In a very compelling article by The Herald this week, the topic of market research and how critical is it for businesses is discussed and analyzed. Similar to what we already know about market research, the article argues that the longevity of a business depends on its awareness of consumer taste buds, government policies, and what competitors in the market are up to. “Entrepreneurs should understand that knowledge about markets is essential for the survival and growth of their business. It enables one to improve the competitive nature of their business and to reduce risks.” The article also defines market research as the process of collecting data in order to determine if a specific product or service will meet and exceed the customer’s needs. Along with many other things listed in the article, market research has the ability to identify market trends, economic shifts, and the buying habits of consumers. Obviously this is nothing new, however it’s very encouraging to see articles argue for the importance and relevance of market research and how it can significantly alter the outcome for a struggling business.
This week Forbes posted an article on their site discussing how legal cannabis, big data, and leaders in market research joined forces to start a buzz (no pun intended). According to the article, Giadha Aguirre DeCarcer, CEO of New Frontier Financial, observed how data was powering big financial decisions on whether or not to back private companies and wondered why there was no one in the legal cannabis industry. “The one-time investment banker and consultant began attending the sector’s budding event circuit, pitching a Bloomberg for cannabis data. Her Washington D.C.-based startup, New Frontier Financial, began to publish reports assessing regional opportunities, upcoming legislation and the impact of looming price changes. Lawmakers, cannabis entrepreneurs and, increasingly, mainstream investors started to buy in to DeCarcer’s data.” According to the article, New Frontier is partnering with market research firm ArcView in order to create a market leading report for the industry that will make it easier for investors to confidently invest. “The partnership will allow each company to focus on its strengths without worrying about competing on the same data.” The full article is a brilliant read if you get the chance, I highly recommend it.
The Wall Street Journal released an article this week that discusses Diageo PLC’s new effort to increase their emphasis on consumer research in an effort to reverse their weak sales numbers. Diageo PLC, a British-based liquor company, has lost a significant market share in the U.S. due to the competition from brands like Smirnoff and Captain Morgan. Due to this recent slump, the company has decided to enlist Deirdre Mahlan, the company’s former chief financial officer, to be the head of its North American business. “The move to beef up its marketing efforts comes during a year of tumult in the company’s North American operations. In July, the company confirmed a probe by the U.S. Securities and Exchange Commission into its distribution practices.” According to the article, the SEC led an investigation into whether or not Diageo had shipped excess inventory in an effort to boost results. This marketing effort seems to have not come at a better time for the company. Hopefully market research and newer marketing tactics can bring this company out of the long slump it’s been in.
Nichole Dicharry, is a Digital Marketing Assistant at IIR USA, Marketing and Finance Divisions, who works on various aspects of the industry including social media, marketing analysis and media. She can be reached at Ndicharry@iirusa.com