General Management

Study the Market before Venturing into Business

Many businesses fail because there are no markets available for the sale to happen. The technology might be gen-next, the product may be one of a kind but if people don’t find a need to buy your product, your business is doomed.

Mexican restaurants don’t do too well in India. Why? Mexican food tastes similar to Indian food – say two rungs lower on spiciness and a tenth of menu items available to choose from. When Mexican food came to India, the investors believed that it would be second to Indian food. They were wrong. Why? When Indians could eat Indian food which is far more closer to their taste buds and at a reasonable price, why will they opt for something that tastes like Indian food and is not as good (for them). And foreign cuisines are generally expensive. Long story short, Mexican cuisine in India have failed to take off while other cuisines such as Chinese, Italian and Thai are bringing in the moolah.

The Mexican restaurant example is not the same case in the US where people love the Mexican delicacies to death, more than the Indian ones. Why? It’s the taste buds – aka market in our case.

Research the market thoroughly before you go all in. Run a pilot to see how the market responds to what you have to offer. If you are thinking of creating a new market space, throw it out for an unreasonably discounted price for a limited period of time. Let people try your product and then decide whether they need it or not. If they reject the product, you will know and you can move onto something more viable.

Related posts

7 Steps to Evaluate Market

Abhinav Kaiser

Unlock Successes with Key Performance Indicators (KPI)

Abhinav Kaiser

Managing Office Emails for Super Productivity

Abhinav Kaiser

Yahoo’s Anti Work from Home Policy Makes Good Sense

Abhinav Kaiser

Do You Need to be Sick to Avail Sick Leave?

Abhinav Kaiser

What is Process?

Abhinav Kaiser

1 comment

7 Steps to Evaluate Market | Abhinav PMP May 27, 2013 at 10:37 AM

[…] if and only if they feel a need for it, or rather they are a facing a dearth without your product. Study the market to identify the void, and the business/product which is a byproduct must fill this empty […]

Reply

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.