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Ancient Chinese merchants were among the first entrepreneurs. They have found a unique way to manage risk in international trade. They distributed their goods for sale on several ships and released at sea. Thus, if one ship was sunk or became a victim of pirates, the rest had a chance to survive. In this way, Chinese merchants safely transported most of their goods to the market of the neighboring city and avoided serious financial losses.
In the 21st century, the export-oriented business is no longer threatened by pirates, but it continues to face other challenges. In today's world, the political, economic and social environment is changing so rapidly that the most difficult task for any company is to find and retain a loyal customer.
The main conclusion that a business must make in the current reality is this: Chinese merchants learned this centuries ago - they realized how much risk the principle "Put all your eggs in one basket" contains. Inspired by an old adage, this concept perfectly explains the importance of market diversification. Its relevance is growing day by day for international marketers and it is clear that Georgian companies are no exception. The Russian-Ukrainian war once again showed us what we have already witnessed many times - how dependence on the market of one country interferes with business.
No one disputes that market diversification is the best solution for risk insurance. However, the implementation of this principle in the modern world requires much more effort than "several cargo ships". Even in the case of the local market, there are many challenges - finding a relevant target customer, winning and maintaining his loyalty. It is even more difficult to fulfill this mission in the international arena. So when we discuss reducing risk and increasing capacity for export-oriented enterprises, the question is not what? but the question is - how?
How companies can better find and develop an unknown market or, at best, markets? It is obvious, and it can be seen with the naked eye, that it will be difficult to succeed only by watching the trends. The most effective tool for planning an international marketing strategy is market research, and consumer research occupies one of the main places in this process.
Well, if you are a business owner and want to expand, open up new markets, consumer research can be the most necessary and useful tool for you.
opportunities for consumer research:
The number one task in the process of finding a new market is to find out if the buyer needs the offered product or service at the offered price. For a company, entering a new market without consumer research is like wandering through a maze. Obviously, a business can have a rough idea of the needs of foreign customers, that is, of where and to whom it will be profitable to export this or that product. However, these ideas are largely based on intuition and may well not correspond to reality. After all, any foreign market is unique and differs in many ways from the local market - its buyers live in a different geographical area, speak a different language, have special requirements, opportunities and preferences. Accounting for all these factors is a prerequisite for success, in which consumer research can be of great help.
The survey provides the business owner with detailed information that:
This is not an exhaustive list of the knowledge that can be obtained through consumer research. If it is analyzed correctly, the business will have the opportunity to get to know the new market well and find the right target segment - the client who is most likely to buy his product or service. In this case, the decision to enter a new market is made on the basis of evidence, not assumptions, which significantly reduces risks.
ACT actively helps Georgian and foreign companies to develop foreign markets. One example of this is a consumer survey conducted in Yerevan commissioned by a supermarket chain. ACT has conducted a study of consumer preferences and consumer basket in Armenia. Analysis of the research results allowed the customer company to offer the client a product that takes into account the needs of the target segment. Thus, consumer research helped the business to insure the risks, due to which it established itself rather painlessly in the new market.
Finding a target customer is the first step in entering a new market. The next and no less important task is to attract the attention of potential customers. To do this, the business needs to properly pack the product and deliver it to the customer in such a way that it arouses his interest. The role of research is also important at this stage of the development of an unknown market. Research, in addition to the rational motives of human behavior, also reveals what topics potential customers react emotionally to, what excites them, likes or annoys them. Having received this information, the business will be able to offer the product to the buyer, taking into account his wishes and develop an effective way of advertising.
A good example of this is the entry into the Georgian market of several foreign shopping centers. By their order, ACT conducted a study - studied the consumer behavior of Georgians, brand preferences and consumer attitudes towards the proposed product. According to the results of the study, the companies adjusted their marketing strategy, offered the buyer a product that meets his requirements, and earned the location of the target segment. Thus, research-based solutions ended up being effective for them.
The key to the success of any business is a satisfied customer. As soon as a customer buys a product or service, a timer starts. The business really wins if the customer comes back to buy again and again. This will be a sign that the brand has received the most important award - customer loyalty. However, loyalty is not permanent. People's tastes change every day, new needs and desires arise. In fact, the success of a business depends on how well it listens to its customers. An effective tool for maintaining their loyalty is customer research. This allows the company to constantly keep abreast of the buyer - not to miss a single change in his mood and always be aware of trends.
This consumer research opportunity was successfully used by one of the representatives of the banking and financial sector from Georgia. ACT conducted several stages of consumer research for him in Uzbekistan, Central Asia. In order to identify the preferences of local consumers, the study was conducted both before and after entering an unknown market. As a result, the company managed to take a worthy place in the financial sector of the foreign market.
As we can see, consumer research is a necessary and useful step for a company that wants to expand and open up new markets. This allows business owners to make informed decisions, which greatly reduces the risk of opening, exploiting and maintaining new markets. However, businesses should not forget that the “stopwatch that starts when entering a new market” runs continuously while the company operates in this market. Thus, entering the market of a foreign country is not a one-time decision. Business must constantly be in the process of research and analysis of experience.