Market Research
Comparing like for like
When researching the competition, make sure that you are actually comparing like with like.
Make a checklist
The best way to approach your research is to make a checklist of all the things you need to know about your competition before you start researching.
To be successful, research needs to be carried out over a period of time as opposed to on one occasion, as every business has seasonal peaks and troughs. Prices will vary depending on what time of the year it is. For example, most retailers suffer in the early part of the year when business is slow after Christmas. On the other hand this can be a boom period for gym owners and travel agents.
So make sure your research gives an accurate picture of the market in general and not one that is either enjoying a seasonal boom or a temporary famine!
How to find potential competitors
Obviously before you can start researching your competitors you must first identify who they are. The important point to remember is that it's not always the readily identifiable ones that you need to worry about.
The main ways to find your competitors is to check:
- advertisements in your hobbies' magazines, club websites and your local paper;
- the Internet - using the main search engines (Google, Yahoo!, etc);
- trade directories;
- Yellow Pages;
- Thompson directory.
Checking out the competition
When checking out the competition make sure you find out:
- Exactly what it is they are offering. How do their products or services compare to yours in terms of quality as well as price?
- The total price of their product once you've included all the extras. For example is VAT included or added on at the point of sale?
- The sort of guarantees your competitors are offering. Can you match or better what they are offering?
- How quickly they can deliver their goods. How does this compare to what you are offering?
- Customer testimonials. Have they included any customer testimonials in their sales material/website? If they have been established for any length of time they should have testimonials from satisfied clients. If they haven't, why not?
- How close they are to where you will be based. If they are on your doorstep is there really enough room for the two of you?
- How busy they are. If they have a retail business you should camp yourself discreetly outside at various different times to see how many people not just go into their shop, but also come out having made a purchase. If they are mail order or website based, monitor their site to see how often it is updated. Also send them some query emails to see how quickly they reply. It'll soon become apparent whether or not a business is doing well or dying on its feet.
Customer surveys
Sometimes the only reliable way to be sure that whatever it is you're about to sell is going to appeal to your potential market is to carry out customer surveys.
You can do this in a number of ways:
- If your hobby has a magazine with a readers' letters page, write to the editor with your idea asking for the readers' help with your research. Make sure you include your email address.
- Post messages on website discussion forum boards. Again, invite comments and suggestions regarding your proposal. This is a great way of getting some useful marketing feedback and if you encourage people to email their thoughts to you, you will then have a ready-made sales list for introducing your products or services.
- Send out questionnaires to clubs, groups and organisations relating to your hobby. Encourage participation by offering an incentive for everyone who completes them. For example, everyone who returns their questionnaire before such and such date will automatically be entered in our free prize draw to win a whatever it is you're offering.
- Network and mingle. Wherever your hobby enthusiasts gather, get out there and network with them. Most hobbies will have regular group get togethers, which can be great places to test drive any ideas you might have.
