CBI EXPORT MANUAL: YOUR GUIDE TO MARKET RESEARCH

CBI EXPORT MANUAL: YOUR GUIDE TO MARKET RESEARCH PART 1: YOUR RESEARCH ASSISTANT

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Source: CBI Market Information database URL: www.cbi.eu Contact: [email protected] www.cbi.eu/disclaimer

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CBI EXPORT MANUAL: YOUR GUIDE TO MARKET RESEARCH

PART 1: YOUR RESEARCH ASSISTANT

Improving your competence in market research

Compiled for CBI by: Searce


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Disclaimer Although the content of its market information tools has been compiled with the greatest care, the Centre for the Promotion of Imports from developing countries (CBI) is not able to guarantee that the information provided is accurate and/or exhaustive, and cannot be held liable for claims pertaining to use of the information. In the case of the market publications, neither CBI nor the authors of the publications accept responsibility for the use, which might be made of the information. Neither is the information to be construed as legal advice. Original documents should, therefore, always be consulted where appropriate. The information does not release the reader from the responsibility of complying with any relevant legislation, regulations, jurisdiction or changes/updates of same. In the case of the Internet tools, CBI aims to minimise disruption caused by technical errors. However, CBI cannot guarantee that its service will not be interrupted or otherwise affected by technical problems. CBI accepts no responsibility with regard to problems incurred as a result of using this site or any linked external sites. The information provided is aimed at assisting the CBI target group, i.e. exporters and business support organisations (BSOs) in developing countries. It may, therefore, not be used for re-sale, the provision of consultancy services, redistribution or the building of databases, on a commercial basis. For utilization of the CBI market information tools by the CBI target group on a non-commercial basis, the condition applies that CBI is referred to as the source of the information. All other use is prohibited, unless explicitly approved in writing by CBI. See also disclaimer CBI market information tools: http://www.cbi.eu/disclaimer Compiled in collaboration with Alfons van Duivenbode Illustrations by: COM & GERY Photo courtesy: Studio Loske/Shutterstock/CBI/Searce


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Table of Contents Introduction 4 1 Why market research? 6 1.1 Why is research so essential? 6 1.1.1 Exporters 6 1.1.2 BSOs 7 1.1.3 Research helps you further 8 1.2 What is market research? 9 2 Market research process 11 2.1 Step 1 - Define your research objective 12 2.2 Step 2 - Which research method? 14 2.2.1 Secondary or desk research 15 2.2.1.1 What is it and what to collect? 15

2.2.1.2 Main free sources 16 2.2.1.3 Main low cost sources 21 2.2.1.4 Main high cost sources 23

2.2.2 Desk research using the Internet 25 2.2.3 Primary or field research 26

2.2.3.1 Personal interviews at trade fairs 27 2.2.3.2 Observations at trade fairs and other places 31 2.2.3.3 Store checks 32 2.2.3.4 Other 32

2.3 Step 3 - Research planning 35 2.4 Step 4 - Collect relevant data 37 2.5 Step 5 - Analysis - from data to information 40 2.6 Step 6 - Write and present the report 45 2.7 Useful sources 46 3 Organising market research 49 3.1 Research preparation 49 3.2 Research during your export venture 49 3.3 Research budget 50 3.4 Involving other people in research 51 3.5 Organising your information (MIS) 54 Checklist 56 Glossary 57 August 2008 (update)


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Introduction If you are thinking of expanding your business into new export markets, you can follow what other companies from your country do and see what will happen. Some exporters regard this as a safe option, as no investment in expense or time will be required when exporting to unknown markets. There is only one big problem: you will have many competitors and you may risk the buyer changing to another supplier even if, you are prepared to lower your price. You may be surprised when he tells you that your product is out of fashion or that consumer habits/tastes have suddenly changed. By doing market research, you would have noticed earlier that you were in a mature market and would have started to consider adding a new original feature to your product, different from your competitors, or looking into exporting to neighbouring countries. When starting to export to the EU, market research can reduce your risks. Could you imagine what people in Spain really want to buy - instead of what you want to sell them? How about people in Portugal, Greece or other Southern EU countries? Do consumers in these countries want to buy the same? Maybe for Italy you have to think differently in terms of product size, application, colour, design or packaging. How about consumers or buyers in Northern or in Eastern EU countries? Maybe your product needs less adaptation there. When exporting to the EU you can focus on similar target groups all over the continent and address clusters of similar EU countries. If you do not have a clear idea about who are in this target group, how many they are, if they have enough money to spend and how they buy, you will need to find this out by market research. This publication is an update of the CBI export manual Your guide to market research (2003). Structure of this manual This CBI export manual consists of three parts: Your research assistant (part 1) Your research practice (part 2) Research Action Plan RAP (part 3) Part 1 assists you by providing basic guidelines with simple research methods, which you can do by yourself, with your staff, or with research specialists. It explains what market research is (chapter 1) and how you can do your own low cost research in a structured way, following a step-by-step research process (chapter 2). The conclusions from your research findings enable you to discover your business problems, identify market opportunities and anticipate developments on focussed EU markets. Here you can think how to be different from competitors by adding some common sense, based on your expectations about what will happen in your export venture in the next 5 years. The more information you have, the better you can make

Research is to see what everybody else has seen, and to think what nobody else has thought Albert Szent-Gyorgyi


