Market Research

Market research and judgment refers to a comprehensive, in-depth and systematic analysis and prediction of the current situation, trends, opportunities and risks of a certain industry or market in order to provide basis and guidance for decision-making. Market research and judgment is the basic work for enterprises to carry out strategic planning, product development, marketing strategies, investment decisions and other important aspects. It is also a key factor in improving market competitiveness and profitability.

The purpose of market research and judgment is to find the entry value and attitude of the target market, that is, to determine the attractiveness and feasibility of the market. The process of market research and judgment is a logical reasoning from research to judgment, which requires comprehensive information from all aspects to form your own strategic views. 

The content of market research and judgment mainly includes the following four aspects:

Industry analysis: Conduct macro, micro, dynamic, static and other multi-angle analyzes of the industries involved, understand the industry’s scale, growth rate, concentration, policies and regulations, supply chain, technology trends and other important indicators, and evaluate the development stage of the industry , growth, competition landscape, risk challenges and other characteristics to determine the overall attractiveness and future prospects of the industry.

Competitive product analysis: Conduct in-depth research on the main competing brands in the target market, understand basic information such as the product matrix, price strategy, core advantages, brand image, marketing methods, etc. of the competing products, and analyze the relationship between the competing products and the target customer groups in the market. Communication methods and value propositions, identify the success factors and shortcomings of competing products, and seek differentiation and advantages between itself and competing products.

Customer group analysis: Conduct detailed insights into potential or existing customers in the target market, understand the size, structure, characteristics, needs, preferences, behavior, etc. of the customer group, and use the STP model (market segmentation, target market, market positioning) Effectively divide and position customer groups, find target customer groups with the greatest potential and value, and provide them with appropriate products and services.

Economic calculation: Make reasonable estimates of revenue and costs in the target market, establish a financial model, calculate the project's investment return rate (IRR), net present value (NPV), revenue contribution rate (BCR) and other important indicators, and evaluate the project's Economic benefits and risk levels provide quantitative basis for investment decisions.

Market research and judgment is a complex and systematic work that requires the use of a variety of methods and tools for data collection, analysis and presentation. 

Commonly used methods and tools include:

SWOT analysis: Identify the core competitiveness and development direction of the project or enterprise by analyzing the strengths (S) and weaknesses (W) within the project or enterprise, as well as opportunities (O) and threats (T) in the external environment.

PEST analysis: Assess the impact and opportunities of the macro environment on the project or enterprise by analyzing the political (P), economic (E), social (S) and technological (T) factors in the external environment.

Five forces analysis: Evaluate the industry by analyzing the five competitive forces in the industry, namely the bargaining power of suppliers, the bargaining power of buyers, the degree of competition from existing competitors, entry barriers to potential entrants and the threat of substitution from substitutes competitive landscape and profitability.

Orchard Matrix: Evaluate the relative attractiveness and entry strategy of the market by dividing the market into four quadrants, namely mature, difficult, harvested and destroyed, by taking the market concentration and sales growth rate as the horizontal and vertical coordinates.

4P marketing mix: Develop effective marketing strategies and plans by analyzing the four elements of Product, Price, Place and Promotion.

Market research and judgment is a job that requires constant updating and revision, because the market is changing rapidly and needs to be adjusted and optimized based on the latest data and information. The results of market research and judgment are not absolute, but are predictions based on assumptions and reasoning, which require constant verification and comparison with the actual situation. The value of market research and judgment lies in providing a scientific and reasonable thinking framework and decision-making reference to help enterprises seize market opportunities, avoid market risks, and achieve market goals.