Market Research As A Panacea For Business Survival
Market Research As A Panacea For Business Survival
Abstract
This research work is carried out to determine the necessity of market research for business survival. The researcher highlighted some objectives to ascertain the frequency organization conduct market research, to find out the most appropriate and effective method in acquiring information during market research, to ascertain the impact of market research result for effective management decision. To achieve the above objectives, the researcher used the survey design to obtained empirical information from the field by administering questionnaire to 45 Staff of marketing Department of Nasco food Nigeria Limited, Jos South Local Government of Plateau State. Two hypotheses were formulated; the analysis was done using simple percentage and chi-square to give a clear understanding in order to arrive at an explicit conclusion.
The result of hypotheses one (1) shows that there is a significant relationship between market research and business survival, the second hypotheses indicated that there is a significant relationship between market research result and effective management decision. The researcher therefore concluded that market research is a solution for business survival and that market research result assist managers in making management decision. The findings prompted a key recommendation that organization whether new or existing should conduct market businesses. Market research result should not be ignored by managers as it will enable organization to take decision based on facts rather than assumption.
Chapter One
Introduction
1.1 Background of the Study
Market change constantly and business need to have a clear understanding of both the supply and demand. Market research is very crucial to the survival and flourishing of every business as several businesses ends up with a big loss or collapse due to their inability to carry out a market research or on account of a poor market research.
Every business planning must be based on the analysis of a sound market research. One of the other reasons for poor business might be the absence of good demand for the service or product concerned. However, in most cases, the demand factor does not result in a heavy loss or collapse of business. Under poor demand either brings down their manpower or the rate of production to sustain the fall in income. Therefore, all types of business scenarios reveal that lack of market research will heavily affect the desired output. A good market research should be able to predict the market trend for the next 5-7 years.
There are numbers of ways in which market research can be carried out. The two most popular methods are either to appoint a market research analyst for the company or to hire the service of a market research firm that can carry out market surveys and research periodically. Several companies prefer taking the will not assistance of a research firm than appointing a market analyst. This is because the service of a market research analyst is required on a regular basis and it is rather going to add up to the overhead expenses. In choosing the market research firm, you need to take into account how long recommendation they have been in the field in addition to achievement of the team. Every good market research report must also contain a market analysis report and a prediction of the market trend for the next five (5) years.
Companies seem to know the pain point of customers and seem to perfectly put a finger on what exactly the needs and requirements are. However, this is something to admire, but how exactly do companies figure out and cater to the need of ocean of people, all of whom have different taste, preference and mind-set. Having thorough market information is the first requirement for any business to commence operation and survive in the ever changing environment.
An effective market research is so useful that companies can feel the pulse of the market and the customer, and make the customer feel that he cannot do without a certain product even if he had not felt the need for it earlier.
For business to survive, firms need to conduct market research considering the current changes in the environment in order to outsmart other competitors. Hence the need for this study intends to know whether market research could enhance business survival.
1.2 Statement of the Problem
The success or failure of any business depends on so many factors. In some cases, the reasons for the failure of a business are not critically analyzed to determine the real factor behind the failure. In same vein the success factor of business that have experience tremendous growth over three years are sometimes ignore. Most organization does not conduct market research before going into a business, before producing a new product into the market. Organization ignores the fact that market research when conducted regularly will unravel the complexity that might occur at the course of doing the business. In line with this, organizations do not use the most appropriate market research method appropriate to guarantee business success. Most organization due to lack of fund find it difficult to invite/employ expert to conduct their market research.
Some organization neglect market research result and take decision based on assumption.
1.3 Research Questions
In order to facilitate the findings of this research, the following questions were formulated.
- Is market research necessary for business survival?
- How often do organizations conduct market research?
- Do organization employ expert to conduct their market research?
- Do market research result help managers to make effective management decisions?
1.4 Objectives of the Study
The fundamental objective of this work is to establish market research as a solution to business success. Others include the following:-
- To determine the necessity of market research in business survival.
- To ascertain the frequency organization conduct market research as related to their business success.
- To determine the impact of expert in conducting market research.
- To ascertain the impact of market research result for effective management decision.