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an export marketing plan (EMP) in which you have to make firm commitments and strategic decisions. A good marketing plan never can eliminate all your risks, but it is the backbone of knowing where you are now, where you want to go, how you can stand out and how you can measure the effectiveness of your strategy and actions. Every research needs to be planned and organised with the allocation of time, budget and people (chapter 3). All sources and information found need to be categorized and shared with others in your company. Once you understand the process of doing market research and how to stay in control over your research activities, you should be ready to start your own market research. Part 2: In addition to the basics of market research provided in this part, 'Your research practice' (part 2) advices on what to research during your export venture and shows where you can find the necessary information. Part 2 is particularly interesting for more experienced exporters looking for new EU markets or for those exporters with enough knowledge of market research. Part 3: A useful E-tool to use with part 1 and part 2 is the Research Action Plan (RAP). This interactive tool will guide you through the different export stages and shows you how to organise your market research. It contains examples of research objectives, questions, methodology, planning and results during the different stages of your export venture. This RAP can be downloaded from http://www.cbi.eu, go to Suppliers, select Export tools and select Research Action Plan (RAP). Starting exporters are advised to read part 1 first and use it together with part 2 and part 3 in order to systematically set up their export activities. This manual covers certain aspects of exporting to the EU and is just one in a series of export manuals published in the CBI database at http://www.cbi.eu.marketinfo. More product specific information can be found in CBI market surveys. Other issues such as exporting to the EU, market entry strategy, product range development, Internet searching, website promotion, trade shows and corporate image are covered in other CBI export manuals. You can find the titles on the CBI website. We wish you much success and we hope this manual encourages you to acquire the necessary skills and know-how to do effective market research. If you do it correctly and efficiently, it will reward you in the end. Being more confident and anticipating events is much preferable to just depending on the opinion of some buyers.


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1. Why market research?

1.1 Why is research so essential? It is impossible to sell a product or service that a consumer does not want. In order to know this and to present it attractively you need information. If you are a small shop owner and sell to people in your own area, you are likely to know your customers well by having regular contact with them. But if you have a larger business and want to expand to export markets, you do not have customers; you only have prospects. They are far away, think differently and have a different culture and habits. So, here market research is an essential business tool to avoid the risk of a failure. For example, a US car manufacturer introduced the Chevrolet Nova in Spain, but the car failed, due to the choice of a wrong name. No va means does not go in Spanish. 1.1.1 Exporters When exporting to EU countries you may want to play safe by taking the well-trodden road and enter a large EU country. You may think that there is always a market potential in large countries. The risk is here that buyers often have a choice of different DC suppliers and there are local competitors. For example, the German, UK and Italian furniture markets are mature, supplies are dominated by China and India, and local demand is backed up by a strong national industry. Maybe you should try to find out if it is really worth putting effort and money into these competitive markets. They may be many more opportunities in Eastern EU countries with growing economies. Manufacturers in these countries may look for cooperation with exporters from developing countries in order to compete with China and India. You can find the best opportunities in these countries by doing market research. Market research helps you to find proper answers to the right questions. For example, in the long haul tourist market, if you are located in Zambia, you need to find out what sort of trips to propose to UK tour operators. Relevant questions could be: - Should you propose adventurous (wildlife), trekking, cultural, responsible or relaxation trips to UK tour operators? - What kind of idea do British people have of Zambia? - What sort of demographic and lifestyle trends are taking place in the UK in terms of increased leisure time, ageing population, increased curiosity, travel to undiscovered destinations? - Which consumer age group could be most interesting for responsible trips? - How do they usually travel, individually or in groups? - How can you reach them, by specialised tour operators or via the Internet? - Which other African countries are your direct competitors? - Should you approach mainstream or specialised tour operators? - How can you segment tour operators by continent, by activity, by profile of travellers? The more knowledge you have about your prospective markets and its people, the more likely you are to succeed. If you are an exporter of pipe and process equipment, you can find out business opportunities by knowing where in the EU the demand for cleaner water and sewer systems is increasing. Other questions could be:

You can tell whether a man is clever by his answers. You can tell whether a man is wise by his questions

Naguib Mahfouz


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- In which EU countries are water systems expected to be renewed? - How is the choice of the water treatment process made in these countries? Is it based on price, meeting local or EU guidelines or on advanced technology? - What are other main valve applications in the end-user industries and for what sort of pipelines (oil, gas)? - What are the latest developments in e-business applications in these end-user industries? - What is the EU production of pumps, valves, fittings, instruments, metal pipes, any other process equipment? From discovering a niche to planning an effective export marketing strategy, research can provide those details, which are crucial for success. Less money and energy will be wasted on false hopes, especially when you are planning to export for the first time. 1.1.2 BSOs For Business Support Organisations (BSOs), see also explanation in chapter 2.2.1.2, the biggest challenge is to stress to exporters the importance of doing market research and to stimulate exporters to take a strategic approach. It has proven to be difficult for BSOs to convince exporters that making shortcuts usually results in being cut off. You only get one opportunity to approach prospective buyers. Just sending information on their product and price is not enough, particularly in agricultural, consumer goods markets and in services. Exporters are not helped by raw data such as a list of unclassified buyers and some trade statistics. BSOs should try to offer added value to exporters by providing sound information on EU countries, market size and market trends in interesting export sectors, market requirements, market segments, interesting niches, opportunities, consumer prices or distribution trends. So here, there is a task for a BSO to do research for exporters in their country. Based on the data they find, they can analyse the findings, filter out what is relevant and present this information in the form of highlights, market or sector briefs and fact sheets. Providing this added value will definitely enhance the performance and image of a BSO among exporters. Based on the regular questions from exporters in your country, as a BSO you can categorize information according to subject, offer customised research or organise thematic workshops based on interesting developments in the EU market place. The CBI market surveys are an ideal starting point for this. As a BSO, you are in a position to offer access to all documents on the CBI website. The CBI market information database is extensive but exporters usually take little time to read all of it. This is where your added value as a BSO starts. You can select what is relevant and where CBI surveys or market requirements are not specific enough, you can search further. In all of the CBI publications, you will find many sources in EU countries that lead to more product specific information or interesting importers. So, do not give up so easily and try to take time for further searching. Tip: When stuck while searching on the Internet, contact people from info sources (see chapter 2.2.1) who can answer your questions or who can point you in the right direction.


