Importance of Market Research for Businesses
Importance of market research is often undervalued as many entrepreneurs and startups rely on gut feel or intuition to make investment decisions. As a consequence, more than 90% of the businesses and one of the major reasons is attributed to not conducting a formal market research and feasibility study.
Findings suggest that entrepreneurs and startups underestimate the power of data and insights and how it can help them in assessing the market conditions, competition and consumer potential. Moreover, a comprehensive market research study can provide businesses with a clear picture of profitable products and services and answer specific questions pertaining to the willingness of end-users to buy and consume the same.
Consequently, a market research exercise helps in formulating a business plan, devising a market entry strategy, identifying target audience and making key investment decisions. Market research can be conducted for either creating a new business / marketing plan or testing existing plans.
Market Research & Data Collection Methods
The Market Research can be classified into Primary and Secondary Research.
Primary Research – Within this approach, the data is collected by either interviewing or surveying consumers, competitors, industry experts and other stakeholders as mentioned below:
- Interviews – Conducting personal interviews via telephone, in-person, email and/or mail
- Surveys – Conducting personal surveys via telephone, in-person, email and/or mail
- Focus Groups – Conducting group discussions (6-10 people) to provide feedback regarding a concept, product or service and/or marketing campaign
* Conducting interviews and surveys are more cost effective with the latter being preferred as it allows researchers to quantify the data and reach to meaningful conclusions. On the contrary, Focus Groups lead to productive discussions but are time consuming, costly and presents researchers with a challenge to analyze the data.
Secondary Research – Within this approach, the data is collected from the pre-existing sources which includes but not limited to articles, journals, reports, published papers, newspapers, magazines and government portals.
The primary data is typically analyzed by deploying either quantitative and qualitative approaches. Quantitative approach refers to conducting surveys and doing a statistical analysis. The questions are typically close ended which helps in statistically analyzing the data. Qualitative approach refers to using interviewing methods to learn about respondents’ opinions, values and beliefs. The questions are typically open ended encouraging respondents’ to share their thinking and school of thought.
Common Mistakes in Research
Reliance on Secondary Research – While secondary is a great place to start but in most cases it lacks context and the information is either outdated or does not provide a full picture therefore making business decisions based on secondary research is considered very risky.
Search Engines & Web Resources – Relying on search engines and web resources to gather information could lead to inaccuracies thereby making reliability and validity of data questionable.
Surveying Acquaintances – Surveying only the people you know may not be the right way to collect the data, questioning the reliability and accuracy of the information. Therefore, it is important to identify and screen respondents based on the research aims and objectives and reaching out to them for data collection.
To perform in-depth market research, it is highly recommended to seek expert advice and engage research professionals. Consider market research as a strategic long term investment which can help businesses to not only become competitive but also grow, succeed and become profitable.
Research Konnection is one of the leading market research companies in Dubai that assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market Research, Feasibility Studies and Business Plan Development. Feel free to reach out to us on firstname.lastname@example.org…June 7, 2020
Dubai to build Commercity to promote e-Commerce Industry
Dubai – The government of Dubai has announced to build the first of its kind free trade zone dedicated for the e-Commerce industry in the region ‘Dubai Commercity’, located close to Dubai International Airport. The estimated value for the project is around AED 3.2 billion ($870 million) and covers an area of 2.1 million Sq.ft. The ‘Dubai Commercity’ aims to promote investment in the e-Commerce Industry by providing numerous benefits and exemptions to the e-Commerce players.
e-Commerce Industry – UAE
Driven by the strong growth in online shoppers, the UAE’s e-Commerce Industry leads the Gulf region with an estimated value of Dh 59 billion ($16 billion) in 2019 and CAGR of 13 per cent between the next few years. However, due to the COVID-19 pandemic which has influenced the online shopping behavior, the e-Commerce growth rate is likely to increase significantly as more number of consumers opt to buy products and services online.
e-Commerce Industry Growth – UAE
The young Internet-savvy population with high social media usage, high disposable income and the growth in Dubai’s mobile wallet market are among the key contributing factors towards the growth of the e-Commerce marketplace in the country. As of 2019 and before the COVID-19 pandemic, 62 per cent of UAE residents were actively engaged in online shopping while e-Commerce sales constituted 10 per cent of total sales in UAE.
Furthermore, the Dubai government has introduced several strategies to attract foreign investors in the e-Commerce Industry. One of such Strategies is the announcement of Dubai Commercity, a dedicated free-zone for the e-commerce Industry.
The Dubai Commercity is considered to be the first of its kind in the region. The site is a joint venture between Dubai Airport Freezone Authority (DAFZA) and Al Wasl Properties. The Dubai Commercity will have three major clusters namely; Business, Logistics and Social Cluster.
