Market research is important because it helps brands to either stay ahead of the competition or improve their products. In the consumer goods market, it is highly important to stay relevant and innovative. In order to stay on top of their competitors, companies in the consumer goods industry need to be aware of all the changes that are happening in the market, as well as any new or emerging markets. Both qualitative and quantitative information is needed by companies in order to make sound decisions about their consumer-oriented products.It also helps them see which areas need improvement and how to do so while giving them an opportunity to track their progress over time.
The 3 important reasons why Consumer Goods Market Research is important are as follows:
1) It helps in understanding what consumers want
With the help of Consumer Goods Market Research, companies can know about customer needs and behaviours. They can keep track of the changing trends in the market by conducting this research. Market research helps them to know about customer needs and wants. It also helps them to understand their behaviour and requirements with the help of surveys, questionnaires, interviews, etc., and also helps in designing various GTM strategiesthat one can make use of.The key objective of market research is to collect data on demographics, psychographics, and geographic location.
- It helps the company analyze the consumer wants or help them understand if they are meeting them or not.
- The research data can also be used for targeting ads through various media platforms like TV, radio, etc.
2) It helps in understanding the competition and their strategies
The competition is cutthroat in the consumer goods industry & when it comes to understanding the competition, market research is one of the most important factors to take into account. By conducting consumer goods market research, one will get to know the competitor’s strategies and how they are different from each other. It’s a way of gaining insights into how different consumer products and services are performing in a given market.
3) Helps in identifying opportunities to offer better products
Consumer Goods Market Research helps in identifying the opportunities in the consumer goods market. Research has shown that there are gaps in the market for certain products. There are many products that are not being consumed enough because there is no competition or there is little promotion for these products. For example, Pom Poms were not popular until Playtex decided to produce them after conducting market research.
Today, the research and development department is the central hub of all the activities that take place in a company. Modern-day marketing managers or researchers will never be able to survive without a good understanding of the current market scenario and its requirements. Research helps in knowing what is going on in the market and also throws up some very interesting findings which can help companies understand how they can make use of them for their benefit.