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1.1.3 Research assists you further Market research can assist exporters and BSOs in the following ways: You can find out: the largest markets for your product, the fastest growing markets, market trends in the short and long term, market requirements, business opportunities and business practice. It enables you to narrow down your view from a broad perspective. You can set your priorities towards a specific target market and plan future markets over a 5 year period, based on sound information. It helps you to understand where your industry is heading and what new regulations or technologies may affect the way you are doing business. It helps you to find out the best product introductory tactics. After one year, you can evaluate your own and your trade partners efforts. Then you can make the necessary adjustments in each EU market. You can gain an insight into your competitors, including their strengths and weaknesses, their mistakes and reasons of success. You may also find ideas for new product development and anticipate product adaptations. It reduces your uncertainty and by showing more involvement and understanding of their market, buyers will take you more seriously. Pro-active approach By keeping abreast of the latest developments in the EU market, you can take your marketing decisions more quickly. The international business environment has changed rapidly as a result of EU expansion since 2004 from 15 to 27 countries, from 379 to 490 million people. This implies the emergence of new consumers with different needs and a different marketing mix in order to reach them. For example, if you know that people in the Czech Republic are gaining more educational qualifications because of a rising employment rate, there will be more demand for office and school supplies. You can find out the same sort of information about other new member states. When taking a pro-active approach with these new opportunities you can stay ahead on your competitors.

Even in a period of slowing population growth in the larger EU member states, new trends and consumer target groups emerge. For example, the growing number of older people or rising number of single households due to different life styles. Both consumer groups look for convenience products, smaller products (such as household goods), or products packed in smaller portions (food). Research needs a commitment Market research requires a commitment in terms of time and money. Many companies still aim to make every export venture self financing, or start to export and finance the investment from the profit from sales in these markets. This does not apply to market research. Even if CBI market surveys or ITC surveys are free of charge, you, or your research team, will have to allocate time to go through all sorts of information. Doing a thorough Internet research takes a lot of time, especially when you look for low cost information sources (between 0 50). You can save time by buying reports from business information databases (between 50 3,500) see chapter 2.2.1.4. Tip: In case of business providers, check their summary and table of contents thoroughly to see if they really provide good information on the market and distribution and not if the main part of their report are profiles of main players in that sector.

narrow your view from a broad scope

being proactive as a competitive edge


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Tip: If you have seen a useful report, negotiate about the price by comparing prices at different providers or otherwise see if you can buy separate countries or chapters. You must invest some money and time before you introduce your product in the EU market; this prevents you from making expensive mistakes later on. You can control your research costs by allocating a maximum budget (for example 5,000) for a whole research project for 3 months. You could also allocate a budget per target country ( 150) or per cluster of 3 countries ( 400). Research as an integral part of your long-term strategy Market research is more than just compiling data and statistics. A large part of your research is factual, which means the gathering of information to understand (prospective) markets. But research can be also predictive, such as finding out consumers or buyers attitudes or motives for buying your product or service in the long term. Research can also be an eye-opener on how your company is performing see chapter 2.2 of part 2 'Your research practice'. All data collected needs to be analysed and to be transformed into relevant information. This forms the basis of your marketing strategy and tools. Researching markets, like all planning processes, is cyclical. At first, as you review your initial data, you may find that some of the information raises new questions that suggests the need for additional research. In the end you can build up your own information system and add missing or new data after each search, keeping your system up-to-date. This will be the key to your success. In fact, market research does not stand on its own, but forms an integral part of your Export Marketing Strategy. It never stops. 1.2 What is market research? As you now have become more aware of the essence of market research, you need to know what exactly it is. Market research includes all methods to evaluate which foreign markets offer the best potential for your products. A simple definition is: Market research is the collection and analysis of information about markets, people, companies and organisations that will enable you to make better decisions for your export marketing plan.

The following myths are keeping exporters away from undertaking any form of research:

Myth 1: Research is only for intellectuals and academic people This mis-understanding is partly created by researchers who have their own sophisticated definitions and jargon. However, good researchers are aware that research can be easily designed and implemented by anyone. Myth 2: The distributor will do all necessary research Some exporters believe that they already have enough information through their distributor or expect the research to be done primarily by them. In addition, some exporters regard market information as a by-product of their accounting system. But often distributors do not give a neutral overview of the market and trade channel developments in their country.

definition research


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Myth 3: Market research is too expensive Market research does not necessarily mean doing surveys, interviewing large numbers of people and complicated computer analyses, which are expensive especially when entering different EU countries. There are many techniques (desk or Internet research) at low cost, which are explained in this manual. Myth 4: Market research takes too much time Some exporters are usually very busy and are afraid of wasting time by getting lost in an overload of information and many dealings with researchers. Most research can be done quite simply and quickly. Dont ask for too much at once and try to concentrate on what is needed (not on what is nice to know!). When doing it step-by-step, you can do it quite efficiently.

There are various research techniques, which are covered in Chapter 2.2.

research does not need to be expensive


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2. Market research process Now that you are aware of what market research is and what it can do for you, start to prepare your research by thinking about its purpose. Unfocussed research leads to an information overload and wrong decisions. Especially when you want to enter competitive market where buyers are demanding, you need the right information. In a research objective you set a target in terms of what relevant information you need, keeping your time and budget limits in mind. To avoid losing track, you must structure your research and make it controllable and measurable. You can do this by a research process. You can follow a 6-step research process (see below) and use some low-cost research methods. Within one process, you can combine searching on different research subjects (countries, market size, target groups, trends, players, trade channels) to save time.

Step 6

Write and present the report

Explain the cause and predict what happens. Give indication for actions.

Step 5

Analysis - from data to information -

Sorting and avoid getting lost. Filtering and understanding. Check and compare / Relate and conclude

Step 4

Collect relevant data

Which data/information is available?

Which countries to start with?

Step 3

Research planning

Categorizing data by EU country and subject.

Structuring by a Research Action Plan.

Step 2

Research method

Secondary or Desk research (see chapter 2.2) Desk research using the Internet. Primary or Field research (see chapter 2.2)

Step 1

Research objective

What do you need to know and why? What are relevant research questions? What export experience do you have?


