Observing a focus group might seem like a passive role, but it’s a crucial element of the qualitative research process. Careful observation, both in online and offline settings, allows you to capture details that moderators or participants might miss.
In a focus group, thoughtful observation helps unearth valuable insights that can guide strategic decisions, making it an essential part of the research process.
Whether you’re sitting behind the glass in an in-person session or watching remotely during a virtual group, the complexity of focus groups has increased, and so has the need for sharp, focused observers who can capture both what’s said and what’s implied.
The Role of a Focus Group Observer
The role of a focus group observer is to gather insights by watching and listening without directly engaging in the discussion. In both traditional face-to-face settings and virtual spaces, observers focus on the nuances of the conversation, paying attention to verbal exchanges and non-verbal cues that might be missed by the moderator or participants.
Observation is essential for capturing deeper insights. While the moderator is responsible for guiding the conversation, the observer is free to focus on the group dynamics—how people react, what body language reveals, or which points generate the most engagement. These details often provide crucial context to the responses given, allowing for a more comprehensive analysis of the data collected.
Whether observing in-person or virtually, this role is key to understanding the complete picture of what is being said and, equally important, what is left unsaid.
Preparing for a Focus Group Observation
Before observing a focus group, it’s essential to align yourself with the research purpose. Understanding why the session is being conducted ensures that your observations stay relevant to the study’s goals. Begin by reviewing all background materials provided, including the research objectives and the discussion guide. This will give you context on what the group aims to uncover and which key themes to focus on during your observation.
Familiarising yourself with the discussion guide is especially important. It outlines the flow of the session and highlights the main topics or questions to be covered. Knowing the intended structure will help you anticipate shifts in conversation and recognise when the moderator might be exploring a critical area of interest.
Managing your expectations and biases is also crucial. It’s easy to approach the session with preconceived notions, but staying neutral is essential in collecting unbiased insights. Remind yourself to focus on what participants are actually saying and doing rather than what you expect them to say.
Lastly, arrive early if you are attending in person, or log in ahead of time if observing virtually. Early arrival allows you to avoid disruptions, ensuring that you’re ready to fully engage from the moment the session begins. This also reduces the chances of accidental interaction with participants, maintaining the integrity of the observation process. Being prepared and on time allows you to focus solely on the task at hand: observing and capturing valuable insights.
Online vs. Offline Focus Groups: What Changes for Observers?
The dynamics of observing a focus group can vary significantly depending on whether it’s conducted online or in person. Both environments offer unique challenges and opportunities for observers, requiring different approaches to capture the full range of insights.
Online Focus Groups
This virtual environment introduces new variables for observers. Chat functions, video quality, and potential technical glitches can all influence the flow of the session. Participants may feel more comfortable sharing their thoughts in a chat, while others might prefer speaking via video, making it essential to monitor both communication channels.
Additionally, delays or poor video quality can impact your ability to read facial expressions or body language, which can be more subtle in an online setting.
Virtual observation rooms, however, offer advantages. These platforms often provide tools for taking notes or tagging important moments without disrupting the session. You can also view participants from multiple angles or with different screen layouts, allowing for a broader perspective than in a traditional setup. However, the challenge lies in maintaining focus as you juggle multiple tech elements that may distract from the nuances of participant behaviour.
Offline Focus Groups
By contrast, in-person focus groups involve a more straightforward observation process, typically through a one-way mirror or live in the same room, where nonverbal cues are more easily detectable. Body language, tone of voice, and group dynamics are clearer in face-to-face settings, providing observers with richer context. Subtle gestures like crossed arms, leaning in, or shared glances between participants can give additional depth to their verbal responses.
The challenge in offline groups comes from the limitation of a single viewpoint, whether you’re behind the mirror or in the room. You can only observe from one angle, and you must rely entirely on what you can see and hear in real-time. This makes paying attention to every interaction crucial, as there are fewer tools to assist you with reviewing key moments.
In both formats, the observer’s role remains the same: to capture valuable insights by paying attention to the nuances of participant interactions. However, the method and tools available to do so differ between online and offline groups, requiring observers to adapt their approach based on the environment.
Best Practices for Focus Group Observation
To be an effective focus group observer, it’s essential to follow a few key principles that help ensure your observations are unbiased, valuable, and contribute meaningfully to the research process.
First, listen actively without judgment. It can be tempting to mentally categorise or critique participants’ responses based on your own biases, but doing so can cloud your understanding of their genuine perspectives. Your role as an observer is to absorb the conversation and watch how it unfolds naturally. Every participant’s contribution, no matter how different it may seem, adds to the overall picture.
Be patient. Not every comment will be a breakthrough, and not every response will provide deep insight. However, each comment plays a role in building a collective understanding. Focus on the bigger picture, recognising that small details or seemingly trivial comments can later connect to larger trends or insights.
Avoid distractions—both for yourself and others in the session. Whether you’re observing online or in person, keep your movements quiet and subtle. In an in-person setting, avoid disturbing other observers with unnecessary conversation, noise, or movements. Online, avoid distractions like background chatter in virtual spaces or unnecessary interactions via chat functions.
When it comes to documenting your observations, be thoughtful and efficient. Shorthand can be an effective tool for quickly jotting down key points or themes without disrupting your focus. Many digital tools and platforms also allow you to tag specific moments during online groups, making it easier to refer back later.
The goal is to capture significant ideas and patterns without breaking the flow of your observation or the session itself. Avoid trying to write down everything—focus instead on the most critical elements that align with the research objectives.
Tips for Note-taking and Engagement
Effective note-taking during a focus group observation is about capturing key insights without getting lost in the details. It’s important to focus on major themes, patterns, and standout moments rather than trying to transcribe every word spoken. By concentrating on what’s most relevant to the research objectives, you’ll end up with notes that are both useful and actionable.
Start by identifying key themes as they emerge. These might be recurring ideas, strong opinions, or responses that align with the session’s objectives. Avoid the temptation to jot down every response—instead, note the ideas that are most likely to influence the analysis or reflect the group’s consensus (or divergence). This will keep your notes concise and focused on the most valuable takeaways.
When observing in-person sessions, balance your attention between taking notes and watching non-verbal cues. Body language, such as facial expressions, gestures, and posture, can reveal just as much as spoken words. For instance, a participant’s hesitation before answering or how they react to another’s comment can provide deeper context to their verbal responses. Be sure to make note of any significant non-verbal cues that support or contradict what is being said.
In virtual settings, the challenge of tracking body language is greater due to potential technical limitations. However, you can still pay attention to how participants engage—whether they are using the chat function or interacting via video. Noting any visible shifts in tone or attention can offer insights into their level of engagement or agreement with the discussion.
The key to effective note-taking is striking a balance between listening and documenting. Capture the essence of the discussion while staying engaged with what’s happening in the room or on screen. The best notes are not the longest but the ones that highlight meaningful moments, important insights, and behaviours that align with the overall goals of the research.
Post-Focus Group Reflection
After a focus group session concludes, the reflection and debriefing process is as critical as the observation itself. A post-session debriefing with the moderator allows you to clarify any insights, address lingering questions, and compare notes on moments that emerged during the discussion. This exchange can help align your understanding of the session with the moderator’s experience, filling in gaps and offering a more comprehensive view of the participants’ responses.
During the debrief, it’s important to discuss any observations or questions that may have arisen. If certain responses or behaviours were unclear, the debrief is the time to ask the moderator for their perspective. Also, moderators may have noticed patterns you didn’t, and vice versa. Collaborating with the moderator ensures that all significant insights are captured before the final analysis.
Observers play a vital role in the qualitative research process, and their notes and reflections provide an additional layer of depth to the findings. After the session, review your notes and identify the themes or patterns that stand out the most. Cross-reference these with the research objectives, ensuring your observations align with the study’s goals.
Your reflections can also highlight nuances that might not have been immediately evident during the session, such as subtle shifts in group dynamics or reactions to specific topics. These insights, when shared with the research team, can help shape the overall interpretation of the data and ensure that nothing important is overlooked.
Ultimately, your role as an observer doesn’t end when the focus group does. By thoughtfully reviewing your notes and actively participating in post-session discussions, you can contribute valuable context and perspective, enriching the qualitative insights that drive the final analysis.
At a Glance – Dos and Don’ts for Focus Group Observers
Being an effective focus group observer requires attentiveness, neutrality, and adaptability. Whether observing online or in-person, your role significantly impacts the quality of insights gathered. Below is a quick guide to help you navigate the observation process:
Dos
Don’ts
Align with the research purpose before the session begins.
Don’t arrive late or log in last minute—avoid disruptions.
Review background materials and the discussion guide.
Don’t judge participants based on appearance, background, or comments.
Arrive early for in-person groups or log in ahead of time for virtual sessions.
Don’t interrupt the session or disturb other observers with unnecessary noise or chatter.
Listen actively without letting personal biases cloud your judgment.
