Market Research
I was reading about this woman who’s opened a couple of Mexican restaurants close to where I live and they’ve both become very successful. As I was reading her profile, it was interesting to discover that she is not Mexican at all. She is Japanese American and she mentioned that she often gets asked why she decided to open a Mexican restaurant as opposed to a Japanese Sushi joint (stereotypes never disappear) and her answer was the following: my research at General Mills, {where she worked as marketing director} indicated that Mexican food was the fastest growing ethnic food in America,”. So, she just followed what her market research told her to do and it’s worked.
I’m assuming that the two Americans who opened Java house did a similar thing and that’s probably why they’ve been successful as well. My comments here are not to express surprise at the use of market research — Everyone says you should do research before you venture into business. What amazed me when reading her profile was her ability to follow that research to wherever it took her and use that as the basis for her business. Granted, she had experience in the marketing field, but if you don’t, how would you do that kind of very precise research?
I’ve heard people say all the time that you should start with what you love, start with your passion and the money will follow. However, it looks like you should really start with the market research and let that research lead you to your business idea. I’m assuming this woman had some interest in food and maybe even the restaurant business (although the article doesn’t mention that. All it says is that she was looking to get out of the corporate grind). So, it sounds like she had a very general idea about what she wanted to do, but she let her research lead her to a very precise niche.
Now of course, many people have copied her and I’m seeing a bunch of Mexican Taqueria’s all over the place. And on that point, has anyone tried to copy Java House? I guess this is the way capitalism works — if people see success, they’re going to want it for themselves and they’ll eventually copy you. That’s why I believe that in the coming years, Kenya will be flooded with brokers (there’s too much money there for people to just let it go). However, my point here is really to figure out how to do good market research.
KE,
You are right on target. The idea is to find out what sell (what people want or need) and the money will follow. Its illogical to pursue something that you love if you are the only one who loves it…that means it wont sell.
Marketing research is vital and I believe this is a field that can prove very useful in Kenya.
Hoseah,
The dilemma is trying to figure out how to do it correctly.
Sasini will be launching coffee houses within the year. I guess they will mainly be marketing their branded coffee/tea – that would be a little limiting, i think, in terms of providing the best to the customers but maybe they will actually not restrict themselves to their products.
entrepkik:
Ah…I was wondering when someone would compete with Java House. Why do you think selling their branded products will be limiting? Isn’t that what cross-marketing is all about? selling the same thing in a different way or using the underlying brand name to expand your product reach?