One of the most preferred types of projects that comes our way at Research & Marketing Strategies (RMS) is a market research feasibility study. The request from our client usually pertains to needing research around a new program they want to offer at their institution, a new type of business they want to start in the area or an expansion to their current business. The main objective of a market research feasibility study is to understand the market and determine whether enough demand exists to make the venture successful. Arguably, there isn’t another type of market research report that offers more in-depth and thorough analysis than a market research feasibility study report.
Here are five key components to any quality market research feasibility study:
- Stakeholder In-Depth Interviews (IDIs) - RMS has found through past studies, beginning the market research by talking with key stakeholders is a perfect starting point. It helps all groups buy into ownership of the process and support the market research. It also helps the market research team familiarize itself with the project and its goals in a qualitative and open-discussion format. This is a mutually beneficial first step for both parties. These stakeholders can range from key personnel in the organization, outside the organization, those involved in the local economy or any other stakeholders who may offer credible feedback and play a role in your business’ plans.
- Demographic Assessment and Trend Analysis- We’ve discussed the importance of demographic assessments in a site selection process before on our blog – click here to read Vance’s post. This involves secondary research and analyzing the market. This also creates your pool or population that you will use for your demand modeling and estimates. Information is collected for the market with regards to population trends, age, consumer expenditures, education and any other relevant demographic statistics that would impact the feasibility of the project. RMS also uses secondary research to find existing industry trends and ancillary data that is worth noting. This can easily be collected through the Internet with our team of professional Googlers.
- Quantitative Survey – This is the portion of the market research project where primary data is collected among end-users. The questions are focused on current usage and predicted usage and understanding the impact the new business idea will have on the market. This is the most integral part of the market research feasibility study and many of the questions asked in the survey will serve as the foundation for the demand model and estimates.
- Competitive Assessment - The competitive assessment takes a look at like-competitors in the market area that will impact your new business. RMS creates an expansive profile of each competitor and uses mystery shopping calls and visits to collect the non-publically available information, which isn’t available on the website. By analyzing competitors, it also helps our clients understand service or product gaps in which they can market themselves in.
- Demand Model/Estimates with Recommendations - The final step to a quality market research feasibility study is putting together the first four components and using the findings from each to create a demand model. The demand model will estimate/predict the likelihood and habits of end-users for the new business you are testing. The demand estimates use predictive modeling to offer a rough figure based on the combination of known factors and assumptions. The executive summary also serves as a nice and short snapshot of findings, which works well for upper management if they do not have the time to read through a 100-plus page report. Finally, any good market research firm will be objective in their analysis and provide its client with a “go” or “no go” recommendation.
Are you interested in conducting a market research feasibility study for your new program offering, new business venture or an expansion to your current organization? Using a market research feasibility study will reduce the risk of a mistake and provide you with the data and tools you need to make your business most successful. Contact our Business Development Director Sandy Baker at SandyB@RMSresults.com or by calling 315-635-9802.