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2.1 STEP 1 Define your research objective, subjects and questions

Company objectives and research objectives Before starting market research, try to be very clear about what you want to accomplish. First, look at your company objectives, for example maintain profit while prices in your current markets are under pressure. This leads to certain decisions that you have to make such as upgrading your product, looking for other sales channels in your current market or looking for new export markets. Through market research, you should be able to take the right decision. This leads you to the definition of your research objective. Measurable research objectives This objective will be the benchmark you will need to refer to regularly during the research process to stay on track and measure if the research project is successful or not. If your research objective is looking for new export markets, this is quite broad. You can narrow this down by trying to break this objective into measurable research subjects. Research subjects Research subjects are relevant topics on which you have to find information. You can use these subjects to get an idea or to form a total picture of a continent or a country. Examples of subjects are trade flows, market requirements, market size, market developments, market segments or structure of competitors. All relevant subjects when exporting to the EU are mentioned in part 2 Your research practice. For example, if a research objective is to identify the most promising EU export markets for tennis balls, this exporter can divide this objective into the following subjects: Looking at the trade flow developments for tennis balls (HS code 950661) between the EU, EU countries and the world. Looking at the market access requirements for tennis balls in the EU and in promising EU markets. Identifying the development in number of tennis players in the EU (male/female, singles/young couples, club membership). Identifying the main competitors in the EU tennis equipment market. Identifying the major trade channels, supply requirements for tennis balls in the EU and promising EU markets. Identifying the importers and consumer prices for tennis balls in six different EU promising markets. Research questions Once you have thought about the most important subjects, try to translate each subject into several research questions. In each question, try to be as specific as possible on what sort of information you need. For example: the questions for the research subject Identifying promising EU export markets for tennis balls, in terms of the trade flows can be: What is the volume of EU imports of tennis balls between 2006 and 2008? What are the biggest EU import markets for tennis balls? Which EU markets showed the largest growth in the past 5 years? What are the 10 leading developing country suppliers of tennis balls in these EU markets?

break down your objective into subjects and questions


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The logical next step is to go further into details. The more details you want, the more specific your subjects and questions will be. For example, now that the exporter of tennis balls knows who his competitors are and what their product features are, the next question to arise is whether he should imitate them or come with an improved larger ball. Another question could be whether he should approach those channels that competitors do not supply to, such as hypermarkets, discounters. The answers to these questions can be clarified by market research. What export marketing experience do you have? When exporting for the first time, most exporters start with a broad view as a first orientation in order to become more familiar with a new market environment. Once the above main research objective is clarified, you will have to find out whether the opportunities and potential sales are worth your investment in terms of extra production capacity, product adaptation or logistics. If so, you can continue to focus on some target countries. If you do not have prospective business partners yet, you will need to put extra effort in sales staff, who should have some knowledge of the EU market. In assessing export opportunities, you may have carried out some research before and already have some information on EU markets in your own company. Once you have checked your internal sources and defined your research objective, you can make a list of what you want to know and what can be found out. On the other hand, if you already have customers in EU countries and are considering expanding into other EU countries, you may already be familiar with the EU, but you will need specific information about your new target country. So your research questions will be similar to those above. Research objectives can also be more specific, especially if you are already selling in some EU markets. Example 1 Exporter of basket balls to a niche market

A target group specific objective in the market where he is already selling basketballs in the UK. He has heard that young handicapped people like to play basketball and that they need smaller and lighter weight balls. He wants to find out if this is an interesting niche market. His research objective is to identify a promising market for basket balls for handicapped sportsmen in the UK. His research subjects and questions could be: - Market size: o How many handicapped people play basketball in the UK? o What is their age? o How is it organised? At school, club or voluntary basis? - Market developments: o How many have played basketball in the past three years? - Market requirements: o What quality requirements or other special requirements are there for basketballs for handicapped players? - Trade channels: o From whom are they buying basketballs now? Price level?

know your buyers market conditions


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Example 2 Exporter of castings and forgings to the construction segment

A buying structure specific objective. For example an exporter of casting and forgings wants to expand his business in Eastern EU countries. He has found out that many new houses are being built, thanks to a growing middle class in Poland and in Hungary. This could be an opportunity for his machine tools (welding equipment and wood working equipment). His research objective is to identify business opportunities for machine tools in the Polish and Hungarian construction industry. His research subjects and questions could be: - Market size: o How many new houses are being built in Poland and Hungary? o Where are the main areas in these countries? o What sort of machine tools are mainly needed in these areas? - Competitors: o Who are the main competitors for machine tools in Poland and Hungary? - Trade channels and logistics: o Who are involved in the DMU (Decision making unit) for new machinery? o What is most important for Polish or Hungarian buyers (price, quality, product safety, after sales service) when buying machine tools? o Where are nearby logistical providers for machine tools, how much does it cost when they import and stock his machinery?

It may take some time and effort to become more trained in research, but once you have done a research process a few times, it will be easier. It will certainly be of great benefit to you in the end, especially if you are well-aware of the useful sources for your specific product. You need an Export Marketing Plan (EMP) to make your export venture a success. This planning is sub-divided into several stages that can be used in a flexible way. Whether you are a starting exporter or already exporting to the EU, in both cases you need you need relevant information in each stage to make the right decisions. What to research during each stage will be further explained in part 2 'Your research practice' and in part 3 the RAP.

2.2 STEP 2 Which research method? Now that you have thought about what you want to achieve with research and about the kind information you need, you now have to think about how to get to the right sources to obtain this information. When you do market research by yourself, there are two main methods to collect raw data and information: Secondary or desk research: here you are looking for previously collected data and published information by others, such as companies, governments. Secondary or desk research does not need to be expensive as you can find so much via the Internet, especially in on-line databases. Primary or field research: here you collect information first-hand from the

source, for example from buyers (importers, wholesalers), staff of EU Trade Associations, retailers, retail outlets and consumers. In this case, your research team collects the data or information direct from the foreign marketplace. Primary or field research (see chapter 2.2.3) can be done with or without the help of a research specialist. It always directly relates to your product, it is done on the spot, and usually it follows secondary or desk research.


