The Benefits of Doing Market Research First, Instead of Jumping Right in with the Product Development!
Once you’ve got a great product idea, it might be tempting to jump right into the product development stage. After all, you know consumers are going to love your product, so why not go straight to getting it in their hands and start making profits? But market research is a key step in the process of creating a new brand, a step that should not be skipped. Sometimes called marketing research, market research helps you to gain a solid foundation that the rest of your business can be built upon. It also helps you to understand any threats and weaknesses that may emerge as your new business grows.
In the tequila market, market research can bring you a wealth of information that will prove essential in finding your customers. Changing trends in customer tastes, existing and new favorite brands, and where your new tequila brand is likely to sell–all this information and more can come from thorough and diligent market research. But before we dive into that, what exactly qualifies as market research?
The Basics
To understand how market research can help your new brand succeed, it will help to get a grasp on the issues market research is designed to help with. Perhaps most important, it will help you to determine if you actually have an audience for your product. While your new product idea may be unquestionably great, people actually need to be looking for what you are offering, or willing to switch from another brand. Market research can ensure you have a customer base to sell to. If research shows that you don’t have a potentially promising customer base, then it’s time to reconsider if entering this market is really such a good idea.
If you’ve made it past that first step and determined that there are customers out there who are willing to give your product a try, the next thing market research can help with is to find out how to sell to them. Only half of all new businesses make it past the five-year mark, and not knowing how to exactly how to sell to customers is a big reason that a lot of them don’t make it. Crucially, consumers’ buying habits are changing. You may know that targeted online advertising should be a big part of your marketing, but do you know where your target demographics visit so that they have a chance to see your ads? Whether it’s online solutions or more traditional promotions, knowing how your audience shops is crucial for business success.
Knowing your competition is also valuable information that comes from market research. If you’re aware of any competition that might pose a threat to your business, you can work on converting their customers, or gaining new ones. Market research can also help you understand just what it is that your audience likes or dislikes about the competition. You can then use this information to zero in on a strong and loyal customer base for your brand.
These three components form the core of good market research. Depending on the nature of your business, there may be a lot more to learn. If all this seems overwhelming and you don’t know where to even begin, it’s time to find a good marketing agency that is knowledgable in your field. Having professional help in your market research can make all the difference when it comes to understanding your market, then attracting customers and retaining them.
Tequila Research
Every market segment has its own unique set of information to be gleaned from expert market research, and the tequila market is no different. While it may seem like a fairly straightforward product to market, there are actually several distinct factors in the world of tequila and spirits to consider when developing your marketing plan.
First and perhaps foremost, consumer tastes in tequila and other agave spirits is an important consideration. There are different types of tequila: Blanco, Reposado, Añejo and Extra Añejo. Blanco is bottled right after distillation, while Reposado must age for at least two months by law. Añejo must age at least 12 months, and then Extra Añejo for at least three years. All four offer unique and distinct flavors. Which does your target market prefer? Should you make more than one? These are questions that good market research can help you answer.
Understanding why your customers choose tequila is also valuable information. The market research for your brand might reveal a new demographic that other brands have not yet tapped.
Of course, knowing who your potential customers are is only half the battle. Getting your product into their hands is a big part of the other half. Understanding the challenges in the tequila market will give you vital insight about how you get your product out. For example, the agave plant has become scarce in recent years. This scarcity has affected all facets of the industry, and given an advantage to producers of other spirits who are not facing supply chain shortages. Market research can help you gauge how market issues like this will affect your ability to produce and distribute your product, which in turn helps you better forecast your sales.
This also presents an advantage on the market to position your brand while other brands are waiting on prices to reduce… building up a brand during this time can strengthen your market position while the demand is at it’s peak.
The Importance of Market Research
Hopefully this post has given you some insight into the benefits of market research, and some of the specific considerations of the tequila industry. The industry is growing rapidly, and facing new market challenges all the time. Here at Aceves Spirits, we have years of experience designing smooth flavors for an international audience, which we could only have gotten by understanding our audience, through careful analysis of tequila market research.
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