1.5 Research Hypotheses
Hypotheses 1
- Ho: Market research is not a solution for business survival.
- Hi: Market research is a solution for business survival.
Hypotheses 2
- Ho: Market research result does not help managers to make effective management decision.
- Hi: Market research result help managers to make effective management decision.
1.6 Significance of the Study
This research study when completed will be of great benefit to scholars, business organizations, small and medium enterprise, general public and many more. The importance of market research in a business organization cannot be overlooked; this is because market research can unleash new ideas and opportunities to know the secret of surviving in the competitive business environment. It has been said that 80% of industrial innovation have come from customers themselves. Companies that do not actively listen to the market could therefore, be ignoring unmet needs and closing their ears to new product opportunities.
Those in the academia will find it very useful since it could form the basis for further study. Also, it will serve as source of reference to other researchers in this field.
Market research can provide answers on the size of the market, its growth prospects, the distribution channels, optimum pricing and factors influencing the purchasing decision.
Market research can help decide the optimum positioning for a product. In other word, how the product fits into the market, what its image is or will be and who is likely to buy it. (Ogilvy, 1983).
Market research can identify market trend, demographics, economic shift, customer buying habit and important information on competitors, knowing this information is essential to the success of your business, it will guide organization in making strategic business decision, uncovering unmet customers need and in many cases help you discover new ideas for product and services.
Market research helps organizations to communicate effectively, identify and understood opportunity pinpoint obstacle or problems, bench mark and evaluate your business success.
Some of these tasks which market research can perform provide a useful insight into consumers decision processes. More importantly market research is decision oriented to guide manages for business survival. (Ogilvy, 1983).
1.7 Scope of the Study
The study intends to capture Market Research as a panacea for business success within the geographical area of Plateau State Nigeria, Jos South Local Government, focusing on Nasco food Nigeria PLC. The study covers the period of 3 years from (2010-2013)
1.8 Limitation of the Study
In view of the restricted area of coverage, the findings and recommendation may be limited in some respect. The limitation of this research study is financial constraint considering the fact that the researcher is a student.
Some respondents could be bias in giving their answer, the refusal of some respondents to collect the questionnaire all in the name of being busy, generating data from the internet was difficult due to unstable network equally posed serious threat to the success of the study but in spite of the limitation mentioned above, effort has been made to obtain relevant data to arrive at an accurate decision that will meet the standard objectives of the study.
1.9 Corporate Profile of Nasco Food Nigeria Limited
The corporate name Nasco food Nigeria Limited of the large group of companies named Nigeria Division. The name Nasco, is derived from the founder surname Ahmed Nassredin and the ward company(i.e Nas is from Nassreddin and co, from Company) to form what is known by Nasco.
Nasco Nigeria division came into existence in 1963 with establishment of Nasco product limited Jos, which later expanded to seven (7) other subsidiaries namely:
- Nasco Household Nigeria Plc
- Nasco Confectionary, Nigeria Plc
- Nasco food Nigeria Limited
- Nasco Packaging Nigeria Plc
- Nasco Marketing Limited
Nasco food was incorporated in Nigeria in 1974 as Food, manufacturing in 1975 with one line. In 1977, the second line was added with the third and forth line in late on. In 1975, conflakes and wafers building was erected and machines were procured from streake and schradens company abroad and there subsequent installed. In 1986, there was a band of wheat flour importation by the federal government, this force the company to buy flour milling machine to be used in processing corn and sorghum as a substitute for imported of wheat flour. Line (5) of the company Nasco food Nigeria Limited was brought from Kano in 1990.
Today the company produces over 40 different varieties of product. It is the leading producers of cornflakes in Nigeria and well known household name in cream biscuit and wafers production. There are 22 varieties of biscuit which are categories as mass and quality biscuits. This makes Nasco food Nigeria Limited the manufacturers of the largest range of the biscuit in Nigeria. The mass biscuit includes, fancy biscuit, schoolmate and shortcake, portion packs. Among the quality biscuits are cabin, nice, petit, special, cheese, assorted cream, custard cream, strawberry cream lemon and banana cream and many other brand are on their way. The company of Nasco Food Nigeria Limited is today an outstanding household name not only in Nigeria but in African society.