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2.2.1 Secondary or desk research 2.2.1.1 What is it and what to collect? Desk research is the best technique to find out where you stand. Here, you collect raw data or information from within your own company (internal sources) for example, sales records, customer files, contact reports, trade show reports, letters of complaint, opinions of your own staff, sufficient production capacity or anything else that tells you what and why customers buy from you. Nevertheless, you must search elsewhere (external sources) and collect any published information in hardcopy by contacting relevant organisations (trade associations, libraries, government and other companies). From you country you can collect most of the information from the Internet. You can check the sites of these organisations, as most of them have online presence, or contact them by email. You can collect this information based on country, product or on subject. Desk research Advantages Disadvantages

Data collection is fast

It is often too general

Relatively cheap

You have to validate its reliability

You or your staff can do it Conflicting statistics, different definitions

The best starting point for action or further research

Information can be too old

Competitors may have access to the same information

Within the abundance of information, especially in developed countries, you can familiarise yourself with new EU markets. At the same time, you must try to find all relevant data for your own sector or product. The challenge here is to collect and compile as much useful information and statistics about interesting EU markets within a limited time. Tip: Before starting your desk research, be very clear about your objectives to prevent losing your focus (need to know versus nice to know), which will mean losing much time and money. Start with the free sources These sources include all CBI publications and all other external sources. Based on the links in CBI market surveys, you can search further for more details for your product or service which you can find in country overviews, other market surveys, trade statistics, access requirements, consumer surveys, sales tracking data, trade press articles, newsletters, newspapers, company profiles or consumer magazines. Continue with some creativity and persistence After starting enthusiastically, you or someone else in your research team may quickly reach a dead end. This may happen when searching on the Internet, for example, in a specific country such as Slovenia for a medicinal

secondary research as the first step

finding what you need to know from your desk


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plants. So far, it may have been easier to find information on medical plants in Germany, France or in the UK. Even if you do not want to enter these large markets, this market information gives you an idea about the market structure or its main applications in EU countries. Regarding Slovenia, do not give up! Try to think about a clever way to get to know this market. For example, you could get in touch with the local trade association, local libraries, trade press or visit websites of homeopathic Slovenian wholesalers or drugstores. You could even ask them by email or phone if they have any market information and if not, where you can find this. Maybe there are exhibitions on medicines in Slovenia, or in a neighbouring country, or in Germany with Slovenian exhibitors who are looking for contacts with foreign companies. A more down-to-earth approach is to look for any information on medical use in Slovenia. You could find this in the National Statistics Office or at the Slovenian Trade & Investment Promotion Office (Tipo) in Ljubljana. You will probably need to translate the information into English. If you still cannot find anything, you can look for existing reports on Over The Counter (OTC) medicines from commercial information providers see later in this section. Your efforts will be always rewarding, and with some persistence, you will always be pointed in the right direction. The main sources that are explained in the next paragraphs are sub-divided by: - Free sources (CBI, sources in developing countries, sources in the EU) - Low cost sources - High cost sources. 2.2.1.2 Free sources CBI CBI is a good starting point for your desk research by offering useful publications and a database that includes market surveys, including export guidelines and product surveys. To help you make an Export Marketing Plan, CBI also offers information on market access requirements and various export manuals. Registered exporters can download all CBI publications from http://www.cbi.eu/marketinfo Go to Search CBI database and select your market sector and the EU. n Market surveys: CBI offers market surveys on more than 30 different sectors in 27 EU countries including an EU survey, which is an overview of the EU market. CBI has divided their products and services for exporters of developing countries into 4 main groups: agricultural products, consumer products, industrial products and services. In each market survey, you can find good information about the latest market developments (consumption or industrial demand), production, trade channels, imports/exports, price developments and opportunities. All market surveys give many references and useful sources (websites) for your further research.

Do not give up and try to find people who can help you further


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To assist you in your decision making to export to the EU, each survey has Export guidelines that cover the main market access requirements, how to select your product and target countries, your market entry and how to decide on your export marketing tools.

o Product surveys: If you are looking for information on a specific product, you can check the CBI product surveys. They give similar information as EU market surveys with a focus on 6 selected EU countries. p Market access requirements: CBI has a special database on this subject. You can find out what sort of legislation there is in the EU and in EU countries. Secondly, you will find additional requirements of EU buyers though labels, codes and management systems. Most requirements are based on consumer health and safety issues, environmental and social concerns and on quality. You can also find relevant information on tariff-related requirements and on intellectual property for your sector or product. For market access requirements see also chapter 2.3.2 of part 2 'Your research practice' and chapter 1.6 of the CBI manual Exporting to the EU. q Export manuals: In order to improve your skills in exporting, CBI publishes other export manuals such as the Export Planner, Exporting to the EU, Digging for gold, Your guide to product range development, Your image builder, Your expo coach, Website promotion and several manuals on other topics. r Other useful publications: For several sectors there are e-business studies and sector alerts. For exporters of garments, footwear and accessories CBI publishes two fashion forecasts per year and for jewellery, there is a special design guide.

Market surveys

Export marketing plan

Market Access requirements

Product surveys

Products and Markets Requirements Guidance

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You can also find the latest news, including reports from trade fairs, promotion programmes and special subjects in the CBI News Bulletin, a quarterly magazine. You may be able to see how other exporters in your sector are doing. How to use CBI information?

Example 3 Moroccan exporter of goat leather handbags

If the research objective of an exporter from Morocco is looking for a new export market and his research subjects and questions are very similar to those that are given in chapter 2.1, he can use CBI information as follows: o The EU survey luggage and (leather) accessories (May 2007) tells him that EU imports of handbags, made of leather have almost doubled in the past 5 years (see EU imports by product under bags). This was mainly in value due to more supplies of branded luxury handbags from Italy and France. o The share of developing countries in the supply was 49%, dominated by China, followed by India and Vietnam with large volume supplies. o Italy and France are the biggest EU importers, but they are also the biggest producers see the EU survey under Production. o Spain, the United Kingdom and most of the new EU member countries showed the biggest growth in consumption of the whole sector, of which handbags formed more than one third in most EU countries see EU survey under Consumption. This was particularly in Spain, his nearest market. o When focussing in on Spain, he can read in the CBI survey The Spanish market for luggage and (leather) accessories (2007) under Consumption that consumers spend more on their outfit and are more interested in foreign designed handbags. This is also partly influenced by the continued rise in the number of tourists and foreign residents; both have brought different tastes in leather goods and clothing to Spain. o Even if there are many small manufacturers of handbags in Spain, the classic handbag is losing ground. Younger Spanish women now prefer fashionable bags, but of a good quality material (leather). Spanish manufacturers complain about the cheaper Asian copies made of fabric, or paperboard. o In the same survey under Production he can check some sites of main players and of Asefma (trade association). Discover here what models Spanish manufacturers make, their sorts of leather (bovine, goat),colours, finish, how they present their handbags, their main customers (wholesalers, agents, large retailers) and what their prices are. There may be an opportunity to form partnerships to help them maintain their competitive position against Asian suppliers. o Under Trade channels he can find that the non-specialised channels such as department stores (El Corte Ingls), hypermarkets, clothing chain stores and online shops are gaining ground. Here, he can look at their sites on models, sizes, designs of leather handbags or on prices. o In the chapter on market access requirements he can find out that there is a Directive 2002/617EC for dangerous substances in leather, and a law against the use of endangered species in leather (CITES -EC 338/97). There are also anti-dumping tariffs up to 75 for handbags from China, which is certainly good news for handbags from