Avoid taking notes on every word—focus on key insights and major themes.
Watch for non-verbal cues, especially in in-person sessions.
Don’t project your expectations onto the discussion—be neutral.
Take clear, concise notes that capture key moments and behaviors.
Don’t assume every response will be profound—be patient with the process.
Participate in the post-session debrief to clarify insights with the moderator.
Don’t use the session as entertainment—stay focused on the research objectives.
Adapt to the environment—use virtual tools in online sessions to stay organised.
Don’t judge the effectiveness of the session based on personal feelings about individual responses.
Stay focused on the collective insights rather than getting bogged down by individual opinions.
Don’t overanalyze body language without supporting verbal responses.
Show respect for facility staff and the process.
Don’t leave a mess or overstay your time at the research facility.
Being a good observer means staying engaged, focused, and neutral. By following these dos and avoiding the common pitfalls outlined, you ensure that your observations add value to the focus group process, enhancing the overall depth and quality of insights.
Sun Tzu once said, “Know thy self, know thy enemy. A thousand battles, a thousand victories.” While the quote from this ancient Chinese military strategist is about tactical warfare, it also highlights the importance of understanding your place in the market and the competition you face.
In today’s world of global e-commerce, where sales amounted to over $5.7 trillion in 2022, businesses must conduct a competitive analysis to gain an edge. This article will delve into the essential steps of competitive analysis and show you how to leverage the insights gained to enhance your brand or product’s market position. Whether you’re a marketer, brand manager, or product manager, this post will provide the knowledge and tools to evaluate your business’s performance and stay ahead of the competition.
Identifying Competitors
The first step in conducting a competitive analysis is identifying your competitors. This includes direct competitors who offer similar products or services and indirect competitors who offer substitutes or alternatives to your offerings.
A direct competitor is a business that offers similar products or services and targets the same customer segments as another business. Direct competitors are often in direct competition for customers and market share. For example, Nike and Adidas are direct competitors in the athletic footwear and apparel market. Both companies offer similar products, such as running shoes, athletic wear, and accessories, and target the same customer segments, including athletes and fitness enthusiasts.
An indirect competitor is a business that offers products or services that are not the same as another business but still competes for customers in the same market. Indirect competitors can offer substitute products or services or cater to a slightly different customer segment. For example, Uber and public transportation services are indirect competitors. While they offer different products and services, they still compete for customers who need to travel from one place to another. In some cases, customers may choose to take public transportation instead of Uber, or vice versa, depending on convenience, cost, and availability.
One way to identify your competitors is to research your industry and market. Look for companies with similar products or services and a similar target audience. You can also ask your customers who they consider as alternatives to your brand or product.
Another method is to use online tools such as Google Trends, SEMrush, or SimilarWeb. These tools allow you to analyse the search volume and traffic of your competitors’ websites and their social media presence and marketing tactics.
Once you have identified your competitors, you must classify them and understand their strengths and weaknesses. This will help you gain insights into their strategies and how they are positioning themselves in the market. For example, if you’re a fitness app, your direct competitors may include other fitness apps such as Fitbit and MyFitnessPal, while your indirect competitors may include gyms or personal trainers.
Understanding your competitors’ pricing strategies, marketing tactics, and features can help you differentiate your brand and attract more customers. A Harvard Business Review article emphasises the importance of understanding competitors: “It’s not enough to know who your competitors are. You need to know how they think, what drives them, their goals and values, and their strengths and weaknesses.” By conducting a thorough competitive analysis, you can gain valuable insights into your competitors and use them to improve your business strategy.
Analysing Competitors
Once you have identified your competitors, the next step is thoroughly analysing their business strategy. This includes researching their products or services, pricing strategies, marketing tactics, and overall market position.
One way to analyse your competitors is to visit their websites and social media profiles. Look at the design and layout of their website, the features of their products or services, and their pricing strategy. Also, pay attention to their social media presence, including the type of content they share, how often they post, and their engagement with customers.
Another method is to purchase or use your competitors’ products or services. This will give you firsthand experience with their offerings and allow you to identify areas where you can differentiate your brand or product.
Additionally, you can conduct a SWOT analysis of your competitors. SWOT stands for strengths, weaknesses, opportunities, and threats. You can identify areas to improve your business strategy by analysing your competitors’ strengths and weaknesses. Similarly, you can adapt your approach to changing market conditions by identifying opportunities and threats.
For example, let’s say you’re a restaurant owner, and your competitor is a nearby restaurant that offers similar cuisine. By analysing their pricing strategy, menu offerings, and customer reviews, you discover they offer a more extensive menu and are priced slightly higher than your restaurant. You can use this information to differentiate your brand by providing a unique menu with higher-quality ingredients at a competitive price.
Evaluating Your Position
After analysing your competitors, you must compare your position and strengths. This will help you identify areas where you can improve your business strategy and differentiate your brand or product from the competition.
One way to evaluate your position is to conduct a SWOT analysis of your business. This includes identifying your strengths, weaknesses, opportunities, and threats. By analysing your strengths and weaknesses, you can identify areas to improve your business strategy. Similarly, you can adapt your strategy to changing market conditions by identifying opportunities and threats.
Another method is to analyse your customer feedback and reviews. Look for areas where your customers are particularly satisfied and where they think you can improve. This will give you insights into your strengths and weaknesses and help you understand how you’re perceived in the market.
Additionally, you can evaluate your pricing strategy and marketing tactics. Are you offering competitive prices for your products or services? Are your marketing efforts effective in reaching your target audience? By evaluating these aspects of your business, you can identify areas to improve and differentiate your brand.
For example, let’s say you’re a tech company that offers a productivity app. After analysing your competitors, you may find that your app offers similar features to your competitors but at a lower price point. You can use this information to differentiate your brand by emphasising the value of your app and targeting price-sensitive customers.
As business strategist Jay Abraham once said, “Your competitors can teach you everything you need to know about your own customers.” By evaluating your position and strengths compared to your competitors, you can gain valuable insights that will help you improve your business strategy and attract more customers.
Creating an Action Plan
Once you have conducted a competitive analysis and evaluated your position, it’s time to create an action plan leveraging the insights gained. An action plan should be a detailed roadmap of the steps you need to take to improve your brand or product’s market position.
One way to create an action plan is to prioritise the insights gained from your competitive analysis and evaluation. For example, if you’ve identified a weakness in your pricing strategy, you may prioritise adjusting your prices to be more competitive. Similarly, if you’ve identified an opportunity to target a new customer segment, you may prioritise developing a new marketing campaign to appeal to that segment.
Another method is to set specific goals and metrics to track progress. For example, if you’ve identified a weakness in your customer service, you may aim to improve your customer satisfaction ratings by a certain percentage within a specific timeframe.
It’s also important to allocate resources and assign responsibilities to implement the action plan effectively. This includes assigning tasks to specific team members, determining the budget required, and establishing timelines for each step of the plan.
A report by Forbes emphasises the importance of having a concrete action plan, stating, “The key to success in competitive analysis is to turn insights into action.” By creating a detailed action plan, you can ensure that the insights gained from the competitive analysis are used to drive tangible results and improvements to your business.
The Importance of Regular Competitive Analysis
Competitive analysis is not a one-time event but a continuous process that should be conducted regularly. The market constantly changes, and new competitors and trends can emerge at any time. Regular competitive analysis can help businesses stay ahead and adapt their strategy to changing market conditions.
One way to stay on top of the competition is to set up a system for continuously monitoring and analysing your competitors. This includes tracking their pricing strategy, product offerings, marketing campaigns, and customer feedback. By monitoring your competitors, you can identify changes in the market and adjust your strategy accordingly.
Regular competitive analysis also helps businesses identify potential threats and opportunities in the market. For example, if a new competitor enters the market, regular analysis can help you identify its strengths and weaknesses and adjust your strategy to compete effectively.
Additionally, regular competitive analysis can help businesses identify areas to improve their strategy. By analysing your competitors’ strengths, you can identify areas where you may fall short and adjust your strategy accordingly.
A Real-Life Example of Competitive Analysis
Let’s take a look at a real-life example of how competitive analysis can help brands improve their market position:
Airbnb and Hotels
Airbnb and hotels are two accommodation options for travellers. Airbnb, founded in 2008, offers an online platform for people to rent out their homes, apartments, and other spaces to travellers. On the other hand, hotels offer traditional accommodation in a dedicated facility with various amenities and services.
SWOT Analysis of Airbnb
Strengths:
Unique experiences: Airbnb offers unique and authentic experiences for travellers by allowing them to stay in local homes and neighbourhoods.
Low prices: Airbnb offers lower prices than traditional hotels, making it an attractive option for budget-conscious travellers.
Innovative technology: Airbnb uses innovative technology, such as its search algorithm and messaging system, to enhance the customer experience.
Weaknesses:
Quality control: Airbnb’s reliance on individual hosts can lead to inconsistent quality and standards across its listings.
