Brand is what people make of the company’s most popular offering. Brand is what people identify and associate with. Brands are built because of market research and their correct interpretation.
For eg. The Apple iPod was a product of research, came out in 2 observations made by Steve Jobs about the world around him:
- Everybody on this planet prefers music to expresses themselves
- Available portable music players are not good enough to meet customer expectations
Just the question asked by Jobs, “How can I make people’s lives better?” is what has driven this multi-billion-dollar company.
In case of brands, market research is important to understand whether the consumers are happy with the product or not and if there is any scope for improvement or not.
Market research is important for brands to take strategic decision. It can help the companies to identify the level of brand awareness, measuring the brand perception, discovering and measuring the brand associations, people’s sentiments and satisfaction levels, and any suggestions to enhance the experiences of the customers.
Market research also helps to understand the unique selling proposition and the competitive advantage that the company has over its competitors.
It is important to understand that building brand around a fad is not good for the brand. Also not being reactive to the changing market can prove harmful for the company. Hence market research is required to know whether the trend in the market a fad or a long-lasting change.
For a company, it is necessary to understand what exactly the customer wants rather than simply taking a wild guess; To choose its latest chip flavour, Frito-Lay used social media to replace focus groups and survey panels. The company has asked Facebook fans to weigh in by having them click an “I’d Eat That” button next to suggested new flavours. The results? Consumer tastes varied by location: they found that a beer-battered onion-ring flavour is popular in California and Ohio, while a churro flavours is a hit in New York.
Thus, market research helps the companies right from exploring new opportunities to driving entire digital campaigns, that gives companies a competitive advantage.