Till now, every global business or startup might have learned the significance of a good market research service. Good market research is required to get access to valuable insights and data on the market, future demand, customer assessment, customer needs and want, ideal consumer profile, market trends, competitive intelligence, distribution & retail structure, and much more.
To win in today’s hyper-competitive world, market research is required to capture a large market share, gain an edge over the competition, and build a sustainable business. In the absence of a well-orchestrated market research activity, businesses might not make informed decisions.
On the other hand, a feasibility study is a detailed analysis that is exercised just before the launch of a new business, product or make any investment in a venture. Business owners conduct a feasibility study to verify the viability of a business idea. A well-performed feasibility study can give concrete evidence whether the business will work or not. It can tell an entrepreneur, investor, or corporate house whether a venture will work or not in the long run and thus suggests to them whether to commit the capital and time or avoid it.
A feasibility study also has numerous other benefits. It can help the founding team to learn more about the business environment, plan their resource management properly, and evaluate various alternatives that are available. A feasibility report is also essential for raising capital. In India as well as in other parts of the world, investors and PE players generally ask for a feasibility report before making an investment.
Though feasibility consulting and market research advisory services are two different exercises, they are related. They both complement each other. Good market research is a cornerstone to preparing an effective feasibility analysis. Likewise, a good feasibility report can give tremendous insights into conducting a market research study.
While the latter is beyond the scope of the analysis, we will study in this post how market research can help prepare a compelling feasibility study report in five different ways.
The components that prove good feasibility need good market research are as follows-
Market Study: A feasibility requires a detailed market study. In a good feasibility study, a host of factors related to the market are covered such as- industry size, market share analysis (based on geographies, product categories, etc.), industry growth forecasting, industry historical analysis (generally past 5 years), and much more. Likewise, a feasibility market study requires scrutinizing of economic parameters such as GDP growth, growth forecasting, per capita income, and economic risk evaluation. All these require details market research techniques such as primary & secondary market research, industry stakeholders interviews, interaction with professionals across the value chain, online questionnaires, etc.
Demographic Analysis- Understanding whom to sell our product to before its launch is crucial. Evaluating the customer segment, its demographics, income band, choices & preferences, become quite significant in such a case, and it helps you design your product launch most feasibly.
Competitive Assessment- As most of the feasibility studies are for new products or services that get marketed to existing geography, you are supposed to get a well-established competitive landscape. Hence it is important to gain valuable and deep insights into the competition. Only then, the newly established business will able to successfully traverse the competitive landscape and build a sustainable business in the mid to long run.
In the competitive analysis in feasibility analysis, a list of all the competitors, their revenue, products and pricing, market share, etc. are covered. By availing market research, your feasibility study will also show how much impact competitors will have on your business or startup.
Survey- Surveys are the best way to address issues or ideas from stakeholders' perspective and evaluate the interest and appeal of customers in your business among your targeted audience ( which we identified in demographic analysis) This information gives us a chance to make awareness about our product or service and also to understand the interest of the audience who is going to be the consumer of these products and services in future. By conducting a market survey we can evaluate the feasibility of the proposed product/ service/ business idea.
So, now that you have a better understanding of how good feasibility needs good market research. How by conducting various kinds of market research (survey/ stakeholder interviews/ online surveys/ etc.) one can get access to valuable information.
The India Watch is a leading market research and feasibility consultant that can cater to all your data/research / consulting requirements.