When emergencies and pandemics happen,
fitting readiness and a proactive reaction can enable business to adapt to the
scenario. The recent outbreak of novel coronavirus (COVID-19) has introduced
new challenges for the business environment which calls for a measured,
practical and informed approach from pioneers. The pandemic has caused
destruction to our wellbeing & economies, and businesses are struggling to
keep pace with circumstances that are changing on a day-to-day basis.
Why
is Market Research Required during Pandemic?
Based on business mechanism, market
research can be segregated into client satisfaction, marketing research, media
measurement and competition analysis, among others. The market research experts
play an important role, by putting their administration groups in touch with
clients and advising sound, evidence-based exhortation to organizations or
companies regarding expanding, product launch, contract, acquisition of companies.
The researchers can help businesses to get insights about their audiences in a
rapidly changing environment based on collected data. Due to current pandemic,
there is a change in the consumption-demand pattern and consumers are refraining
from spending on items that they no longer require. For instance, demand for
disinfecting or cleaning products skyrocketed globally during March-June, 2020.
Similar is the case with products such as personal protection kits, sanitizers,
ventilators, immunity boosting products, among others. In fact, demand for
biscuits in lockdown fueled biscuit companies’ profit by over 100% in the first
quarter of 2020. On the other hand, automotive and travel sectors witnessed
negative growth. All the above-mentioned cases point towards shifting or
changing consumer behaviour; therefore, it is essential to keep a close eye on
the current studies.
With the changing requirements, organizations
need to adjust to changing social and financial flow. As shoppers and
businesses adapt to the widespread financial aftermath, organizations need to
plan on how they can bolster their businesses. This begins with understanding
their changing needs and concerns by conducting market research. There will be
new opportunities as people change their lifestyle to curb the spread of
COVID-19 and there would be requirement for new goods and market research can
play pivotal role in providing insights related to the changing landscape.
Firstly, businesses need to understand
that the viral pandemic is going to have varied impact on different countries
or geographies. Also, the pre-coronavirus and post-coronavirus strategies need
to be different as both periods highlight different opportunities. A business needs to be ready to answer to
following questions in order to keep floating in the current scenario:
· If
the organization is still planning to launch new products or services, would
launched products be relevant in current time and resonate with people?
· If
the organization needs to plan launch of product in countries where COVID-19’s
impact is low or the product is tailor made and produced for worst hit COVID-19
countries.
· If
the organization needs recalibration to serve the increased demand for certain
products. If yes, what are the new offerings and the required infrastructure
for the same?
Surging Interest in Market Research during
COVID-19 Period:
Market research is observing increased
traction in recent times and following factors can be held responsible for the same:
· Increasing
Survey Participation:
Several companies have initiated work from home or extended working hours and
some of them have started layoffs to cut costs. Due to increased unemployment
rate, people have started looking for alternatives and are participating in
surveys and research studies, which is benefitting the industry.
· Identification of New Opportunities: Organizations
are adapting to changing dynamics of the market and market research backed by
data can help these companies to understand that how they can adapt to the
changing needs. Doing so can help companies to support their customers and
partners. With
shift in market dynamics, there is demand for new services and products. Market
research is relevant in the current scenario as it provides details about the
new opportunities, potential customer, and market size. Also, it offers details
on how to position your product in the new environment and what is the growth
trajectory of the product.
· Conversion
of Target Audience to Clients: Not only market research helps to identify new
opportunities but also it helps to target the right audience so that they can be
converted into customers and increase the sales of the product. In case of
existing customers, it helps to identify underlining reasons which encouraged
customers to choose your service over others.
· Identification
of Competitors:
Some companies use marketing research as an evaluation tool to keep tab of what
their competitors are doing to ensure sustained growth. This step helps to
monitor the progress of your own company & other companies and identify the
weaknesses of competitors. Doing so, helps the companies to identify gaps which
can be used for gaining more customers and new strategies can be devised to
ensure continued growth.
· Forecasting
of Sales:
Production and demand go hand in hand. Based on the demand or sales, level of inventory
is maintained, and market analysis helps to predict the sales in forecast.
Predicting sales also helps to align other processes in the company like
marketing plans.
· Know
your Customer:
Information is crucial in pandemic situation and knowing your customer or
client is essential so as to gain better understanding of market and audience. Also,
launch of product post understanding the requirements of customers through
marketing campaigns (messaging, discussions, interviews, or questionnaires)
helps to achieve higher customer satisfaction.
· Spotting
Trends:
In order to stay relevant, organizations need to keep with the emerging trends.
Customer needs and demands keep on changing and trends define that. Market
analysis through depth interviews, telephone surveys, questionnaires and focus
groups helps to find these trends.
· Identification
of Business Risks:
In current scenario, companies are foraying into new segments. Market research
based on market survey analysis and industry trends can help to identify
business risks. Business risks can result to massive losses and conducting
market study beforehand can help to identify these loopholes. Also, after the
identification of risks, plans can be formulated to reduce losses and increase
profit.
· Product
Testing before Launch: Product
testing is crucial before launching it for the target audience. Testing products
before launch can save the additional expense of launching bad products in
market. Also, based on feedback received, changes can be made in the products,
which can help in saving additional expenses.
Path
Ahead
We are already seven months in 2020 and
the pandemic is still at large. In this time of instability, uncertainty and
fast alteration in daily lifestyle of people, market research organizations are
delivering a helping hand forward to analyze the downfall and impact of
COVID-19 on different sectors, globally. Without market analysis, companies
would be clueless as to how they should navigate through this tough time.
Modern problems require modern solutions and market analysis can help companies
to take informed decisions.