Legal and regulatory challenges: Airbnb has faced legal and regulatory challenges in several cities, which can limit its growth opportunities.
Limited services: Airbnb offers limited services compared to hotels, such as room service and housekeeping.
Opportunities:
Expansion into new markets: Airbnb can expand its offerings to include new types of accommodations, such as boutique hotels or bed and breakfasts.
Partnerships with tourism boards: Airbnb can partner with tourism boards to promote local tourism and offer unique experiences.
Personalisation: Airbnb can use data and technology to personalise its offerings and customer recommendations.
Threats:
Competition from traditional hotels: Traditional hotels are increasing their focus on offering unique and authentic experiences to compete with Airbnb.
Safety concerns: Safety concerns like theft and vandalism can impact the customer experience and damage Airbnb’s reputation.
Economic downturns: Economic downturns can impact travel and tourism, impacting Airbnb’s business.
SWOT Analysis of Hotels:
Strengths:
Established brand reputation: Hotels have a well-established brand reputation and are a trusted accommodation option for travellers.
Wide range of services and amenities: Hotels offer a wide range of services and amenities, such as room service and housekeeping, to enhance the customer experience.
Consistent quality: Hotels offer consistent quality and standards across their properties.
Weaknesses:
High prices: Hotels can be more expensive than other accommodation options, making them less attractive to budget-conscious travellers.
Lack of personalisation: Hotels can be less personalised than Airbnb, as they offer a more standardised experience.
Limited local experiences: Hotels can lack the unique local experiences that Airbnb offers, as they are often located in tourist areas.
Opportunities:
Focus on unique experiences: Hotels can offer unique and authentic experiences to compete with Airbnb.
Partnerships with local businesses: Hotels can partner with local companies to offer unique experiences and enhance the customer experience.
Personalisation: Hotels can use data and technology to personalise their offerings and customer recommendations.
Threats:
Competition from Airbnb: Airbnb’s unique offerings and lower prices can attract customers away from traditional hotels.
Economic downturns: Economic downturns can impact travel and tourism, impacting hotels’ business.
Safety concerns: Safety concerns, such as crime and terrorism, can impact the customer experience and damage hotels’ reputations.
When Airbnb entered the market, it disrupted the traditional hotel industry. Initially, hotels underestimated Airbnb’s impact and did not conduct a competitive analysis to understand the company’s strategy.
However, as Airbnb’s popularity grew, hotels began recognising the threat and adapted their strategy to compete. Hotels started to offer more unique and local experiences to attract customers, a strategy that Airbnb had successfully implemented. Additionally, hotels invested in technology to enhance the guest experience and offer more personalised service.
Some hotels also started to offer short-term rentals and home-sharing services to compete with Airbnb directly.
One example of a hotel that successfully adapted its strategy to compete with Airbnb is Marriott International. In 2019, Marriott launched its Homes & Villas program, offering high-end home rentals in more than 100 destinations worldwide. By providing unique and local experiences, personalised service, and home-like amenities, Marriott was able to attract customers who might otherwise have booked with Airbnb.
Overall, the success of Airbnb has demonstrated the importance of conducting competitive analysis and staying up-to-date on industry trends and developments. By understanding the competition and adapting their strategy accordingly, brands can stay ahead of the curve and drive business success.
Lessons Learned
The case study of Airbnb vs. hotels provides valuable lessons for businesses in any industry. Here are a few key takeaways:
Disruption can come from unexpected sources: Hotels initially underestimated Airbnb’s impact and did not conduct competitive analysis to understand the company’s strategy. As a result, they were caught off guard when Airbnb disrupted the industry.
Adaptability is key: Hotels eventually adapted their strategy to compete with Airbnb, offering more unique and local experiences to attract customers. This shows the importance of adaptability and willingness to change your strategy when faced with new competitors or market conditions.
Customer preferences are changing: Airbnb’s success is partly due to customers’ changing preferences, who are increasingly seeking unique and authentic experiences. This highlights the importance of understanding your customers’ preferences and adapting your strategy to meet their needs.
Innovation can create new opportunities: Airbnb’s success has created new opportunities for other businesses, such as property management companies specialising in short-term rentals. This shows the potential for innovation to develop new business models and opportunities in any industry.
In conclusion, the case study of Airbnb vs. hotels highlights the importance of conducting competitive analysis, being adaptable, understanding customers’ preferences, and embracing innovation. By applying these lessons to your brand, you can stay ahead of the competition and drive business success.
Examples of Successful Competitive Analysis
Competitive analysis is a powerful tool that can help businesses gain a competitive advantage in their industry. Here are a few examples of companies that have successfully used competitive analysis to improve their strategy and gain a stronger market position:
Coca-Cola vs. Pepsi: For decades, Coca-Cola and Pepsi have been locked in fierce competition for market share. In the early 2000s, Coca-Cola conducted a comprehensive competitive analysis of Pepsi, analysing everything from its marketing campaigns to its pricing strategy. As a result, Coca-Cola developed a new marketing campaign emphasising the brand’s history and nostalgia, which helped them gain a stronger foothold in the market.
Netflix vs. Blockbuster: In the early 2000s, Netflix was a relatively unknown startup that offered a subscription-based DVD rental service. At the time, Blockbuster was the dominant player in the video rental market. However, Netflix conducted a thorough competitive analysis of Blockbuster, identifying weaknesses in its strategy and opportunities for growth. Netflix then shifted its focus to streaming video, which ultimately allowed them to overtake Blockbuster and become the dominant player in the market.
Amazon vs. Barnes & Noble: In the 1990s, Barnes & Noble was the largest bookstore chain in the United States. However, with the rise of e-commerce, Amazon quickly emerged as a formidable competitor. Amazon conducted a thorough competitive analysis of Barnes & Noble, identifying opportunities to improve their online shopping experience and offer a wider selection of products. As a result, Amazon was able to outmanoeuvre Barnes & Noble and become the dominant player in the book industry.
Tools and Resources for Conducting Competitive Analysis
Conducting competitive analysis can be a complex and time-consuming process. Fortunately, many tools and resources are available to help brands conduct competitive analysis effectively. Here are a few examples:
Competitive analysis templates: Many business and marketing websites offer free or paid templates for conducting competitive analysis. These templates provide a framework for identifying and analysing your competitors’ strengths and weaknesses and opportunities and threats in the market.
Industry reports: Industry reports provide valuable data and insights into the competitive landscape of a particular industry. These reports may include information on market share, pricing trends, consumer preferences, and more. They can be purchased from market research firms or industry associations.
Online tools: Many online tools are available to help businesses conduct competitive analysis, such as SEMrush for analysing online advertising and search engine rankings and SimilarWeb for analysing website traffic and engagement.
Social media analytics: Social media platforms offer valuable data on customer sentiment, engagement, and trends. You can gain insights into your marketing strategy and customer preferences by analysing your competitors’ social media presence.
Market Research Agencies: Hiring an expert market research agency can be a valuable investment for businesses that lack the expertise or resources to conduct competitive analysis in-house. Agencies can provide a deep understanding of your industry and competitors and insights into emerging trends and opportunities.
Tips for Staying Ahead of the Competition
Conducting competitive analysis is an essential part of developing a successful business strategy. However, it’s not enough to simply analyse your competitors – you also need to use the insights gained to stay ahead of the competition. Here are a few tips for staying ahead:
Stay up-to-date on industry trends: Keeping up with the latest trends and developments in your industry can help you anticipate changes in the market and stay ahead of the competition. Subscribe to industry newsletters, attend conferences and trade shows, and follow industry leaders on social media to stay informed.
Focus on customer needs: While it’s essential to understand your competitors’ strategies, it’s even more critical to understand your customers’ needs and preferences. Conducting market research and gathering customer feedback can help you tailor your products and services to meet their needs and gain a competitive edge.
Invest in innovation: Innovation can help you differentiate your business and stay ahead of the competition. Invest in research and development, experiment with new technologies and business models, and encourage a culture of innovation within your organisation.
Build strong partnerships: Building strong partnerships with other businesses can help you expand your reach and offer more value to your customers. Look for opportunities to partner with companies that complement your own, such as suppliers, distributors, or complementary service providers.
Embrace change: Finally, it’s essential to be flexible and adaptable in the face of change. The business landscape is constantly evolving, and it’s important to be willing to pivot your strategy when necessary to stay ahead of the competition.
Challenges and Limitations of Competitive Analysis
While competitive analysis is a valuable tool for businesses to evaluate their position in the market and gain a competitive advantage, it’s essential to approach this process with a critical and realistic perspective. Here are a few challenges and limitations of competitive analysis:
Difficulty obtaining accurate data: Competitors may not always disclose accurate or complete information about their strategy or performance. This can make it challenging to get accurate data and insights about their strengths and weaknesses.
