It’s easy to get over absorbed with your business, head down working hard and become completely unaware of what’s happening around you. Many people know every millimetre of their own company, though when asked what’s hot in the market or what their competitors are up to, a blank expression appears and shoulders are shrugged.
To have a current insight into the industry surely not only makes sense from a marketing perspective, but a business one also – how can you judge the success of your own business if you have no comparison? Taking time out of your everyday work to do a bit of investigative market research will not only reward you with valuable information, but could also give you ideas and inspire you to future success.
Trends
With this newfound knowledge of what’s hot or not in the equestrian world you can asses the wave of trends that frequently wash by. Are wellies now pink with yellow flowers, saddles with trees or without, jackets with stripes or animal print and what is Ellen wearing this week? This may seem insignificant in many ways, but having an insight into what’s currently popular and capturing the consumers attention is of huge advantage when creating or selling products and services. An obvious example is if you are a retail outlet, make sure the products you have on the shop floor are following the latest trends and up-to-date. If customers walk into a shop where the latest trendy gear is on display, they are going to associate those items with your shop, thus making you a trendy shop in the mind of your customers. Sounds a bit silly, but it works. Big supermarket chains put all their fresh fruit and vegetables on display down the first isle so psychologically you think that it’s a fresh shop and all the other items there are going to be fresh.
Applying the knowledge of trends to other areas like creating a new product for example is of extreme importance. Spending potentially thousands launching a product at the wrong time or where there is no consumer interest is a needless gamble that should rarely be taken. In the nineties a large international sports brand launched a range of products and after three months sales were very disappointing, a simple change of colour and name saw the following three months sales quadruple. Sometimes the small changes have big affects, but having that information beforehand could of saved a lot of money and hassle.
Stay ahead of your competitors
Knowledge of your market not only translates to an understanding of consumers, but also the people you are competing with to get them. If you are creating a completely new product or services it is wise to check out your potential competitors first. How they promote themselves, who are their customers and even down to looking at their accounts. This doesn’t mean that you should invest in a pair of binoculars, camp outside their premises or riffle through their rubbish - that’s illegal! Information can be easily accessed on websites such as the companies house website http://www.companieshouse.gov.uk/.
May seem a little sneaky, but if you see a consistent decline in turnover and profit of three or more potential competitors for example, it probably indicates that the division you wish to enter into isn’t the safest place to be - thus saving you a lot of time and money. If on the other hand it turns out that your rivals tills are ringing and they are having fun doing so, it just may be the first green light to proceed with the start up.
From an existing company’s perspective the first step would be to thoroughly examine your rival’s product, why are they doing so well or not so well as the case maybe? A suggestion would be to find the answers to the following questions: How are their products produced? How do their prices compare? How do they market themselves? Where are they located? What’s their customer service like? Who are their customers? Are they making a profit? The results to these questions should give you an interesting comparison, it may be that you should give yourself a pat on the back as you are placed well amongst your rivals or that you need to pull your socks up and form a marketing strategy to boost your standing. With a clear comprehension of your strengths, weaknesses and market position you are better poised to propel your business in the most advantageous direction.
It is one thing to collate the results from your market research and rub your chin with interest, but it is getting your hands dirty and doing something with them that is truly going to make a difference… Improve on your weaknesses and play to your strengths.