1.10 Definition of Terms
The following terms are defined in the context in which they are used in this research study.
Panacea:
An answer, remedy or solution to problems or difficulties.
Business:
This is any organization or entity established with the aim of producing goods or services with sole aim of maximizing profit.
Market:
This is an aggregate of people who as individual, organization have the need for product in a product class and who has the ability, willingness and authority to purchase such product. Also, it refers to a customer for a product or services:
Market research:
This is any organize effort to gather information about the market or customer in order to identify problems and proffer solutions for accurate management decisions.
Scenario:
This is an unfolding picture of the future in new product work; it more customary refers to picture of some time and place related to a firm’s area of interest. The future scenario may be created by extending current trends or by leaping into the future and using other methods of deciding what will exist.
Survival:
This is the continuous existence of a business entity or an organization.
Intuition:
Direct perception of truth, fact, independent of any reasoning process; immediate apprehension.
Benchmark:
This is to study as a competitors’ business practices in order to improve one’s own performance.
Optimum:
The amount or degree of something most favorable to an end, also greatest degree attained under implied or specified condition.
Unraveled:
To clear from complication or difficulty, to unfold, to solve e.t.c .
Chapter Five
Summary Conclusion and Recommendation
5.1 Summary
The research work looked into the background of market research, statement of the problem, research questions, objectives of the study, research hypotheses, the significance of the study, scope of the study, limitation and definition of terms.
It also discussed the literature review in chapter two stating the concept of market research, the need for market research, types of market research, market research process, market research in small business, market research and consumer behavior, the link between market research and business survival and lastly, the decision that can be guided by market research.
The research also discussed about the research methodology which includes the research design, the population of the study, sources of data, method of data collection, method of data analysis and the decision rule.
Chapter four revealed the data presentation and analysis, test of hypotheses, discussion of findings and implication.
Lastly, chapter five of the research work pointed out the summary, conclusion, recommendation and suggestion for further studies.
5.2 Conclusion
In view of the analysis carried out in this study with respect to ascertain whether market research is a panacea for business survival, the Researcher came up with a conclusion from the findings that market research is a solution for business survival as it can unleash new ideas and opportunities in order to know and understand the secret of surviving in the competitive business environment.
Hiring expert to conduct market research consolidates business survival as appropriate skills, methods, principles and methodology will be employed. Conducting market research often helps firms to know and understands the behaviour of the final consumer because no one can successfully understands why everyone especially consumer behave the way they do but having knowledge about them is a starting point for successful marketing.
Market research assist managers to take decision based on fact rather than assumption as vital, reliable, relevant and accurate information are generated.
Lastly, a good market research is evidence that organization can survive in highly competitive environment. However, firm at the course of conducting research also face a lot of problems such as, bias response, unwillingness to respond to question, inadequate coverage due to bad road, unstable network and many more.
5.3 Recommendation
In the light of the discussions and findings made, the following recommendations were suggested:
- New and existing Company should conduct market research as it is a valuable tool for survival of all kind of businesses.
- Organization should conduct market research regularly to pinpoint problem as they occur because firm cannot just do market research once and expect to improve or solve it problem, hence continues market research enables organization to have edge over it competitors.
- Result from market research should not be ignored by managers as decision derived from the result can take an organization one step forward to a successful business.
- Firm should hire/employed experts to conduct research so that skills, principles, method of an expert can be applied to generate data for accurate decision to solve organization’s problem.
- New venture should embark on feasibility study to avoid financial risk before investing huge amount of money into the business.
- Organization should continue monitoring their competitors, see what they are doing so as to come up with appropriate marketing strategies that will deliver the desired satisfaction.
5.4 Suggestions for Further Studies
This research work is conducted through Nasco food Nigeria Limited. The result may not be generalized, but it is necessary for further researcher to do this research by using other means. In addition, there is a need to conduct research regarding export market research which consists of gathering enough information to make sound export decision to uncover economic, socio-political and cultural factors that either invite or challenge market entry.
The Researcher also suggests further studies under the following area:
- Consumer behavior marketing research and segmentation.
- The application and misapplication of factor analysis in market research.
- Problem and prospect of market research in a big organization.
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