Market research key to survival

Market research was key to enhancing business in the context of growing fierce competition, according to chairwoman of the Hau Giang Pharmaceutical Company Pham Thi Viet Nga.

Nga said that in difficult financial circumstances, businesses had to tighten their management and minimise costs to survive and grow. It was also necessary to invest in in-depth market research if there was a belief that the research would help develop new products. Without the research, enterprises could lag behind their competitors.

According to a recent survey, Vietnamese businesses only spend 5 per cent of their capital on market research and only 3.6 per cent on advertising.

Pham Phu Ngoc Trai, President of Global Integration Business Consultants (GIBC), attributed sluggish apartment sales to a failure on the part of developers to conduct in-depth market research before implementing their projects.

“In-depth market research is a vital business strategy as interest rates and labour costs are no longer as cheap as before while input costs are always variable,” said Dam Van Son of Ich Nhan Pharmaceutical Company Ltd.

Son said his company spent a lot on market research, re-designing product packaging and enhancing new product advertisements. He explained that Ich Nhan conducted in-depth and careful market research before launching any new products in order to avoid losses.

Chaiworman of Hau Giang Pharmaceutical Nga said 30 to 40 new products made by her company hit the market annually but only about 10 were successful and gained good sales revenue, while the remaining products needed further development and advertising. All of the products her company had created with in-depth market research as a guide had enjoyed market success, she said.

Trai, President of Global Integration Business Consultants, said domestic enterprises were often confused when their products did not achieve their set target. Sometimes their market research was very good but the distribution and promotion were lacking, he said.

However, many local enterprises have skilfully combined research, manufacturing, media and distribution to enjoy success and many local brands have dominated and maintained a firm foothold in the market.

Nga said that in the process of global economic integration, local businesses had to systematically invest in market research. Before launching new products on the market, her company had to hire a professional market research company to gain satisfactory and accurate results. — VNS

Tags: Vietnam pharmaceuticals sector