The Indian Premier League (IPL) is the biggest cricket league in the world, and it draws diverse audiences from every caste, creed, and religion. It is a mini festival, not just a cricketing event. It is also a big platform for brands to connect with audiences on a massive scale.
With its huge viewership, diverse fan base, and extensive media limelight, it presents an excellent opportunity for brands to:
Amplify their reach
Create a distinct image and
Engage with consumers in meaningful ways
In 2023, the IPL’s initial ten matches on Star Sports accumulated a staggering 6230 crore (62.3 billion) minutes of viewing time, marking a 23% increase from the prior season and reaching 30.7 crore (307 million) viewers. JioCinema’s debut week achieved 5.5 billion unique video views, while the Chennai Super Kings vs. Rajasthan Royals match on April 12, 2023, set a new record with 22 million concurrent viewers.
Brands utilise popular platforms to shape consumer perception.
IPL empowers brands to shape consumer perception and boost dealer confidence in endorsing their offerings while also providing abundant opportunities for crafting:
Effective marketing strategies, and
Engaging with the audience
Additionally, the IPL’s extended format spanning several weeks ensures prolonged brand exposure, facilitating the establishment of a lasting presence in consumers’ minds.
Engaging with Audiences
Opportunity to engage with diverse demographics, regionally and globally, through strategic campaigns and optimal platform utilisation.
Leveraging major streaming platforms helps brands:
Attract younger audiences and
Enhance brand visibility and engagement
Optimising Commercial Breaks
Commercial breaks allow brands to promote themselves effectively – with viewers waiting for the next ball or the over.
Brands can reach the audience with:
Compelling marketing strategies or storytelling to leave a lasting impression.
Partnerships within the IPL (Indian Premier League)
It is an excellent leverage for brands, offering a platform to access a broad and varied audience across multiple channels, including television, digital platforms, and in-stadium promotions
Marketing Strategy and Interaction
Advertisers prioritise promoting and engaging their advertising efforts by organising:
Contests
Offering exclusive experiences or
Creating relevant content (tapping into the emotional connection Indians share while watching matches with loved ones) to connect with the IPL’s passionate fan base
By targeting these moments, brands showcase their ads effectively. Additionally, using humor through social media posts, engaging reels, and timely IPL-related memes enhances brand values and drives maximum consumer engagement.
Lastly, the IPL’s global appeal and widespread media coverage offer brands a platform to expand their reach – beyond national borders.
Associating with the IPL allows brands to expand into:
International markets,
Target new consumer segments and
Establish themselves as global industry leaders
The Indian Premier League is a robust platform for brands to connect with vast audiences, enhance brand recognition and loyalty, and fuel business growth through strategic marketing and creative campaigns.
Brands today face a whirlwind of challenges, from the rapid pace of technological change and global uncertainties to the squeeze of rising inflation. It’s a tricky time, making us wonder if now’s the right moment for companies to dive into new or related business areas. The secret for brand leaders looking to grow is to smartly venture into new territories that build on what they’re already good at.
Companies are increasingly stepping out of their comfort zones to spark growth. Looking into adjacent markets is a savvy move. It’s about taking what you’re already great at and applying it to new but similar fields. This way, companies can grow their reach without starting from zero, using their established strengths to reduce the risks of exploring new grounds.
Think of adjacent markets as the neighbourhoods next door to your current operations: they’re close by and somewhat familiar yet offer fresh opportunities. By tapping into these areas, brands can use their existing skills, technology, or customer connections to break into markets with less competition or higher demand, setting the stage for growth.
The ability to successfully navigate and leverage adjacent market opportunities will be a defining characteristic of leading businesses.
Understanding the dynamics of adjacent markets enables companies to anticipate changes in consumer preferences, technology trends, and regulatory environments, which can significantly impact their core operations. Companies must now consider not only the direct competitors within their primary market but also those in adjacent spaces that could potentially encroach on their market share or offer alternative solutions to their customer base. Brands must adopt a more holistic market view, integrating insights from adjacent sectors into their strategic planning and decision-making processes.
Brands that successfully identify and penetrate adjacent markets can achieve significant competitive advantages, such as access to new revenue streams, enhanced brand strength, and increased market share. However, this requires a deep understanding of the new market’s intricacies and how it intersects with the company’s existing operations and strategic goals.
Take the example of Amazon and Apple, two giants that masterfully expanded into adjacent markets. Amazon transformed from an online bookstore into a cloud computing powerhouse with Amazon Web Services (AWS), identifying the need for scalable, reliable cloud services through meticulous market research and analysis of its capabilities.
Meanwhile, Apple capitalised on the growing health and fitness tracking trend by entering the wearable technology market with the Apple Watch. This move leveraged consumer trends and technological advancements and integrated seamlessly with Apple’s existing ecosystem, further solidifying its place in consumers’ daily lives.
The Role of Market Research in Identifying Adjacent Markets
Market research is foundational in identifying potential adjacent markets and offering insights into customer needs, market trends, and competitive terrains. This research takes various forms, each providing a different lens through which to evaluate opportunities for expansion beyond a company’s core offerings.
Market Research Methods for Identifying Adjacent Markets:
Consumer Surveys:
These surveys are vital for understanding existing customers’ needs, preferences, and unmet desires. Surveys can reveal how customers use products or services and what additional solutions they might seek, pointing to potential adjacent markets that align with these needs.
Industry Analysis:
This involves a comprehensive review of industry reports, market studies, and trend analyses to identify shifts in the broader market environment. Industry analysis helps companies spot emerging trends indicating ripe opportunities in adjacent sectors.
Competitive Intelligence:
Keeping a close eye on competitors’ actions can provide clues to potential market opportunities. Competitive intelligence gathering includes monitoring competitors’ product launches, expansions, and strategic moves into new markets, offering a roadmap to adjacent areas worth exploring.
Consumer Behaviour Across Sectors
Understanding how consumers behave, what they value, and how they make purchasing decisions in sectors related to a company’s current operations can reveal untapped markets and guide strategic entry into these areas. This insight is vital for tailoring product offerings, marketing strategies, and customer experiences to meet the nuanced needs of a new consumer base.
Importance of Analysing Consumer Behaviour
The study of consumer behaviour helps brands anticipate market trends, innovate product offerings, and differentiate themselves from competitors. In adjacent markets, where a company might need more direct experience, insights into consumer behaviour can inform risk management and investment strategies, ensuring resources are allocated to ventures with the highest potential for return.
Moreover, understanding consumer behaviour across sectors allows brands to comprehensively view their target customers’ lives, identifying cross-selling and upselling opportunities that enhance customer value and loyalty.
Techniques for Gathering and Interpreting Data
Segmentation Analysis: This involves dividing the market into distinct segments based on various criteria such as demographics, psychographics, and buying behaviours. Segmentation helps companies understand different consumer groups’ specific needs and preferences, making it easier to identify and target potential customers in adjacent markets.
Ethnographic Research: Ethnographic studies involve observing consumers in their natural environment to gain insights into their daily lives, behaviours, and interactions with products or services. This qualitative research technique is beneficial for understanding the context of product use and uncovering unmet needs that can be addressed in adjacent markets.
Big Data Analytics: Leveraging big data tools to analyse vast amounts of consumer data from social media, online transactions, and other digital footprints can reveal patterns, trends, and preferences. Advanced analytics and machine learning models can predict consumer behaviour, identify emerging market opportunities, and inform product development and marketing strategies.
Customer Journey Mapping: This technique involves creating detailed maps of the customer’s journey to purchase and use a product or service. Understanding the touchpoints, pain points, and moments of delight throughout this journey can highlight opportunities for innovation and improvement in adjacent markets.
Analysing Competitors in Adjacent Markets
Understanding the competitive outlook in adjacent markets is crucial for companies seeking to expand their reach and capitalise on new opportunities. Analysing competitors who are either venturing into these markets or are already established players provides valuable insights into potential challenges and strategies for differentiation. Here’s how brands can effectively monitor and analyse their competition in adjacent markets.
Strategies for Monitoring and Analysing Competitors:
Competitive Benchmarking: This involves comparing your company against competitors on key performance metrics, including product offerings, market share, pricing strategies, and customer service. Benchmarking helps identify best practices and areas for improvement, guiding strategic decisions in adjacent markets.
Social Listening and Online Monitoring: Utilising social media platforms and online forums to track competitors’ activities, customer feedback, and market trends can offer real-time insights into their strategies and performance. This information can be crucial for identifying emerging opportunities and threats in adjacent markets.
Market Intelligence Gathering: Subscribing to industry reports, attending trade shows, and networking within industry circles are effective ways to gather intelligence on competitors’ movements. This ongoing process helps companies stay informed about new entries, product launches, and strategic shifts in adjacent markets.
Tools and Methods for Competitive Analysis:
SWOT Analysis: A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a foundational tool for assessing your company’s and competitors’ internal and external environments. Applying SWOT analysis in the context of adjacent markets helps identify where your competitors have an advantage and where opportunities for your business lie.
Porter’s Five Forces Model: This framework evaluates a market’s competitive intensity and attractiveness. The five forces include the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services, and the intensity of competitive rivalry. Applying Porter’s Five Forces to adjacent market competition can reveal insights into the market’s profitability and help formulate strategies to achieve competitive advantage.
Competitive Intelligence Software: Various software tools are designed to track competitors’ online activities, from website changes to social media engagement and SEO strategies. These tools can automate competitive intelligence gathering, providing actionable insights with less effort.
Customer Feedback Analysis: Engaging with your customers to gather competitor feedback can provide unique insights into their strengths and weaknesses. This can be done through surveys, focus groups, or one-on-one interviews, offering a direct perspective on the competitive landscape.
Key Trends Driving Adjacent Market Competition
Adjacent market competition is continually evolving, driven by several overarching trends. Technological advancements, globalization, and changing consumer behaviours are pivotal forces reshaping industries and compelling brands to explore opportunities in adjacent markets. Understanding these trends is essential to stay competitive and capitalise on new growth avenues.
Technological Advancements:
Rapid innovations in technology are a primary driver of adjacent market competition. Advancements in artificial intelligence (AI), blockchain, Internet of Things (IoT), and 5G connectivity are creating new platforms and tools for brands to innovate their product offerings and operational processes. These technologies enable companies to enter previously inaccessible markets, offering products and services that better meet the evolving needs of consumers. For instance, AI and big data analytics have opened new possibilities in personalised marketing, predictive maintenance, and customer service, pushing companies to venture into markets that leverage these technologies.
Globalization:
Globalization has made the world more interconnected, allowing brands to access markets beyond their geographical boundaries easily. Advancements in transportation, logistics, communication technologies, trade agreements, and regulatory harmonizations facilitate this expansion. Brands are increasingly looking at adjacent markets domestically and internationally, seeking to exploit global trends and consumer segments with similar needs across different regions. Globalization has also intensified competition, as companies from other parts of the world can compete in the same markets, driving brands to innovate and explore new markets to sustain growth continuously.
Changing Consumer Behaviors:
Consumer preferences and behaviours are changing at an unprecedented pace, influenced by technological advancements, environmental concerns, and social dynamics. There is a growing demand for personalised, sustainable, and digitally accessible products and services. Consumers are more informed, connected, and empowered to make choices that reflect their values and lifestyles, pushing companies to reassess their market offerings and explore adjacent sectors that align with these evolving consumer demands. For example, the rise in environmental consciousness has spurred brands to explore adjacent markets in renewable energy, sustainable packaging, and eco-friendly products.
Impact on Industries:
These trends reshape industries by blurring traditional boundaries and creating fluid market ecosystems. For instance, companies in the technology sector are venturing into healthcare through wearable devices and telemedicine services, driven by technological advancements and changing consumer expectations. Similarly, automotive manufacturers are exploring adjacent markets in electric vehicles and autonomous driving technologies, responding to technological innovations and shifts in consumer demand toward sustainability and safety.
The convergence of technological advancements, globalization, and changing consumer behaviours drives competition in adjacent markets and offers opportunities for brands to innovate, diversify their offerings, and achieve sustainable growth.
Successes and Failures in Adjacent Market Entry
Exploring adjacent markets presents companies with opportunities for growth and diversification. However, success is not guaranteed, and the business world has seen triumphant expansions and cautionary tales of failure. Analysing these real-world examples offers invaluable insights into the strategies that work and the pitfalls to avoid.
Case Study: Dyson’s Strategic Entry into the Blow Dryer Market through Innovation
Background
Dyson, renowned for its revolutionary approach to the vacuum cleaner market, has long been synonymous with innovation and design excellence. Founded by James Dyson, the company has consistently sought to challenge conventional product design and performance standards. Leveraging its core competencies in air manipulation and motor technology, Dyson made a bold move into the personal care market, specifically targeting the blow dryer segment with the launch of the Dyson Supersonic hair dryer.
Objective
The primary objective behind Dyson’s entry into the blow dryer market was to redefine the category through superior technology and innovation. Dyson aimed to solve common problems associated with traditional hair dryers, including excessive weight, noise, and heat damage to hair. The company sought to leverage its airflow and temperature control expertise to create a product that performed better than traditional hair dryers and offered a significantly improved user experience.
Image Credit: Dyson website
Strategy
Dyson’s strategy for entering the blow dryer market was rooted in its foundational commitment to research and development (R&D). The company invested £50 million in developing the Supersonic hair dryer, involving a team of engineers and scientists who worked on the project for four years. This extensive R&D process included the creation of over 600 prototypes and using advanced technology such as digital motors and air multiplier technology to innovate the product’s design and functionality.
Key elements of Dyson’s strategy included:
Innovative Design: The Dyson Supersonic featured a unique design that placed the motor in the handle, redistributing weight for better balance and reducing arm fatigue.
Advanced Technology: Utilising Dyson’s digital motor, the Supersonic offered fast drying times and precise temperature control to minimise heat damage, setting it apart from competitors.
Market Education: Dyson invested in marketing campaigns that educated consumers about the technological advancements and benefits of the Supersonic, differentiating it from traditional hair dryers.
Outcome
The Dyson Supersonic was met with critical acclaim upon its launch. It disrupted the personal care industry by setting new standards for performance and design in the blow dryer market. The product’s success showed Dyson’s innovative capabilities and ability to enter and compete effectively in an adjacent market.
Sales Growth: The Supersonic contributed significant sales growth for Dyson, expanding the company’s product portfolio and entering new consumer segments.
Brand Strengthening: Dyson’s brand reputation for innovation and quality was further cemented, enhancing its competitive advantage in existing and new markets.
Market Disruption: Dyson’s entry challenged competitors to innovate, elevating overall market standards for hair care technology.
Lessons Learned
Dyson’s successful foray into the blow dryer market shows the value of leveraging core competencies to enter adjacent markets. The company’s focus on solving user problems through technological innovation and design excellence proved to be a winning strategy. Key lessons include:
Leverage Existing Strengths: Dyson’s use of its air manipulation and motor technologies in a new product category demonstrates the power of building on existing competencies.
Commit to R&D: The substantial investment in research and development was crucial in creating a product that stood out from the competition.
Educate the Market: Dyson’s efforts to inform consumers about the Supersonic’s benefits were critical to its acceptance and success.
Other examples:
Netflix’s Evolution from DVD Rentals to Streaming
Background: Netflix began as a DVD rental service, mailing discs to customers. Recognising the potential of the internet to change how people consume media, Netflix pivoted to streaming, entering an adjacent market that was nascent at the time.
Strategy: The company invested heavily in technology infrastructure and content licensing, eventually producing its own content to ensure a competitive advantage.
Outcome: Netflix’s foray into streaming transformed the entertainment industry, making it the leader in online streaming with millions of subscribers worldwide.
Lessons Learned: Netflix’s success stresses the importance of foresight in recognising market shifts, the willingness to cannibalise existing products for future growth, and the need to continuously invest in product innovation.
Kodak’s Late Entry into Digital Photography
Background: Kodak, once a titan in the photography industry, failed to adapt promptly to the digital photography revolution. Despite inventing the core technology used in digital cameras, Kodak hesitated to shift focus from its profitable film business to digital ones.
Strategy: The company’s entry into digital cameras and printing kiosks came too late, and it struggled to compete against more agile competitors that had embraced digital technology early on.
Outcome: Kodak’s failure to pivot quickly and decisively to digital photography led to a significant decline in its market share and eventual bankruptcy in 2012.
Lessons Learned: Kodak’s story is a cautionary tale about the dangers of ignoring industry trends and over-relying on existing revenue streams. It highlights the necessity of embracing innovation and being willing to disrupt one’s own business before competitors do.