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Morocco. He can check further in the CBI database whether there are any other requirements with regard to clean production methods of leather, tanning, de-liming and use of chrome. o He can also check Spanish trade shows on leather goods and look at the CBI fashion forecasts to know the seasonal trends in fashion for the coming years. o In the product survey The EU market for handbags (2007) he can find more details on target groups, trends for the major EU market, including Spain. His handbags may fit well into urban, vintage or Boho chic styles. He could target fashion conscious women between 25 and 50 years. The quality of his leather bags is an interesting feature, especially if the leather is made in natural colours. He could consider adding some handbags with beads, coloured stones, as well as some oversized bags. o When doing desk research he also can look into the Portuguese market, which usually follows the trends in the Spanish market.

In most EU countries, there are similar trade promotion offices as CBI that promote the imports from developing countries in the EU or in their own EU country. These can be found at www.tpo-net.com. BSOs In many developing countries, there are organisations that stimulate exports from their country through assistance and export promotion programmes see also chapter 1.1.2. There are governmental BSOs (ministries and national trade promotion offices) and sector associations. In addition to individual assistance, they provide the following information services: Trade and country statistics and publications about EU markets. News bulletins and information on market or trend reports for specific products or sectors in the EU or in a cluster of EU countries. Database of other exporters in your country and of EU importers. Specific product or market information through customised research. In some countries BSOs work with a 48 hour response system. Chambers of Commerce Before approaching organisations abroad, first check your local Chamber of Commerce, which will also function as a BSO. Next to the usual Chambers, there are bilateral Chambers of Commerce such as The Dutch South African Chamber. In EU countries, most Chambers offer a variety of information such as on regulations and on the major trends in industry. You also can find here information about local trade press, trade fairs, business culture and links to other relevant organisations. Addresses of Chambers of Commerce in each EU member state can be found via the site http://www.europeanchamber.com.cn/ or via the World Chambers Network at http://www.worldchambers.com/CCII/index.htm Multilateral organisations Multilateral organisations such as the ITC also offer market information. ITC covers around 50 different sectors on the EU and some EU countries see http://www.p-maps.org. Some of the market briefs and reports have to be paid for. ITC also offers trade statistics that can be found on the site http://www.trademap.org as well as information on export packaging, which is given at http://www.intracen.org/ep/packit.htm


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Within the other multilateral organisations, FAO, OECD, UNCTAD and the World Bank offer assistance programmes for exporters from developing countries. You can find statistics on production, trade and much information on current issues, including trade regulations, trade incentives and access requirements at these organisations. The World Bank has good statistics on demographic, social and economic developments in the world, including the EU. NGOs Within Non-Governmental Organisations (NGOs) there are many organisations that are specialised in a form of assistance, including economic, export assistance and fair trade programmes for exporters from developing countries. Concord is an EU coordination centre for NGOs, which is a good starting point for you to find NGOs in your target countries. Their site http://www.concordeurope.org gives an overview of National NGO platforms such as http://www.bond.org.uk and of NGO networks in all EU countries. Also at the sites http://www.unsystem.org; http://www.oneworld.net or http://www.euforic.org you can find links to NGOs aiming for a better balance in global trade. In addition, you could contact the local ministries of foreign affairs, which publish address lists of NGOs in their country. In addition to providing information, NGOs may offer credit schemes, incentives or assist in locating and contacting potential customers in EU countries. Libraries You could visit National libraries in your own country or in your target markets. Apart from the National libraries, most organisations mentioned so far have libraries that you can visit. Here, you often need to make an appointment first. However, recently many of these organisations have cut their costs by only publishing information online and closing their libraries. Searching in libraries is a self-service activity, which implies that you need to get familiar to their search system. You often search by subject, title or keyword, which leads to a book or publication. Useful parts you can copy. National libraries have an online catalogue at their Internet site. In case of a complex system, you could have a look beforehand. There are libraries that have a document supply service, which carry out a search for you at limited costs and send the result of this search to you, even if you are overseas. However, you need to become a full member. In most libraries, reading rooms have consumer magazines, international newspapers, journals, trade magazines, annual reports, yearbooks and sometimes an online article database and market reports. Embassies Your embassies in target markets can be a useful source for general economic data or country information. They provide guidance on any local regulations or

