Enhance Market Research with VFM Technology Vietnam

Building a Development Strategy:

“A strategy-less organization is like a ship without a rudder.” – Joel Ross & Michael Kami

However, how can businesses build an appropriate development strategy to maximize opportunities and adequately address challenges? This is a difficult problem faced by many companies.

Many businesses mistakenly believe that when their operations are going well, there’s no need to develop a growth strategy. The issue is that we are operating in a context where the world is changing rapidly: customer perceptions, technology, resources, and more are changing at an astonishing pace every day. Everything can become outdated and deteriorate quickly, leading to decreased revenue, increased costs, and stagnation. Thus, a smart business won’t wait until it rains to fix the roof. Developing a strategy is akin to maintaining the health of a business: it’s never too much, the results aren’t immediately visible, but it’s a priority that must be addressed.

To be effective, a strategy must be built on the company’s strengths and a deep understanding of the market and business environment. How can a business orient its development if it lacks information about customers, competitors, market share, and future development directions in the market and business environment?

Whether a business is a startup trying to enter the market or preparing to launch a new product, or whether it is developing a strategy to ensure sustainable and stable growth, or even if it aspires to create a bold change, this is when businesses need market research the most.

Assessing Market Potential:

What is Market Potential Assessment?

Market potential (MP) refers to the market selected after identifying specific segments for further analysis that meet three criteria: it must be measurable, sufficiently large, and accessible.

Criteria for Identifying Market Potential:

1. Measurable Market

To select an MP, businesses must first have the ability to measure its size and characteristics in order to develop suitable business strategies that align with both the company and the market.

2. Sufficiently Large Market

The market needs to be large enough to achieve revenue and growth that can generate long-term profits for the company. Typically, it should have a relatively large size and high growth rate.

3. Market Accessibility

An MP is a market where the business can effectively market its offerings, enabling it to meet customer needs.

Role of Market Potential Assessment for Businesses

A market that satisfies these three characteristics is considered a potential target market for the business. However, companies cannot participate in every potential market. Thus, businesses need to analyze and evaluate markets to select the most appropriate target markets.

Process of Assessing Market Potential

The process for evaluating and selecting target markets typically includes the following steps:

Step 1: Select Factors for Measuring Potential and Competitive Position

Identify the metrics that will assess the potential of market segments and the company’s competitive stance.

Step 2: Evaluate Current and Potential Strengths

Assess the company’s current strengths and capabilities regarding adaptability to the selected market potentials.

Step 3: Determine the Importance of Each Measurement Factor

Establish the significance of each factor in measuring the market’s potential and the company’s competitive position.

Step 4: Assess Current Position of Each Market Segment

Evaluate the current position of each market segment based on the identified factors and forecast future trends.

Step 5: Decide on Suitable Market Selections

Make informed decisions on which markets to pursue based on the evaluations conducted.

Researching Consumer Needs and Behavior

What is Researching Consumer Needs and Behavior?

Researching consumer needs and behavior involves studying the processes through which individuals or groups select, purchase, use, or discard products, services, ideas, or experiences to fulfill their needs and desires. The American Marketing Association defines consumer behavior as the dynamic interaction between influences and perceptions, behaviors, and environmental factors through which people engage in exchange activities.

Role of Consumer Needs and Behavior Research for Businesses

Today, businesses not only focus on developing their products and services but also emphasize understanding consumer needs and behavior to gain deeper insights into their customers. Many companies are interested in this research to explore the motivations and consumption behaviors of their customers. This understanding helps businesses grasp market demands and trends, enabling them to offer products and services that effectively meet market needs and capitalize on business opportunities.

Moreover, the results from researching consumer needs and behavior provide businesses with a better understanding of customer needs. This knowledge gives businesses a competitive advantage when launching products and services aimed at attracting increasingly discerning customers and enhances their competitive positioning against other market players.

Methods for Researching Consumer Needs and Behavior

Using both secondary and primary data sources, the research follows these steps:

Step 1: Market Segmentation

Before delving deeper into customer needs and behaviors, it’s essential to segment the market—dividing customers into groups with different common characteristics. Segmentation can be based on criteria such as age, occupation, gender, interests, and personality.

Step 2: Analyzing Environmental Factors Influencing Consumer Behavior

Gather information from market segmentation to identify core values within each customer segment. Determine what is important to these groups and what factors are most influential. Analyze the environmental factors affecting consumer behavior.

Step 3: Synthesizing and Analyzing Customer Needs and Behaviors

Analyze and compile accurate information about customer attitudes and behaviors within each segment. Combine insights from the previous steps to study customer experiences and current trends. Identify any challenges or obstacles faced by different customer segments, especially focusing on target or potential customers and their unique consumption behaviors.

Step 4: Analyzing Distribution Channels and Marketing Communication

After identifying the key factors in customer needs and behaviors, researchers select suitable communication and distribution channels for each customer segment. This involves personalizing branding for potential customers and addressing any barriers to foster loyalty through their purchasing journey and product/service experience.

VFM’s Market Research Services

VFM’s market research services are designed to be flexible, catering to the diverse needs of clients across various sectors, with different scales and research requirements. Aiming to become the leading market research company in Vietnam, VFM leverages extensive consulting experience along with a dedicated team of professionals. VFM is committed to providing optimal and effective market research solutions to both Vietnamese and international clients, contributing to the successful formulation of business strategies.

Industry Report

What is an Industry Report?

An industry report is a document that evaluates a specific industry and the companies involved in it. Often included as part of a business plan, an industry analysis report aims to identify the advantages a company can gain within that industry by understanding its history, trends, competitors, products, and customer base. This type of report allows businesses to gain deeper insights into the fundamental aspects of the industry they are participating in or are interested in.

The report typically addresses issues such as assessing competition within the industry, the interaction between supply and demand, the industry’s future growth potential, the impact of technological developments on the industry, and the influence of both internal and external factors on the industry.

Role of Industry Reports for Businesses

Analyzing Market Entry Potential

An industry report indicates whether the industry is performing well and has growth potential. Businesses can use this information to make informed decisions regarding their operations. Trends in the industry can also impact the business’s future.

Formulating Realistic Business Plans

Based on the industry report, businesses can create the most appropriate business plans. Understanding current market dynamics allows businesses to evaluate and position themselves more effectively.

Identifying Challenges and Opportunities

Through the industry report, businesses can identify various challenges and opportunities. Challenges represent negative factors that may hinder business growth, while opportunities are positive factors that can drive future development.

Methodology for Building an Industry Report

We begin the industry report with an overview of the industry, providing data on its formation and nature, including growth potential. Key economic influencing factors, competitive strategies, SWOT analysis (Strengths, Weaknesses, Opportunities, Threats), emerging competitors, business plans, and competitive forces are outlined.

After presenting the industry overview, we provide a detailed analysis of the specific industry. Key elements such as geography, consumers, price fluctuations, and income forecasts are examined. Current data and industry insights are used to predict growth in the next five to ten years. Statistical charts may be employed in this section to illustrate growth trends.

Subsequent sections may utilize appropriate models for constructing the report, such as Porter’s model, competitive advantages, and a detailed discussion of the five forces and their impact on the industry. Finally, we will provide both short-term and long-term evaluations of factors influencing the industry, forecasting potential positive and negative developments along with proposed remedies.

To conclude the industry analysis report, we will summarize all content presented, giving users an overview of the report’s findings.