Best Practices Derived from Case Studies:
Anticipate Industry Changes: Companies should continuously scan the horizon for technological and consumer behaviour trends that may impact their industry. Early recognition of these shifts can provide a first-mover advantage in adjacent markets.
Leverage Core Competencies: Successful entry into adjacent markets often involves applying existing strengths in new ways. Netflix used its expertise in content distribution to revolutionise content consumption.
Embrace Innovation: Companies must be willing to innovate and disrupt their existing operations to stay relevant. This might mean cannibalising current products or services to pave the way for future growth.
Understand the New Market: Thorough market research is crucial to understanding the needs, preferences, and dynamics of the adjacent market. This knowledge should inform strategy and execution.
Adapt and Evolve: Flexibility and willingness to pivot are critical. Kodak’s failure to embrace digital photography quickly is a stark reminder of what happens when companies fail to adapt.
Strategies for Successful Market Entry and Growth
Entering and thriving in adjacent markets requires a well-considered strategy that leverages the company’s strengths while addressing the unique challenges of the new market. Key strategies include forming partnerships, pursuing acquisitions, and fostering organic growth. Central to these strategies are innovation, customer-centricity, and agility.
Partnership:
Leveraging Relationships: Strategic partnerships with established companies in the target market can provide valuable insights, access to customer bases, and shared resources. Partnerships can reduce entry barriers and risks associated with unfamiliar markets by leveraging the partner’s local knowledge and operational capabilities.
Co-Development: Collaborating on product development or marketing efforts can allow brands to combine strengths, share costs, and mitigate risks. This approach is particularly effective in markets where technological expertise or customer trust is paramount.
Acquisition:
Rapid Market Entry: Acquiring a company in the target market is a faster route to entry than building a presence from scratch. It provides immediate access to established customer bases, distribution channels, and, potentially, a reputable brand.
Integration Challenges: Post-acquisition, integrating operations, cultures, and strategies is crucial. Successful integration involves aligning the acquired company’s strengths with the parent company’s strategic goals while maintaining the unique attributes that made the acquisition attractive.
Organic Growth:
Building from Within: Companies might choose to enter adjacent markets through organic growth, leveraging existing resources, and gradually building their presence. This approach allows for a deep understanding of the new market, though it may require significant time and investment.
Flexibility: Organic growth offers flexibility to experiment and iterate on strategies based on real-time market feedback. It supports a gradual ramp-up in investment, aligned with market response and growth opportunities.
Cross-cutting Strategies:
Innovation: Continual product, service, and business model innovation is essential to differentiate and remain competitive in new markets. Innovation should be driven by customer needs and market gaps identified through research.
Customer-Centricity: Understanding and addressing customers’ specific needs, preferences, and pain points in the adjacent market is critical. A customer-centric approach ensures that offerings are relevant and valued, fostering loyalty and adoption.
Agility: The ability to quickly respond to market feedback, adapt strategies, and pivot when necessary is vital in adjacent markets. Brands must cultivate a culture that supports rapid learning and decision-making to seize opportunities and address challenges effectively.
The Future of Adjacent Market Competition
As companies continue to seek growth and differentiation, exploring adjacent markets is set to become more prevalent and strategic. The future of adjacent market competition will be shaped by several key trends, with emerging technologies and innovative business models playing pivotal roles in creating new opportunities and challenges.
Predictions for Adjacent Market Competition
Increased Blurring of Industry Boundaries:
The convergence of different industries, fueled by technological advancements, will likely accelerate. For example, tech, healthcare, finance, and retail brands will compete and collaborate in ways that blur traditional market boundaries. This convergence will drive companies to explore and enter adjacent markets as part of their core growth strategies.
Greater Emphasis on Ecosystems:
Brands will increasingly look to build or join ecosystems that offer complementary products and services, enhancing value for customers. These ecosystems enable brands to extend their reach into adjacent markets through partnerships and collaborations, leveraging shared platforms and data to innovate and create seamless customer experiences.
Customization and Personalization:
As technology enables deeper insights into consumer behaviour, brands will compete on their ability to offer personalised and customised solutions. This trend will push companies into adjacent markets where they can leverage their data and analytics capabilities to meet specific customer needs and preferences.
Sustainability and Social Responsibility:
Consumer demand for sustainability and social responsibility will drive brands to explore adjacent markets focused on eco-friendly products, services, and practices. This shift will open new market opportunities and require brands to innovate across their operations and supply chains.
Role of Emerging Technologies and Business Models for Identifying Adjacent Markets:
Artificial Intelligence and Machine Learning: AI and machine learning will continue to drive innovation, enabling brands to analyse data more effectively, predict trends, and personalise offerings. These technologies will open up new adjacent market opportunities by creating efficiencies and capabilities that were previously unattainable.
Blockchain: Blockchain technology is poised to revolutionise various industries by enabling secure, transparent transactions and data management. Its potential for facilitating trust in transactions, managing supply chains, and verifying the authenticity of products will create opportunities in markets adjacent to finance, manufacturing, and retail, among others.
Digital Platforms and Marketplaces: The rise of digital platforms and marketplaces will continue facilitating entry into adjacent markets. These platforms lower barriers to entry, allowing companies to reach new customers and offer new products or services with relatively low upfront investment.
Subscription and As-a-Service Models: The shift toward subscription and as-a-service business models will create opportunities in adjacent markets by changing how consumers access and pay for products and services. This model encourages ongoing customer engagement and provides companies with a steady revenue stream, supporting sustained investment in innovation.
The future of adjacent market competition hinges on integrating technology, blurring industry boundaries, and adopting innovative business models. Agile, innovative, and customer-centric companies stand the best chance of seizing opportunities in these new territories. The cornerstone of successful market entry and growth lies in robust market research. This enables informed strategy development tailored to consumer demands and market trends and equips companies to stay ahead in a competitive marketplace. Prioritising market research and strategic adaptation is essential for any brand aiming for long-term success and leadership in the business world.
“Alexa, should we invest in voice technology?”
The chase for ease and convenience shapes how we shop today, transforming retail. The rise of voice commerce or voice shopping is at the centre of this change. We’re moving toward a world where buying things is as simple and quick as saying what we want out loud. Thanks to voice-activated gadgets, we’re getting a sneak peek at a future where shopping is effortless and fast and redefines what it means to be a consumer.
This transformation is powered by the rapid adoption of smart speakers, which have become the fastest-spreading technology since the smartphone, changing the way we interact with our devices. In 2022, 48% of consumers in the UK used voice search to make purchases, highlighting a 12% increase from the previous year. In the United States, 60% of e-commerce shoppers turn to their voice-activated assistants for daily or weekly purchases, demonstrating the convenience and growing trust in this technology.
Artificial intelligence is at the heart of this revolution, crafting new business models and accelerating our journey into a digitally transformed future where our interactions with technology are as natural as conversation. With the National Retail Federation noting an 83% increase in the value consumers place on convenience over the past five years, it’s clear that voice commerce is not just a passing trend but a fundamental shift in consumer behavior.
Voice commerce is gaining traction and setting new standards for how we engage with technology to make our lives easier. From placing orders online to searching for products and getting a news briefing, all it takes is a simple command – “Hey, Alexa” or “Okay, Siri” or “Hello, Google”– to bridge the gap between human intent and digital execution.
The Evolution of Voice Commerce
Voice shopping has come a long way, turning from a cool tech gadget into a daily convenience.
Remember when talking to your phone was a bit out there? Then came devices like the Amazon Echo in 2014, and suddenly, shopping with a simple voice command became the new normal. Thanks to Natural Language Processing, our voice-activated assistants got really good at picking up what we need, making shopping hands-free a breeze.
Amazon, Google, and others didn’t stop there.
They’ve been making their voice assistants smarter and more intuitive, transforming voice shopping into how many people shop. Take Amazon’s Echo Auto as an example – Alexa can now tag along in your car, turning voice commerce into a convenience that follows you everywhere.
This shift to voice shopping is more than a trend; it’s a bigger move toward seamlessly blending our digital and physical worlds. As these voice gadgets get woven into our daily lives, the line between online and offline shopping is fuzzier. We’re heading into a future where voice shopping is a key player in how we shop.
The State of Voice Commerce Today
Today, voice commerce represents a significant and expanding segment of the digital economy, with a market valuation of $40 billion in 2022. This figure reflects not just current consumer behavior, but also a strong indicator of the trajectory voice commerce is expected to take in the coming years.
Amazon Echo and Google Assistant are at the forefront of the voice commerce movement, quickly becoming staples in our homes. They’ve established a new norm for voice shopping —it must be quick, easy, and reliable.
Their popularity is undeniable, with nearly half of U.S. internet users owning a smart speaker, many of whom use it to shop. The skyrocketing search interest for products like “Echo Auto,” which brings Alexa into cars, shows a 131% jump over five years, highlighting the growing demand for voice shopping at home and on the go.
Voice commerce is booming, driven by tech innovations and increasing consumer interest. As technology evolves and people get more comfortable with voice interactions, the possibilities for effortless shopping experiences seem limitless.
Voice Commerce and Today’s Shopper
Voice commerce is booming, hitting a whopping $40 billion market value in 2022! Clearly, talking to our gadgets to shop isn’t just a phase—it’s a fast-growing part of how we buy. Amazon Echo and Google Assistant lead the charge, making voice shopping a breeze in homes everywhere. They’ve set the bar high: shopping must be quick, easy, and just a command away.
With Echo gadgets everywhere and Google Assistant on almost every Android phone, it’s no surprise that nearly half of all U.S. internet users have a smart speaker. Many are using it to shop, showing we’re all in on this trend. Interest in gadgets like Echo Auto, which brings Alexa into cars, has soared by 131% in five years, proving we love the convenience of voice shopping both at home and on the move.
A key study found that 62% of voice device users will likely purchase within a month. Voice shopping is changing how and what we buy, with groceries, household items, and entertainment products leading the charge in voice purchases. This comfort and trust in voice shopping come from better voice recognition, personalised experiences through AI, and secure transaction processing.
The rise of voice commerce isn’t slowing down. Thanks to tech advancements and our growing comfort with talking to our devices, the future of shopping looks like it’ll be as easy as speaking out loud. The possibilities are endless.
The Technology Behind Voice Commerce
The core of voice commerce lies in the sophisticated technology that powers voice-activated shopping, primarily through natural language processing (NLP), artificial intelligence (AI), and machine learning (ML). They work (in tandem) to understand, interpret, and respond to user commands, transforming voice inputs into actionable tasks, such as searching for products, adding items to a cart, and completing purchases. In a nutshell, these are the brains that let our devices understand us, turning our spoken words into actions.
Natural Language Processing (NLP): NLP is the foundation of voice commerce, enabling devices to comprehend human language in its natural form. This involves parsing spoken words, understanding context, and deciphering user intent. It helps these devices grasp human speech in all its complexity, figuring out what we mean, even when we’re vague or our grammar’s off. It’s why our voice commands don’t have to sound like robot talk.
Artificial Intelligence and Machine Learning: AI and ML elevate the voice commerce experience by allowing systems to learn from interactions and improve over time. They are the reason your voice assistant seems to get you better over time. AI crunches through tons of data to pick up on your shopping habits and preferences, making recommendations that feel personalised. ML is where your device learns from every interaction, getting smarter about what you like and how you say things.
Imagine your voice assistant reminding you to restock your favorite coffee or suggesting a new flavor because it knows what you like. That’s AI and ML in action, making shopping not just easier but also a bit more personal.
Behind the scenes, these technologies also help brands optimise everything from stock levels to customer service. They can predict trends, tailor marketing, and ensure a smooth shopping experience.
Plus, with voice biometrics, payments are just a word away, and they’re secure because your voice is about as unique as your fingerprint.
Voice Commerce as a Tool for Retail Brands
Voice commerce is revolutionising how retailers and brands connect with their customers, offering a personal touch like never before. It’s not just about making sales; it’s about opening a direct line for communication and tailored services, all while gathering precious insights into what customers want. This goldmine of data is a game-changer for product development, marketing, and keeping shelves stocked just right.
Take Walmart and Apple’s strategic partnership, for example, with Siri-enabled shopping. Through this partnership, Walmart customers can use Siri to add items to their shopping carts to take the hassle out of grocery runs. This integration enhances the customer experience and positions Walmart as an innovator in retail, leveraging technology to simplify and personalise shopping.
This isn’t just about making life easier for shoppers; it’s a strategic move that sets Walmart apart as a forward-thinking leader in retail.
Voice commerce is drumming up leads and keeping customers hooked. It’s about turning casual browsers into loyal buyers with seamless product discovery and purchases, all through natural conversation. This approach spikes sales and builds a bond between brands and consumers. Imagine getting a nudge from your voice assistant to restock an essential ingredient while you’re in the middle of cooking something– that’s the kind of in-the-moment service that can turn a regular day into a standout customer experience. Voice commerce isn’t just changing the game; it’s redefining the shopping journey, making it more intuitive and connected.
The Role of Voice Commerce in Lead Generation and Customer Engagement
Voice commerce serves as a powerful tool for lead generation and customer engagement. By integrating voice commerce capabilities, brands can make it easier for customers to discover products and make purchases, thereby increasing sales opportunities.
Voice interactions offer a more natural and engaging way to connect with consumers, fostering loyalty and enhancing brand perception. Voice commerce can significantly boost customer engagement and satisfaction through personalised recommendations and proactive customer service (such as reorder reminders or promotional notifications).
Voice commerce also enables brands to tap into moments of need in real-time, like when you are crafting your morning cup of coffee, only to discover your favorite blend is running low. With voice commerce, there’s no need to pause your brewing or jot down a reminder for later. Instead, you can call your voice assistant to reorder your coffee then and there, seamlessly integrating shopping into your daily life without missing a beat. This instant response saves the day and cements the brand as an indispensable part of your daily ritual. By being present in these moments, brands can capture sales they might otherwise miss and build a more intuitive shopping experience that anticipates and meets consumer needs.
The Future of Voice Commerce
The course of voice commerce looks incredibly promising, leading us to a world where our interactions with technology are more natural and intuitive than ever.
As voice-activated devices become more ubiquitous and intelligent, the scope of voice commerce is expected to broaden, encompassing a wider array of services and industries and reaching more people with improved voice recognition that understands everyone, no matter where they’re from or how they speak.
Expansion of Capabilities and Adoption of Voice Commerce
Predictions for the future of voice commerce suggest a move beyond simple transactions to become an integral part of the omnichannel retail experience. This includes more sophisticated AI-driven personalisation, where voice assistants can anticipate needs and make suggestions based on past behaviour, time of day, and even mood or tone of voice. Integration with IoT devices will further streamline the shopping process, allowing for seamless reordering of products as soon as they run low, without any prompt from the user.
Imagine your voice assistant knowing you so well it can tell when you’re running low on your favorite snacks and orders more before you even have to ask or suggest a new book it knows you’ll love based on your mood and past likes. It’s like having a personal assistant who’s always one step ahead.
Improvements in voice recognition technology will also make these systems more accurate across various languages and accents, increasing their accessibility and appeal.
Potential Challenges and Areas for Improvement In Voice Commerce
Despite its promising future, voice commerce faces several challenges that could hinder its growth. Privacy concerns are at the forefront, with consumers wary about the potential misuse of data collected through voice interactions. Enhancing security measures and ensuring transparent data usage policies will be crucial for maintaining consumer trust.
Another area for improvement is voice recognition accuracy, especially in noisy environments or for users with strong accents. Continuous improvements in NLP and context understanding are necessary to overcome these hurdles, making voice commerce more reliable, user-friendly, and accessible.
Evolving Competition Market
The domain of voice commerce is characterised by intense competition among tech giants like Amazon, Google, and Apple, each vying for a larger market share. This competition drives innovation, leading to rapid advancements in voice technology and expanded service offerings.
However, it also challenges smaller players trying to enter the space. The future will likely see collaborations between tech companies and traditional retailers, leveraging each other’s strengths to deliver a more comprehensive voice shopping experience.
And as voice commerce becomes more prevalent, there is potential for disruption in traditional retail and e-commerce models. Retailers must adapt to this new mode of consumer interaction, integrating voice technology into their sales strategies to stay relevant.
Emerging Trends in Voice Commerce
Technological advancements, broader adoption across demographics and geographies, and deeper integration into both the digital and physical aspects of the shopping experience will characterise the evolution of voice commerce in the coming years. As these trends unfold, voice commerce will play an increasingly central role in shaping consumer behaviour and the future of retail.
Increased Personalisation Through AI
Voice commerce will leverage more advanced AI algorithms to offer highly personalised shopping experiences. These systems will recognise individual users and understand their preferences, purchase history, and future needs.
