Digging for Gold
MARKET RESEARCH:
FINDING ESSENTIAL
MARKET INFORMATION
1.1
4/13/2015
Having the ‘Right’
Questions
Articulate questions
Find answers
What is Market Research
Market research is the collection and analysis of information about
countries, regions, markets, people, companies and organisations
that will enable you to make better decisions for your export
marketing plan
COLLECT AND CONVERT INFORMATION INTO KNOWLEDGE
Reseach Myths
Research is only for intellectuals and academic people:
• This misunderstanding is partly created by researchers who
have their own sophisticated definitions and jargon. However,
good researchers are well aware that research can be easily
designed and implemented by anyone
• The trade partner will do all necessary research
• Some exporters believe that they already have enough
information through their trade partner or expect the research
to be done primarily by them. In addition, some exporters
regard market information as a by-product of their accounting
system. But often trade partners lack in giving a neutral
overview of the market and channel developments in their
country.
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Research Myths
Market research is too expensive:
• Market research does not necessarily mean doing surveys,
interviewing large numbers of people and carrying out
complicated computer analyses, which are expensive especially
• when entering different EU countries. There are many low cost
techniques.
• I am afraid to lose control with an information overload
• Some exporters are already very busy and are afraid of losing
track when browsing through all information and dealings with
researchers. However, most research requires common sense
and a time commitment
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Defining a Research Problem
Articulate your questions clearly
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Questions?
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Questions?
• Internal: About your company
• External: About Markets
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Internal Questions
• Are you or can you become part of a
global value chain?
• What is your positioning in the value
chain?
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Internal Questions
• How much is available for export?
• How is it produced?
• At what cost is it produced?
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External Questions
• What is the volume in world trade?
• What is the volume in regional trade?
• What is the volume in target market?
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External Questions: Target Market: DESTEP
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Geography/ Demography
Economy
Social Structures/ Preferences
Technology
Climate/ Environment
Political
External Questions
• What are the trade channels?
• What does the buyer want?
• What are the market entry
requirements?
 Regulatory
 Customer Driven
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Internal vs External Questions
• Product market combinations
• Product market compatibility
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The research instruments
Desk research
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Internet
Publications, magazines, newspapers, etc.
Market research reports
Documentation ( Competition? )
Field research
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Specialist MR offices / consultants
DIY
Tradepartners
The research instruments
Desk research
CBI’Website and Database: A wealth of information
up-to-date information on more than 35 sectors in European Union
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market access requirements,
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market size,
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consumer trends,
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trade structure,
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packaging,
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pricing,
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terms of trade and
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export guidelines
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Sector alerts
Database content
CBI's database contains 3,000 documents
• market studies,
• export manuals,
• design guides,
• fashion forecasts and
• 5,000 selected hyperlinks to additional information sources.
Desk research,
Statistical information: the basics
Statistical information = quantitative information
Gives a general picture of the market, based on market size & trade flows
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Production
Consumption
Imports
Exports
Desk Research
Internet sources:Finding statistics
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Eurostat www.ec.europa.eu/eurostat
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EU Export Helpdesk www.ec.europa.eu/trade/creating
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International Trade Centre: www.intracen.org (p-maps, trademap)
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CBI market surveys: www.cbi.eu*
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US Commercial Service: www.export.gov
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National statistics offices
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Branch organizations
Desk Research
Finding statistics cont.
CBI Market surveys are the best starting point to identify the main
Trends.
• F.e.: The Engineering Products Market in the EU
• Check chapter “Trade:Import and Exports”
• Product codes (CN= Combined Nomenclature)/(HS=Harmonized
System Codes) and Prodcom. Numbers are given
• In case of Engineering products: CN and Prodcom.numbers
The research instruments
Field research
• Specialist MR offices / consultants
• DIY
Considerations – Field research
Cost
Professional
DIY
Time
Professional
DIY
Reliability
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Professional
DIY
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Information sources
Field research
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The user ( where does he/she buy the product? At which price, warranties,
service, etc. )
Retailer or service provider
Wholesaler
Importer / Distributor
Agent
Trade fairs
Professional Associations, Bus.Support Organisations, Chamber of
Commerce, Banks
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CBI - Ministry of Foreign Affairs
Overwhelmed?? How to stay up to date?
Newsfeeds (RSS)
Mark important Websites and prescribe
E-newsletters
Subscribe for News letters
Linked Groups and Communities
Staying up-to-date:
Newsfeeds
What?
Automatic alerts when websites have been updated
How?
As e-mails or ‘bookmarks’. NB! You must subscribe!
Why interesting?
Helps you remember sites, no unnecessary searching
Allows you to mark read items
Staying up-to-date:
E-newsletters
What?
Regular e-mail updates with content specifically designed for the
target group
How?
By sending an e-mail to subscribe
Why interesting?
Allows you to stay up-to-date without checking websites
Staying up-to-date:
Communities
What?
Groups with people connected online, can be personal or
professional
Why?
Network(ing), contacts
Examples:
LinkedIn (professional)
Facebook (personal)
Linkedin Groups
Groups and Communities
Find Groups of interest on Linkedin
Technical Groups e.g “Foundrymen”
Professional Groups e.g “CE Marking for Fabricated Steel Works”
Skill Groups e.g “Marketing Communication”
Service Groups e.g “Logistics Network”
LinkedIn
Become a member of groups
Ask questions
Follow discussions
LinkedIn : for
Details : Join Relevant LinkedIn Groups :
Some serious discussions go on in specialized groups. Further
drilling into group members profiles and companies can yield
valuable information on the latest trends, challenges facing an
industry or business group. Examples:
•"Heavy Duty Truck & Trailer”,
•“HDX Connected Heavy Duty”,
•“Auto OEM Network”,
•“Automotive Industry Professional…”,
• “Automotive SME Manufacturers”.
•“HDX Connected Heavy Duty Truck Parts
Aftermarket”.
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Finding your Peers
1- iCatalogshttp://www.icatalogs.eu/ : For identifying market
leading companies, bench marking product quality, features,
technology trends etc
2- Materials Handling/Factory
layoutshttp://www.mhi.org/ Materials Handling Products,
trends, logistics and factory layouts leading to global
competitiveness. The Chinese learnt to become world class
manufacturers by working as sub contract manufacturers and
allowing the western companies (clients) to guide them on
assembly techniques.
4-Import Genius : http://www.importgenius.com/ track the
international shipping activities of importers and exporters around
the world to give you an unprecedented understanding of the
import-export business.
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Questions?
CBI - Ministry of Foreign Affairs
EXERCISE
Write research questions about your market research
project
1. 2 about market demand
2. 2 about target market
3. 2 about PMCs