The global economy has always been volatile and fiercely competitive! Sustaining growth and profitability in such an environment is akin to “Mission Impossible”. The modern-day technologies and scientific advances have shortened the life cycles of various products and services, disrupting the traditional business model, and giving rise to more competition.
In this scenario of constant competition and instability, it becomes all the more important to seek out fresh business opportunities to take your business to the next level and create another profit avenue. Here, we have rounded up the top 3 ways to identify the market conditions, turn the challenges into opportunities, and give a boost to your business.
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Recognise Consumer Segmentation
To understand your business demands better, it’s important to identify consumer segments sharing common attributes. These attributes can be determined by taking into consideration a combination of hard and soft variables like age, place of residence, gender, occupation, annual income, lifestyle, purchasing motivations, and more.
The hard variables like annual income and demographics can help you get an estimated number of potential consumers your business can acquire. For example, if you own a retail store and want to open a new outlet in a new city, you need to get data like the number of females living in the city, along with their occupation and annual income. Additionally, determining soft variables like lifestyle choices can help you identify the motivations that might lead to a purchasing decision.
Identify and Analyse Competition
After you’ve recognized your prospective consumers and segmented them, it is important to know and analyze the competition. Learning about the existing players within your niche is crucial to evaluate the challenges and opportunities. While you are analyzing the competition, there are some relevant questions you need to ask yourself:
- Which products or brands in your industry are popular and profitable and the reason behind them?
- What are the core value propositions of your competitors?
- What is the competitive advantage you can get over other players?
Analyze the Purchase Situation
Purchasing patterns, behavior, and power are three important points that determine whether your product or service will taste successful or not! Analyzing purchasing situations will help you get a better perspective if you want to shift gears to growth mode. Asking the following questions will help you review the purchase situation:
- When do the majority of people buy your products or services?
- Do they buy the commodity, because they need it?
- From where do people make the purchase and what mode of payment do they usually use?
Additionally, looking at the distribution channels, payment methods and other situations that can affect purchasing decisions helps you know how and what the consumer buys and the best way to position your product.
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