IS MARKET RESEARCH IN THE U.S. AN ABSOLUTE MUST WHEN SETTING UP YOUR U.S. BASED BUSINESS?
The age of American Consumerism, set off by a post-World War II boom in the economy, is now dwindling into a more conscious consumer culture within the United States. Does this mean US consumer spending is in decline? Not at all. Although inflation in the US has soared to record highs, rising to nearly 8.5% in March this year, US consumer spending was 18% higher in March 2022 than it was in February 2019.
So, what do we mean by the emergence of ‘a more conscious consumer culture’, you ask? Well, studies show that more and more people, especially younger consumers, are prioritizing the purchase of products or services from brands that uphold values rooted in environmental, social and corporate governance issues. It’s a social phenomenon that’s taking the business world by storm, revolutionizing the way businesses market their products and services to ensure they don’t tick off the consumer with non-reusable plastic packaging, companies being characterized as purely profit making machines or by a lack diversity, equity and inclusion! Your go to guide in navigating through this new iteration of America’s conscious consumer culture? Market research.
Are you thinking about setting up a startup in the US? Investing in a new business in America? Setting up shop as an entrepreneur? Establishing a business in the US as a franchisee, but not quite sure which one of America’s 50 states would be the most marketable and profitable? Market research in the US will provide you with strong actionable insights to help in developing a powerful marketing strategy to appeal to your business’s target consumer.
WHAT IS MARKET RESEARCH?
Market research is the process of gathering information on consumer behavior and preferences by engaging in conversations with consumers through surveys, interviews and other research modalities, with the aim of unearthing key consumer insights which would guide businesses in the development and marketing of their products and services.
In 2019, the market research industry in the United States generated over US$ 47 billion in revenue, amounting to 54% of the global market research industry revenue. Businesses in the US are booming with market research led growth fueling its marketing and innovation pipelines. In order to thrive in the current corporate landscape when setting up a business in the US, businesses and startups – need to leverage services such as Focus Group facilitation and moderation, Ethnography Research, Creative Testing, Surveys and other services offered by market research firms in the US. In so doing, they can gain deep insights into their target consumers and understand not just preferences, but what they value in terms of social and environmental justice.
HOW CAN MARKET RESEARCH IN THE US HELP?
With Disney using kid-centric Focus Groups, KFC using select markets to test its range of meatless products before launching nationwide and The Body Shop using social-listening to change its packaging to be more ‘sustainable’, Market Research in the US has proved, time and time again, to maximize businesses’ marketing budgets and deliver a higher ROI.
These successful and well-known brands have been able to retain top spots in their respective markets by leveraging Market Research methodologies to close the business-consumer communication gap and provide products and services that deliver on consumer expectations. While industry leading companies have reaped considerable rewards from these tried and true market research modalities, it’s equally and, arguably, more beneficial for up and coming companies looking to understand and disrupt their target markets.
All it takes, to pep up your investor and corporate confidence when setting up business in the US, is to leverage and invest in powerful market research studies just like Disney, KFC, The Body Shop and a whole host of other successful brands have done. Market research will leave all your competitor and consumer questions answered, so that you know exactly how to position your startup in today’s conscious consumer culture and speak to your target demographic to boost brand awareness, brand recall and, over time, brand loyalty.
Here’s a breakdown of the 4 ways market research in the US can help in understanding the existing market and boost your business’ chances of success:
1. Getting to know your target consumer
Market research in the US can help you unearth powerful consumer insights and help in developing consumer profiles that will narrow down your approach when targeting a certain consumer demographic.
Leveraging quantitative data collection methods, you can understand what your consumers value in a growing socially and environmentally conscious world, and then rely on qualitative market research methods to understand why your target consumer holds those views, gleaning insights from deep conversations with consumers.
2. Branding that speaks to your consumer
Now that you’ve delved into qualitative and quantitative market research methods to unearth what it is your consumers want, need and value and what your competitors are doing to conquer consumer attention within the fray, market research in the US can inform and guide you in developing a powerful brand identity that speaks directly to your target consumer!
3. Creative test your way to market success
Unsure whether a piece of branding resonates with your audience in the US? Through market research methodologies like Creative Testing, you’ll know exactly what a sample of your target demographic thinks about it so that you can tweak it for optimized marketing communication.
In a similar vein, Creative Testing also arms businesses with actionable insights when developing new products, allowing businesses to perfect their products prior to launch.
4. The paradox of choice
Markets in the United States are characterized by capitalist driven choice. Whether it’s an ad plastered on a billboard on the side of the road or social media campaigns asking consumers to ‘shop the new collection’ while scrolling through Instagram, consumers are constantly overwhelmed by different brands vying for their attention.
When a consumer is constantly bombarded with hundreds of options for the same product or service repetitively advertised in the same way, consumer attention is bound to become diluted and brands risk losing consumers to the paradox of choice. Market research in the US can help you understand the best way to break through the paradox and present your business or startup’s products or service as a fresh face in the market.
Need help with setting up a business in the US based on powerful actionable insights?