Expansion into New Markets and Demographics
As voice technology becomes more sophisticated and accessible, its adoption will expand beyond current markets, reaching older generations and non-English speaking countries. This expansion will be facilitated by improvements in language processing and the development of culturally aware AI models that can navigate the nuances of various languages and dialects.
Seamless Multimodal Interactions
Future voice commerce experiences will likely integrate more seamlessly with other forms of interaction, such as visual displays on smart screens or haptic feedback on mobile devices. This multimodal approach will enhance the shopping experience, allowing users to, for example, ask a voice assistant to show a product on a screen and then use touch to view different angles or customise options.
Voice-Activated Payments
As security technologies evolve, voice-activated payments will become more common, enabling users to complete transactions without reaching for their wallets or manually entering payment information. This development will hinge on advanced voice recognition and biometric security measures, ensuring that transactions are convenient and secure.
Greater Integration with Offline Retail
Voice commerce will increasingly bridge the gap between online and offline retail, integrating in-store experiences to offer a unified shopping journey. For example, customers might use voice commands to locate items within a store or reserve products for pickup. Retailers could also use voice-activated devices to provide personalised recommendations or promotions based on the shopper’s in-store behaviour and preferences.
Ethical and Privacy Considerations
As voice commerce becomes more embedded in consumers’ lives, ethical and privacy concerns will emerge. Consumers, regulators, and companies will need to navigate issues related to data collection, consent, and the potential for surveillance. Transparent policies and robust security measures will maintain trust in voice commerce platforms.
Competition and Collaboration
Tech giants, startups, and traditional retailers increasingly collaborate to offer comprehensive voice commerce solutions. This could lead to a more diverse ecosystem of voice-enabled services and devices tailored to different sectors, use cases, and consumer needs.
Voice commerce is revolutionising retail, turning shopping into an immersive dialogue between consumers and technology. This evolution from tactile and visual interactions to conversational commerce is not just a change in how we buy but a significant step toward a future where technology can understand and anticipate our needs with minimal effort on our part.
We’re moving toward an era where your voice does more than communicate desires—it triggers a system that knows you, offering suggestions and making decisions that feel intensely personal and tailored. We live in a world where our voice assistant knows our favorite products and predicts our needs, reminding us to restock essentials before we run out or discover new items that fit our taste and budget.
Voice commerce promises a future where shopping is easier and smarter, transforming every interaction into a personalised journey. This isn’t just about buying; it’s about creating a seamless, intuitive experience that feels like second nature, blending the boundaries between our digital and physical lives even further.
A tech company buzzes with anticipation over a groundbreaking product idea promising to redefine its market. Behind the scenes, excitement unites teams across departments, from engineering drafting the first blueprints to marketing strategising the big reveal. There’s a palpable energy as developers discuss potential features, designers brainstorm aesthetics, and sales teams forecast demand.
Nothing energises organisations more than launching a new product. This exciting phase boosts team morale and shareholder confidence and sharpens the competitive edge of brands, setting them apart in a crowded marketplace.
However, this initial euphoria can be short-lived as the journey from concept to market often encounters hurdles, like products losing focus, teams grappling with burnout, and innovations arriving too late.
So, why do products often miss the mark?
Here are some common pitfalls of New Product Development:
Lack of Product Uniqueness: A product might lack the distinctiveness to stand out without exploring a comprehensive range of solutions. This risk magnifies when an organisation rushes to lock down a concept without considering various perspectives or potential market shifts.
Shifting Market Realities: A common pitfall is failing to account for market changes or making assumptions about distribution channels. This can lead to a project that starts with a simple concept but ends up burdened with unnecessary features, prolonging development and leading the product astray from its original mission. For instance, a start-up in the sustainable energy sector might begin designing a basic solar panel solution but end up integrating smart technology features that delay the project and dilute its core value proposition.
Technical Hurdles Overlooked: Overestimating a company’s technical prowess or underestimating the project’s complexity can lead to significant delays. A tech firm developing an advanced AI-driven analytics platform might be stalled by unforeseen technical challenges, lacking the necessary expertise or innovations to proceed as planned.
Function Misalignment: Discrepancies between different departments’ expectations and capabilities can derail a product’s development. An example is a company designing a revolutionary health tracker that requires cutting-edge manufacturing techniques, which the company’s factories cannot produce at scale or within cost targets.
Underestimating User Experience Design: Failing to prioritise user experience design can result in a product that’s technically sound but difficult or unpleasant to use. Consider a software company developing a powerful new project management tool that is too complex for the average user, leading to low adoption rates despite its advanced features.
Neglecting Regulatory Compliance: Overlooking the regulatory requirements specific to the industry can cause significant setbacks or even halt a product launch. A pharmaceutical company developing a new drug might encounter delays if it fails to align its development process with stringent regulatory standards.
Countless new products go nowhere, and all have one root cause: inadequate Market Research.
Launching a product without understanding the target market’s needs and preferences can lead to misaligned product features. For instance, a food and beverage company might launch a new energy drink without realising its target demographic prefers natural ingredients over synthetic supplements, resulting in poor sales.
While no strategy can eliminate product development uncertainties, thorough planning, grounded in comprehensive market research and cross-functional collaboration, can navigate these complexities more effectively.
Market Research: The Compass of New Product Development
So, amid this whirlwind of new product development activity, one tool ready to guide the brand’s efforts toward success is undoubtedly market research —the unsung hero poised to turn their vision into a market-ready reality.
Market research provides a foundation for decision-making that can mean the difference between a product’s success and failure. It offers insights into what consumers truly want, not just what a company thinks they need. This intelligence informs product design, positioning, and marketing strategies to introduce the product to the market.
It also identifies the size of the opportunity, helping to forecast demand and potential revenue, thereby shaping investment decisions and prioritising features based on what will deliver the most value to the target audience.
Consider the development of the first smartwatches. Early entries into the market focused primarily on technology enthusiasts, offering features like message notifications, app integrations, and Bluetooth connectivity.
However, market research conducted by a leading technology company revealed a broader potential audience: the health-conscious consumer.
This insight led to a pivotal shift in product development strategies. The next generation of smartwatches incorporated advanced health monitoring features such as heart rate sensors, sleep trackers, and even electrocardiogram (EKG) capabilities.
The result?
A product that resonated deeply with consumers, transcending its original tech-savvy base to reach a broader audience that valued health and wellness. This expanded market appeal led to increased sales, higher market penetration, and the establishment of the smartwatch as a must-have accessory for the health-conscious individual.
When brands understand the consumer’s voice, they can tailor their innovations to meet real, sometimes unarticulated, needs.
The Scope of Market Research throughout the product lifecycle
Market research permeates every facet of the product development process, from the initial conception of an idea to its launch and market entry.
Critical components of market research in this context include:
Market Analysis: Understanding the market size, growth, and trends to identify opportunities and challenges.
Customer Insights: Gathering data on customer demographics, preferences, needs, and buying behaviours to tailor the product accordingly.
Competitive Intelligence: Analysing the competitors’ strengths, weaknesses, market positions, and strategies to identify differentiators and market gaps.
Concept Testing: Evaluating consumer responses to the product concept to validate its appeal and refine its features.
Pricing Strategy: Assessing the market to set a competitive price that aligns with customer expectations and value perceptions.
Distribution Channels: Identifying the most effective ways to reach the target market, considering both traditional and digital channels.
Promotional Strategy: Developing marketing strategies based on insights into customer preferences and behaviours.
Types of Market Research Methodologies Used in New Product Development.
Quantitative and Qualitative Research are two primary market research methodologies in informing new product development. These approaches, distinct in their methods and insights, work in tandem to provide a comprehensive understanding of the market, consumer preferences, and potential product impact.
Quantitative Research is characterised by its ability to gather data that can be quantified and subjected to statistical analysis.
This type of research excels in answering “how many?” and “how much?” questions, providing hard numbers that can inform decisions on market size, consumer demographics, and measurable customer behaviours.
Surveys with closed-ended questions, structured interviews, and secondary data analysis are common methods used to collect quantitative data. The strength of quantitative research lies in its objectivity and the ability to generalise findings across larger populations, making it invaluable for assessing market potential and forecasting demand.
Qualitative Research, on the other hand, delves into the “why” and “how” behind consumer choices and behaviours. It seeks to understand motivations, attitudes, and feelings through in-depth interviews, focus groups, and observation. This type of research is interpretive, providing rich insights into consumer needs, experiences, and preferences that might not be evident through numbers alone.
Qualitative research shines in exploring new concepts, testing product ideas, and uncovering underlying consumer sentiments that can shape product development and positioning.
The role of market research in segmenting customers
Market research helps in identifying various bases for segmenting a market, such as demographics (age, gender, income level), psychographics (lifestyle, values, attitudes), geographic locations, and behaviour (purchase habits, usage rates). Companies can uncover patterns and trends that inform how the market can be segmented by analysing data collected through surveys, focus groups, and other research methods.
For example, a company launching a new fitness app might use market research to discover that its primary audience segments include busy professionals looking for quick workouts, fitness enthusiasts seeking advanced training programs, and beginners needing guidance and motivation. Each of these segments has distinct needs, preferences, and pain points, guiding the app’s feature set, user experience design, and marketing messages.
The role of market research in identifying potential customers
Market research helps not only segment the market but also identify the potential customers within those segments. It provides insights into the characteristics of consumers most likely to purchase the product, their decision-making processes, and the channels through which they can be reached most effectively.
For instance, knowing that busy professionals value efficiency and flexibility, the fitness app company might highlight features such as short, customisable workouts and on-the-go accessibility in its marketing efforts targeting this segment.
The role of market research in analysing the competition
Market research aids in the identification of direct and indirect competitors, providing a clear picture of the market ecosystem. It involves collecting data on competitors’ product offerings, pricing strategies, distribution channels, marketing tactics, and customer service practices. This information can be gathered through various means, including public records, customer surveys, competitor websites, and social media analysis.
Beyond identifying competitors, market research delves into their performance and strategies. It evaluates their market share, growth trajectories, and the factors driving their success or failure. This analysis helps uncover gaps in the market that the new product can fill, identify areas where competitors are underperforming, and spot emerging trends that could affect competitive dynamics.
Equipped with a thorough understanding of the competitive landscape, companies can strategically position their product to capitalise on market opportunities. Market research informs the development of a unique value proposition (UVP) that differentiates the product from competitors. This differentiation could be based on features, quality, price, customer service, or any combination of factors that resonate with the target audience.
For example, if market research reveals that consumers are dissatisfied with the complexity and user-unfriendliness of existing products in a category, a company could position its new offering as a simpler, more intuitive solution. This positioning directly addresses a gap in the market, appealing to consumers seeking an alternative to the status quo.
How insights from Market Research can inform product differentiation and positioning strategies
Informing Product Differentiation:
Insights from market research pinpoint the areas most valued by consumers and those underserved by current market offerings. For example, suppose research indicates that customers in a particular market seek more environmentally friendly options in a product category dominated by less sustainable choices. In that case, a company can focus on developing a product that uses sustainable materials or practices, addressing a specific consumer need, and differentiating its product from competitors.
Guiding Positioning Strategies:
Market research insights help identify the most compelling way to position a product by understanding the target audience’s values, needs, and perceptions. This can involve emphasising specific product attributes, benefits, or values that align with the target market’s desires or gaps in the category. For example, if market research reveals a gap in the market for a tech product that combines high performance with user-friendly design for non-tech-savvy users, a company can position its product as the ideal solution for this unmet need, leveraging simplicity and ease of use as key selling points.
Enhancing Competitive Strategy:
Insights from competitive analysis clearly show competitors’ positions and how consumers perceive them. This knowledge allows brands to identify areas of opportunity for differentiation and to develop strategies that leverage their strengths against competitors’ weaknesses. It can also inform decisions on whether to adopt a head-to-head positioning against direct competitors or to find a niche market where the company can dominate.
Tailoring Marketing Communications:
With insights into consumer preferences and competitive positioning, companies can craft targeted marketing messages highlighting their product’s unique benefits and features. This ensures that communications resonate with the intended audience and clearly articulate the product’s unique value proposition, setting it apart from competitors.
How does market research help identify potential risks and challenges in the market?
Market research plays a crucial role in risk mitigation by identifying potential risks and challenges that could impact a new product’s success in the market.
Identifying Market Risks:
Market research helps identify a broad range of risks, including shifts in consumer behaviour, emerging competitive threats, regulatory changes, and technological advancements. By keeping a pulse on the market, brands can anticipate changes that might affect the demand for their product or its competitive position. For example, a detailed analysis of market trends might reveal consumers’ growing preference for sustainable products, indicating a risk for products that do not align with environmental values.
Understanding Consumer Sentiments:
Through surveys, social media listening, and other feedback mechanisms, market research gauges consumer sentiments and identifies potential backlash or negative perceptions of a product or brand. This early warning system allows companies to adjust their strategies, messaging, or product features to better align with consumer expectations and avoid potential reputational damage.
Evaluating Competitive Dynamics:
Competitive analysis, a key component of market research, sheds light on the strategies and performance of competitors, helping companies identify risks related to competitive actions. Understanding the competition enables brands to foresee potential market entries by competitors, changes in competitive pricing strategies, or the introduction of substitute products, allowing them to prepare defensive or counter-strategies.
Assessing Regulatory and Compliance Risks:
Market research also plays a vital role in identifying regulatory changes and compliance requirements that could threaten the product’s market entry or expansion. By staying informed about the regulatory environment, companies can ensure their products comply with relevant laws and standards, avoiding costly legal issues and delays.
Testing Market Assumptions:
Concept testing and other research methodologies challenge and validate the assumptions underpinning a product’s development. This critical evaluation can reveal flaws in the product concept, unrealistic market expectations, or misalignments with consumer needs, allowing companies to address these issues before they escalate into more significant risks.
Forecasting Demand and Financial Risks:
Market research helps accurately forecast demand for a new product, a crucial factor in financial planning and risk management. Overestimation of demand can lead to overproduction, excess inventory, and financial strain, while underestimation can result in missed opportunities and an inability to meet market demand. Companies can mitigate financial risks and optimise their supply chain and production strategies through precise demand forecasting.
The role of market research in scenario planning and contingency strategies
Market research is integral to scenario planning and the development of contingency strategies, equipping brands with the foresight and flexibility to navigate future uncertainties and changes in the market landscape. This strategic approach allows organisations to prepare for multiple potential futures, ensuring they can respond swiftly and effectively to various challenges and opportunities that may arise.
Scenario Planning
Scenario planning involves creating detailed narratives about the future based on different assumptions about how current trends, uncertainties, and driving forces could evolve.
Market research provides the empirical foundation for these narratives by offering insights into current market conditions, consumer trends, technological advancements, regulatory environments, and competitive landscapes. By analysing this data, companies can identify critical variables that might impact their business and construct a range of plausible future scenarios.
For instance, market research might reveal an emerging trend toward eco-conscious consumer behaviours, prompting a company to develop scenarios ranging from mild increases in demand for sustainable products to significant shifts in consumer purchasing patterns favouring green products exclusively. These scenarios enable the company to plan for product innovations, marketing strategies, and supply chain adjustments that align with varying degrees of market demand for sustainability.
Contingency Strategies
Contingency strategies are plans developed to address specific risks or opportunities that might emerge in the future. Market research plays a crucial role in identifying these potential risks and opportunities, allowing companies to devise informed strategies that mitigate threats and capitalise on emerging trends. This process involves understanding the current market, forecasting changes, and assessing their potential impact on the company’s operations, products, and financial health.
Market research can, for example, help a company anticipate potential regulatory changes affecting its industry. Suppose research indicates a likely increase in regulatory scrutiny over product safety standards. In that case, the company can develop contingency plans that include ramping compliance efforts, investing in product innovation to meet new standards, and preparing communication strategies to reassure customers and stakeholders.
Integrating scenario and contingency strategies with overall business planning ensures that market research insights are effectively translated into actionable plans. This integration allows companies to be proactive rather than reactive, setting mechanisms to adapt to market changes quickly. It also supports strategic decision-making by highlighting potential risks and opportunities to consider in the company’s long-term strategy.
The Impact of Market Research on Crafting Effective Marketing Messages and Campaigns
Market research uncovers the emotional and rational drivers behind consumer purchasing decisions, allowing marketers to craft messages that appeal to these motivations.
How Insights into Consumer Behavior and Preferences Guide Marketing Channel Selection and Promotional Tactics
Insights from market research also play a crucial role in selecting the most effective marketing channels and promotional tactics. Understanding where the target audience spends their time, the types of media they consume, and how they prefer to receive information about new products enables companies to allocate their marketing resources more efficiently, choosing channels to reach their audience effectively.
