Robust multinational and global market research (details) [01of03]

Abstract


The details of market research exacerbate exponentially when looking to a different country, culture, and hence market. This becomes a consideration of how a competitive environment broadens/deepens our understanding. Further, the review embraces metrics for customer differentiation and satisfaction, among these being RISC (research, involvement and investigation, strategy, and control).



The Competition

First-to-market had once upon a time been a strategy unto itself. In the Kumar book, we see that such a rush without necessary research may find a concern tripping over “invisible” competition. In the case of ketchup in Japan, where the condiment of choice is soy and its related sauces … fish, mushroom, oyster, etc., the ketchup manufacturer could not be first to market when such a substitute has existed century’s earlier (Kumar, 1999, p. 19). Ironically, the word ketchup actually comes from the region, Indonesia (not that they have a sweet tomato product, but their pepper is chili sauces and their salt is kacap acin, a salty soy sauce; kacap manis is sweet soy sauce). From the same passage, the Kumar text speaks of a KFC in São Paulo tripping over existing and well-established chicken eateries (again, not that they would appear analogous at first, and they certainly proved the substitute).

Therefore, while competition may not always be as graphic as we tend to think (any effort from Home Depot or Lowes in Europe against a very similar format in Kingfisher), let us consider how much easier it is if the competition is graphic. If there is actual competition, mistakes have undoubtedly been made and learned from, an appetite for that which is being offered has been established … the heavy lifting is done. Now it becomes a game of differentiation. Truly, competition does not have to be bad at all.

Is Panera competition to White Castle? In many ways the answer is “no”, but in other ways “yes”. Consider the metrics, they both offer relatively inexpensive and fast service for consumables. Suddenly they seem as twins.

We hear we had manufacturing and service in the US, and now we no longer manufacture. The whining usually stops there, and yet this may be good news as the US supplants manufacturing with a knowledge economy. An example would be the dozen Christmas tree balls you buy for $2 from China, how could anyone compete? There is a grandmother in Fancy Gap, Virginia, Jeanne Barnett, who created Ornamentz, so far a one-woman company where she spends the year creating a portfolio of handmade extraordinary Victorian Style Christmas ornaments that each sell for fifty dollars and up (Barnett, 2011). No competition, differentiation or both (see also Blue Ocean Strategy, Kim & Mauborgne, 2005).

There are so very many wrinkles when it comes to considerations of competition. In the Kumar text, a short list of considerations includes:

Competitor information. New market requirements. Customer surveys. Product quality and features. Relationship of company with end consumer. Which areas are most profitable. Whether or not to expand. Volume versus start-up costs to determine growth size. Distributor survey for customer satisfaction index. Competitive information. Government data on product usage. Type of businesses using the product. Improved means of distribution. Customers’ desire for product changes. New customer needs. (And) what new products could replace mature product and Product weaknesses. (Kumar, 1999, p. 79).