights and consumer trends impacting the Food & Beverage industry in 2022 and beyond.  

When launching a new product to market, it’s imperative to be prepared with relevant information. You need a deep understanding of your market, how your products will benefit that market, the potential challenges you might run into, and much more.

This is why it’s so important to write an in-depth, professional, and relevant market research report. Not only to gather and display all the right information but also so that you can share that information clearly and easily with people within and outside your organization. This is important for a wide range of different reasons.

In this article, we’ll look at why market research reports for product launches are so important and show you how to do it as effectively as possible.

Why market research reports are important

Conducting a detailed and relevant market research report before you launch your new product is a good idea for all kinds of reasons. Here are some of the main ones:

  • Get buy-in from senior decision-makers. When launching any product, you’ll always want the full support of the top decision-makers at your organization. This can be a tricky thing to acquire, especially if your team is relatively unproven. A detailed and informative market research report can be the deciding factor in winning their support, convincing them that your product is well-placed to succeed, and making it much easier to achieve your goals.
  • Learn more about your customers and target audience. One of the main reasons to conduct market research is to understand your prospective customers in more detail. The work you do to compile a report will give you a clear and detailed understanding of what your customers want, what they already like, where they conduct their own research, and much more. This will arm you with the insights and knowledge you need to launch your product confidently and successfully.

Discover ideas for new products and how to improve existing ones. When you research your target market, you’ll likely stumble upon inspiration for new products in addition to the one you’re planning to launch. The feedback you get from your research will also be laced with ideas for improving and tweaking existing products

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How to write a market research report effectively

In the rest of this guide, we’ll show you what you need to do to ensure your market research report is as detailed, relevant, and valuable as it possibly can be. Let’s start with the type of information you need to include.

What you need to include:

Buyer personas

This is a crucial part of getting to know your customers and the different groups they fall into. You should start by researching your target market members as much as possible through a range of channels — interviews, social media research, email surveys, and more. Then, divide them into demographics and create a detailed persona to represent each one.

This is an incredibly valuable step because it allows you to break down your market and make broad predictions about each group’s preferences, pain points, habits, and desires. If done right, this helps you target your future marketing much more accurately and effectively.

Understand your competitors

Getting to know your competitors is a key element of market research. It allows you to understand what you will be up against when launching your product and what segments of your market might be easier or more difficult to sway from their loyalty to your competitors.

Your research report should contain detailed information about each of your competitors and what they offer. What do their products lack that yours can provide? Why do your customers go to them? How dominant are they in your market? What kind of loyalty do they command? What are some of the keys to their success? All this will help you understand what you’re up against and strengthen your chances of success.

Who did you talk to?

Much of your market research will involve talking to various people and groups of people in situations like focus groups, interviews, and surveys. It’s important to document this side of your research carefully and include it in your market research report. Be sure to break down the people you spoke to into demographics and be as specific as possible — try to align this with your buyer personas.

This will help you understand what different demographics want, identify any areas you may have missed, and see any opportunities for segmentation or expansion, as well as providing clear visibility into your research process and allowing you to justify your findings and decisions to other company members carefully.

Clearly show what will happen next — how will you use your findings? 

When you present your market research report to decision-makers in your organization, their primary concern will be what you want to do with it. Research is only valuable if it has a practical application, which should be a key element of your report.

It’s best to be specific — create plans and roadmaps for campaigns, build strategies, and include timelines and carefully researched cost estimates. If you can present a clear and viable plan for your product launch, it will be much easier to gain the support and buy-in of the higher-ups in your company. Be ready to defend and justify these plans.

Primary vs Secondary Market Research

There are two main types of research you’ll need to do when preparing your market research report: primary and secondary. Here is the difference:

  • Primary research. This refers to the first-hand information you have gathered during your research — straight from the primary source. Examples include interviews with individuals, focus groups, surveys, and information from sales teams. It helps add a human touch to your research, incorporating real people’s distinct voices and opinions.
  • Secondary research. This is data that your company didn’t personally collect but is available in the form of things like public records, trend reports, and market statistics. While it lacks the specific human element of primary research, it’s a great way to gain valuable overall insights about your target market without having to conduct huge research projects yourself.

Convincing company decision-makers with your market research report

One of the most essential functions of a market research report is to convince your company’s key stakeholders that you are prepared for a product launch and have everything in place to begin the process successfully.

When creating your report, you should always have this goal in mind. Here are some ways to do that:

  • Always clearly tie your research for business outcomes. For every conclusion your report reaches, explain what this means for the business and what concrete actions you will take as a result.
  • Use as many stats and as much hard data as possible. Clearly express this data in the form of graphs and other visual aids. Show where your data came from, how you collected it, and how your findings will impact your product launch.
  • Consider using Porter’s 5 Forces Model. This business model is aimed at understanding and explaining the fundamental market forces at work in any given industry. It can be illuminating to tie your research into this model.

A well-researched and detailed market research report is an essential part of a successful product launch strategy. It allows you to clearly understand your market, formulate concrete plans and strategies, and gain the support of your organization’s decision-makers.

Without one, you’ll be plunged into the dark, facing the monumentally challenging task of launching a product without the support of extensive research and data.
To find out more about how Kadence can help you prepare a market research report and launch your product with confidence, contact us.

Food packaging is a vital and growing industry. The global food packaging market size was $304.98 billion in 2019 and is projected to reach $463.65 billion by 2027 — this is an area that no Consumer Packaged Goods business can afford to overlook.