For example, suppose market research indicates that the target demographic for a new fitness app heavily uses social media platforms and engages with influencer content. In that case, the company might prioritise social media marketing and influencer partnerships over traditional advertising channels like TV or print. This strategy ensures that marketing efforts are concentrated where they will have the most impact, increasing visibility and engagement with the target audience.
Additionally, insights into consumer behaviour can inform the timing and nature of promotional tactics. For instance, if research shows that potential customers are most receptive to new products at the beginning of the year, a company might time a significant promotional campaign to coincide with New Year’s resolutions, using special offers or trials to encourage adoption.
Feedback Loops and the Role of Market Research in Product Improvement
After a product is launched, the journey of market research does not end but instead enters a new, critical phase. Ongoing market research post-launch is vital for the continuous improvement of the product, ensuring it remains relevant and competitive. This constant research process helps companies capture real-time feedback on how consumers receive the product, identify areas for enhancement, and detect emerging trends that could influence future product iterations.
Integrating customer feedback into product updates and future development cycles is a systematic process that involves several steps. Initially, companies collect feedback through various channels, including direct customer inquiries, online reviews, social media, feedback forms within the product, and user testing sessions. This feedback is then analysed to identify common themes, patterns, and specific areas for improvement or innovation.
The insights gained from this analysis inform the prioritisation of product updates. Critical issues affecting user experience or satisfaction are addressed promptly, while suggestions for new features or enhancements are evaluated for alignment with the product’s strategic direction and market demand. This prioritisation ensures that resources are allocated efficiently, focusing on changes impacting customer satisfaction and business objectives.
Integrating customer feedback into the development process often involves cross-functional collaboration between product management, engineering, design, and marketing teams. Regular meetings and feedback loops ensure that customer insights are shared across the organisation and that decisions regarding product updates are made with a comprehensive understanding of customer needs.
Once updates are implemented, the cycle continues, with companies seeking feedback on the changes to ensure they have positively impacted the user experience. This iterative process allows constant refinement and adaptation, making the product more robust and competitive.
Example: Software Application Updates
Consider a software company that has launched a project management tool. After launch, ongoing market research and user feedback indicate that while the tool is well-received, users are experiencing difficulties with the mobile app version, particularly its notification system. The company uses this feedback to prioritise an update that improves mobile app notifications, making them more customisable and less intrusive.
The company also identified a request for a new feature that allows integration with third-party calendar apps, a suggestion that came up frequently in user feedback. After evaluating this against the product roadmap and market demand, the company develops this integration, further enhancing the tool’s utility and user satisfaction.
By continually engaging in market research and integrating customer feedback into product updates, the company not only improves its current offering but also lays a solid foundation for future development cycles, ensuring the product remains relevant and continues to meet the evolving needs of its users.
Picking up from where we left off with our tech company’s new product development journey, the initial excitement around their groundbreaking product idea has now been channelled into a series of strategic, informed steps toward realisation. The enthusiasm within the company has evolved into a dedicated focus driven by the rich insights gained from their market research. As the product moved from concept to launch, every decision—design tweaks or marketing messages—was backed by data and consumer feedback, ensuring that the final offering met and exceeded customer expectations.
The product launch was just the beginning. Embracing the ethos of continuous improvement, the company remained committed to gathering and acting on customer feedback post-launch. This cycle of feedback and improvement fostered a strong connection with users, who saw their needs and preferences reflected in the product’s evolution.
The tech company’s new product development story shows the power of market research. It demonstrates that success in product development is not just about having a groundbreaking idea but about bringing it to market in a way that resonates with consumers.
Market research is the thread that connects every stage of bringing a new product to market. It ensures that every decision, from conception to launch, is informed, strategic, and aligned with meeting consumer needs and achieving market success.
In just a few years, mobile-first smart surveys have revolutionised market research — making it easier for brands to uncover consumer trends in real-time. Gone are the days of door-to-door and mailed questionnaires; we’ve transitioned to online polls and mobile-first smart surveys. This evolution mirrors the shift in consumer behavior, with over 5.31 billion unique mobile phone users worldwide.
Mobile-first smart surveys emerge in response to the growing demand for real-time, actionable consumer insights.
Mobile-first smart surveys are designed with the mobile user in mind, ensuring surveys are easily accessible on smartphones and tablets. This approach prioritises the mobile experience, leveraging responsive design and intuitive interfaces to increase participation rates.
According to recent data, the average person spends 3 hours and 15 minutes on their mobile phone daily. And 1 in 5 smartphone users spend an average of 4.5 hours on their phones daily. At 5 hours and 47 minutes, Filipinos spend the highest amount of average time on their phones each day. So, the potential for engagement is immense.
Source: DataReportal
Mobile-first surveys tap into this potential, allowing brands to gather insights in real-time from a broad and diverse demographic.
The importance of real-time consumer trends has been magnified in today’s fast-paced market. Brands that can quickly adapt to changing consumer preferences gain a competitive edge. Traditional market research methods, while still valuable, often need to catch up, delivering insights that are sometimes outdated by the time they’re analysed. In contrast, mobile-first smart surveys offer immediacy. They enable companies to make informed decisions swiftly, adjusting to market dynamics as they unfold. This agility is crucial at a time when consumer preferences can change overnight, driven by viral trends on social media or shifts in the global economy.
The evolution of mobile-first smart surveys reflects a broader shift in market research toward more agile, real-time methodologies. This transition is not merely about adopting new technologies but about recognising and responding to the changing ways in which people communicate and consume information. As brands seek deeper insights into consumer behavior, mobile-first smart surveys have become a pivotal tool in their strategic arsenal, offering a lens into the preferences and opinions of a highly mobile, constantly connected global population.
Mobile-first smart surveys are defined by their primary focus on optimising the survey experience for mobile devices. This approach acknowledges the primary role smartphones play in our daily lives, designing surveys that are not only accessible but also engaging for users on small screens. These surveys are built from the ground up, featuring responsive design, concise content, and interactive elements that use mobile device’s unique capabilities.
Critical characteristics of Mobile First Smart Surveys include:
Responsive Design: Layouts adjust fluidly across different screen sizes and orientations, ensuring readability and ease of interaction, whether on a phone, tablet, or desktop.
Concise Content: Questions are designed to be short, respecting the user’s time and attention span on mobile devices.
Touch-Friendly Interfaces: Large buttons and sliders facilitate easy interaction, even on the tiniest screens.
Location-Based Features: Utilising GPS technology to offer questions relevant to the user’s current location, enhancing the relevance and immediacy of the data collected.
Multimedia Integration: The ability to incorporate images, videos, and voice recordings into surveys, leveraging the multimedia capabilities of modern smartphones.
Image credit: Forsta
The technology powering Mobile First Smart Surveys goes beyond simple design adjustments. Artificial Intelligence (AI) plays a crucial role in analysing open-ended responses and predictive analytics, helping to identify trends and insights from the data collected. Machine learning algorithms can also personalise surveys based on the respondent’s previous answers, making the survey experience more relevant and engaging.
Advantages of Mobile First Surveys
The shift toward Mobile First Smart Surveys reflects mature digital consumer behaviours. By leveraging the latest responsive design and AI technology, these surveys offer a powerful tool for brands seeking to understand and engage with their audience.
Mobile First Smart Surveys have ushered in a new era of market research characterised by enhanced accessibility, real-time insights, higher engagement, and cost savings. These advantages position mobile-first methodologies as a pivotal tool for companies aiming to stay ahead of the competition.
Accessibility and Reach
The mobile-first approach significantly expands the potential pool of respondents. With over 90% of the global internet population using mobile devices to go online, as reported by Statista, surveys optimised for these devices are more likely to be accessed and completed. This democratisation of access allows brands to gather data from a broader demographic spectrum, including hard-to-reach populations such as younger demographics, lower-income groups, and residents of developing countries who may rely exclusively on mobile devices for internet access.
Real-time Data Collection
One of the most significant advantages of Mobile First Smart Surveys is the capacity for real-time data collection. This immediacy allows brands to capture and analyse consumer feedback as events unfold, providing a dynamic view of market trends and consumer sentiments. This capability is crucial for responding to fast-changing market conditions and can be the difference between capitalising on a trend and missing the boat. In contrast, with their longer collection and analysis phases, traditional survey methods can lag, offering less timely insights and, therefore, potentially less valuable.
Improved User Engagement
Mobile-friendly designs play a crucial role in increasing survey completion rates. The intuitive interfaces, touch-friendly navigation, and concise content tailored for mobile users significantly improve the user experience. This focus on user-centric design reduces survey abandonment rates and ensures higher-quality data, as respondents are more likely to provide thoughtful and accurate answers when the survey experience is engaging and straightforward.
Cost-effectiveness
From a cost perspective, Mobile First Smart Surveys offer clear advantages over traditional methods. The digital nature of these surveys eliminates the need for physical materials, postage, and manual data entry, significantly reducing operational costs. Additionally, the speed and efficiency of data collection and analysis mean that insights are generated faster, allowing brands to act on them more quickly. This can lead to more efficient allocation of resources and better ROI on market research investments.
The scalability of mobile surveys—where the marginal cost of adding another respondent is virtually zero—means that brands can collect data from a larger sample without a proportional increase in cost. This scalability, combined with the broad reach and real-time capabilities of mobile-first surveys, offers an unparalleled opportunity to gather market insights cost-effectively.
Implementing Mobile First Smart Surveys requires a strategic approach, from designing to selecting platforms and ensuring data quality and privacy. Adhering to best practices in each area ensures the collection of high-quality data and the protection of respondents’ information.
When compared with traditional survey methods, Mobile First Smart Surveys offer several advantages:
Higher Engagement Rates: The mobile-optimised design and interactive elements lead to higher completion rates than desktop-centric surveys.
Broader Reach: With most internet users accessing the web via mobile devices, mobile-first surveys can reach a broader and more diverse audience.
Real-time Insights: The immediacy of mobile internet allows for the collection and analysis of data in real-time, providing brands with timely insights.
Cost Efficiency: Digital distribution reduces the logistical costs of paper-based surveys or face-to-face interviews.
In contrast, traditional survey methods often struggle with lower response rates due to their lack of optimisation for mobile use. They may also miss out on the younger demographics who predominantly use smartphones for internet access. Additionally, traditional methods can be slower and more expensive to deploy, particularly when reaching a geographically dispersed audience.
Implementing Mobile First Smart Surveys
Designing Mobile-First Surveys: Best Practices
Implementing Mobile First Smart Surveys with attention to detail—thoughtful design, selection of the right tools, and rigorous data quality and privacy measures—can significantly enhance the effectiveness of your market research efforts.
Question Design: A good survey design is important. Questions should be concise and straightforward to accommodate the shorter attention spans and smaller screens of mobile users. Use simple language and avoid complex question types that may be difficult to navigate on a mobile device.
Length: Mobile surveys should be short to respect the user’s time and prevent survey fatigue. A good rule of thumb is to keep the survey completion time under 5 minutes. This ensures higher completion rates and more accurate responses.
Interface: The survey interface should be responsive and adjust seamlessly across different devices and screen sizes. Use large, easily clickable buttons, and ensure that text is readable without zooming. Incorporating elements like sliders or touch-responsive scales can enhance the user experience.
Ensuring Data Quality and Privacy
Validating Responses: Implement measures to ensure the authenticity and accuracy of responses. This can include CAPTCHA verification to prevent bot submissions, consistency checks for contradictory answers, and logic paths that adjust questions based on previous responses to gather more precise data.
Protecting Respondent Data: Adhere to data protection regulations such as GDPR or CCPA, depending on your location and the location of your respondents. This includes obtaining consent to collect data, ensuring data is encrypted and securely stored, and allowing respondents to remain anonymous.
Data Quality Checks: Regularly review data for patterns that indicate low-quality responses, such as straight-lining (selecting the same response for all questions) or speed-through (completing the survey too quickly to have read the questions). These checks help maintain the integrity of the data collected.
Overcoming Screen Size Limitations
Challenge: The smaller screens of mobile devices limit the amount of information that can be displayed simultaneously, potentially complicating the presentation of complex questions or answer options.
Solutions:
Design and Formatting: Utilise responsive design that automatically adjusts content layout based on the device’s screen size. Simplify survey design by breaking down complex questions into multiple, easier-to-navigate screens.
Visual Aids: Incorporate visual elements such as icons and sliders that are easier to interact with on small screens, reducing the reliance on text-heavy inputs.
Progressive Disclosure: Implement a technique where only the necessary information is displayed initially, with additional details available on demand. This keeps the interface clean and reduces the cognitive load on respondents.
Ensuring Accessibility and Inclusivity
Challenge: Ensuring that surveys are accessible to all users, including those with disabilities, can be particularly challenging on mobile platforms where navigation and interaction differ significantly from desktop environments.
Solutions:
Adherence to Web Content Accessibility Guidelines (WCAG): Design surveys that comply with WCAG standards, ensuring they are navigable and usable for people with various disabilities.
Voice Input and Screen Readers: Optimise surveys for compatibility with voice input software and screen readers, allowing users with visual impairments or limited mobility to participate fully.
Diverse Language Options: Offer surveys in multiple languages to cater to non-English speakers, increasing the inclusivity of the research.
Dealing with Mobile-Specific Distractions
Challenge: Mobile users are often on the go or multitasking, making it difficult to maintain their attention throughout the survey.
Solutions:
Engagement Techniques: Incorporate interactive elements such as swipe actions or tap-based responses that leverage the mobile interface to keep users engaged.
Gamification: Introduce gamification elements, such as points, levels, or badges, to motivate respondents to complete the survey.
Timely Reminders: Send push notifications or SMS reminders to participants, encouraging them to complete the survey at their convenience. Ensure these communications respect the user’s time and are not overly intrusive.
By addressing these challenges with specific, targeted solutions, organisations can enhance the effectiveness of their Mobile First Smart Surveys. Overcoming screen size limitations with thoughtful design, ensuring accessibility and inclusivity, and countering mobile-specific distractions with engagement strategies are critical steps in harnessing the full potential of mobile surveys.
These approaches improve the quality of data collected and ensure a positive and inclusive experience for all respondents.
How to avoid common pitfalls of Mobile First Surveys
While Mobile First Smart Surveys have been transformative for many brands, offering deep insights into consumer behavior and preferences, brands can avoid common pitfalls. We can identify best practices and common traps by examining successful deployments, providing valuable lessons for organisations looking to leverage this approach.
Here are common lessons learned from mistakes made by other companies.
Avoiding Over-surveying:
One common pitfall is the temptation to overuse mobile surveys due to their ease and cost-effectiveness. A consumer goods company found that frequent survey requests led to declining response rates and survey fatigue among their target audience. The lesson learned was respecting the respondents’ time and attention and focusing on fewer, more targeted surveys to maintain engagement and data quality.
Ensure Data Privacy:
Many companies have faced backlash when a poorly secured mobile survey leads to privacy concerns among participants. Robust data protection measures, including encryption and clear consent protocols, are vital for any survey. Ensuring privacy protects respondents and preserves the integrity and reputation of the research effort.
Design for Mobile Limitations:
A common mistake is simply adapting desktop surveys for mobile use without considering mobile devices’ unique limitations and opportunities. For instance, if a brand uses a lengthy desktop version of a survey on mobile, it will lead to poor completion rates. By redesigning the survey specifically for mobile, with shorter, more interactive questions, brands will see a dramatic increase in participation. This highlights the necessity of designing with the mobile experience in mind from the outset.
Tips for Designing Effective Mobile-First Surveys
Simplify the User Interface: Ensure your survey interface is clean, intuitive, and easy to navigate on a mobile device. Minimise the need for scrolling and use touch-friendly elements like dropdowns and sliders to enhance the user experience.
Image Credit: Forsta
Optimise Question Design: Craft questions that are concise and to the point. Avoid jargon or complex language that might confuse respondents. Each question should serve a clear purpose in meeting your survey objectives.
Image Credit: Forsta
Test Across Devices: Before launching your survey, test it on various devices and screen sizes to ensure consistent performance. This helps identify and rectify any issues hindering the user experience or skew your data.
Strategies for Maximising Response Rates and Quality of Data
Personalise the Invitation: Customising the survey invitation can make respondents feel valued and increase the likelihood of participation. Use the respondent’s name and explain the survey’s purpose, emphasising the importance of their feedback.
Offer Incentives: Incentives can significantly boost response rates. Choose appropriate incentives for your audience, whether it’s access to exclusive content, discount codes, or entry into a prize draw.