Risk of focusing too much on competitors: Focusing too much on competitors can sometimes lead businesses to overlook the needs and preferences of their customers. It’s essential to strike a balance between understanding your competitors’ strategies and staying focused on your value proposition.
Limitations of industry reports: While they can provide valuable data and insights into the competitive landscape, industry reports may not always be up-to-date or relevant to your business. It’s vital to supplement industry reports with independent research and analysis.
Rapidly changing market conditions: The business landscape constantly evolves, and competitors may adopt new strategies or technologies that disrupt the market. It’s important to stay agile and adaptable in the face of change and to update your competitive analysis to reflect new developments regularly.
Risk of overreliance on competitive analysis: Competitive analysis is just one tool in a business’s arsenal. It’s crucial to supplement competitive analysis with other types of research, such as customer feedback and market research, to gain a complete picture of the market and stay ahead of the competition.
Future Trends in Competitive Analysis
As the business landscape evolves, new trends and technologies change how businesses conduct competitive analysis. Here are a few emerging trends to watch:
Artificial intelligence: Artificial intelligence (AI) is revolutionising many aspects of business, including competitive analysis. AI-powered tools can analyse vast amounts of data and identify patterns and trends that human analysts might miss. They can also provide real-time insights into competitors’ pricing strategies, marketing campaigns, and more.
Social media analytics: Social media platforms offer a wealth of data on customer sentiment, engagement, and trends. By analysing this data, businesses can gain insights into their competitors’ marketing strategies and customer preferences. Social media analytics tools are becoming increasingly sophisticated, making it easier for companies to conduct competitive analyses on these platforms.
Predictive analytics: Predictive analytics uses data, statistical algorithms, and machine learning to identify future outcomes based on historical data. This technology is becoming increasingly important in competitive analysis, allowing businesses to anticipate changes in the market and stay ahead of the competition.
Big data analytics: The amount of data available to businesses is growing exponentially, and big data analytics is becoming increasingly important in competitive analysis. Big data analytics tools can help companies to identify patterns and trends in large data sets, providing valuable insights into competitors’ strategies and market trends.
Collaboration and knowledge sharing: Finally, business collaboration and knowledge sharing are becoming increasingly important in competitive analysis. By sharing information and insights with other businesses in their industry, companies can gain a more complete picture of the market and identify opportunities for growth and innovation.
The Role of Market Research in Competitive Analysis
Market research plays a critical role in competitive analysis. By gathering data on customer needs and preferences, market trends, and competitor strategies, businesses can gain valuable insights into the competitive landscape and develop a strategy that sets them apart. Here are a few reasons why outsourcing market research to an external agency can be a good idea:
Access to expertise and resources: Market research agencies specialise in gathering and analysing data and have access to sophisticated tools and resources for conducting research. By outsourcing market research to an external agency, businesses can tap into this expertise and gain a complete picture of the market.
Objectivity and impartiality: Market research agencies are independent from the businesses they serve, which allows them to provide unbiased and objective insights into the market. This can be especially valuable in competitive analysis, where an objective perspective is critical for identifying strengths and weaknesses in the market.
Cost-effectiveness: Conducting market research in-house can be expensive, especially for small businesses. Outsourcing market research to an external agency can be cost-effective, as agencies can provide access to tools and expertise that might otherwise be prohibitively expensive.
Time-saving: Market research can be time-consuming, especially for businesses with limited resources. Outsourcing market research to an external agency frees up time and resources to focus on other aspects of their strategy.
Flexibility: Market research agencies can offer various research services, from online surveys to focus groups to ethnographic research. This allows businesses to choose the best research methods for their needs and budget.
Outsourcing market research to an external agency can be a good idea for brands looking to conduct competitive analysis. By tapping into market research agencies’ expertise, resources, and objectivity, businesses can gain valuable insights into the market and develop a strategy that sets them apart from the competition.
Key Takeaways
Competitive analysis is a valuable tool for brands seeking a competitive advantage in their industry. By identifying their competitors’ strengths and weaknesses, opportunities, and threats in the market, businesses can develop a strategy that sets them apart from the competition. However, it’s essential to approach competitive analysis with a critical and realistic perspective and use the insights gained to inform your strategy and decision-making effectively.
Competitive analysis is valuable for gaining a competitive advantage in your industry.
It’s essential to balance understanding your competitors’ strategies and staying focused on your value proposition.
Market research is critical in competitive analysis, and outsourcing to an external agency can be a cost-effective and efficient solution.
Businesses should stay up-to-date on emerging trends and technologies in competitive analysis, such as artificial intelligence and social media analytics.
Finally, businesses should be flexible and adaptable in the face of change and regularly update their competitive analysis to reflect new developments in the market.
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Back in the day, Qualitative research was all about understanding the person behind the responses by watching his actions, behaviour, mood, tonality, and other giveaways while talking about specific products and services. We still do it (some of it) but with less dependency on human competence and more reliance on the tools believed to be fast, precise, and less intruding.
In Qual research, most of these tools are used for analyzing data, app testing, and emotion decoding through Artificial Intelligence (A.I.), which can address multiple research studies like UI/UX testing, NPD, product/concept test, etc. While these tools help capture the required details without bias, they still have some limitations.
Typical Qual research is done to understand:
Human behaviour and interaction with various categories (brands/ services/products)
Trends and impact
Product and concept evaluation
Segmentation (Pen portraits)
U&A
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Researchers apply various approaches to meet the objectives depending on the overall scope of the research project. However, basic principles like the need to be an open-ended, free-flowing discussion to gain in-depth knowledge and reasons for a particular behaviour or response and generate actionable insights stay the same.
These days, technology is helping make research much more accessible and cost-effective for brands, but it is yet to be seen if it serves the intended purpose.
Before the pandemic, online interactions were not a preferred research methodology for most brands as they offered a different experience than face-to-face interaction and were considered an ‘optional methodology.’
However, the pandemic changed that as there was no option other than doing online research and gradually posting using an online methodology for various research activities. Brands found it to be both cost and time effective. With this began the race for offering/ innovating several tech/ tools to enable Qual research to deliver insights irrespective of situational limitations. There are hundreds of ‘tech research agencies/boutiques’ currently offering various tech solutions like UI/UX, Neuro, A.I.-enabled analysis (from transcriptions/ recording), and emotion decoding tools, and a considerable amount of R&D is already happening in this area.
These tools are certainly helpful in today’s era when not just research but the overall ecosystem is evolving, and tech has become the backbone of any new venture. There are so many start-ups today, and India has emerged as one of the growing ecosystems for start-ups; currently ranked third globally with over 77,000 start-ups, this number is growing yearly.
Most start-ups are tech-based and have apps for better user experience, easy access to data, and increasing adoption rate of new services and products.
Most of these start-ups utilise research to get feedback on UI/UX and check what can be improved to provide a better experience and increased engagement. A few years back, researchers typically carried out these research activities at a CLT set-up with a couple of cameras. Still, now this can be done on mobile phones using another platform (app) for decoding user interaction with the app to be evaluated.
Tech has helped explore new avenues and reshape old methodologies like G.D.s, Ethnos, and diary placements. Now, online methods are used widely, and it is still to be seen whether this phenomenon will stay.
While online methods have certain limitations, like missing the human connection —one of the basics of any Qual research, there are certain aspects wherein technology is not as helpful or hasn’t yet been developed to cater to those needs in terms of tech evolution / AI.
But there are certain spheres wherein technology has worked brilliantly for multiple reasons.
India is extremely tech-friendly.
Most of the brains in the tech world are from India, and we indeed take pride in saying that. People in India are curious and open to using new technology in every sphere of their life —be it a smartwatch, smart T.V., payment apps, food ordering apps, health trackers, cab booking apps, or high-end technology like smart homes or A.I. technology. With a growing number of start-ups, a young workforce, and evolving technology, end users prefer new tools and products for better, unbiased, and faster results. However, cost efficiency is still a grey area that will also be addressed as time goes by.
Learn more about how to develop a market entry strategy for India here.
It helps understand the customer.
Marketers want to know their customers better to increase sales and saliency through precise and tailored communications.
Brands track data to get a complete understanding of their potential customer and offer relevant products/services. This helps close the “say-do” gap, and layering this with specific Qual interactions helps in a deeper understanding of this behaviour.
It is cost-effective.
Though using technology for online interactions, mobile or digital diaries, and online communities is more economical than face-to-face interactions, other dimensions like UI/UX tools and analysis tools are still expensive, and only a few agencies offer integrated solutions. This area will undoubtedly see many innovative solutions that address issues cost-effectively in the coming years.
It removes bias and is more credible and faster.
Using apps/ tools/ tech for capturing and analyzing data adds credibility and saves time. Respondents can upload pictures/ videos in real-time and share their stories with a broader group or in a one-to-one setting. Less human intervention removes bias, and data output can be visualised in multiple ways per the client’s requirement.