Multilateral organisations and NGO platforms


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laws. They usually also have general information on doing business within their country and can introduce you to key persons or organisations in your sector and to translators. Banks Banks are another source, especially for financial data such as exchange rate forecasts. Major banks also have departments that are involved in researching world markets, economic trends and developments in international trade. EU Information Centres and EU helpdesk Many EU countries now have a local information centre in the major cities or at a special European corner in local libraries. Here you can find information on EU legislation and directives, EU funding schemes and sources. You can also find general information about the EU member countries here. The EU website has a helpdesk for exporters from developing countries, which provides specific details on many of the trade related issues (http://export-help.cec.eu.int/). You can also find the tariffs and quota for your product see also chapter 2.3.2 of part 2 'Your research practice'. 2.2.1.3 Main low cost sources Trade Associations Trade Associations that are well-organised can provide useful information. You can find them on two different levels: Associations of manufacturers: in some countries there are associations on a product or sector level. In the case of furniture, there are furniture manufacturing associations and there are wood associations (by raw material). Both associations have different points of view and different information. If you are looking for local manufacturers, you can often find them through the members list of these associations. Check the sites of these members and see whether they could be interested in your product or in some form of cooperation. Associations of retailers publish newsletters or reports on retail sales and trends in their country. Trade associations have their own databases and have reference libraries for their members. They sometimes conduct their own national or international market studies. These studies are quite reliable and informative, especially in Germany, France, UK, Spain, Scandinavian countries, Ireland and the Netherlands. Sometimes they make comparisons between different EU countries. Information is often in the local language, although some associations also give English translations. If not, you can translate their information with http://www.google.com/translate_t - see also the CBI export manual Digging for gold. Reports of trade associations are free to members and are often sold at a cost, usually between 50 and 250 to non-members. Tip: Always try to access their news service, articles or annual reports that use information or give summaries from their reports.

extracts of studies in annual reports

world-wide or national trends


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For some sectors, there are European Trade Associations who publish newsletters with a focus on some EU countries. These associations are also useful sources for EU production data and for getting to know the hot issues in the whole industry or sector. Some associations also provide information on consumption and trade channels. Tip: Definitely look at websites of European Trade Associations, the addresses you can find in all CBI surveys under doing business. At their sites, you can find out sector related portals and links to other product related organisations. Tip: Before buying a report keep in mind how useful the information will be and how much it will cost to gather the information yourself. Always check the table of contents and see if you can get a summary of the report. Trade magazines and newspapers Trade magazines published in your target market are very useful for gaining a general impression of the market developments, competitors, market or lifestyle trends, current issues and opinions in the industry and addresses of active agents and distributors. Special features can sometimes include relevant market statistics. You can receive these magazines overseas by contacting them by email, or by asking for their contact details at a library, at your embassy or from someone you know who lives there. Once you are in contact with the editors, you can ask for back copies. Online subscriptions to their database, which often includes a news service by email, vary between free of charge up to 200 per year. The advantage is that you will have up-to-date information from a sector specific source, some insight reviews and some statistics. The addresses of trade magazines you can find in all CBI surveys under doing business. Tip: You can share such a subscription with other exporters or ask a BSO to subscribe. National Statistics Offices You will be able to find here raw data on demographics, income, employment, education, immigration, population density, leisure activities, consumption, household expenditure, housing, production, number of employees, industrial development, international trade and much more. This data is a good basis to spot changes in demographic, lifestyle and consumer expenditure. Examples on how to make these connections are given in chapter 2 of the CBI export manual Exporting to the EU, which can be downloaded from http://www.cbi.eu/marketinfo You can look at their websites or buy their yearbook at low cost ( 20 40), or get it from libraries. Many National Statistics Offices have the information in their local language, but with a dictionary you will able to read most of the statistics and tables. Sometimes websites of statistical offices are complex. Try to allocate some extra time to understand how they categorize their subjects, how to create your tables of information and how you can retrieve the data you really need. Here, take care that you dont get lost in the abundance of information that is nice to know!


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It is definitely worth checking out National Statistics Offices carefully. Once you know the way, you will be surprised with the results. You may be lucky to come across international comparisons of different EU countries. This will save time. Statistical offices spend large budgets on comparative tables of consumption or on usage patterns. For traditional food products, such as rice, milk, bread, beer, wine, the usage is registered nationally and internationally. A main reason is that a clear administration and definition is required for levying taxes and subsidies in EU countries. This registration generally applies to alcohol, cars, gasoline, milk and agricultural-products, which means that in many EU countries there is much information available on these sectors. The addresses of statistical offices you can find in all CBI surveys under useful sources. International directories International directories provide addresses of manufacturers, importers and wholesalers. However, some of them sell old addresses, often without websites or email addresses, so you can only reach them by phone or fax. Therefore, it would be better to look first at the CBI market surveys, at websites of local trade associations and at trade fair databases before buying these addresses. Some directory providers are given at the end of this chapter. Other There are the following other organisations that could lead you to other low cost information: Trade fairs sites addresses see CBI market surveys. Local and International universities and business schools. They have their own search engines. Trade promotion offices in the USA, Canada, Australia or China that provide news and reports on some EU countries or on global basis at low cost or for free such as TradePort Country Profiles http://www.tradeport.org/countries/index.html or http://www.usatrade.gov where you can come across market reports on EU countries, which are made for US exporters, which can be downloaded free. 2.2.1.4 Main high cost sources Business information providers You can also buy up-to-date information reports from business information providers. These can be research brokers/agents or research companies. Both offer a range of international market reports through their online databases. Brokers and agents re-sell complete or parts of market reports from the well-known UK and international research companies. These reports are on many different sectors and cover the global market, the market in EU countries or in individual countries. When searching on the Internet with the terms market, consumption or production on any product/sector or country, you will immediately see

addresses of trade partners via international directories


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the names of the big research agents. In 2008 the most common agents included Research and Markets, Mindbranch, Global Information, Reportlinker, Report Buyer, Corporate Information, Marketresearch.com as well as some agents from India such as Bharat Book Bureau, Aruvian Research, RNB Research and from China such as Chinamarket. The well-known research companies are Datamonitor, Euromonitor, Freedonia, Mintel, AC Nielsen, GFK, `Frost & Sullivan, Key Note (UK market) and many more. They offer a large variety of market reports, market briefs, article service, company and retailer profiles of the EU countries and other countries around the world. Sometimes they are specialised in food, clothing or in industrial products. You can find these research companies under useful sources in chapter 2.7. Most research companies offer valuable information and are sometimes quite detailed on consumer behaviour, buying patterns and retailer opinions. Another advantage is that you have information on several EU countries from a single source and compiled in a similar format. However, the disadvantage is that you have to pay for it! Sometimes prices go up to 4,000 for a European report on one sector. Tip: Here you also can share a report or parts of it with another exporter or BSOs, or you can commission some of these companies to make a report. Before buying a report, keep in mind how useful the information must be. For example, does it provide enough answers to your questions? Are all your target countries covered? Check carefully the table of contents and think about how much it would cost to gather the information yourself. Once you have decided to purchase a report, you must pay in advance with a valid credit card. Then you can download the report or have it sent by email on CD Rom or in hardcopy. Even if you buy them in parts, these reports are still expensive. Tip: Be careful with the publishing date. This can be sometimes 2 years later than all statistics in the report. For example, the report was published in 2008, but provides statistics for 2006. So before buying, check the summary or contact a salesperson and ask him to send some sample pages. Tip: Try to get anyway a sample report from another country or another product. Then you can judge if the information given is explanatory enough, if they give some background information and, where statistics or statements are based, on or what product definitions they use. Mark the sources During your desk research try to mark the pieces of information with a date and source. In doing so, you will know where you got it from, especially if the information subsequently proves to be false.