Limit Survey Length: Keep your survey as short as possible while collecting the necessary data. Communicate the estimated completion time upfront to set expectations and reduce dropout rates.
Keeping up with Mobile Technology trends
Continuous Learning: Stay informed about the latest developments in mobile technology and survey methodology. Follow industry blogs, attend webinars, and participate in relevant forums or conferences.
Experiment with New Features: Be bold and test new survey features or technologies as they become available. Whether incorporating AR elements or utilising AI for dynamic question paths, experimenting can keep your surveys engaging and provide richer insights.
Gather Feedback on the Survey Experience: Regularly solicit feedback from respondents about their survey experience. This can provide valuable insights into improving your surveys and staying aligned with user expectations.
By embracing these best practices, market researchers can design mobile-first surveys that engage respondents and yield high-quality data. Keeping pace with mobile technology trends ensures that your surveys remain relevant and effective, enabling you to capture the insights needed to drive informed business decisions and stay ahead of the curve.
Market research technology will continue to evolve, driven by advances in mobile technology, AI, and machine learning. These innovations promise to make surveys more engaging, accessible, and insightful, transforming vast quantities of data into actionable intelligence. However, the core principles of effective market research remain unchanged: understanding your audience, asking the right questions, and listening to the feedback.
As we embrace the transformative power of Mobile First Smart Surveys, we must recognise this approach’s global reach and applicability. At Kadence International, with our presence in the US, UK, and Asia, we’ve witnessed firsthand the universal appeal and effectiveness of mobile-first strategies across diverse geographies. This widespread adoption shows the global shift toward mobile-centric consumer behavior, highlighting the importance of mobile-first methodologies in capturing real-time, actionable insights across different markets and cultures.
Our extensive experience across these regions positions us uniquely to understand the nuances and specific needs of brands operating in a globalised market. The trend toward mobile-first is a global movement, with consumers increasingly relying on mobile devices for everyday needs. This universal shift presents challenges and opportunities for brands looking to engage with their audience more deeply.
At Kadence, we leverage our strong foothold in Asia and our global presence to offer unparalleled insights into consumer behavior and market trends. Our expertise in mobile-first research methodologies enables us to provide our clients with the data and analysis needed to make informed decisions, tailor their offerings, and stay ahead in their respective industries.
Contact us if you want to harness the power of Mobile First Smart Surveys and gain a competitive edge in the global market. Learn how our expertise and global reach can help unlock new opportunities and drive your company forward. Whether you’re looking to expand in Asia, the US, the UK, or beyond, Kadence is your partner.
Imagine standing on a bustling, urban street corner where different cultures collide. The air is filled with the aroma of exotic foods, and people speaking various languages are all around. For a market researcher specializing in multicultural markets, this vibrant setting is real, where every interaction, every purchase, and every decision made by individuals from different ethnic backgrounds offers valuable insights.
So how do you connect with diverse multicultural customers?
Any researcher will tell you how crucial it is to connect with multicultural customers. It can make the difference between a brand flourishing or just getting by, especially in a marketplace where people’s choices are deeply influenced by their distinct cultural backgrounds and life experiences.
Leveraging Conversational AI for Multicultural Marketing Insights
Making Sense of Diversity Navigating multicultural marketing has always been a challenge. With their lengthy and costly approaches, traditional methods often force a tough choice between deep-dive studies and broad surveys.
Imagine needing insights from various ethnic backgrounds across the US to tap into multicultural markets, identify key groups, and create targeted campaigns. That’s where Conversational AI changes the game.
Conversational AI is a bridge to connect brands with multicultural consumers, enabling them to unlock new opportunities and thrive in an increasingly global marketplace.
Equipped with the ability to ask smart questions and listen actively, Conversational AI isn’t just about talking; it’s about understanding on a new level. It speeds up the research process, cuts costs, and delivers deeper insights more efficiently. For brands looking to refine their marketing strategies and truly connect with diverse audiences, Conversational AI offers a powerful solution.
The State of Multicultural Marketing
The Importance of Multicultural Consumers
By 2044, more than half of all Americans are projected to belong to a minority group,” according to the U.S. Census Bureau, a number that cannot be ignored. This shift has a profound impact on consumer behaviors and preferences.
Multicultural consumers are a vital and growing segment of the marketplace. Ignoring this demographic means missing substantial revenue opportunities and risking alienation in an increasingly diverse society. Brands that recognize the importance of multicultural consumers position themselves for long-term success and relevance in an evolving market landscape.
Evolving Demographics and Market Trends
Demographics in many countries are undergoing significant shifts. Birth rates, immigration patterns, and cultural diversity contribute to the increasing prominence of multicultural consumers. Market trends show that these consumers are not a homogenous group; they exhibit unique preferences and behaviors based on their cultural backgrounds. To thrive, brands must adapt to these evolving demographics and tailor their strategies accordingly.
The Need for Adaptation in Marketing Strategies
Static and one-size-fits-all marketing strategies are no longer effective in today’s multicultural marketplace.
To succeed, brands must adopt dynamic and culturally sensitive approaches. Understanding multicultural consumers’ specific needs, values, and habits is essential for crafting marketing campaigns that resonate and drive engagement. Conversational AI emerges as a powerful tool to bridge the gap between companies and these diverse audiences.
The Challenge of Understanding Multicultural Consumers
Navigating intricate multicultural consumers poses a formidable challenge for brands. Unlike homogenous markets, multicultural consumers come from many backgrounds, traditions, languages, and values. This diversity adds layers of complexity, demanding a nuanced approach.
For marketers, the puzzle of understanding multicultural consumers involves deciphering not only their preferences and buying behaviors but also their cultural sensitivities and unique experiences. A one-size-fits-all marketing strategy simply won’t cut it in this context.
While valuable in many respects, traditional research methodologies often fall short when applied to multicultural consumer segments. They rely heavily on standardized surveys and predefined categories that may not capture the subtleties of multicultural markets. Moreover, these methods can be time-consuming and costly and may struggle to reach individuals from diverse backgrounds, leading to incomplete or biased data.
Traditional Research Methods and Their Limitations
To understand multicultural consumers, brands have long relied on traditional research methods as their go-to tools. However, these approaches often fall short when navigating diverse, multicultural consumers. Here are some of the limitations:
Standardized Surveys and Questionnaires: Traditional research often hinges on standardized surveys and questionnaires. While these tools can provide quantifiable data, they follow a one-size-fits-all approach.
This approach doesn’t work for multicultural consumers, as it may not capture the nuances of their experiences or the diverse array of factors influencing their purchasing decisions. What works for one ethnic group might not apply to another, and the rigidity of standardized surveys can miss these distinctions.
Recognizing these limitations, it becomes clear that a more tailored approach is necessary—one that appreciates the unique perspectives and nuances of different cultural segments. This is where the expertise of a market research agency specializing in understanding diverse consumer segments becomes invaluable. Collaborating with such an agency can provide deeper, more nuanced insights that standardized tools often overlook. They can navigate the subtleties of various cultures, ensuring research methodologies are adapted to better reflect and respect the distinctiveness of each consumer group.
Language Barriers: Many multicultural consumers have varying degrees of proficiency in the dominant language of their host country, which can pose challenges for traditional research. Language barriers can result in misinterpreting survey questions or responses, leading to inaccurate data. Moreover, translating surveys into multiple languages can be expensive and time-consuming.
Cultural Sensitivities: Different cultures have unique sensitivities, taboos, and customs that may not align with standardized research approaches. Traditional methods often lack the flexibility needed to navigate these cultural intricacies. Marketers risk unintentionally offending or alienating potential customers without a deep understanding of cultural context.
Limited Reach: Traditional research methods may struggle to reach multicultural consumers effectively. These populations may be dispersed geographically, making in-person interviews and surveys logistically challenging and costly. As a result, insights derived from traditional research may not represent the full spectrum of multicultural perspectives.
Sample Bias: Traditional research methods can inadvertently introduce sample bias, as individuals who are more accessible or willing to participate may not accurately represent the broader multicultural population. This can lead to skewed data that does not reflect the diversity within these communities.
The Promise of Conversational AI in Multicultural Research
Enter Conversational AI, a cutting-edge technology that holds the promise of reshaping the field of multicultural consumer research. This innovative methodology leverages the power of Artificial Intelligence (AI) and Natural Language Processing (NLP) to engage with individuals from diverse backgrounds in a more personalized and culturally sensitive manner.
Understanding the Technology: Conversational AI
What is Conversational AI?
Conversational AI refers to a technology that enables natural language interactions between humans and computers. It leverages artificial intelligence and machine learning algorithms to simulate human-like conversations, making it possible for machines to engage in dialogues, understand user input, and respond intelligently. Conversational AI systems can take various forms, including chatbots, voice assistants, and virtual agents, and they play a crucial role in enhancing customer experiences and automating tasks for conducting in-depth research interviews.
The Power of Intelligent Probing Questions
Intelligent probing questions
One of the standout features of Conversational AI is its ability to employ intelligent probing questions. These questions are designed to go beyond the surface and dig deep into the respondent’s thoughts, preferences, and experiences. They adapt based on previous answers, allowing the technology to uncover valuable insights that may remain hidden in traditional survey formats. Intelligent probing questions are instrumental in understanding the nuances of multicultural consumers’ behavior and mindset, making them a valuable tool for market researchers.
Active Listening Capabilities
Conversational AI doesn’t just ask questions; it actively listens. Its active listening capabilities involve processing and interpreting user responses in real-time. This means the technology can understand what is being said and the context, sentiment, and emotional cues behind the responses.
In the context of multicultural research, active listening ensures that the technology can pick up on subtle cultural nuances, enabling a more comprehensive understanding of respondents’ perspectives.
Scaling Insights at an Unprecedented Level
Traditional research methods often face limitations when it comes to scaling insights. Conversational AI, on the other hand, excels at scaling research efforts to reach a larger and more diverse audience. Its ability to engage with respondents remotely, conduct conversations in multiple languages, and adapt to individual preferences makes it a powerful tool for gathering insights on a broad scale. This scalability ensures that research efforts are efficient and can capture a more representative sample of multicultural consumers.
Here’s how Conversational AI addresses the challenges faced by traditional research methods:
Personalization and Flexibility: Conversational AI is not bound by the constraints of standardized surveys. Instead, it offers a dynamic, conversational experience that adapts to the respondent’s language proficiency, cultural background, and individual preferences. This personalization ensures that questions are framed to resonate with the participant, leading to more authentic responses.
Multilingual Capabilities: Overcoming language barriers is a forte of Conversational AI. It can seamlessly switch between languages and dialects, accommodating respondents who may prefer to converse in their native tongue. This eliminates the need for costly and time-consuming translations while ensuring multicultural consumers can express themselves comfortably.
Cultural Sensitivity: Conversational AI is designed to be culturally sensitive, recognizing the importance of understanding and respecting different cultural norms and sensitivities. It can tailor questions and responses to align with the cultural context, helping researchers avoid inadvertent cultural missteps.
Remote Reach: As face-to-face interactions have become increasingly challenging, Conversational AI offers the advantage of remote engagement. It can reach multicultural consumers across diverse geographic locations, bridging gaps that traditional research methods often struggle with.
Deeper Insights at Scale: One of the most significant advantages of Conversational AI is its ability to uncover deeper insights at an unprecedented scale. This technology fosters meaningful conversations through intelligent probing questions and active listening capabilities. It goes beyond surface-level responses, diving into the nuances of multicultural consumers’ habits, preferences, and mindsets.
Cost-Efficiency: Traditional research methods can be costly, especially when dealing with diverse and hard-to-reach demographics. Conversational AI streamlines the research process, reducing data collection, translation, and travel costs. This cost-efficiency opens up opportunities for brands and companies of all sizes to tap into multicultural markets.
Setting the Stage: Our Example of Eight Ethnic Groups
To illustrate the transformative impact of Conversational AI in multicultural consumer research, let’s dive into a concrete example – a multicultural study of eight ethnic groups. Let’s say we are presented with a research endeavor to understand multicultural consumers in the U.S comprehensively. The study focuses on eight distinct ethnic groups, each bringing unique perspectives and consumer behaviors.
Diversity at Its Core: The study’s premise is straightforward yet ambitious – to explore the nuances of multicultural consumer behavior by engaging with individuals from eight distinct ethnic backgrounds. These groups are carefully selected to represent the mosaic of cultures. The diversity encompassed in this research includes, but is not limited to, Asian, African, Hispanic, Middle Eastern, and European backgrounds.
Complex and Varied Identities: Multicultural consumers are not monolithic. Within each ethnic group, there exists a broad spectrum of beliefs, traditions, and preferences. This complexity demands a research approach that can capture the richness of these varied identities and experiences. Conversational AI can be chosen as the methodology to navigate this diversity.
The Role of Conversational AI: At the heart of this study is the application of Conversational AI. This innovative technology can facilitate engaging and insightful conversations with respondents from each ethnic group. Its adaptability, personalization, and language capabilities make each participant feel comfortable and heard, regardless of their cultural and linguistic backgrounds.
By setting the stage with a comprehensive representation of eight diverse ethnic groups, this study exemplifies the real-world challenges and opportunities marketers face to tap into multicultural markets. It demonstrates that understanding these markets requires a nuanced, culturally sensitive, and flexible approach, all of which Conversational AI was poised to provide. The results of this study would go on to showcase how this technology could deliver a deeper level of understanding and uncover the untapped potential within multicultural consumer segments.
Key Takeaways from our example of the Multicultural American Study
Leveraging Modern Conversational Experiences
Engaging Difficult-to-Reach Demographics
Conversational AI’s personalized and adaptive approach effectively engages difficult-to-reach demographics, such as multicultural consumers. The technology breaks down barriers and encourages participation from traditionally underrepresented groups by tailoring conversations to the individual’s background and preferences.
Fostering Engagement and Comprehension
The ability of Conversational AI to create engaging and comprehensible conversations fosters higher respondent engagement. Participants feel heard and valued, leading to more genuine and insightful responses. This engagement is crucial when dealing with multicultural consumers, as it promotes a deeper understanding.
Accelerating Multicultural Research Efforts
Cost-Efficiency
Conversational AI streamlines research efforts, reducing data collection, translation services, and travel costs. This cost-efficiency allows companies to allocate resources more effectively and extend their reach into multicultural markets without breaking the bank.
Richer Insights
The technology’s adaptive questioning and active listening capabilities result in richer insights. It uncovers nuances in multicultural consumers’ behaviors and preferences that traditional methods often miss. These insights provide a more comprehensive understanding of the target audience, enabling brands to make data-driven decisions.
Optimizing Marketing Strategies
Swift In-Depth Insights
Conversational AI accelerates the research process, providing swift access to in-depth insights. This turnaround time allows brands to stay agile in marketing strategies, responding quickly to emerging trends and consumer preferences within multicultural markets.
Maximizing Overall Impact
By harnessing the power of Conversational AI, brands can maximize the impact of their marketing efforts. Armed with a deeper understanding of multicultural consumers, they can tailor their campaigns more effectively, ensuring their messages resonate and drive engagement within diverse ethnic segments.
How to Implement Conversational AI in Multicultural Research
Choosing the Right Technology and Platform
Selecting the appropriate Conversational AI technology and platform is a critical first step. Brands must consider scalability, multilingual capabilities, ease of integration with existing systems, and the ability to adapt to specific research objectives. A careful evaluation ensures the chosen technology aligns effectively with the goals of gathering insights from multicultural consumers.
Developing a Research Strategy
A well-defined research strategy is essential for successfully implementing Conversational AI in multicultural research. This strategy should outline research objectives, target demographics, the structure of conversations, and the deployment timeline. Additionally, it should consider the cultural sensitivities and preferences of the respondents to ensure that the research approach is culturally relevant.
Ethical Considerations and Data Privacy
Ethical considerations and data privacy are pivotal in multicultural consumer research. Brands must adhere to ethical guidelines and privacy regulations to protect the rights and confidentiality of respondents. Transparency in data collection and obtaining informed consent are essential practices when using Conversational AI for research.
Overcoming Potential Barriers and Challenges
Implementing Conversational AI in multicultural research may encounter barriers and challenges. These could include technical issues, language-specific nuances, or respondent reluctance. Brands should have contingency plans in place to address these challenges promptly. Effective communication and collaboration with multicultural communities can also help overcome potential barriers.
Future Directions and Emerging Trends in Conversational AI
The Evolution of Conversational AI in Research
Conversational AI continues to evolve, incorporating advanced natural language processing, sentiment analysis, and machine learning capabilities. As it becomes more sophisticated, it holds the potential to provide even deeper insights into multicultural consumer behavior. Researchers can expect improved accuracy, personalization, and scalability in the future.