Though there is nothing wrong with moving ahead with time, there are pros and cons of using technology for Qual research. It remains to see what else tech can add to understand human beings better, as Qual research is not just about evaluation but also about understanding the subject more deeply. Face-to-face interactions help form a temporary bond and comfort level wherein respondents share much information about themselves, their family, occupation, finances, and buying behaviour, which is a shortfall when it comes to online interactions or using any tool/tech.
Tech can be an enabler but not a tool to understand human emotions through superficial levels. We can decode a few things like facial emotions and System I/II responses, but a deep and detailed understanding of a particular human being would always require human intervention. It is yet to be seen how much more we can do with ever-evolving technology and how it can impact the market research ecosystem. But one thing is certain: traditional Qual is here to stay as no amount of technology can completely replace human-to-human interaction and understanding, at least not in the near future.
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According to the Global Research Business Network (GRBN), confidence in the market research industry has remained stable, and trust in data analytics has increased in 2022 compared with 2020.
Still, market research as an industry needs to constantly work to improve the perceived value of research. The way to ensure this happens is by addressing the main challenges of obtaining high-quality data.
The importance of data collection in market research cannot be emphasised enough. This blog post will analyze the main obstacles brands face in this area and provide guidance on how market researchers can tackle these challenges with the help of technology.
The methods you use to collect and analyze data will significantly impact the quality of your market research report and its value in decision-making. The five best data collection tools for market research are surveys, interviews, focus groups, observation, and secondary sources.
Understanding the best methodology to get the most accurate, error-free, and reliable data is essential.
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What is data quality?
Data quality is a complex, multi-faceted construct. Quality data is data that is fit for its purpose and closely relates to the construct they are intended to measure.
Let’s take the example of a brand like Amazon’s Audible and try to predict what type of books a person would be interested in based on his previous listening history. The data is likely high quality because the books subscribers have listened to in the past are a good predictor of what they would like to consume in the future. The books they have listened to in the past also have a close relationship with what you are trying to measure, in this case, book preferences, which makes the data high quality.
Reliable data requires a high-quality sample with enough information to make conclusions that inform business decisions. For instance, in the same example of Audible, if a subscriber uses it only once in a while and has only listened to one book in six months, it fails to present a complete picture of the user’s preferences due to limited data or information available.
In the example used above, the data is available in the app and is much easier to collect. However, this is not always the case. Many instances of market research involve collecting data from people taking surveys, user testing, or recollecting past experiences and feedback, which are much more challenging to measure.
So how do you ensure you collect high-quality data that informs decision-making at every step of the organization?
Utilise technology
As the world has moved online, so have many market research methodologies. Many companies have been forced to move online quickly, which has been a blessing in disguise for them. Technologies like automation and Artificial Intelligence (A.I.) have allowed brands to obtain transparent, reliable, and accurate data more efficiently.
Technology can also be beneficial in identifying bad data. Automation helps select the best pool of candidates for a study and helps achieve a more balanced view of the respondents. It can help reduce subjectivity and bias, scale costs, and improve project speed and efficiency.
Advanced profiling
To yield high-quality data, you must obtain a 360-degree view of the user or consumer. A good data scientist will study the consumer using all critical data points, like browsing history, purchase history, online behaviour, cart abandonment, geolocation, and other relevant data.
Proper Planning
Excellent outcomes need proper planning, which is valid for everything, including market research. The entire team must understand the research study’s objectives before doing anything else, including all the early actions, like identifying the right participants for the study. Researchers can then create a sample plan based on key objectives and participants. This will become the basis of the methodologies used and the survey designs. A good market research study also employs a screener to ensure they only include participants relevant to the study.
Recruit the right people
At Kadence, we firmly believe your research is only as good as the people participating in your study. When carrying out a virtual study or focus group, it is vital to make sure people doing the testing or surveys are genuine and suitable for the particular study. Researchers must hunt down even the most difficult-to-reach audiences, as you need the right people for the research to yield unvarnished results.
Ensure complete and active participation
Making surveys more engaging will always lead to higher participation in online surveys. A well-designed survey with clear instructions will ensure higher participation and more honest responses.
Throughout the survey, researchers can include questions to ensure participants are paying attention and potentially weed out those who are off-track and disengaged.
Screening dishonest participants
Researchers can go a step ahead to eliminate dishonest survey participants. Online surveys can identify potential red flags where people provide false demographic information so they can qualify for studies with high rewards.
Researchers can selectively target participants who have been profiled in the past to avoid participants with false demographic information.
Develop a system of efficient, consistent data quality checks throughout the process
Market researchers should always have an effective and efficient plan for weeding out bad data throughout the study. Automating and utilizing suitable technology can ensure you safely streamline the quality check process in real time.
A critical challenge with market research is the ethical collection and use of data. Discover why ethics are vital in data collection and how to ensure your data collection is always on the right side of law and ethics here:
The ultimate goal of market research is to obtain high-quality data that is accurate, relevant, and reliable. While well-planned and thoughtfully designed studies can yield effective results to inform decision-making, poorly planned and designed ones can lead to poor business outcomes.
The stakes are always high, so it is crucial for brands and researchers to constantly improve data quality and reliability to save time, money, effort, and resources and lead to better, more informed business decisions.
Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Simply fill out our Request for a Proposal here.
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Consumer behaviour is shifting more rapidly and drastically than ever before. Brands are trying to keep up with massive changes in consumer behaviour and preferences in virtually every sector, from groceries and fitness to banking and finance. Consumers continue to pivot their preferences and priorities with uncertainty, inflation, and an economic downturn.
In the early days of the pandemic, an uncertain and dismal picture caused anxiety and depression, which led to panic buying globally. Those were short-term behaviours and did not last. However, many massive shifts due to the pandemic have stuck, including online shopping and the need for speed, efficiency, and convenience.
The pandemic has changed certain habits for the long haul, with many consumers going to stores less frequently than before. Buyers are now more comfortable shopping online, and most consumers prefer a hybrid shopping experience combining the physical and digital worlds as convenience becomes paramount.
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With the growth of online shopping and technological advancements making online shopping as personalised as a store visit, consumers are exploring options beyond traditional brick-and-mortar stores and looking for a complete experience, be it physical, online, or hybrid. Businesses must adapt quickly to these changes and shifts in consumer preferences to remain competitive in a dynamic and ever-changing market. These changes have been taking place for some time, but the pandemic accelerated the rate of change unexpectedly.
Some of the consumer behaviours that have drastically shifted post-pandemic are food and grocery delivery services. In the U.S., consumers did not regularly use grocery delivery services. According to some reports, about 15 percent of U.S. consumers tried grocery delivery services for the first time due to the pandemic, about 80 percent of those first-timers liked the service, and 40 percent said they would continue using it post-pandemic.
While convenience and safety were the two reasons delivery services skyrocketed during the pandemic, the price will likely supersede convenience as we enter a time of out-of-control inflation. Consumers will try to make their money stretch further because savvy consumers know the premium they pay for using delivery services like Instacart.
In this new economy, will they still be comfortable paying a premium and missing out on discounts for fuel when they don’t shop in person?
Food delivery services also became more popular worldwide, and the takeout and delivery trend was rising. However, as people returned to in-person dining, food delivery apps took a hit. These apps will also follow the same path as grocery delivery services because when consumers buy from DoorDash, the prices are higher, and they cannot use vouchers.
Many big retailers like Walmart are following shifts in consumer behaviour by offering pick-up and delivery with no markup on prices. Other delivery apps are double-dipping on price, and the consumer pays more than they would in the store.
Brands need to understand that just as convenience and safety were top priorities during the pandemic, consumers prioritise value and price over everything else, given the current economic environment.
The fitness market is also seeing massive shifts, and consumers now want an omnichannel approach to fitness, where they use at-home gym equipment and online classes and apps in combination with in-person classes.
Many e-commerce brands capitalised on creating connections with their consumers by using hand-written-style notes to add to the unboxing experience.
Beauty and fashion brands made it easier for consumers to shop online by using machine learning and artificial intelligence to offer personalised suggestions, experiences, and Virtual try-on sessions using Virtual Reality to mirror an in-store experience.
Brands need access to high-quality consumer data, insights, and business Intelligence to stay in the game, meet customers’ demands, and outpace the competition.
In any business environment, enterprises need to clearly understand the psychology behind why consumers behave the way they do. Consumer behaviour is the study of consumers and analyzes how consumers decide what to buy, when, and how to buy. It seeks to understand the psychology behind consumers’ needs, wants, and desires and how they purchase, use and dispose of products and services.
This study is critical because it helps brands understand the motivations and influences behind their purchases. It allows brands and marketers to develop the right products for the right audiences and market the product with the right messaging to convert prospects into buyers and retain them over time.
Several factors come into play during the purchase decision stage, and these may include personal (age, culture, values, beliefs), psychological (brand perception), or social (friends, family, influencers, social media).
