By: Adalberto Mendoza
Director of Market Research at Master Research
Edmundo Ramirez
Creator and Director at Master Research
In Mexico, the word crisis has been part of our vocabulary for many decades. We lack statistics indicating how many businesses close annually due to it, but based on the 4,374,600 businesses reported in the 2009 census and INEGI’s business listing that indicated that 13.6% of small businesses relocated or disappeared, therefore approximately 600 thousand businesses disappeared as a result of the economic crisis.
Signs that you are facing a crisis:
Loss of liquidity, insufficient funds to buy, invest or save
Massive staff layoffs
Increase in business’ defaults
Slow economic growth
Lack of consumer confidence
“The best way to face a crisis is to anticipate it: investigate and monitor the market constantly for changes or alarming signs” states Edmundo Ramírez, Director of Master Research.
The Importance of Market Research when facing a crisis
Everyday, businesses must make decisions in a quick but safe manner; however, in a crisis, it is important to have useful and reliable information at hand in order to back our decision making. Market Research is an essential tool to overcome a crisis.
During a crisis, businesses tend to reduce their research budget; however it is vital to implement certain Market Research strategies to deal with this situation as the following:
Focus: In a crisis, it is important to have a better understanding of your clients and focus your research on their products, brands, and key niches targets in order to create the appropriate market strategy.
Identify changes in consumption patterns: Different consumption patterns are adopted during a crisis and many of these changes remain. Therefore, businesses that can identify and understand the consumers and their patterns will be successful.
Take advantage of the opportunities abroad: It is important to study not only the local markets but the international ones. Opportunities can be found abroad (e. g. emerging markets as Latin America or Asia).
Make use of new methodologies such as online research:By using online tools to support market research, response time is shortened thus benefiting decision making. In the international market, there is a significant growth in online research increasing by 24% with respect to the total research conducted and it exceeds telephone research, which represents around 20%.Quantitative research represents 20% of online research while qualitative research has just begun to emerge.
Analyze consumer behavior closely: It is imperative to know how the crisis is affecting directly the consumer and his buying habits: How is the consumer’s behavior changing? Which new products is he willing to buy? How long and what steps will these new consumption patterns take?
Edmundo Ramirez claims that “Market Research allows businesses know what products and services in their portfolio will agree with the needs of the time and of the future so that they can focus their market strategies on the new trends.”
Businesses that emerge stronger from a crisis are those that understand the consumer’s new desires and values and are able to adjust not only its products and services but also its corporate structure to the new market environments.
Right On The Button: The United States Crisis of 2009
After the crisis in the United States in 2009, 56% of consumers felt that their life style had changed. Luxury items were out of style (sales in the luxury industry fell 15%).
The new American consumer is price driven by the price and not by social status. Brand loyalty has decreased while the sale of generic and name brand products have increased. While curiosity in new products remains the same (albeit a better sense of cost-benefit) we see an increase in research before making a purchase( in the United States after the 2009 crisis there was a sharp increase in the average number of visits made by the same consumer to department stores in order to evaluate 4 to 10 products). High volume purchases have declined while more and more consumers value sales. Price became the key factor in decisions and demand for an innovative product and service is on the rise.
Summary
In times of crisis, due to a general fall in sales, companies will engage in commercial wars pulling out all the stops to get new clients while holding on to their current ones. During this time, it is imperative to conduct Market Research to get a better understanding of the consumer and his behavior patterns which tend to change due to his reduced purchasing power, becoming less active, more thrifty, analytical, and less loyal to brands.
The businesses that will emerge from a crisis stronger are those that adjust and understand their consumers’ new desires and values.
Before making any decisions and proceeding, please take the following advice into consideration:
Listen to your new consumer: Conduct market studies in order to learn their needs, buying habits, and factors in their decision making.
Keep an eye on your competition: Monitor constantly where they focus their efforts, anticipate their price and sales strategies so that they don’t corner the market.
Know your surroundings and its protagonists: By anticipating the changes, you can influence the protagonists to work to your benefit (legislators, activists, communications media).
Market Research can provide the answer to many questions. Research provides a better perspective of what is happening in the market allowing us to understand changes in consumer habits so that with this information we will be able to attract more clients and emerge stronger from such times.
Master Research suggests conducting market research constantly, namely analysis of clients, competition, and environment allowing us to foresee a crisis and act with clear and effective strategies.
In conclusion, a few market research facts worldwide
In 2007, global revenue rose to 28,235 million dollars.
The European market represents 45% of the global market. North America comes second with approximately 34%, followed by Asia Pacific at 14%, Latin America at 5%, and the Middle East and Africa at 2%.