There are many reasons why your choice of packaging is so important. Increasingly demanding customers, regulatory concerns, and the need to stand out in crowded and competitive marketplaces are just some examples.

This article will look at why it’s so important to get food packaging right, explore some of the challenges facing companies, and show you how to package your food as effectively as possible.

Why it’s so important to get food packaging right

The growing consumption of packaged food

People are eating more packaged food — the U.S. packaged food market is predicted to grow at a CAGR of 4.1% from 2021 to 2028. There are many reasons for this continued growth — e-commerce, the rise of packaged vegan alternatives, and increasingly hectic lifestyles that keep millions of consumers on the go and forced to rely on store-bought, convenient food.

All this means that packaging is increasingly important. Packaging manufacturers need to keep abreast with trends and ensure their packaging does enough to stand out.

Increasing environmental concerns and pressures

Consumers are more concerned about the environment, and their impact on it, than ever before. This has led people to be more mindful about their packaged food and to gravitate towards packaging that is more eco-friendly, recyclable, and which can prove this to them.

Companies that fail to take this into account, and persist with packaging which is obviously bad for the environment, will struggle to hold onto their more eco-aware customers as their competitors embrace greener packaging.

New technologies like Augmented Reality

Emerging technologies like augmented reality bring a whole host of compelling use cases for food packaging. Companies who can weave this technology into their packaging stand to get a major head start over their competition, wowing their customers with never-before-seen tricks and features and standing out in an entirely new way.

Protection

In the wake of the COVID-19 pandemic, people are more concerned than ever about hygiene and food safety. The right packaging is necessary to guarantee fresh, high-quality food for customers. Companies that fail to do this stand to face big reputational hits and high-profile incidents. In addition, the right packaging also helps to extend the shelf life of products, widening the window of time in which they can be bought.

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Marketing challenges and things to keep in mind

Meeting these challenges around food packaging can be tough. Companies today are faced with a wide range of challenges and things to consider when packaging their food. Here are some examples.

Standing out

As the food packaging market continues to grow, you’ll need to focus harder on grabbing your customers’ attention and competing with other brands and their packaging on the supermarket shelves. It’s no longer enough to go with basic, unimaginative packaging — even recognised and established brands now have to work hard to seize and maintain the spotlight.

Including all relevant information

Today’s consumers want to be informed. They are more environmentally conscious, health-conscious, and demanding than ever before. This means they are hungry for detailed information about where your product comes from, how it was made, exactly what it contains, and more.

Costs

As packaging becomes more advanced, sustainable, and detailed, it also often becomes more expensive. As you evolve your food packaging, you also need to consider the impact on your bottom line. Figuring out how to create the best packaging possible without taking an unacceptable financial hit can be a major challenge.

Preserving food

Ensuring your packaging keeps food as fresh as possible to prolong its shelf life has always been a big challenge for manufacturers. Developments in packaging technology have made this easier and more effective than ever before, but you have to balance this with using sustainable materials, saving costs, and promoting your brand.

How to do market research for food packaging effectively

The only way to ensure you succeed with food packaging is to conduct extensive market research in all the right areas. This helps you establish what your customers want, how feasible it would be to deliver, what your competitors are doing, and much more. Here are some guidelines for conducting effective market research for food packaging.

Get familiar with emerging technology

New technologies can provide impressive benefits for packaging. For example, Kadence partnered with Asahi to test augmented technology in packaging market research. We showed a group of customers an augmented reality model of Asahi’s packaging design, allowing them to get a real, lifelike feel for the beer from their own homes. As a result, they were able to provide more detailed and useful feedback compared to customers who only saw a 2D image.

Be rigorous with costs

Packaging costs can quickly mount up and seriously eat into your budget. It’s essential to be clear on how much your packaging will cost and ensure this is affordable. Advanced packaging can be expensive, and sometimes the extra cost isn’t worth the additional benefits.

Get to know your customers and what they want

As with all market research, the most critical step is understanding your customers and getting familiar with their pain points and what they want. Talk to them extensively through surveys, focus groups, online interactions, and use secondary research on existing market trends.

For example, if you find that your customers are particularly concerned about the environment, it’s a sign to focus more on eco-friendly packaging and to promote this in your marketing. If your customers are concerned with nutrition, be sure to highlight the health benefits of your product in your packaging.

Identify opportunities for upselling

Market research can be an excellent way to discover opportunities for upselling existing products and even find ideas for entirely new products. Your packaging, if done right, can be used to promote other products in your range and be a marketing channel in its own right.

However, the only way to achieve this is to conduct proper research, ensuring you understand all possible opportunities and identify demand in the right areas.

Today’s customers have high demands for brands. People want eco-friendly packaging, detailed information about nutrition and health, and the latest in smart packaging.

Some of your market research should focus on identifying these trends and learning more about what your specific customer base is passionate about and considers essential. This way, you’ll be able to create packaging that satisfies their demands and signals that you’re the kind of company they want to support.

Develop a strong brand voice and personality

Your packaging is the first thing your customers see about your brand. It should boldly state who you are and what sets you apart from everyone else, and clearly embody your brand’s personality.

Developing a voice for your brand takes time, but market research is a central component of that process. Your research will shed light on who your customers are, what niche you occupy, and what makes your brand and products unique. This way, you’ll be able to establish a strong and distinctive brand voice and let it shine through in your packaging.

Market research is a long and incredibly important process for all kinds of reasons, and food packaging is just one area of this. 
At Kadence, we help consumer goods companies with market research and packaging solutions, enabling them to succeed and use their resources as effectively as possible. To find out more about how we can help you do the same, contact us.