Potential for Cross-Cultural Comparisons
Conversational AI opens up opportunities for cross-cultural comparisons. Researchers can use this technology to conduct parallel studies across diverse ethnic groups, facilitating valuable comparisons and insights into cultural differences and commonalities. This approach helps companies refine their strategies for specific multicultural markets.
The Role of Machine Learning and AI Advancements
Machine learning and AI advancements will play a significant role in the future of Conversational AI. These technologies will enable the system to predict respondent behavior better, identify emerging trends, and adapt in real time. This predictive capability will enhance the value of Conversational AI in multicultural research.
The Path Forward for Multicultural Research in Marketing
As the marketplace continues to diversify, the path forward for multicultural research in marketing lies in adopting innovative technologies like Conversational AI. By embracing this transformative tool, brands can optimize their marketing strategies, drive engagement, and secure a competitive edge in the ever-evolving world of multicultural marketing. For more insights into the nuances of multicultural audiences, watch the Head of Strategy and Client Services from the U.K. office Bianca Abulafia’s revelations from her experiences in the field here.
With its 18,100 islands and islets, Indonesia is home to a diverse population exceeding 270 million people, making it the fourth most populous country in the world.
This vast nation is characterised by a rich mosaic of ethnic groups, languages, and cultures, which shape a unique consumer landscape.
The country’s consumer market is influenced by various geographic, socio-economic, and cultural factors that create opportunities and challenges for businesses.
Geographic Diversity and Accessibility
Indonesia’s sprawling archipelago presents unique logistical challenges and opportunities for product distribution and marketing strategies. Urban centres like Jakarta, Surabaya, and Bandung boast a concentration of consumers with relatively high purchasing power and access to digital technologies, contrasting with more remote and rural areas where traditional retail and word-of-mouth play a significant role. This geographic diversity necessitates tailored approaches to market penetration and product distribution.
Socio-economic Dynamics
The Indonesian economy has experienced significant growth over the past decades, propelling a large segment of the population into the middle class. This growing middle class is characterised by increased disposable income, leading to higher spending on consumer goods, education, and lifestyle services. However, socio-economic disparities persist, with a notable divide between urban and rural areas in terms of income and access to services. Understanding these dynamics is crucial for businesses aiming to cater to Indonesian consumers’ varied needs and aspirations.
Cultural Factors and Consumer Behavior
Indonesia’s rich cultural heritage profoundly influences consumer behaviour and preferences. The country is predominantly Muslim, and Islamic values play a pivotal role in shaping consumption patterns, particularly in the demand for halal products and modest fashion. Cultural values emphasising family, community, and social harmony impact purchasing decisions, with a preference for brands that resonate with these values.
Cultural celebrations and religious festivals also significantly influence consumer spending, with companies often seeing spikes in sales during periods like Ramadan and Eid al-Fitr. A strong sense of nationalism also characterises the Indonesian market, with consumers preferring local brands highlighting Indonesian heritage and craftsmanship.
The Digital Boom
Indonesia’s digital landscape is rapidly evolving, with a burgeoning number of internet users and one of the world’s highest social media engagement rates. This digital boom has transformed consumer behaviour, with online shopping, digital payments, and social media playing increasingly central roles in how Indonesians discover, evaluate, and purchase products. Young urbanites, in particular, are at the forefront of this digital engagement, leveraging technology to express their identities and make purchasing decisions.
Market segmentation is a cornerstone in marketing strategies, enabling brands to tailor their approaches to distinct groups within a broad market.
This methodology enhances the efficiency of marketing efforts and ensures a higher degree of customer satisfaction and loyalty. By recognising and understanding the diverse needs, preferences, and behaviours of various segments, companies can devise targeted strategies that resonate deeply with their audience, maximising their market impact and return on investment.
This article aims to shed light on the evolving consumer landscape in Indonesia, focusing on five key segments: Young Urbanites, Growing Middle Class, Islamic Consumers, Eco-aware Segment, Entrepreneurs, and SME Owners.
Each segment represents a unique set of values, interests, and purchasing behaviours, making them crucial for marketers aiming to penetrate or expand their presence in the Indonesian market. Through a detailed exploration of these segments, the article guides marketers in identifying and understanding when and how to revisit and refine their audience segments to stay aligned with dynamic market conditions and consumer expectations.
Young Urbanites: The Digital Savvy Trendsetters
Young Urbanites in Indonesia represent the youthful, vibrant population segment deeply engaged with digital technology, fashion, and lifestyle trends. Predominantly residing in urban areas, these digital natives are constantly connected, using smartphones and social media to stay informed and express themselves.
Characteristics: This group values innovation, convenience, and style. They are early adopters of new technologies and platforms, making them influential in setting trends across social networks.
Preferences: They are interested in the latest gadgets, fashion apparel, and lifestyle products that reflect their identity and social status.
Opportunities: Brands can engage this segment through influencer marketing, social media campaigns, and digital platforms offering personalised experiences and exclusive access to new products.
Growing Middle Class: The Aspiring Homeowners and Educators
Indonesia’s growing Middle-Class segment reflects the country’s economic progress, characterised by individuals and families with increasing disposable incomes and aspirations for a better life. They focus on achieving stability through home ownership, quality education for their children, and access to health products.
Characteristics: This segment is pragmatic and values investments in their family’s future and well-being.
Preferences: They show a strong preference for products and services that offer long-term value, such as real estate, educational tools, and health and wellness products.
Opportunities: Brands can appeal to this segment with products and services emphasising quality, reliability, and value for money. Marketing strategies highlighting the benefits of investing in their products for future gain resonate well.
Islamic Consumers: The Value-Driven Shoppers
Islamic Consumers in Indonesia seek products that align with Islamic values, encompassing modest fashion, halal food, and finance. This segment is guided by religious principles in their consumption choices, looking for assurances that products meet Islamic standards.
Characteristics: Their purchasing decisions are deeply influenced by their faith, prioritising certified halal products that reflect modesty in fashion.
Preferences: There is a high demand for halal-certified goods, including food, cosmetics, and fashion, that adhere to Islamic principles.
Opportunities: Brands can cater to this segment by ensuring their products are halal-certified and marketing them through channels that respect and understand Islamic values. Collaboration with religious figures and participation in Islamic events can also enhance brand credibility.
Eco-aware Segment: The Conscious Consumers
The Eco-aware Segment is increasingly significant in Indonesia, driven by consumers who prioritise sustainable living, eco-tourism, and environmentally friendly products. This group is motivated by the desire to reduce their environmental footprint and support sustainable practices.
Characteristics: They are well-informed about environmental issues and seek to make ethical consumption choices that reflect their concern for the planet.
Preferences: They prefer products made from sustainable materials, eco-friendly packaging, and brands with strong environmental stewardship.
Opportunities: Brands can attract this segment by demonstrating a genuine commitment to sustainability, offering eco-friendly products, and engaging in green initiatives. Transparency in sourcing and production processes is also crucial.
Entrepreneurs and SME Owners: The Business Innovators
Entrepreneurs and SME Owners form a critical segment in Indonesia, driving economic growth and innovation. This segment seeks products and services to support business operations, enhance productivity, and provide networking opportunities.
Characteristics: They are dynamic, resourceful, and constantly seeking ways to improve and grow their businesses.
Preferences: They are interested in business-related products and services, technology solutions, and opportunities for networking and collaboration.
Opportunities: Offering tailored business solutions, technological tools, and platforms facilitating networking and knowledge sharing can effectively engage this segment. Hosting workshops, seminars, and business events are also strategies to connect and provide value.
The Importance of Timely Audience Segmentation
Understanding the dynamic nature of consumer markets is pivotal for businesses aiming to maintain relevance and competitive edge. Timely reevaluation of market segments is a necessary strategic move. This process involves continuously analyzing market trends, consumer behaviour, technological advancements, and socio-economic shifts.
By doing so, brands can identify emerging segments, anticipate changes in consumer needs, and adjust their offerings and marketing strategies accordingly.
This agility enables companies to capture new opportunities, mitigate risks associated with market shifts, and deliver value that resonates with their target audience’s current needs and preferences.
Staying Relevant in a Changing Market
The crux of timely audience segmentation lies in its ability to keep companies ahead of the curve. As consumer preferences evolve, so does the effectiveness of previously successful marketing strategies.
For instance, digital transformation has significantly influenced consumer behaviour, leading to the rise of segments like the Young Urbanites in Indonesia, who prioritise technology, fashion, and lifestyle products accessible through digital platforms. Companies that have historically targeted broader demographics find it increasingly necessary to refine their segments to capture such nuanced consumer groups.
Examples of Successful Adaptation
Several global and local brands have demonstrated the power of adaptive segmentation strategies. One notable example is Unilever’s approach in Indonesia, particularly its beauty and personal care products.
Recognising the growing segment of Islamic Consumers, Unilever expanded its product line to include halal-certified products, catering to the needs and values of this segment. This move broadened its market reach and strengthened brand loyalty among Muslim consumers. Unilever Indonesia also launched Hijab Fresh, a body moisturizer specifically for Muslim women.
Image Source: Nikkei
Another example is Gojek, Indonesia’s homegrown ride-hailing and services platform. Initially focusing on urban commuters, Gojek has successfully diversified its services to cater to other segments, including SME owners, by offering GoBiz —a suite of tools designed to help small businesses manage operations efficiently.
Image Source: WSJ
This strategic segmentation has allowed Gojek to penetrate deeper into the Indonesian market, showcasing its adaptability to the evolving needs of different consumer segments.
Key Indicators for Reevaluation
For brands aiming to stay ahead in the Indonesian market, identifying the right moments to reevaluate their audience segmentation is crucial. Several key indicators can signal the need for a strategic review of market segments, ensuring that companies remain aligned with the evolving market dynamics and consumer preferences. These indicators serve as a compass, guiding brands in making informed decisions about when to adapt their segmentation strategies for optimal engagement and growth.
Shifts in Consumer Behavior and Preferences
A noticeable shift in consumer behaviour and preferences is one of the most telling signs that a segmentation strategy needs reevaluation. Changes in spending habits, an increased interest in sustainability, or a rising demand for digital services can indicate emerging consumer trends.
For instance, the Eco-aware Segment in Indonesia reflects a growing consumer preference towards sustainable living and green products. Brands that observe such shifts and adjust their offerings and marketing messages accordingly can better meet the expectations of their target audiences.
Technological Advancements
The rapid pace of technological innovation often leads to changes in consumer expectations and behaviours. The advent of new technologies can create new market segments or transform existing ones. For example, the proliferation of smartphones and internet access has given rise to digitally savvy consumers who prefer online shopping, digital payments, and social media engagement.
Companies should monitor technological trends to identify opportunities for new or refined segmentation strategies that leverage these advancements.
Socio-economic Changes
Socio-economic developments, such as changes in income levels, education, and urbanisation, can significantly impact consumer segments. The growing Middle-Class segment in Indonesia, which focuses on home ownership, education, and health products, illustrates how socio-economic growth can create new consumer priorities and opportunities for targeted marketing strategies. Brands need to stay informed about these changes to align their offerings with the evolving needs of their target segments.
Competitive Landscape Shifts
Changes in the competitive landscape, such as new entrants, mergers, acquisitions, or shifts in competitor strategies, can also necessitate a reevaluation of market segments. A competitor’s successful targeting of a previously overlooked segment might reveal untapped opportunities or emerging trends. Keeping a close eye on the competition helps brands identify gaps in their segmentation strategies and adjust to maintain or enhance their market position.
Final Thoughts
With its complexities and contrasts, the Indonesian market offers a fertile ground for brands willing to invest in a deep understanding of their consumers. Success in this market is not just about providing products or services but about weaving your brand into the fabric of Indonesian life, respecting its traditions, meeting its aspirations, and contributing to its digital and socio-economic evolution.
Companies that approach the Indonesian market with flexibility, cultural sensitivity, and a commitment to innovation can achieve commercial success and build lasting relationships with one of the most diverse consumer bases in the world. For an in-depth look into what makes Indonesia an emerging market for foreign brands, read our full blog here.
Step into the world of Karlo Angelo Lazaro, the dynamic Project Manager at Kadence International’s Philippines office. With a career marked by evolution and resilience, Karlo brings a unique blend of experience and passion to market research.
From navigating the intricacies of data analysis to leading groundbreaking projects, his journey shows the transformative power of dedication and curiosity in the ever-evolving field of market research.
Join us as we delve into his insights, challenges, aspirations, and what’s shaping the future of market research in the Philippines.
Can you share what inspired you to pursue a market research career and what has motivated you in this field?
I was working as a Reconciliation Specialist for J.P. Morgan Chase, which was not working well for me. The work was repetitive and not stimulating enough to sustain my interest.
Some of my University friends already worked in different Market Research agencies, such as Millward Brown and TNS, so I asked for referrals. I’ve always been interested in their work, how interesting the industry is, and how different it is from banking.
I secured a position in TNS as a Research Associate, which started my Market Research journey. The sheer variety of clients and research methodologies were enough to keep me in the industry.
Before Kadence International, you worked in various roles, including Research Executive and Reconciliation Specialist. How did these experiences shape your approach as a Project Manager in market research?
One thing I appreciate about having worked as a Reconciliation Specialist is that it developed my keen eye for detail. There’s no place for mistakes when balancing salary accounts, so there was a real impetus for me to hone my skills. This has served me well as a Project Manager as I have been able to spot if something is amiss in whatever I’m checking, be it a client deliverable or a simple email.
Rising through the Market Research ranks has made me more empathetic to my Analysts and Researchers. Since I have been in their position before, it has helped me manage them better because I know how long tasks take and possible bottlenecks they may encounter.
The roles I’ve had before ultimately led me to be a better Market Researcher. I always give my team grace and try to be as understanding as possible, so long as there are no deliberate or egregious mistakes.
What unique challenges and rewards have you encountered while working at Kadence International?
I joined Kadence back in March 2021. Lockdowns were still common, and all research had moved online or via CATI. So, that was quite a unique moment in Market Research, but across all industries.
Upon joining Kadence, I was assigned World Poll PH 2021. It was the first large-scale CATI tracking study I’ve ever handled. It was four waves of N=1000 each, with two waves running concurrently.
We had problems with the output quality of the contracted CATI supplier, so we had to do the calls in-house, meaning we recruited our callers to finish the study! That was quite the challenge for my first CATI project, but I made it work and was rewarded with the client’s continued trust in us for this tracking project.
Could you discuss a particularly memorable or challenging project you managed at Kadence International?
Aside from World Poll, another critical project that I will always remember would be my first political survey. The project was called Pundit, and it had several iterations throughout 2021. Initially, it was a one-off set of FGDs, but it developed into multiple qualitative and quantitative projects leading up to a few months before the 2022 Philippine National Elections.
We started this when possible candidates were just floated around, and no official candidacy was announced yet, so we indeed saw how the populace reacted and how their sentiments changed throughout the different iterations of Pundit.
One thing to note was that Pundit results were not released publicly, so I’m very proud of this project as our results closely resemble those of publicly released political surveys at the time, which shows that we are capturing the true sentiment of the public.
Another remarkable thing about the project was the fact that this is where Kadence PH saw a return to F2F TAPI interviewing, which brought about a different set of challenges like interviewers falling ill due to COVID and local government units refusing to have us conduct surveys in their area due to COVID fears.
We also had to respond quickly to sudden government announcements that may impact our people on the ground, such as possible lockdowns in areas where COVID numbers are up. Pundit was a whirlwind of different issues, but I wouldn’t have traded it for anything else because it was such a fun project to run.
You possess skills in data visualization, critical thinking, and communication. How do these skills play a role in your daily responsibilities?
I find it helpful when training my team members. When we craft proposals or have reports to send out, I get to share my knowledge and experiences with the junior team members. What would be the best way to present the findings, what charts to use, and the like?
We’ve also had coaching sessions on proper client communications and how we can influence clients to see things our way. It fills me with joy when my team members can confidently talk with clients and accomplish tasks with little to no supervision on my end.
How has the market research industry evolved, particularly in the Philippines, during your tenure?
When I started, we were still in the thick of the PAPI era, with interviewers lugging multiple printed questionnaires house-to-house to do F2F surveys. I remember accompanying an interviewer for a tobacco study where we had a printed showcard of choices. The project was Discrete Choice Modelling for a cigarette brand, so we had several choice tasks printed on A3 paper! However, today, one can run a DCM or Conjoint project using tablets or even online.
The Philippines is now in its TAPI and Online Survey era. Gone are the days when researchers and field personnel sifted through sheets of paper to collate a questionnaire.
