During the past few years, many companies, both large and small have filed for bankruptcy, put their business up for sale, or just plain closed. One of the main causes is that the business did not have the audience expected or could not keep up with changing tastes and trends. Additionally, some were late in coming to ‘on-line shopping’, using the Internet as a sales medium, and were overtaken by their competitors.
Although not a panacea, both Market Research and Competitive Intelligence could have helped point the enterprise in a more contemporary direction. “What is happening in the industry” or “What are our competitors doing? “are questions frequently asked. Answers to these questions could help with decision-making in future planning.Just as many companies who were late moving their businesses to the shopping malls years ago are not around anymore, so companies that do not embrace on-line shopping may meet the same fate. Some online retailers have a major headquartered brick and mortar store while others do not. Both have enjoyed degrees of success.
That on-line shopping is continually growing, is a given. Is it the sole answer? No. A store must have products that people want to buy. In some areas, there is a profusion of the same type of store in a specific location. Can the market support all of them Probably not. Again, market research might be able to shed some light in that area.
Just because a store opens in a very busy area, does not mean it will be successful. The products must have appeal. Better yet, fill a void. One very large restaurant chain we know, closes some of its properties regularly and replaces them with ones that have wider appeal and can keep up with changing tastes and trends. This type of strategy does seem to work since most of the new replacements are enjoying success.
As we said earlier, market research is not a magic bullet, however it can contribute to future planning and increase the chances for success. When conducting your research, make notes of the pros and cons of a specific product or service, the location, the price points, market share, product quality, and other applicable data. This will help you to position your enterprise to obtain maximum visibility and appeal and increase your chances for long term success.
Franklin Cooper © 2019