The Business cluster will accommodate 12 office buildings that promise modern facilities and sustainable design for companies of varying size while the Logistics cluster will consist of heavily automated AI (Artificial Intelligence) warehouses and storage facilities. The Social cluster will consist of restaurants and cafes. The e-Commerce businesses that will be registered with the free-zone will benefit from “one-stop shop” services inclusive of immigration, administration, banking and healthcare. The facilities are expected to be operational in November 2020, while the project will be fully functional by the end of 2023.
Dubai Commercity – Future Potential
The developers mentioned that the situation arising from the COVID-19 has been one of the major factors that has led to the conceptualization of Commercity in Dubai. The on-going Coronavirus pandemic is expected to further fuel the growth of the industry and the investment in the e-Commerce industry will pay off as the Dubai and UAE market is set for explosive growth amid rapidly changing online consumer buying landscape.
Research Konnection is one of the leading market research companies in Dubai that assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market Research, Feasibility Studies and Business Plan Development. Feel free to reach out to us on email@example.com…May 27, 2020
UAE Government Develops Economic Sustainability & Business Continuity Plan To Combat COVID-19 Challenges
UAE Government Develops Economic Sustainability & Business Continuity Plan To Combat COVID-19 Challenges
Dubai – Under the directives of H.H. Sheikh Mohammed bin Rashid Al Maktoum, th…May 15, 2020
Importance of Market Research in Post COVID-19 Pandemic
The COVID-19 has impacted almost all the sectors and has made the market highly uncertain. The unpredictable conditions have further increased the need to conduct market research to understand the market, consumer and economy while making investment decisions or important business decisions.
Dubai – The Land Of Opportunity
Strategically located on the crossroads of Middle East (ME) and Asia, Dubai is touted amongst the most sought after global destinations of trade and commerce. MNCs, SMEs and Startups prefer to make Market Research in Dubai as its focal point and tap into local and regional markets. The state of the art infrastructure coupled with business-friendly governance and cosmopolitan cultural appeal further incentivize businesses to set their base in Dubai, UAE.
Importance Of Market Research In Dubai
Dubai is also known for its highly competitive environment where businesses compete on quality, price and most importantly the market information. Therefore, to succeed in Dubai, better understanding of consumers, market and competition is required for companies (new and existing) to make key business decisions.
Market Research Advantages And Benefits
Devising Effective Strategies – With the help of a comprehensive market research exercise i.e. surveys & interviews, business plan and feasibility study etc., companies can identify potential opportunities, evaluate market demand and devise an effective business strategies.
Understanding Market & Competition – Market research helps companies in analyzing the latest market trends, competition and consumer behavior in Dubai, UAE and the GCC region.
Understanding Consumer Behavior – Market research helps companies in understanding consumer behavior and trends better. With the help of market research, businesses can better understand consumer needs and wants and accordingly position themselves in the market. Most importantly, an effective market research allow businesses to understand the following:
Target Audience Profiling – Identify customers
Market Segmentation – Identify niche / segment in the market
Market Positioning – Position business considering target audience / market segment
Marketing Mix – Plan effective product / service offering
Pricing Strategy – Understand key price points
Evaluating Return on Investment (ROI) – Market research in Dubai helps companies in better understanding return on their investments. By evaluating the market demand of products and services and through competitor scanning, market research allows companies to ascertain the business potential. Through in-depth market research, companies (existing and new) can not only reduce the risks associated with the investments but also benefit from increased revenues and profitability.
Types of Market Research
Economic Overview – Understand Economic Growth / Trends / Opportunities
Market Overview – Understand Market Size / Growth / Tends / Opportunities
Consumer Overview – Understand Customers through Surveys / Interviews
Competitor Overview – Understand Competitors / Market Share / Pricing Strategies / Competitive Advantages
Feasibility Study – Understand Market Entry Strategy (SWOT & PORTER Analysis)
Business Plan Development – Understand Business Setup (Licensing / Location / Operations / Financial / Sales & Marketing Analysis)
Benefits of Market Research In Dubai
Dubai is a unique market in itself and there are myriad of socio-economic, business and competitive forces that keep on unfolding in the background. It is the interplay of these forces that play an influential role on the growth trajectory of business ventures. Partnering with a right market research company will help businesses to understand their overall impact and based on that, take the right decision.
By imparting right knowledge and suggesting practical solutions, market research companies can enable business not just to accelerate their growth but also mitigate potential business risks. Therefore, it becomes essential for businesses (new and existing) to conduct in-depth market research and use information / insights to make key business decisions.
Research Konnection is a market research company in Dubai that assists local and international companies to setup or expand businesses in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market Research, Feasibility Studies and Business Plan Developments. Feel free to reach out to us on firstname.lastname@example.org…May 11, 2020
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