Then, there is the rise of boutique agencies in the Philippines. As significant research entities buy out and combine into one or the other, boutique agencies introduce new thinking and approaches because they’re more tied down than the major players are in terms of targets. They can afford to explore more and create their own niche in the industry.
How have technological advancements influenced your work in market research?
It has vastly made work faster and slightly more accessible. From the introduction of tablets to interviewing, to automatic encoding, to faster data processing, tech advances in Market Research have greatly helped add time to analyze the results of the studies comprehensively.
It gave more time for brainstorming sessions and more in-depth analysis to make our reports holistic and not rushed. Clients appreciate when we, as Researchers, are conscientious, and a big part of that is achieved through the various advances we’ve had in the industry.
What advice would you give someone just starting their career in market research?
For those starting their Market Research journey, here is some advice for navigating the field.
Start building on your skills.
Develop your eye for details. Attention to detail and precision are crucial skills to be a market researcher.
Learn how to analyze data and develop strong analytical skills. Know which charts are best to use for your data type.
Improve your written and oral communication. It’s imperative for you to develop your communication skills so that you can express study findings confidently and accurately.
Keep an open and curious mind.
Always ask questions and be proactive in learning about the industry. Don’t limit your understanding by being afraid of asking questions.
Cultivate a curious mind and be someone who’s always searching for new ideas.
Develop expertise, but don’t put yourself in a box.
Fully grasp the intricacies of a methodology, be it qualitative or quantitative, but don’t be defined by it. Don’t be afraid to branch out of your expertise so that you can become a holistic researcher.
Volunteer for challenging tasks, as it will only be to your advantage when it’s time to venture out to greater things.
Success comes from a combination of different factors, so one should be adaptable and constantly seeking opportunities for improvement.
What are your professional aspirations or goals in the market research field?
There’s still a lot I haven’t experienced in Market Research, but in the next 5-8 years, I’d like to head the Insights department of some company. I don’t know what industry yet, but that’s the direction I want to head toward.
I would also like to work outside the confines of the Philippines. Be it a secondment or in a different capacity.
How would you describe the culture at Kadence International, and how does it align with your personal values?
Of the research agencies I have been a part of, Kadence is the chill and relaxed one. The culture is very open, and the people are friendly and helpful. Plus, we’re still on a hybrid work schedule, which adds brownie points to Kadence.
I’m very laid back, so the company culture suits me quite nicely. I’m able to express my thoughts without fear of retaliation or not being taken seriously. There is a good fit with how I want to work and the Kadence ethos.
In what ways do you believe Kadence International’s approach to market research makes a difference for clients and the broader community?
Our approach fosters a sense of kinship with our clients where they feel the trust that we will do right by them. We’ve had successful relationships with clients because we care about their needs. We meet them halfway when it comes to costs and suggest the proper methodologies to answer their business issues.
We don’t shy away from telling them what will work and what won’t; we’re upfront and honest with them about our strengths and limitations. Clients appreciate always appreciate honesty.
How do you maintain a healthy work-life balance, especially in a demanding field like market research?
I am not shy about taking a break now and then. Having a long weekend where I laze around and catch up on my reading is essential to maintain my sanity.
I do not mind working long, especially if we’re on fieldwork, but there should always be time for play. I carve out time after stressful projects, so I’m refreshed and ready to face different challenges.
Outside of work, what are some hobbies or activities you enjoy?
I may not look it, but I like to walk to clear my mind, and it’s my sole form of physical activity. I’m an avid reader of mangas and manhwas as well as wuxia and xianxia web novels. I’m trying to rekindle my book-reading habit, which will be another escape source.
I also watch a lot of reality TV and other shows that are light and where I don’t have to spend much thinking power to follow the story. Lastly, I listen to pop and OPM music to soothe my mind.
Anything else you’d like to add?
I’ll leave you with a quote that stayed with me when I considered applying to graduate school. I don’t know its provenance, but it is attributed to Jennifer Ritchie Payette.
“Your career is like a garden. It can hold an assortment of life’s energy that yields a bounty for you. You do not need to grow just one thing in your garden. You do not need to do just one thing in your career.”
In the heart of Southeast Asia lies the Philippines, a nation where purchasing decisions are as vibrant and complex as its archipelago of over 7,000 islands. Home to over 100 million people, this market is shaped by a unique blend of cultural depth, economic growth, and technological integration, where traditional and modern shopping habits intertwine.
The Filipino consumer market is marked by strong community bonds, significant digital engagement, and deep brand loyalty, further enriched by economic boosts from overseas remittances. Such a mix demands that brands keen on making their mark or expanding in the Philippines pay close attention to these diverse consumer behaviours.
Highlighting the emotional nature of Filipino purchases, as noted by marketing guru and Chairman and Chief Innovation Strategist of Mansmith and Fielders, Inc. Josiah Go, “Filipinos buy based on emotion and justify with logic,” emphasises the need for a nuanced approach that considers the emotional, digital, and cultural dimensions shaping consumer preferences in the Philippines.
The Evolution of Filipino Consumerism
The journey of Filipino consumerism from its traditional roots to the modern, globalised commerce landscape is a testament to the country’s adaptability and cultural richness.
Traditional Markets and the Early Economy
Historically, the Philippine economy was deeply rooted in agriculture, with local markets or “palengkes” as the centre of community life and commerce.
These markets were more than just places to buy and sell goods; they were cultural hubs where social bonds were formed and maintained. The exchange of goods in these settings was personal, with a strong emphasis on face-to-face interactions and establishing trust between buyers and sellers. This tradition laid the foundational emphasis on personal connections and trust in business dealings, a trait that remains deeply ingrained in Filipino consumer behaviour today.
The Influence of Colonialism
The arrival of Spanish and later American colonial powers introduced new economic systems and consumer goods to the Philippines, marking the beginning of a shift toward a more globalised market. The colonial period saw the introduction of Western products and the gradual adoption of foreign consumption habits, blending with local traditions to create a unique consumer culture. This period also saw the rise of the “sari-sari” store, a small neighbourhood convenience store that embodies the Filipino spirit of community and resourcefulness. These stores, often run out of the front of a family home, became a staple of Filipino communities, providing local and imported goods.
Post-War Economic Growth and Modernisation
The post-World War II era brought significant economic changes and modernisation to the Philippines. The country’s economy began diversifying, moving from agriculture to manufacturing and services.
This shift was accompanied by urbanisation and the growth of the middle class, leading to increased consumer spending and the introduction of modern retail formats, including supermarkets and department stores. However, even as Filipinos embraced these modern retail environments, the traditional values of trust, community, and personal connection played a crucial role in consumer behaviour.
The Digital Revolution and E-commerce
The advent of the internet and mobile technology has profoundly impacted Filipino consumerism. With over 85.16 million internet users in the Philippines in January 2023, the Philippines has experienced a digital revolution that has transformed purchasing habits. E-commerce platforms like Lazada and Shopee have become household names, offering the convenience of online shopping and a wide array of products at consumers’ fingertips. Social media has also become a significant factor in consumer decisions, with Filipinos spending more than 4 hours a day on social platforms, influencing everything from brand perceptions to purchase decisions. This also makes online market research in the Philippines very effective.
The Modern Filipino Consumer
A complex blend of tradition and globalisation characterises Filipino consumerism. The Philippines houses 3 of the world’s 10 largest shopping malls, and the strong mall culture coexists with a booming e-commerce market predicted to surpass $12 billion by 2025. Filipino consumers navigate a global marketplace while connecting deeply to local culture and values. Brands that succeed in this market understand the importance of emotional resonance, community engagement, and the blend of traditional and modern values that define Filipino consumerism.
The Philippines’ internet penetration rate stood at 73.1% of the total population at the start of 2023.
The Significance of Family Ties
Filipino society is tightly woven with family relations, where family extends beyond the immediate to include extended family members. This familial network profoundly influences consumer behaviour, shaping purchase decisions and preferences across generations.
The Role of Family in Purchase Decisions
The collective nature of Filipino families means buying decisions are often made with the family’s needs and preferences in mind rather than individual desires. This dynamic is evident in the popularity of big-bulk and family-pack products, which cater to sharing among family members. Whether it’s groceries, clothing, or electronics, the preference leans toward items that offer value for money and can be used or enjoyed by multiple family members.
Family-centric purchasing behaviour is also reflected in the Filipino custom of ‘pasalubong’ – bringing gifts home for family members after travelling. This practice underlines the importance of family in everyday life and showcases the thoughtfulness toward maintaining family bonds through shared experiences and gifts.
How Filippino Parents and Grandparents Shape Buying Habits
Filipino families often feature strong, multigenerational households where parents, grandparents, and sometimes even great-grandparents play significant roles in shaping the family’s values and habits. This generational influence is a powerful factor in transmitting brand loyalties and purchasing habits. Brands trusted by a family over generations enjoy continued patronage, reflecting the deep-seated value of trust and tradition in Filipino consumer behaviour.
Parents and grandparents pass down preferences for certain brands or products and impart values that dictate how money should be spent. For example, emphasising education, health, and well-being often guides family spending toward educational materials, healthy food options, and medical insurance. The reverence for elders in Filipino culture means that products and services catering to the elderly, such as health supplements or mobility aids, are given special consideration in family budgets.
The influence of parents and grandparents also extends into the digital world. As digital natives, younger family members often introduce older generations to online shopping and digital payments, gradually influencing their acceptance and adoption of new technologies for purchasing. This intergenerational exchange enriches the family’s buying habits, blending traditional preferences with modern conveniences.
Products and services that can bridge generational preferences and cater to the collective needs of Filipino families are more likely to find success and longevity in this interconnected and family-oriented market.
Cultural and Social Factors
The Philippines exhibits consumer behaviour deeply influenced by social and cultural factors.
‘Bayanihan’ and Community-Centric Purchases
‘Bayanihan,’ a term encapsulating the Filipino spirit of communal unity and cooperation, significantly influences consumer behaviour in the Philippines. There’s a strong inclination toward brands and products that contribute positively to local communities through job creation, environmental sustainability, or support for local artisans and producers.
The concept of ‘Bayanihan’ extends to consumer preferences for products and services that facilitate community gatherings and celebrations, such as food and beverages that can be shared during communal events.
Local Festivals and Seasonal Buying Patterns
The Philippines is renowned for its colourful and diverse festivals, known locally as ‘fiestas,’ which celebrate various religious and cultural events throughout the year. These festivals significantly impact consumer spending, driving seasonal buying patterns companies need to anticipate and cater to. During these times, there is a surge in demand for specific products, such as traditional foods, clothing, and decorations that align with the festival’s themes.
These festivals often stimulate local economies by encouraging spending on travel, accommodations, and souvenirs, reflecting the Filipinos’ love for celebration and their willingness to invest in creating memorable experiences.
The Influence of Religion on Consumption
Religion, particularly Catholicism, which most Filipinos follow, significantly shapes consumption patterns. Religious observances and traditions, such as Holy Week and Christmas, dictate the timing and the nature of consumer purchases. For instance, there is a notable shift toward more modest consumption during Holy Week, with increased spending on religious items and charity. Conversely, the Christmas season sees a spike in consumer spending, with Filipinos buying gifts and decorations and preparing festive meals in the spirit of sharing and celebration.
Over 80% of Filipinos are Catholic, and religious events like Lent, Easter, and Christmas influence purchasing behaviours, from food to gifts.
The religious influence extends beyond these periods, with fiestas honouring patron saints in various locales yearly. These events are religious observances and community celebrations that stimulate spending on food, clothing, and festivities.
Economic Considerations
The significant contributions of Overseas Filipino Workers (OFWs) and the growth of the middle class are noteworthy developments.
The Impact of OFWs and Remittances
OFWs play a pivotal role in the Philippine economy, with their remittances constituting a significant portion of the country’s GDP.
In 2020, remittances from OFWs reached around $30 billion, showcasing their substantial impact on the national economy and, by extension, on consumer spending patterns.
Remittances represent a lifeline for millions of Filipino families, supporting their daily needs, education, health care, and investments in small businesses and real estate.
The inflow of remittances has increased purchasing power among recipient families, influencing consumer behaviours from heightened spending on luxury goods and services to investments in education and property. The availability of this ‘extra’ income has also encouraged a consumer culture, as OFWs and their families often associate these attributes with social mobility and success.
Remittances have also contributed to the resilience of the Philippine economy, particularly during global economic downturns. The steady flow of funds from abroad has helped sustain domestic consumption even in times of crisis, buffering the economy against external shocks and maintaining consumer confidence.
Rising Middle Class and Its Effects on Consumer Behavior
The Philippines has witnessed significant economic growth for decades, contributing to the expansion of the middle class. The rising middle class is characterised by increased disposable income, changing lifestyles, and evolving consumption patterns. As more Filipinos find themselves with greater financial freedom, there has been a noticeable shift toward discretionary spending, with a higher demand for quality, convenience, and luxury.
The growing Filippino middle class is more inclined toward experiences and products that enhance their quality of life, such as travel, dining out, entertainment, and wellness. This demographic is also more engaged with digital platforms for information and commerce, driving the growth of e-commerce and online services.
This segment’s influence extends to the housing market, with an increased demand for residential properties that offer security, amenities, and access to urban conveniences. The rising middle class is more likely to invest in education and health, prioritising the well-being and future of their families.
The Power of Digital and Social Media
Two phenomena stand out in the Philippines: the rise of online influencers and the importance of social proofing.
Online influencers in the Philippines wield significant power over consumer preferences and purchase decisions. These influencers, ranging from celebrities to niche content creators, have cultivated loyal followings across platforms like YouTube, Instagram, and TikTok. They often serve as trendsetters and trusted sources of information for their audiences, offering recommendations and reviews that can sway purchasing decisions.
Ann Curtis Smith, Influencer & Multimedia Superstar
With 20 M followers and dubbed the “Multimedia Superstar,” Ann Curtis Smith remains the most-followed Filipino on Instagram.
Social proof has emerged as a powerful factor in the Filipino digital consumer journey, with social media platforms playing a pivotal role. Social proof, the psychological phenomenon where people assume the actions of others in an attempt to reflect correct behaviour for a given situation, is now amplified. Reviews, testimonials, and user-generated content on platforms like Facebook, Instagram, and YouTube serve as influential sources of social proof, guiding consumers in their purchasing decisions.
Brand Loyalty vs. Value Shopping
Understanding the dynamic between brand loyalty and the pursuit of value in the Filipino consumer market is crucial for brands aiming to engage Filipino consumers effectively, requiring a flexible approach that can appeal to both the heart and the wallet.
“The Filipino consumer is no longer just looking for value. They are now looking for meaning,” – Francis Kong, Filipino business consultant.
Are Filipinos More Brand Loyal, or Do They Prioritise Value?
Filipino consumers exhibit a complex relationship between brand loyalty and value shopping, often influenced by the type of product, the perceived value of the brand, and the economic context. On the one hand, Filipinos show a strong sense of brand loyalty, especially towards brands that have established a deep emotional connection or have been part of family traditions over generations. This loyalty is further reinforced by the quality, reliability, and status associated with certain brands, making them preferred choices despite cheaper alternatives.
However, pursuing value — getting the most out of every peso — is also deeply ingrained in the Filipino consumer psyche. The concept of “sulit” plays a significant role in purchase decisions, where a product’s quality, quantity, and price are carefully considered to ensure maximum value.
The balance between brand loyalty and value shopping can also shift based on economic conditions. During economic uncertainty, for example, consumers may become more price-sensitive and open to switching brands in favour of better deals.
The Role of Promotions, Discounts, and ‘Suki’ (Regular) Incentives
Promotions, discounts, and the concept of ‘suki‘ — a term used to describe a loyal customer or patron — play crucial roles in reinforcing brand loyalty and encouraging value shopping among Filipinos. Retailers and brands leverage these strategies to attract and retain customers, offering tangible benefits for continued patronage.
The success of major online sales events, such as those offered by platforms like Lazada and Shopee, underscores the effectiveness of these strategies in the Philippine market.
The ‘suki‘ system embodies the relational aspect of Filipino commerce. Small businesses and local vendors often recognise and reward regular customers with discounts, extra goods, or more personalised services. For larger brands and retailers, loyalty programs that mimic the ‘suki‘ relationship by offering rewards, points, or exclusive benefits can effectively build and maintain a loyal customer base.
Local vs. Global Brands
The Philippine market presents a fascinating battleground for local and global brands, each vying for consumer preference through cultural relevance, quality, and value.
The Perceived Value of International Brands
International brands often hold a certain allure among Filipino consumers, attributed to their global reputation, perceived quality, and status symbol. For many, purchasing products from well-known international brands is about the prestige and lifestyle they represent, especially in categories like fashion, technology, and luxury goods.