There are four types of consumer behaviour:
Complex buying behaviour
This type of buying behaviour is associated with big-ticket purchases, like buying a home or a car, where consumers invest a lot of time and energy.
2. Dissonance-reducing buying behaviour
This type of consumer behaviour is often seen when a consumer is highly involved in the buying process but takes longer than usual because they do not want to regret the decision. This happens when multiple brands are very similar, and choosing one is tricky.
3. Variety-seeking behaviour
This behaviour is exhibited by consumers who opt for a different brand, even if they were happy with their previous purchases because they value variety.
4. Habitual buying behaviour
Consumers that purchase the same brand because of habit rather than brand loyalty are in this category.
A grasp of the type of consumers your brand attracts will allow you to segment your market based on consumer characteristics.
Marketers also need to understand buying roles and who is the decision maker regarding their specific product. In a family, for instance, the parents make major buying decisions; however, in some cases, young children are highly influential in the decision. In fact, unlike in the past, the younger cohorts, Generation Alpha (those born after 2010) and Gen Zs (those born between 1995-2010), make many important buying decisions regarding what they wear, eat, or travel.
There are six major buying roles brands need to take into consideration:
Influencer(s): Several people may be involved in the purchase decision in many cases, but they may not all be consumers. Influencers are those who can exert influence in the final decision. These could be bloggers in today’s world or friends and family whose advice commands weightage in the purchase decision.
Gatekeepers are usually family members who control the information flow regarding a product within a household.
Initiator: This is the person who first initiates the purchase idea.
Decider: This person has the final say in the purchase decision and decides whether or not to buy the product. He also may determine how and where to buy it.
Buyer: This is the person who ends up buying the product.
User: This is the person who consumes or uses the product purchased.
Consumer behaviour helps with market segmentation, as it goes beyond the essential demographic elements like age, gender, and location to explore the behaviour patterns customers exhibit when interacting with a particular product, brand, or website. This concept is instrumental in e-commerce and online shopping environments.
Here’s how e-commerce brands use consumer behaviour to segment customers and users based on their level of engagement with the website, app, or product page.
They segment or group their customers by their attitude toward their brand, level of brand recognition, usage, frequency and timing of purchase, and purchasing patterns or tendencies, like special occasion buying behaviour.
This allows them to tailor their marketing messages and create compelling campaigns to achieve their goals.
By utilising behavioural segmentation, brands can get a complete picture of their customers and filter them by the highest levels of engagement. For instance, brands can track those who regularly open their emails or visit their product pages. Marketers can also target ads with the most appealing messaging to customers based on their needs. For instance, an online shoe store can show those interested in athletic wear more running shoes and sneaker ads, and at the same time, serve ads with formal shoes for those interested in evening shoes.
Another significant shift in consumer behaviour is related to a demand for personalised and customised products, especially amongst the younger cohort of Gen Zs. Using behavioural segmentation, brands can provide more refined personalised experiences to win business. Brands can gain deep insights into their consumers’ needs, wants, desires, challenges, preferences, and concerns to gain a competitive advantage. Upselling and showing complementary products and replenishment reminders based on customer history and interests can reduce cart abandonment and boost brand loyalty.
The use of behaviour segmentation beyond the purchase also helps provide a high level of customer service to cement the relationship with the customer, leading to higher retention rates, more repeat business, referrals, and brand loyalty.
Using behavioural segmentation, brands can unearth invaluable data and insights that may otherwise never have been discovered.
Understanding consumer behaviour comprehensively helps brands improve performance across channels to diversify their marketing efforts. Brands can use these insights to adjust brand messaging, packaging, design, features, pricing, and more to stay ahead of the competition and boost brand equity.
Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Simply fill out our Request for a Proposal here.
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Just like reaching an unknown destination without a map is difficult, so is building a business strategy without competitive intelligence.
Competitive intelligence helps brands shape their product development, distribution channels, pricing, messaging, positioning, brand promotions, and features. It allows brands to identify their challenges and opportunities in the market in relation to their competition, so they can see what their competitors are doing and differentiate themselves from them.
What is competitive intelligence (CI)?
Competitive intelligence refers to any intentional research where brands collect, analyse, and utilise data and information gathered on their competitors, customers, and other external factors, potentially providing brands with a competitive advantage.
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When brands ethically and legally collect competitive intelligence, it can help boost the organisation’s decision-making capabilities. The goal of any competitive intelligence study is to create a business plan and strategy so organisations can make well-informed decisions based on market considerations.
Competitive intelligence goes beyond knowing the competition; the process is designed to take a deep dive to unravel the finer points of the competitor’s target markets and business strategy.
Competitive intelligence plays a vital role in all major departments of an organisation and can take on a different meaning for each department or function. For instance, for a product development team, competitive intelligence may mean new features being added to products. For a sales executive, it may be helpful to know how to create a winning proposal. For leadership, it may be understanding the competitor’s marketing strategies so they can craft a plan to gain more foothold in the market.
Competitive Intelligence studies and exercises can be tactical (shorter-term) or strategic (longer-term). The goal of tactical competitive intelligence studies, for instance, can be to obtain insights into increasing revenues or gaining market share. At the same time, strategic or longer-term reporting focuses on significant risks, threats, and opportunities, present or emerging.
A competitive intelligence study typically includes a wealth of information and insights from various sources, like government records, online mentions, social media, trade shows and journals, customer data and interviews, and traditional news media, to name a few. These sources are easily accessible and form the starting point for the studies. More in-depth information from distributors, suppliers, competitors, and customers is needed to make truly informed decisions.
What are the key benefits of competitive intelligence?
There is no substitute for Competitive intelligence research when it is undertaken with care and diligence. It is a powerful tool for brands to gain market share, boost revenue, and continue to build the right products at competitive prices.
Here are some key benefits of using competitive intelligence for brands:
#1. Ability to predict patterns and emerging trends
As brands excavate an enormous amount of data and insights related to their competitor’s activities, they begin to identify and foresee emerging trends in the industry. This allows brands to gain deep foresight to make informed decisions and strategic business plans.
#2. Aids in brand positioning
As brands gather insights and data about the competitive landscape, they also gain clarity on their activities and messaging. It helps them understand what works and doesn’t and cement their marketing.
#3. Helps make more informed decisions.
When brands unearth information, they gain critical insights into how the customers feel about their brand and the competing brands. This gives brands a better view of their customers’ wants and how their competitors are meeting the needs of the target markets.
#4. Boosts returns and profits
When you have a good understanding of the strategies and tactics employed by your competition and how they are performing, you will be better able to invest in areas that bring the highest returns, reducing risks and boosting profits.
Going back to the definition of Competitive Intelligence, we can see three necessary steps: “collect, analyse, and use competitor and market information to make informed decisions.”
Collecting data
There are many ways of unearthing relevant competitor data legally and ethically. Searching for information online may seem rudimentary, but it can provide invaluable information about the competitors and their activities. This information is readily available and accessible on the internet and is considered low-hanging fruit. With a few simple web searches, you can find great information on what the competitor is doing and what it has done in the past. You can also learn about product features, pricing, innovations, leadership, and important news and announcements relevant to your competition. There are tools that provide insight into the competitor’s search engine optimisation activities and their online advertising efforts.
From here, brands often go deeper and beyond the internet to analyse target markets and customer segments. Brands use quantitative and qualitative market research to gain more market insight.
Brands use data to analyse their competition beyond the simple search process. This entails going through endless data and making sense of it all can become cumbersome. This is where data mining comes into play. Besides gathering data from third-party sources, brands also gather human intelligence by interviewing relevant people, including customers and past suppliers. This is a time-consuming process and must be undertaken by experts in market research to ensure it is done ethically and legally.
Analyzing data
Analysis of data is a crucial step in the competitive intelligence process. Once brands collect data, it needs to be analysed carefully to provide actionable insights. This allows brands to understand the patterns and separate them from the outliers.
The analysis aims to uncover strengths, weaknesses, opportunities, and threats as they relate to the competitive landscape. Therefore, collecting and analyzing information from disparate sources is essential in verifying their authenticity and validity. This helps us move away from making assumptions and gaining real insights from more accurate pieces of data.
Crafting a strategy
Once a brand has enough verified data and information on its competitors and strategies, it can utilise it to differentiate itself and make informed decisions regarding product, price, messaging, and other essential aspects. It allows brands to weigh the competitor’s strengths, weaknesses, and opportunities in relation to their own to gain a competitive advantage.
For instance, pricing is an important area for differentiation but can only be done right if everything is studied and taken into account to find the right price that is profitable and aligns with the customer’s perceived value of a brand or product offering. Therefore, a successful price is not about pricing your product at the same or lower price than your competitor but positioning your brand as the choice that provides the greatest value. And to make that happen, you need to know the price of competing products and their perceived value in the buyer’s mind. This calls for a thorough study and analysis of the competing products, markets, and consumers.
