Market Research Value for Food & Beverage Processing
When you take that first bite into a perfectly prepared food
item, chances are it's gone through many rounds of research and
testing. In fact, market research is one of the most important
steps in the decision making and product development process.
Skipping it can be detrimental to the launch and long-term success
of your products. Market research can give you a better
Who your customers are, where they live and how they shop
Current and emerging food trends
Your customers' needs and expectations
Packaging design preferences
Service delivery models
How to Perform Market Research
Whether your food & beverage processing operation is
experienced in market research or just getting started, the
following steps can be a useful guideline to ensure you're
collecting the right information. However, keep in mind that food
& beverage processing business is different in terms of how
many products they produce, what their competitive landscape looks
like and what their unique value proposition is. This proposed
method of collecting data is adaptable based on the factors above,
amongst many others.
Identify Your Target Market The first step is to narrow down who your best customers
are. This means gathering their demographic data, including
geographic characteristics, spending patterns and whether
they're an individual consumer or a small business.
Assess Your Market's Spending
Habits and Preferences From there, gain an understanding of how much your target
market is willing to spend on your product. In addition, try to
determine what specific qualities your product possesses that your
target market either likes or potentially dislikes.
Review Consumption Trends Once you know a bit more about your audience, learn
what's already happened within the market in regards to your
actual product. Look at both past product launches and the future
of your product's niche.
Project Your Target Market Ask yourself how large your target geographic area is and
how many of your key consumers reside within that region. Don't
forget to consider what competitors you'll be grappling
Analyze The Competition After you've identified your competitors, take a
closer look at what they're doing. Where are they successful?
How are they marketing their product?
Outline Your Strengths, Weaknesses, Opportunities and
Threats Often referred to as a SWOT analysis, this step offers
you a chance to identify both internal and external factors that
can support or potentially threaten your product's
Once you've completed these research tasks, you should have
a clear picture of the customers you need to reach, the areas you
should be present in and the steps you'll need to take to
launch your product successfully.
That being said, market data research can be a time-consuming
activity that is easily coloured by an internal bias, potentially
jeopardizing the outcome of your research to lead you down an
incorrect path. It can be useful to work with an impartial, outside
consultant to help develop your market strategy or to develop a
business plan, particularly when exploring a new venture.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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