Market research

ANALYSING THE MARKET
Market analysis enables us to programme the correct progress strategy of goods, avoiding unexpected financial losses and it enables us to build profitable partnerships with other participants from the business process. We analyse the market for interesting products for your company, insure your businesses against bankrupt projects and provide periodic market research that allows your company to rectify businesses according to market trends.

AN EXAMPLE OF A MARKET RESEARCH PLAN
A market research plan example includes the following points (the aspects of the analysis certainly depend on the specificity of the actual market, these points can be modified depending on the client’s needs):
1. General information on the market
2. Main competitors.
3. The presence of brands in the city of the actual country.
4. Information about consumers of the market.
5. Main sales channels of products in the market.
6. Product advertisement of main brands.
7. The most important market parameters.
8. Market capacity, the actual capacity of the market. Framework.
9. Financial capacity of the market. Framework.
10. Import and export framework.
11. Consumption framework of products.
12. The volume of domestic consumption in the local market. Ratios according to main regions.
13. Price framework of the market.
14. Customs duties.
15. The most important participants of the market.
16. Characteristics and forecast of market growth
17. Growth forecasts for the next three years.
18. Sector risks for the next three years.

MARKET VOLUME

Without knowing the market volume, a company cannot understand if it should develop its business and produce new products - perhaps the potential volume of the market is not big enough to cover the expenses? Certainly, attractive markets for companies are normally new markets and those that grow very fast. Often, market players purposely increase the volume of such markets on their statements to attract capital. The knowledge of actual market volumes will help you assess your company’s success, realistically and avoid useless costs.

Market volume is the sales volume of goods or services in an actual period of an actual region. This definition requires further explanations.

Market volume can be measured in monetary or quantitative terms. At times, neither of these can be used. For instance, the raw extraction market volume of the Russia can be measured in Rubbles; however, it cannot be measured in quantitative units (it would be like comparing a ton of oil with a cubic metre of gas). On the other side, the quantitative expression can be useful to compare market volumes for the various periods. In order to avoid the influence of inflation, it is easier to measure it in absolute units.

The definition of market volume is a very important aspect for the company's business development. Market volume is a certain benchmark to which the company’s programmes can be developed and the results of the business on the actual market can be measured.

MARKET FRAMEWORK

The consumption of the product entails an interaction with many participants of the market. Its composition, quantity and interactions define the framework of the market.

Knowing the market framework and the connections with other markets helps the company understand its own perspectives and duties and coordinates them not only with final consumers, but also with suppliers and distributors, with relationships in which for the most part, the success of the business development depends on.

MARKET SHARE

Market share measures the success of the product in the market. Markets can be classified according to the market share taken over by various suppliers, brands or products.

POTENTIAL CONSUMERS

One marketing definition is “making revenue by fulfilling demands”. This is why one of the key tasks of marketing consists in revealing and understanding market demand. In-depth knowledge of potential client demand will not only help establish competitive prices on products, but will also help make product changes, optimize development channels and the advertising strategy, that is to say, rectify all the parts of the marketing complex. This knowledge enables us to gather niches that are taken up or free in the market and helps us define possibilities to overcome the competition struggle.

INFORMATION ON COMPETITORS

If you were a football coach, and someone were to ask you what are the probabilities of getting to the Italian cup final, your answer would be guided not only from your knowledge about the strong and weak aspects of your team, but also about the information on rival teams, what are their strong and weak points, what offensive and defensive tactic they use and what is the physical condition of each player from the other teams. A success plan can only be made after knowing all of the opponent's details. You can study all the videos of all the opponent’s matches. You can ask questions to coaches of the teams, where team players had played. You can ask questions to players who have left the team. After all, you can also check sports newspapers!

The same principle applies to marketing. Often they are afraid of mentioning competitors' data, because they are afraid of being accused of espionage. However, companies do not live isolated. The meaning of market relationships consists in competition. Companies are forced to disclose information about their own business, implicitly or explicitly.