80.7% of the studies conducted are quantitative and 14.8% are qualitative.?
Sources:
How to Use Market Research in a Recession,[HarvardBusiness.Org].
By Sergio Giralt, philosmarketing.com
Esomar Industry Report 2009
Note
Master Research is a business known for its loyalty to its customers for over two decades.
Master Research considers itself a highly reputable company known for its expertise and commitment to their clients’ businesses, and whose research methods are in line with AMAI’s (Mexican Association of Market Research and Public Opinion Agencies) quality and ethical standards since 2004. This association awarded them the Market Research Services Standard certificate (ESIMM 2.0) in 2005.
What makes Market Research stand out from the rest is that this agency is a pioneer in the development of Competitive Intelligence methodology in Mexico.
It can be found at twitter @MasterResearch and on Facebook providing vital information to its followers.
Crisis: Overcome it with Market Research
Director of Market Research at Master Research
Edmundo Ramirez
Creator and Director at Master Research
In Mexico, the word crisis has been part of our vocabulary for many decades. We lack statistics indicating how many businesses close annually due to it, but based on the 4,374,600 businesses reported in the 2009 census and INEGI’s business listing that indicated that 13.6% of small businesses relocated or disappeared, therefore approximately 600 thousand businesses disappeared as a result of the economic crisis.
Signs that you are facing a crisis:
“The best way to face a crisis is to anticipate it: investigate and monitor the market constantly for changes or alarming signs” states Edmundo Ramírez, Director of Master Research.
The Importance of Market Research when facing a crisis
Everyday, businesses must make decisions in a quick but safe manner; however, in a crisis, it is important to have useful and reliable information at hand in order to back our decision making. Market Research is an essential tool to overcome a crisis.
During a crisis, businesses tend to reduce their research budget; however it is vital to implement certain Market Research strategies to deal with this situation as the following:
Edmundo Ramirez claims that “Market Research allows businesses know what products and services in their portfolio will agree with the needs of the time and of the future so that they can focus their market strategies on the new trends.”
Businesses that emerge stronger from a crisis are those that understand the consumer’s new desires and values and are able to adjust not only its products and services but also its corporate structure to the new market environments.
Right On The Button: The United States Crisis of 2009
After the crisis in the United States in 2009, 56% of consumers felt that their life style had changed. Luxury items were out of style (sales in the luxury industry fell 15%).
The new American consumer is price driven by the price and not by social status. Brand loyalty has decreased while the sale of generic and name brand products have increased. While curiosity in new products remains the same (albeit a better sense of cost-benefit) we see an increase in research before making a purchase( in the United States after the 2009 crisis there was a sharp increase in the average number of visits made by the same consumer to department stores in order to evaluate 4 to 10 products). High volume purchases have declined while more and more consumers value sales. Price became the key factor in decisions and demand for an innovative product and service is on the rise.
Summary
In times of crisis, due to a general fall in sales, companies will engage in commercial wars pulling out all the stops to get new clients while holding on to their current ones. During this time, it is imperative to conduct Market Research to get a better understanding of the consumer and his behavior patterns which tend to change due to his reduced purchasing power, becoming less active, more thrifty, analytical, and less loyal to brands.
The businesses that will emerge from a crisis stronger are those that adjust and understand their consumers’ new desires and values.
Before making any decisions and proceeding, please take the following advice into consideration:
Market Research can provide the answer to many questions. Research provides a better perspective of what is happening in the market allowing us to understand changes in consumer habits so that with this information we will be able to attract more clients and emerge stronger from such times.
Master Research suggests conducting market research constantly, namely analysis of clients, competition, and environment allowing us to foresee a crisis and act with clear and effective strategies.
In conclusion, a few market research facts worldwide
Sources:
How to Use Market Research in a Recession,[HarvardBusiness.Org].
By Sergio Giralt, philosmarketing.com
Esomar Industry Report 2009
Note
Master Research is a business known for its loyalty to its customers for over two decades.
Master Research considers itself a highly reputable company known for its expertise and commitment to their clients’ businesses, and whose research methods are in line with AMAI’s (Mexican Association of Market Research and Public Opinion Agencies) quality and ethical standards since 2004. This association awarded them the Market Research Services Standard certificate (ESIMM 2.0) in 2005.
What makes Market Research stand out from the rest is that this agency is a pioneer in the development of Competitive Intelligence methodology in Mexico.
It can be found at twitter @MasterResearch and on Facebook providing vital information to its followers.
Press Contact:
Susana San Román Oñate
rp@masterresearch.com.mx
Twitter @suxsan