Nathalie Worp
Market Research
In order to establish a fundamental basis on which product concepts can be based and to keynote deployment options, the market research is conducted. During this phase several research sections are being explored. As mentioned previously in the scope of the project, a distinction is made between qualitative and quantitative research. During the qualitative research section observational study will be conducted and a background research, DEPEST research, is done. In order to obtain an overall picture of the market, other possibilities on production and the companies L.O.O.P. competes with need to be researched. The qualitative research is complemented by production possibilities, a competitors analysis and an analysis on the current position of L.O.O.P. considering factors for successful implementation of a new product. (functions of innovation system analysis) The findings from this qualitative research form the starting point for the quantitative research section in the market research. In this section, the Peruvians will be questioned on actual preferences and opinions. This is done by means of surveys. Results of both research sections will be summarized in a SWOT analysis for L.O.O.P.. (Strengths, Weaknesses, Opportunities and Threaths) This SWOT-analysis clarifies useful combinations between the four factors of the analysis and will eventually lead to possible opportunities for L.O.O.P. on the market. These results will function as principles for a business model canvas, where all the obtained information during the market research will be presented in a structured manner. The conclusions of the market research will likewise be used to find meaningful design directions in which product examples are given. Research on the entire Peruvian population is not feasible and also unnecessary, therefore, focus is needed: the target group.
Target group
The focus of the market research is on the upper middle class society of Lima with an age of 20 - 55 years. The choice for Lima is first of all because L.O.O.P. is operating in this area. Secondly, it is because it is the capital of Peru and that it is the most developed city in the country. Thirdly it is because the highest incomes are registered in Lima(BRON), this shows that people have more money to spend on other things than basic needs. The choice for an upper middle income group is because the products won’t be focused on basic needs and also won’t be exclusive and super expensive.
The upper middle class of Peru consists of approximately of 3% of Peruvian population. Because of urbanisation in Peru and knowing that the highest incomes are registered in Lima it is believed that 80% of this 3% of the Peruvian population is the target group. This number amounts to 725.000 people; both men and women. This group is able to provide themselves with their basic needs and still have money left to spend on their desires.
General research questions
To know what we need to research, it is important to define research questions. Some of the research questions will be answered through observation and background search while others are the main questions for the quantitative research, the survey.
- What do Peruvians find valuable in a product?
- What factors define the Peruvian culture?
- What are different style trends in Peru?
- In what state is the Peruvian society, concerning environmental development?
- What kind of production possibilities are present in Peru?
- In what way are there possibilities to implement a product?