The globalisation of consumer culture also reinforces the appeal of international brands, with Filipinos exposed to global trends through the internet and media.
However, this does not imply that international brands always have the upper hand. Their success in the Philippine market depends on their ability to localise offerings and connect with Filipino values and preferences.
Trust and Reliability in Local Products
Local brands also command a significant place in the hearts and wallets of Filipino consumers, driven by a deep-seated trust and a sense of national pride. The success of local brands like Jollibee, which has outperformed global giants like McDonald’s in the Philippines, underscores the strong connection local brands can forge with consumers. This connection is often rooted in local brands’ understanding of Filipino tastes and preferences, enabling them to effectively tailor their products and marketing strategies.
The trust in local products is also bolstered by their perceived reliability and value for money. The preference for local products is further strengthened by the growing consumer awareness of the importance of supporting local businesses for economic development. There is a rising trend among Filipino consumers to patronise local brands as a way of contributing to the national economy and supporting local communities.
Sustainability and Ethical Purchasing
In recent years, the Philippines has seen a growing consciousness among consumers regarding sustainability and ethical purchasing. This shift reflects a broader global trend toward environmental responsibility and social equity, influencing purchasing decisions across various sectors of the economy. Let’s explore how these trends are manifesting in the Filipino market.
Are Eco-Friendly Products and Ethical Brands Making an Impact on Filipino Consumers?
Eco-friendly products and ethical brands are significantly impacting Filipino consumers, albeit gradually. As awareness about environmental issues and social injustices increases, more Filipinos are considering the broader implications of their purchasing choices. This awareness is partly driven by the visible effects of environmental degradation in the Philippines, such as pollution and natural disasters, which underscore the urgency of adopting sustainable practices.
According to our study on sustainability in ten countries, 73% of Filipino adults said the private sector should contribute significantly to finding ways to reduce waste and reuse/recycle, and over half (56%) strongly agreed they would select a product or service based on its environmental credentials.
Download our comprehensive report, “The Green Brand,” for insights into sustainable trends among consumers in ten countries.
Ethical brands prioritising environmental sustainability and social responsibility are gaining traction among a population segment that values transparency, sustainability, and ethical business practices. The rise of social media and digital platforms has further facilitated the spread of information regarding the importance of eco-friendly and ethically produced goods, amplifying their impact on consumer choices.
However, the overall market penetration of such products still faces challenges, including higher price points compared to conventional products and limited availability in some areas.
The Growing Trend of Local, Organic, and Handmade Goods
Parallel to the rise of eco-friendly and ethical brands is the growing popularity of local, organic, and handmade goods in the Philippines. This trend is driven by a desire for healthier lifestyles, support for local economies, and a preference for products with a lower environmental footprint. Organic food products, in particular, have seen increased demand among Filipino consumers, who are becoming more health-conscious and concerned about using pesticides and synthetic fertilizers in conventional agriculture.
Handmade goods and artisanal products are also experiencing a resurgence as consumers value these items’ craftsmanship, uniqueness, and cultural significance. Purchasing handmade goods from local artisans is a way to support community livelihoods and preserve cultural practices.
The trend toward local, organic, and handmade goods is further bolstered by the growing number of farmers’ markets, organic farms, and community-supported agriculture (CSA) programs in the country. These initiatives provide direct channels for consumers to access fresh, locally sourced products while fostering a sense of community and connection to the food system.
Emotional Drivers and Aspirational Purchasing
Emotional drivers and aspirational purchasing are deeply rooted in the Philippines’ cultural and social dynamics, affecting how brands position themselves, and consumers respond to marketing campaigns.
How Marketing Campaigns Tap into Filipino Emotions and Values
Marketing campaigns in the Philippines often succeed by resonating with the emotional and cultural values of the Filipino people. Brands that tap into feelings of family, community, and national pride tend to have a more significant impact, creating a deeper connection with their audience. Emotional marketing leverages storytelling, often featuring narratives that reflect everyday Filipino life, highlighting themes of love, resilience, joy, and the importance of family and social bonds.
Filipino values such as ‘Bayanihan’ (communal unity), ‘Pakikisama’ (smooth interpersonal relationships), and ‘Utang na Loob’ (debt of gratitude) are powerful themes that brands integrate into their marketing strategies.
The effectiveness of emotional marketing in the Philippines is also amplified by the widespread use of social media, allowing these resonant messages to be shared and amplified within communities, further strengthening the emotional ties between consumers and brands.
The Desire for Upward Mobility and How It Affects Consumer Choices
Aspirational purchasing is another significant factor driving consumer behaviour in the Philippines. The desire for upward mobility—a better lifestyle, higher status, and improved well-being—is a powerful motivator for many Filipinos. This aspiration influences purchasing decisions, from fashion and technology to education and real estate.
Consumers are often drawn to brands and products perceived as symbols of success and progress to enhance their social standing. For instance, owning the latest smartphone or wearing popular fashion brands is seen not just as a matter of personal taste but as an indicator of one’s socioeconomic status. Similarly, investing in quality education for their children is a top priority for many Filipino families, viewing it as a key to unlocking better opportunities and securing a prosperous future.
Predictions for the Future of Filipino Consumer Behavior
Increased Demand for Personalised Experiences: As digital technology advances, Filipino consumers will increasingly expect personalised shopping experiences, tailored recommendations, and products that reflect their preferences and values.
Greater Emphasis on Sustainability: Environmental awareness and social responsibility will play a more significant role in shaping consumer preferences. Brands that can convincingly integrate sustainable practices into their operations and product lines will capture the attention of future consumers.
Continued Blend of Global and Local: While globalisation introduces international trends and products, a strong sense of national identity will keep local brands and traditions relevant. Successful brands will be those that can offer the best of both worlds, combining global appeal with local relevance.
Evolving Digital Landscapes: Adopting new technologies, such as augmented reality (AR), virtual reality (VR), and AI-driven shopping assistants, will further transform the Filipino consumer experience, offering new avenues for engagement and personalisation.
Resilience and Adaptability: The Filipino market’s history of resilience in the face of economic and social challenges suggests that consumers will continue to adapt to changing circumstances. Brands that are flexible and responsive to these changes offering solutions that meet evolving needs, will thrive.
With our global expertise in market research, we operate a dedicated office in the Philippines as a key partner for brands looking to understand and engage with the Filipino market. This presence on the ground provides an invaluable advantage, offering deep local insights and global perspectives. Our team in the Philippines specialises in harnessing a range of qualitative and quantitative research methods tailored to uncover the nuances of Filipino consumer behaviour, preferences, and trends. By leveraging its local expertise and global research capabilities, Kadence International is ideally equipped to steer organisations through the complex Filipino market, ensuring that strategies are informed, data-driven, and culturally attuned to meet this market’s unique needs and opportunities.
Step into the world of Karlo Angelo Lazaro, the dynamic Project Manager at Kadence International’s Philippines office. With a career marked by evolution and resilience, Karlo brings a unique blend of experience and passion to market research.
From navigating the intricacies of data analysis to leading groundbreaking projects, his journey shows the transformative power of dedication and curiosity in the ever-evolving field of market research.
Join us as we delve into his insights, challenges, aspirations, and what’s shaping the future of market research in the Philippines.
Can you share what inspired you to pursue a market research career and what has motivated you in this field?
I was working as a Reconciliation Specialist for J.P. Morgan Chase, which was not working well for me. The work was repetitive and not stimulating enough to sustain my interest.
Some of my University friends already worked in different Market Research agencies, such as Millward Brown and TNS, so I asked for referrals. I’ve always been interested when they talk about their work, how interesting the industry is, and how different it is from banking.
I secured a position in TNS as a Research Associate, which started my Market Research journey. The sheer variety of clients and research methodologies are enough to keep me in the industry.
Before Kadence International, you worked in various roles, including Research Executive and Reconciliation Specialist. How did these experiences shape your approach as a Project Manager in market research?
One thing I appreciate about having worked as a Reconciliation Specialist is that it developed my keen eye for detail. There’s no place for mistakes when you’re balancing salary accounts, so there was a real impetus for me to hone my eye. This has served me well as a Project Manager as I have been able to spot if something is amiss in whatever I’m checking, be it a client deliverable or a simple email.
Rising through the Market Research ranks has made me more empathetic to my Analysts and Researchers. Since I have been in their position before, it has helped me manage them better because I know how long tasks take and possible bottlenecks they may encounter.
The roles I’ve had before ultimately led me to be a better Market Researcher. I always give my team grace and try to be as understanding as possible, so long as there are no deliberate or egregious mistakes.
What unique challenges and rewards have you encountered while working at Kadence International?
I joined Kadence back in March 2021. Lockdowns were still common, and all research had moved online or via CATI. So, that was quite a unique moment in Market Research, but across all industries.
Upon joining Kadence, I was assigned World Poll PH 2021. It was the first large-scale CATI tracking study I’ve ever handled. It was four waves of N=1000 each, with two waves running concurrently.
We had problems with the output quality of the contracted CATI supplier, so we had to do the calls in-house, meaning we recruited our callers to finish the study! That was quite the challenge for my first CATI project, but I made it work and was rewarded with the client’s continued trust in us for this tracking project.
Could you discuss a particularly memorable or challenging project you managed at Kadence International?
Aside from World Poll, another critical project that I will always remember would be my first political survey. The project was called Pundit, and it had several iterations throughout 2021. Initially, it was a one-off set of FGDs, but it developed into multiple qualitative and quantitative projects leading up to a few months before the 2022 Philippine National Elections.
We started this when possible candidates were just floated around, and no official candidacy was announced yet, so we indeed saw how the populace reacted and how their sentiments changed throughout the different iterations of Pundit.
One thing to note was that Pundit results were not released publicly, so I’m very proud of this project as our results closely resemble those of publicly released political surveys at the time, which shows that we are capturing the true sentiment of the public.
Another remarkable thing about the project was the fact that this is where Kadence PH saw a return to F2F TAPI interviewing, which brought about a different set of challenges like interviewers falling ill due to COVID and local government units refusing to have us conduct surveys in their area due to COVID fears.
We also had to respond quickly to sudden government announcements that may impact our people on the ground, such as possible lockdowns in areas where COVID numbers are up. Pundit was a whirlwind of different issues, but I wouldn’t have traded it for anything else because it was such a fun project to run.
You possess skills in data visualization, critical thinking, and communication. How do these skills play a role in your daily responsibilities?
I find it helpful when training my team members. When we craft proposals or have reports to send out, I get to share my knowledge and experiences with the junior team members. What would be the best way to present the findings, what charts to use, and the like?
We’ve also had coaching sessions on proper client communications and how we can influence clients to see things our way. It fills me with joy when my team members can confidently talk with clients and accomplish tasks with little to no supervision on my end.
How has the market research industry evolved, particularly in the Philippines, during your tenure?
When I started, we were still in the thick of the PAPI era, with interviewers lugging multiple printed questionnaires house-to-house to do F2F surveys. I remember accompanying an interviewer for a tobacco study where we had a printed showcard of choices. The project was Discrete Choice Modelling for a cigarette brand, so we had several choice tasks printed on A3 paper! However, today, one can run a DCM or Conjoint project using tablets or even online.
The Philippines is now in its TAPI and Online Survey era. Gone are the days when researchers and field personnel sifted through sheets of paper to collate a questionnaire.
Then, there is the rise of boutique agencies in the Philippines. As significant research entities buy out and combine into one or the other, boutique agencies introduce new thinking and approaches because they’re more tied down than the major players are in terms of targets. They can afford to explore more and create their own niche in the industry.
How have technological advancements influenced your work in market research?
It has vastly made work faster and slightly more accessible. From the introduction of tablets to interviewing, to automatic encoding, to faster data processing, tech advances in Market Research have greatly helped add time to analyse the results of the studies comprehensively.
It gave more time for brainstorming sessions and more in-depth analysis to make our reports holistic and not rushed. Clients appreciate when we, as Researchers, are conscientious, and a big part of that is achieved through the various advances we’ve had in the industry.
What advice would you give someone just starting their career in market research?
For those starting their Market Research journey, here is some advice for navigating the field.
Start building on your skills.
Develop your eye for details. Attention to detail and precision are crucial skills to be a market researcher.
Learn how to analyse data and develop strong analytical skills. Know which charts are best to use for your data type.
Improve your written and oral communication. It’s imperative for you to develop your communication skills so that you can express study findings confidently and accurately.
Keep an open and curious mind.
Always ask questions and be proactive in learning about the industry. Don’t limit your understanding by being afraid of asking questions.
Cultivate a curious mind and be someone who’s always searching for new ideas.
Develop expertise, but don’t put yourself in a box.
Fully grasp the intricacies of a methodology, be it qualitative or quantitative, but don’t be defined by it. Don’t be afraid to branch out of your expertise so that you can become a holistic researcher.
Volunteer for challenging tasks, as it will only be to your advantage when it’s time to venture out to greater things.
Success comes from a combination of different factors, so one should be adaptable and constantly seeking opportunities for improvement.
What are your professional aspirations or goals in the market research field?
There’s still a lot I haven’t experienced in Market Research, but in the next 5-8 years, I’d like to head the Insights department of some company. I don’t know what industry yet, but that’s the direction I want to head toward.
I would also like to work outside the confines of the Philippines. Be it a secondment or in a different capacity.
How would you describe the culture at Kadence International, and how does it align with your personal values?
Of the research agencies I have been a part of, Kadence is the chill and relaxed one. The culture is very open, and the people are friendly and helpful. Plus, we’re still on a hybrid work schedule, which adds brownie points to Kadence.
I’m very laid back, so the company culture suits me quite nicely. I’m able to express my thoughts without fear of retaliation or not being taken seriously. There is a good fit with how I want to work and the Kadence ethos.
In what ways do you believe Kadence International’s approach to market research makes a difference for clients and the broader community?
Our approach fosters a sense of kinship with our clients where they feel the trust that we will do right by them. We’ve had successful relationships with clients because we care about their needs. We meet them halfway when it comes to costs and suggest the proper methodologies to answer their business issues.
We don’t shy away from telling them what will work and what won’t; we’re upfront and honest with them about our strengths and limitations. Clients appreciate always appreciate honesty.
How do you maintain a healthy work-life balance, especially in a demanding field like market research?
I am not shy about taking a break now and then. Having a long weekend where I laze around and catch up on my reading is essential to maintain my sanity.
I do not mind working long, especially if we’re on fieldwork, but there should always be time for play. I carve out time after stressful projects so I’m refreshed and ready to face different challenges.
Outside of work, what are some hobbies or activities you enjoy?
I may not look it, but I like to walk to clear my mind, and it’s my sole form of physical activity. I’m an avid reader of mangas and manhwas and some web novels. I’m trying to rekindle my book-reading habit, which will be another escape source.
I also watch a lot of reality TV and other shows that are light and where I don’t have to spend much thinking power to follow the story. Lastly, I listen to pop and OPM music to soothe my mind.
Anything else you’d like to add?
I’ll leave you with a quote that stayed with me when I considered applying to graduate school. I don’t know its provenance, but it is attributed to Jennifer Ritchie Payette.
“Your career is like a garden. It can hold an assortment of life’s energy that yields a bounty for you. You do not need to grow just one thing in your garden. You do not need to do just one thing in your career.”
Helping brands uncover valuable insights
We’ve been working with Kadence on a couple of strategic projects, which influenced our product roadmap roll-out within the region. Their work has been exceptional in providing me the insights that I need.
Senior Marketing Executive Arla Foods
Kadence’s reports give us the insight, conclusion and recommended execution needed to give us a different perspective, which provided us with an opportunity to relook at our go to market strategy in a different direction which we are now reaping the benefits from.
Sales & Marketing Bridgestone
Kadence helped us not only conduct a thorough and insightful piece of research, its interpretation of the data provided many useful and unexpected good-news stories that we were able to use in our communications and interactions with government bodies.
General Manager PR -Internal Communications & Government Affairs Mitsubishi
Kadence team is more like a partner to us. We have run a number of projects together and … the pro-activeness, out of the box thinking and delivering in spite of tight deadlines are some of the key reasons we always reach out to them.
Vital Strategies
Kadence were an excellent partner on this project; they took time to really understand our business challenges, and developed a research approach that would tackle the exam question from all directions. The impact of the work is still being felt now, several years later.
Customer Intelligence Director Wall Street Journal
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Senior Marketing Executive
Sales & Marketing
General Manager PR -Internal Communications & Government Affairs
Vital Strategies
Customer Intelligence Director