By Claudia Perez Riva | October 2024
My dear readers, owners of small and medium-sized businesses, today I propose we discuss the importance of the research process in the world of contemporary marketing. As usual, we will rely on some theoretical tools and examine specific examples of actions taken by companies that will help us better illustrate the elements we’ll be addressing in today’s post.
Marketing research is a process that can be complex and may take some time if we want to be thorough and rigorous in our results. The analysis should consider both primary and secondary sources and is more complete when we incorporate both, quantitative and qualitative data. Marketing research is extremely important as it allows companies to better understand consumers, identify opportunities, changes, and trends occurring in the market, clarify problems, reduce risks, evaluate the competition, make more informed decisions, optimize marketing strategies, and help brands gain competitive advantages. In short, this process provides valuable information that guides our strategic decision making and helps minimize risks.
To better illustrate these concepts, I want to offer you, my dear readers, a very interesting example based on international market research. The example I propose is that of the giant of the Swedish furniture industry, IKEA, one of the global companies with a solid brand identity and a strong platform of brand loyalty.
IKEA is a European company with a broad international presence. During its expansion process into the Asian market, specifically the Chinese market, the company conducted exhaustive marketing research. As a result of this exercise, IKEA realized several specific characteristics of Asians that the company needed to consider when trying to sell its products in that market.
For example, the research revealed that homes and spaces in China (due to the high population density, especially in cities) tend to be smaller than those in Europe. Consequently, the company adapted its products to this market by making them multifunctional and offering vertical storage solutions to maximize the use of space.
Cultural and local customs played a significant role in the research, as the study showed that Asian families tend to make family visits to stores and that the “do-it-yourself” culture (assembling furniture) was not as popular in the Asian market as it is in Western cultures. As a result, the company adapted its stores into family destinations with play areas for children and restaurants serving local foods. Additionally, it implemented at-home assembly services.
Lastly, the company discovered through its study that Chinese consumers heavily use e-commerce and digital platforms and social networks to research products before making purchases. As a result, IKEA expanded its digital presence in China by developing stronger mobile experiences and launching apps and social media campaigns.
Similar experiences can be seen with other brands in other markets. Coca-Cola, for example, as part
of its research findings, realized that the Japanese prefer less carbonated or sugary drinks and launched
bottled green tea beverages, taking into account local preferences.
Toyota, on the other hand, based on its research, considered the value Europeans place on sustainability and the strict environmental regulations in the European market, expanding its offering of hybrid and electric cars on the continent.
Lastly, Nestle found through studies that in Africa, the population leans towards concentrated flavors and nutritionally dense foods, leading them to launch specific products in the region, such as Maggi cubes fortified with micronutrients.
In general, my dear readers, these examples help illustrate the importance of good marketing research, in this specific case, when entering international markets where cultural values also play a significant role. You can find more information on this in my post: “Culture, Marketing, and Market in the Contemporary World.” The studies conducted by these companies allowed them to identify opportunities and choose the best alternatives to adapt their products to local markets, thereby attracting more customers.
To summarize, we can say that marketing research, if conducted with objective, accurate, up-to-date,actionable, and relevant information, provides highly important inputs for decision-making and the success of companies’ marketing efforts.
In this way, my dear readers, we have reached the end of our post for today. I hope the topic has been interesting, as marketing research can be conducted by any business at different scales and tailored to specific objectives. The invitation remains open for next week, so we can continue our dialogue about this fascinating world of marketing.