To get the complete picture, brands may conduct competitive intelligence surveys. They can define their target audience and use various demographic and psychographic questions to identify consumer behaviour. These also include questions about competing products and services. You may also use ranking and rating type questions and identify any unmet needs or gaps in the marketplace or use open-ended questions to get a more in-depth view of the consumer’s mind. Brand recall and recognition surveys are also helpful in gaining consumer perception of various brands. For instance, a sparkling water brand may ask: “When you think of bottled sparkling water, what brand comes to mind first?” This can help brands discover how frequently their brand is mentioned compared to competing brands in the category.
When armed with the powerful insights gained through competitive intelligence, brands can be more strategic in all aspects of business, from product development to pricing and distribution. By differentiating themselves from competitors, they can gain valuable market share, grow brand value, and brand equity, and boost their return on investment (ROI).
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Fear is a negative emotional response to the presence of danger or threat. Speculative fear is a negative emotional response to the anticipation of danger or threat, which may or may not occur. Humans are hardwired to look for things to fear, forming a necessary part of our survival instinct from birth.
The human response to danger or threat is flight, fight, or in extreme cases, immobility. However, people respond in several ways when trouble or threat is perceived only as a looming risk. Avoidance, hunkering down, freezing in place, and acting impulsively are responses to prolonged anxiousness caused by pending fearful situations.
While fear is ingrained in our nervous system, it can also be taught. Technology has dramatically changed the way people get information. Social media has become the primary source of news online, with more than 64 percent of internet users receiving breaking news from social media instead of traditional media.
These statistics may be a sign of modern times. Still, the challenge with most people getting their news on social media sites is concerning when coupled with the fact most people do not read past the headline, and the vast majority of headlines are negative.
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Negative media coverage reports show that negative words such as “bad,” “worst,” and “never” are 30 percent more effective at catching people’s attention than positive words. Research studies also revealed that negative words improved the average click-through rate. Headlines with negative bias showed a 63 percent higher result when compared to positive ones. Most (59 percent) of all news article links shared on social networks aren’t clicked on, implying that most article shares are not read in their entirety.
So, you’d be right if you think we live in an increasingly hostile world, and most news is bad news. We are increasingly exposed to negativity and fearful news, affecting our collective anxieties and behaviours.
Panic buying
When the Spanish flu arrived in Britain immediately after the First World War, people panicked and rushed to purchase quinine and other medications, leading to national shortages.
Since then, panic buying and hoarding have been observed during many crises. Panic buying is much more common in developed or industrialised countries where people expect they will always be able to access food and other essential items easily.
During the COVID-19 pandemic, psychologists observed that panic buying was associated with individuals with higher incomes, the presence of children in households, depression and death anxiety, and mistrust of others or paranoia.
Panic buying results from the perceived threat of the event and the perceived scarcity, fear of the unknown, and as a coping mechanism.
Retail therapy
Retail therapy is shopping primarily to improve the buyer’s mood or disposition. It is often a short-lived habit in people with depression or stress.
Research has shown that shopping can help reinforce a sense of personal control and ease feelings of sadness.
In 2014 the Journal of Consumer Psychology found that retail therapy makes people happier immediately and can also fight lingering sadness. According to the study, the choices and outcomes inherent in the act of shopping can restore a feeling of personal control and autonomy.
Another study by the University of Michigan showed that purchasing things you enjoy can be up to 40 times more effective at giving you a sense of control than not shopping. In this study, those who actually purchased items were also three times less sad compared to those who only browsed.
How brands can respond to environments of high fear and low trust
Listen to your customers.
During times of financial stress, such as high inflation or recession, seek as much information as possible about your audience.
Take a deep dive with multiple data streams to build a clear picture of behaviour and sentiment. It will likely be vastly different than it was a few months ago and will continue to change. Don’t leave questions out of your research about fear and perceived risk with your customers.
Words matter.
The world is changing faster than ever, with your buyers’ attention and priorities shifting quickly in response to stressful events.
For brand marketers and product managers, understand that language that sounded good last month can mean something entirely different today.
Take action.
With insights from your research, determine what your brand should do to address your customers’ wants, needs, and fears. Your target audience has expectations from brands during uncertain times. Discover what they are, and see if you can deliver while remaining authentic to your brand promise.
Communicate authentically.
Be bold and authentic when storytelling and communicate practical information to help reassure and educate your customers. Give your customers an added feeling of security and stability by providing in-depth information. Choose to be a voice of comfort, instilling confidence in your consumers and alleviating fears with the right message.
Fear and anxiety aren’t going away anytime soon. Financial fear and stress can adversely affect buying behaviours, so it is essential to acknowledge these emotions and develop strategies to address them head-on. What was true of your target audience a few short months ago may not be true today. It all starts with an in-depth understanding of the perceived risks and barriers to purchase when it comes to your product or service. Great research is the first step for brands to develop compelling and compassionate messaging that helps customers feel empowered, confident, and comfortable with their purchase decisions during times of financial stress.
Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Simply fill out our Request for a Proposal here.
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India is a diverse country having 29 States and seven Union Territories covering more than 600 districts, roughly 8,000 towns, and more than 0.6 million villages. The villages are spread over 3.2 million square kilometres supporting 65% of India’s total population. There is vast heterogeneity in population characteristics due to socio-cultural factors, caste-based divisions, and religious and linguistic diversity.
Specifically, in the Indian context, ensuring data capturing, and research methodologies are amenable to different languages, literacy levels, and differentiated access/familiarity with the internet is critical.
For the above reasons, research and data collection become a challenging task and calls for a robust and representative methodology to mirror India’s diversity.
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Key Challenges in Research & Data Collection
Given India’s cultural and geographical diversity, some of the critical challenges for marketers and researchers in designing a survey for rural India are listed below:
1. Reach: As per Census 2011, nearly 58 percent of India’s rural population resides in 115,080 villages having a population of 2000+. This effectively means that roughly 80% of the total villages in India are small or very small in size, inhabiting less than 2000 people. Looking at tapping rural markets, last mile connectivity with end consumers is a big challenge for FMCG players. Similarly, reaching the vast network of 33 million retail outlets in rural India is a challenge for companies, given the high distribution cost. Therefore, focused, and targeted reach is a priority in accessing rural markets. The survey design needs to factor in this critical consideration when designing the scope of research and sampling methodology.
2. Commercial Viability: It is estimated that 85,000 large villages in India account for 40% of the total population and 60 percent of the total consumption of FMCG categories. The skewness in demographic profile and purchasing power further limits the scope to cover the whole of Rural India for reasons of commercial viability.
3. High degree of heterogeneity: “A one size fits all approach” does not work well when designing a survey or methodology for rural India. For example, poor and backward States like Bihar, Uttar Pradesh, West Bengal, and Madhya Pradesh have more than 75-80% of their total population living in rural areas, whereas urbanized States like Tamil Nadu, Maharashtra, and Telangana and more equitable in terms of distribution. Therefore, each State has its unique demographic and socio-cultural profile, which must be kept in mind while designing the sampling methodology in any primary research survey.
4. Gender Inclusivity: Females are vital consumers and influencers of product categories in Rural India, but men are likely to be key purchasers. Therefore, “whom to interview” becomes a pivotal question to answer while designing a survey.
5. Linguistic Diversity: India has 22 official languages besides numerous local languages, dialects, and colloquial words. Therefore, linguistic compatibility becomes essential for survey administration in Rural India.
Methodologies for Rural Research
Some factors merit consideration while designing a methodology representative of the diversity of Rural India and are listed below:
Regional Representation
Adequacy of Sample Size
Defining “Rural” and therefore a selection of villages
Other Imperatives
1. Regional Representation
In a vast and diverse country like India, robustly researching rural consumers requires reflecting heterogeneity and ensuring representativeness. For example, people in the North have attitudes and behaviours that are distinctly different from the population in the South. Similarly, other regions also have socio-cultural nuances that often colour their opinions and attitudes, especially on sensitive issues.
Therefore, selecting Socio-Cultural Regions or SCR-s is often the starting point to decoding rural consumer behaviour. The regions make it easier to contextualize people and their behaviour for prevalent agrarian practices, social and cultural nuances, and crop-season-driven income and consumption patterns.
2. Adequacy of Sample
The population spread for different States in India varies a lot. For example, the most populous State, Uttar Pradesh, accounts for almost 15% of India’s population. On the other hand, the tiny State of Goa accounts for less than 0.5% of India’s population. Therefore, in a pan-India or multi-State survey, stratification of a sample by State becomes essential. Generally, States are categorized into different population bands such as high population states, medium population states, and low population states. The sample is then fixed for each band in terms of their population size to ensure adequate representativeness.
The sample size would also depend on other factors such as the granularity of data required within a State, and heterogeneity of population characteristics within a State et al.
