Conducting Effective Market Research in Fast Evolving Market

Extracted from InsightTech podcast episode, Abdul and Statzon discuss various aspects of market research, particularly focusing on market intelligence and its application in the context of workplace research. 

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Conducting Effective Market Research

In this episode, we will cover the following topics: 

• Defining market research in the context of market intelligence and workplace research 
• Conducting market research 
• Challenges in analyzing or forecasting 
• Addressing time lag to ensure accuracy 
• Structuring market research and defining top-line metrics 
• Common pitfalls to avoid 
• Recognizing mistakes in results with abundant data sources 

Abdul Salam Mohammed, Market Intelligence

Abdul Salam Mohammed brings over a decade of expertise in market research, starting at McKinsey & Company in India and later contributing to big four firms like PWC and Deloitte. His professional journey extended to consulting firms in Estonia, including Excedea, followed by a transition to the SaaS industry. With two years at Pipedrive under his belt, Abdul has spent the last year making valuable contributions to Kempower in the E-mobility sector

Statzon: How do you define market research, especially in the context of market intelligence and workplace research? 

Abdul: Market intelligence, for me, encompasses four pillars—general market research, competitive intelligence, product intelligence, and additional research methods. Market research is foundational for informed decision-making, involving systematic data collection and analysis to understand market dynamics.  

Statzon: Can you explain how market research is conducted, considering both primary and secondary approaches? 

Abdul: Market research involves a dual approach, combining primary methods like surveys with secondary methods such as industry reports. Connecting insights from both types helps comprehend market appearance and dynamics, facilitating well-informed decisions for business growth. 

Statzon: What are the challenges and limitations in analyzing or forecasting the dynamic e-mobility market? 

Abdul: The e-mobility sector poses challenges like rapid technological advancements, complex regulations, macroeconomic factors, and shifting consumer perceptions. One challenge is the rapid technological change in the industry, with continuous advancements in EVs, including battery technology, range, and charging infrastructure. Another challenge is the complex web of regulations and incentives, varying across regions and countries in relation to EV adoption. Market research must consider these local factors as they are vital for e-mobility sector market entry or expansion strategies. 

Achieving Precision Amidst Time Lag in Market Reports within a Dynamic Business Landscape 

Addressing the time lag in market reports and ensuring accurate analyses amid the dynamic market landscape is a multifaceted challenge. Abdul emphasizes the importance of tracking macroeconomic factors, managing data sources, and staying vigilant in a continuously evolving e-mobility sector. 

Statzon: How do you address the time lag in market reports and ensure accurate analyses in a rapidly evolving e-mobility market? Given that data from just a few months ago might be considered outdated today, and many reports rely on last year's or even six-month-old data. 

Abdul: Recognizing the constant market changes, it's crucial to track macroeconomic factors consistently. Distinguishing between credible and unreliable sources, maintaining a list of critical sources, and avoiding data variations are essential practices to ensure accurate analyses and forecasts. 

Example: 

To understand the impact of policy changes, let's look at what happened in Germany. Imagine a scenario where businesses buying electric vehicles (EVs) were eligible for subsidies. However, the government decided to phase out these incentives for businesses, making them exclusive to private customers. 

This shift caused a sudden surge in EV sales in August, as businesses rushed to take advantage of the expiring incentives. However, a significant decline is expected in the coming months (September and October) due to the altered policy. This fluctuation in sales illustrates how changes in government incentives directly influence consumer behavior and the overall outlook of the German EV market. 

While this might not significantly impact EV adoption, it's expected to create headwinds. The primary metric to follow, in my view, is EV policies and incentives. Tracking policy changes, understanding the involved government bodies, and analyzing news on statistical websites are crucial. Organizations like ACEA offer valuable insights into the global EV scene and UN discussions. Policies and incentives are pivotal for EV adoption; any reduction or changes in these incentives can constrain the space for EV progression. Conversely, without subsidies, there could be a challenge for EV adoption and charging infrastructure development. 

Key Points to Remember: 

1. Closely monitor and track EV policy changes for market insights. 
2. Understand entities responsible for policy decisions and analyze discussions on statistic websites. 
3. Anticipate market shifts proactively and make informed decisions based on policy dynamics. 
4. Recognize the pivotal role of policy dynamics in shaping market trends.    

Statzon: How do you structure market research and define top-line metrics in a complex industry like e-mobility? 

Abdul: Top-line metrics involve continuous monitoring, focusing on key performance indicators (KPIs) that cover a significant impact on the e-mobility market. Identifying and tracking these metrics help in comprehending the dynamic landscape and making informed decisions. 

Statzon: What are the common pitfalls to avoid in sourcing or interpreting market data and forecasts? 

Abdul: Maintaining data quality is crucial, and including data cleansing and validation procedures during data collection is essential. Pitfalls like inaccurate data can lead to costly errors, emphasizing the importance of meticulous methodologies and frameworks. 

Statzon: How do you recognize mistakes in results accessed from others, especially considering the abundance of data sources? 

Abdul: Cross-referencing data from multiple sources helps identify outliers. If values align within a reasonable range, it adds credibility. Validating reports against others, deep-diving into methodologies, and checking for consistency across multiple sources are crucial steps. 

When analyzing the e-mobility market for 2030, gather data from multiple sources—avoid relying solely on one. If values, including your source, align within a reasonable range, exclude outliers. For instance, if most sources project a $20 billion market and one suggests $40 billion, discard the outlier. Many companies, lacking in-house market intelligence, depend on third-party reports. Before using numbers for strategic decisions, validate by comparing across reports. If multiple sources show a similar range, delve into each report's methodology, analysis, and metrics. Stick to reliable reports for accurate market insights, ensuring consistency in your approach. 

Key Points to Remember:  

1. Global Considerations: Be aware of international market shifts, such as the entry of Chinese EVs into the EU, affecting adoption rates.  
2.  Top-Line Metrics: Develop and track key performance indicators (KPIs) to gauge the impact on the overall e-mobility market.  
3.  Iterative Analysis: Market research is not a one-time task; it requires continuous monitoring, iterative analyses, and staying updated on external developments. 

Data can vary between sources. One source may define electric vehicles exclusively as battery electric vehicles, while other sources may broaden their definition to include hybrids. Collect information from various sources, not limiting yourself to just one—four or five different sources, as many as you prefer. If the values, including those from your main source, fall within an expected range without any outliers, it’s a good indicator.

“Ultimately, market research is a powerful tool that empowers businesses to make data-driven decisions. It minimizes risks and maximizes opportunities for your business.” 

- Abdul Salam Mohammed