Giving Your Students the Tools to Use Market Research Effectively
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1 Giving Your Students the Tools to Use Market Research Effectively
2 Agenda Introductions Review: Why is Market Research Important? Common classroom challenges Activities & Tools Connecting Market Research to the business plan Q & A
3 20 years old Columbus, OH Who s Eva? Associate s Degree in Business Ran her own event business in high school Wants to be a personal chef and start Eva s Edibles!
4 What is Market Research? Market research is an organized way to gather and analyze information needed to make business decisions. Customer Business Environment Competition Research!
5 Why is it important? The Purpose of Market Research is to help our students change how they think: From: thinking about what they want To: thinking about what the market wants or needs and demands
6 How do you do Market Research? Secondary: Existing information Government Trade Groups and Journals Business Magazines and Reports Local Community Resources Primary: First-hand information Surveys a general view of a market gained usually via questionnaire Interviews 1-on-1 Q & A s with target consumers to gain opinions about a product or service Focus Groups a small group selected from a wider population and sampled for its members' opinions about or emotional response to a particular product or service Observations watching customers perform certain activities, recording relevant facts, actions and behaviors Trial and Sampling - the introduction or promotion of a product by distributing trial packages of it
7 Common Challenges What questions to ask Where to find the information How to understand, use & present
8 Activities & Tools Chocolate Bar Activity Market Research Activity Completing the Market Analysis Slide Connecting Market Analysis to the Business Plan
9 Part I: Chocolate Bar Activity Instructions: Working in groups, develop a 6 question market research survey to research what would be the best type of chocolate bar to sell to youth ages Remember to ask questions that will help you design a new product that people in that age group will want to buy. Ask your teacher if you need help thinking of questions. 9
10 Part I: Chocolate Bar Activity 1. What is your favorite type of chocolate? 2. Rank your top 3 favorite ingredients (1 being the most favorite, 3 being the least favorite) 3. Rank your top 3 favorite chocolate bars 4. How often do you purchase chocolate bars? 5. Where do you buy chocolate bars? Newsstands Grocery store, corner store Supermarket School Friends Drugstore 6. How much are you willing to spend for a normal size chocolate bar? 10
11 Using the Chocolate Bar Activity TWE p Objectives: Design simple market research survey Model use of market research in business When to use this activity: After introducing the importance of Market Research Defining a Unit Before Buying and Selling Activity Adjustments?
12 Market Research Activity Eva s ready to look do some research on her customers and market. She s created a list of questions she needs to answer but isn t sure where to start. Your task: Step 1: Review the list of questions Step 2: Identify whether this is primary or secondary data to collect Step 3: What research method/source, e.g. focus groups Step 4: Where could she go to find this info? 8
13 Market Research Activity What industry is a personal chef in? What type of training and certification does she need? What legal issues does she need to consider? Who is her market? How big is her market? How can she find out more about the growth rate in Columbus,OH? Who are her main competitors? What are her potential customers looking for?
14 Market Research Activity Question 1. What industry is a personal chef in? Primary/Secondary Where Could she find this information? 2. What type of training and certification does she need? 3. What legal issues does she need to consider? 4. Who is her market? 5. How big is her market? 6. How can she find out more about the growth rate in Columbus,OH? 7. Who are her main competitors? 8. What are her potential customers looking for?
15 Market Research Activity Question 1. What industry is a personal chef in? Secondary Primary/Secondary Where Could she find this information? m#social 2. What type of training and certification does she need? 3. What legal issues does she need to consider? Primary/Secondary Secondary Culinary schools and associations, restaurants Library or internet sites: 4. Who is her market? Primary 5. How big is her market? Secondary Local chefs from schools or restaurants, call people on the phone m#social 6. How can she find out more about the growth rate in Columbus,OH? Secondary 7. Who are her main competitors? Primary/Secondary 8. What are her potential customers looking for? Primary Interviewing competitors, local newspapers and magazines Stand outside work places or malls to survey potential customers and observe patterns
16 Using the Market Research Activity TEAMS Objectives: Reinforce Market Research concepts Enhance students ability to conduct basic research Encourage students to look for information using varied sources When to use this activity: Following definition & examples Before students start their research Adjustments?
17 What slide does this information feed into? Secondary Primary
18 Eva s Market Analysis (1) Industry Name Personal Chef Industry Size $100,000,0000 Total Population Target Market Potential Market Everybody that wants a personal chef In Columbus, OH. 20+ with an income of $10,000 or more I surveyed 100 people and all the people said they d want my service Total Population $750,000 Target Market 500,000 Potential Market 500,000
19 Market Analysis Industry Name Industry Size [What industry are you in? ( [How much is being spent in your industry? ( Total Population Target Market Potential Market [Where are you planning to market you product/service? Is there a particular area, city, neighborhood, or ZIP code(s)?] [What gender are you targeting (if applicable)? What age group are you targeting? What is the average household income of the group you re targeting?] [Survey your target market. What percentage of them would be willing to try your product/service? Why?] Total Population [?] Target Market [?] Potential Market [?]
20 Industry Step 1: find your business NAICS code or SIC code. You can find this a few ways. The easiest place to start is Google. Step 2: You may see more than one SIC code or companies that use different codes. Step 3: Go to and use your industry code (SIC/NAICS) to get the industry revenue. Here s what we find for the personal chef industry
21 21
22 Total Population Step 1: Go to Click on the state and city you re interested in collecting information on. Step 2: Identify the total population number in the upper right corner of the page.
23 23
24 Target & Potential Market Target Market: Step 1: Identify the household income, age group Step 2: Take percentages of total population Potential Market: Step 1: Design and administer Include 8-10 questions Step 2: Analyze the data Take percentage of target market purchase
25 Eva s Market Analysis (final)
26 Connecting Market Research and Analysis to the business plan
27 Apparent Business Plan Connections Target Market Segment Competitive Advantage Marketing Mix Promotional Mix
28 Time-Management Plan Schedule for a Typical Week Total Hours in a Week = 168
29 Units Sold Monthly Sales Projections First Year Total Units Sold [Units] Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
30 Projected Yearly Income Statement First Year A Selling Price per Unit [$] B Number of Units Sold [Number of Units] C Total Sales [A B] D Variable Expenses [Variable Expense per Unit B] E Contribution Margin [C D] F Fixed Operating Expenses [Monthly Fixed Expenses 12] G Pre-Tax Profit [E F] H 15% [G 0.15] I Net Profit [G H]
31 Thank You!
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