3. Defining Rural
The Census of India defines a rural village as a settlement that has the following three characteristics:
A population of fewer than 5,000 people
<75 percent of the male population employed in non-agricultural activities and
Population density of fewer than 400 people per square kilometre
However, for commercial purposes, this vast and huge area coverage is logistically challenging to cover for any marketing company. Therefore, for practicality and feasibility, different definitions of rural are followed. For most companies, the “hub and spoke model” defines rural coverage as mapped to their distribution channels. They consider villages in the immediate vicinity or within a defined radius of the feeder towns. Last mile connectivity is a challenge for most companies in Rural India. Covering interior or remote parts of rural is not considered to be a viable option. Villages at the periphery of small towns/feeder towns that can be accessed easily become the “immediate” potential for targeting Rural India. This is also called the “Ringing Method” of village selection.
The above has a profound implication for researchers in terms of designing a suitable methodology and, more importantly, for deciding on an appropriate sampling methodology for the research.
4. Other Imperatives: There are a few other imperatives that one must be cognizant of while designing rural research methodologies:
o Permissions: Before any fieldwork in villages starts, it is crucial to approach the village head called the“Sarpanch”to apprise them of the survey and its objectives and take approval to conduct fieldwork. This is a formal authorization from the village head that they have been informed about the study and grant their formal permission.
o Village Map: You are required to draw a rough map of the village before the start of fieldwork to understand the village’s layout and the critical physical structures —like the hospital, school, panchayat office, temple, or any other place of worship. The team supervisor generally does this exercise with the help of a local person from the village, such as the sarpanch/ schoolteacher or any other elderly person. As the rural dwellings/ households in a village are not structured or follow a pattern (unlike the urban dwellings), the maps also help sample and select clusters/households in that village.
o Use of colloquial terms: Given the linguistic diversity of Indian States, specific phrases or words have colloquial interpretations. Therefore, for ease of understanding and comprehension of questions by the respondents, it is generally recommended that local phraseology is inserted into the instrument basis inputs from an informed local person such as the schoolteacher.
With the focus of multinational companies and marketers now shifting to rural consumers, rural market research in India will likely increase spending in the near future. It augurs well for market research companies to actualize this opportunity to sharpen their research methodologies with rural consumers in mind. At the same time, researchers should be mindful of some of the challenges of rural research, such as low literacy levels, low tech savviness, poor connectivity, and a heterogeneous population, while designing research methodologies for this group.
Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Simply fill out our Request for a Proposal here.
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At Kadence International, market researchers are at the heart of our team. In this series, we honour some of our colleagues, asking them about their experience working within the market research industry and what the future holds for the industry.
Name: Arpan Jhingran
Position: Project Manager
Kadence Office: New Delhi, India
I joined the Kadence India office in February 2010.
What does a typical day or week look like for you in your current role? Or what are your primary responsibilities/duties?*
Client Servicing is a significant part of what I do for the project life cycle, starting from sharing the cost to the invoice raising and updating the client and senior management on a timely basis. Our responsibilities include solving the field operations query by speaking to the client and finding the best solution.
Tell us a little about your career so far. What was your first job or role? How did you get started with market research? What other roles (in market research) have you had?*
I had worked with ACC Concrete as a management trainee at their Mumbai location, then moved to Delhi. Kadence is my first company in the Market Research industry. I joined as Operations Executive and was promoted to Senior Field Executive. I have been a project manager for the past five years.
Did you always know that you were destined for a career in market research? Why? If not, what did you actually think your career would be, or what did you say you wanted to do “when you grew up” as a child?*
During my MBA, I was fascinated with the Market Research industry because of its involvement in every possible sector. I was also intrigued by the prospect of using different methodologies for deriving results and presenting those as findings and insights to brands.
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What is your favourite quote or the motto you live by?*
Live and let live
What is the best thing about the culture at Kadence?*
I love the open culture at Kadence, which allows you to work freely and use your experience to guide you in the right direction.
What essential skills are required to excel as a Market Researcher?*
Excellent and clear communication is paramount to building trust with the client.
What is unique about the market research field / and or consumers in your country/ region?*
There is much enthusiasm for trying new products or giving their opinions on topics we need data and insights on.
What is it about the field of market research you wish everyone knew?*
Much hard work goes behind every outcome to improve any product or idea.
What piece of advice would you give someone looking to start a career in market research?*
Clear communication is the key in any service industry to building confidence, and I would like to advise anyone inclined to join market research to hone their communication skills.
How have you seen consumer behaviour change in the past 2 – 3 years as a result of the pandemic? If so, what are your main observations?*
The expenditure pattern has changed drastically. People are ready to spend on what they want rather than save for the future.
For one of our projects in the healthcare field, we had to visit government hospitals and understand the conditions and processes by speaking to doctors, medical staff, and patients. Also, we had to talk to doctors without medical degrees and use medication based on their experience. That was great learning of my career.
If you could time travel into the future ten years, how would market research evolve?*
I see market research moving online compared to the current scenario of being an offline-dominated industry.
What do you like to do in your free time when you are not working? *
I enjoy spending time with my family or sometimes going out with my friends.
What is something you have accomplished in work or life that you are particularly proud of?*
A beautiful family.
What is your all-time favourite food or cuisine?
South Indian Food (particularly Dosas).
What is your all-time favourite travel or vacation spot, and why?
I love hill stations because of the drive up there and the weather.
How has Kadence’s remote work opportunity allowed you to achieve a work/life balance? We would love an example.
It gives me some more time to spend with my family.
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You’ve likely heard the term “agile decision making” in the business world, but what does it mean with reference to market research?
Agile market research is gathering consumer feedback quickly by utilizing technology at any point so you can discover, experiment, understand, and make decisions with more reliable and quick data.
An agile market research methodology is a strategic approach that aims to address the continuous change in consumer behaviour and market trends as quickly as possible to deliver fast growth and improve Return On Investment (ROI).
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Agile research is an approach to market research where feedback is collected continuously and quickly. This allows brands to test, iterate, and adapt their concepts using data and facilitates innovation.
Brands leverage agile market research methodology to create products and messaging that resonate with consumers and have a customer-centric approach.
Traditional Market Research vs. Agile Market Research
Traditional market research includes stages such as project kickoff, design, review, analysis, and reporting. Every step in the process has a time limit before moving on to the next phase.
On the other hand, agile market research starts small and proceeds in steps that build on the previous one. With agile market research, researchers gain more insightful consumer experience (CX) feedback faster and at a lower cost.
Moreover, the research tasks are not time-bound, and consumers are free to respond as they like and on their own time. The seamless integration makes agile market research a shorter process, improving overall CX.
While traditional research methodology has its place in assessing customer feedback, agile market research helps move teams faster because they receive responses quickly across design stages. It also allows brands to pivot rapidly and will enable teams to act upon the data and insights quickly. That way, teams are not wasting time and effort on something that will fail when released.
How to get the best out of your agile market research
For brands to get the most out of your agile market research, they need to be mindful of a few points detailed below:
It is critical to always begin with strategy and first understand the objectives of your agile market research methodology. This will help you utilise consumer feedback and insights more effectively.
Ensure your team has the skill set for the agile research tasks that need to be done.
Utilise an efficient, fast, and user-friendly software that empowers you to conduct, analyze, and report data that supports your agile market research methodology effortlessly.
Three Ways Agile Market Research is helping brands obtain the rich insights they need
Faster Insights
The number one advantage of using agile market research is speed. Agile market research removes the friction that can slow traditional research studies to provide quick, helpful feedback that allows iterative improvement.
With agile intelligence, brands can anticipate consumer behaviours faster and more accurately. This allows the data team to focus on more innovative efforts that help grow the organisation.
All the time spent creating a questionnaire is reduced, sampling is automated, and fieldwork is done quickly. The analysis is presented rapidly, and the process is efficient and seamless.
Smarter Insights
Artificial Intelligence helps provide smarter insights in a fraction of the time taken by traditional research.
Since it provides immediate data sets, agile intelligence offers brands powerful insights, answering critical questions like how to segment buyers, which products are likely to perform best, and which locations to open or close physical stores.
Greater accessibility
Another benefit of agile market research is how it makes insights more accessible. Agile market research allows results from a series of similar projects to be shared with your teams worldwide. Other team members can learn what was done and worked, which helps inform future brand decision-making.
It democratises data and helps create seamless connections to various organisational functions, allowing for collaboration so each department can achieve its individual and overall business goals.
For example, for physical stores, marketing teams can work with real estate teams to identify areas where they should decrease or increase their presence based on store performance and other factors.
With agile market research, brands can test concepts with a target audience, generate a prototype and get feedback, or gauge consumer response to an ad campaign much faster than if they followed the traditional research process.
Agile market research seamlessly integrates various data collection tools, offering a shorter response process and improving the overall experience.
Agile market research helps brands invest in the right tools for decision-making to adapt quickly to market changes. It allows brands to transform data into an actual business asset. When armed with the correct data faster, brands can keep up with the speed of change.
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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