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2.2.2 Desk research using the internet The Internet offers an almost endless stream of information. All sources mentioned in the previous sections have websites, so you can access these sources and an innumerable amount of other sources anywhere in the world, just from your desk. An ideal method to collect data or information The Internet is a very useful research tool, it gives you great possibilities and if you do it right, you can save much time. However to avoid any disillusionment: Look first at the websites of useful sources. If you cannot find what you need, maybe some links or portals will lead you to some answers. Search by keyword using different search engines, where you must be creative when entering keywords and narrow your search in time and know when to stop! How and where to search via the Internet and organise your information is further explained in the CBI export manual Digging for gold.

Structure your Internet search Be prepared, stick to the subject and avoid getting off the track. Hence, like all other research methods, structure your search and write down beforehand what you are looking for, keeping your Research Action Plan (see chapter 2.3) at hand. Remember: always focus on what you need to know versus what is nice to know. In your computer create a Market Research Directory that you subdivide into countries and then by subjects. Take moments of reflection Take regular breaks, for example, every hour with a moment of reflection by asking yourself: What was I looking for? What did I collect so far? Do this by skimming the documents (see chapter 2.4). How and where does this information fit into my Research Action Plan? If it is useful and reliable, where do I file it into my Market Research Directory? What is worthwhile to print out for reading? Decide on which countries require more information. Can I find this out from somewhere else (by field research, reports from business information providers)? Tip: You can find the best results in national search engines and use the local language of the country concerned. You can find these engines via http://www.whitelines.net Internet Action and Human Interaction: You also need people! Do not give up when you cannot find information by yourself. Try to take time to contact someone from any of the relevant sources, preferably by phone or otherwise

endless access to information from anywhere

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by email. Most of the aforementioned organisations are required to inform other people, including foreign exporters. Try to simply explain to them what you are looking for and do not expect instant answers. When you speak to the right person, they are often willing to answer your question or to point you in the right direction. It also may lead to useful information and sometimes to unexpected business contacts. Tip: For any organisation you need to contact for additional information, make a standard email or letter. This you can use several times with slight modification, focussing on the people or organisation you are contacting. 2.2.3 Primary or field research What is it and what to collect? Field research is the way to collect primary data by using face-to-face interviews, store checks, observations or telephone interviews. This implies that you collect the information on the spot. Here, you are zooming in from the general country and sector level to your specific situation. The role of field research? There is often a need to validate the findings from desk research and collect additional information. You could find some of the missing information from interviews with buyers or consumers. You may become aware of hidden feelings people have towards your company, country or product. This could be a real eye-opener for you or for your business. Even if statistics show a growing market, field research can be crucial to making the final decision. In other words, whether or not to enter this market, and if so, how to do it. For example, the exporter of tennis balls (see chapter 2.1), may have found out by desk research that Germany was the largest EU importer between 2006 and 2008, and was increasingly importing tennis balls from China, India, Thailand and Malaysia - but also from smaller DC suppliers. In order to judge if he should focus on Germany as a target market - instead of Italy - he needs to get more details. When visiting for example, the international trade fair, ISPO in Germany, he can find out more on the following subjects: Are German and Italian buyers interested in his tennis balls? Are they aware of the production of tennis balls from his country? Why are these smaller DC suppliers gaining ground in Germany or in Italy (low price, special tennis balls, good quality, outsourcing, fast delivery, tennis balls for special market segments or promotion). What do German/Italian buyers really like in tennis balls from DC suppliers? Is any change taking place in the supply chain of tennis balls? Field research often requires a whole process Field research focuses on consumer or buyers motives (why they would buy your product instead of your competitors product) and forms a basis for your positioning strategy. So field research requires a well thought through and in-depth approach and a whole research process. Here you can combine a

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few subjects as shown in the example below, but do not combine not too many subjects. This makes field research time consuming and more complex. With desk research, you can combine more subjects and countries in one process.

Field research Advantages Disadvantages

Direct exposure gives a better feel for the market

Usually more expensive than expected

Chance to meet potential customers

Takes much time due to a lack of contacts

You can adjust the list with

required information during the field research

Time consuming to judge the reliability of research specialist see chapter 3.2

Start field research in your own country

o Companies already exporting to the EU: you could talk with other exporters, especially those who export to interesting markets. What do they know that may be valuable to you? Even if they may be reluctant, any information from them could be of use. However, you need to verify their information with your own data later on. You can also talk to BSOs or other relevant associations in your country.

o Exporters of similar products: a talk to other companies exporting products similar to yours, but who do not directly compete, may be useful. There might be a way to join forces in research and enter the export market together. Doing it simply your own way The most common and low cost methods for doing field research are: n Personal interviews (face-to-face) at trade fairs; o Observations at trade fairs; p Store checks; q Other techniques such as telephone interviews and Internet surveys. 2.2.3.1 Personal interviews at trade fairs

When visiting a trade fair you have a good opportunity to collect information from potential customers as well as from competitors and key persons in your sector. If you do not want to leave your stand, try to reserve one or two extra days to look around and have short conversations or interviews. Prepare this by considering the following seven points: a. Planning of visit If you are planning a visit to a trade fair, plan it well in advance. With too short notice, it will be difficult to fix appointments. If the people you want to see have promised to give you some information, allow them some time to have it ready.

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Check the site of the trade fair and order a catalogue beforehand, so you can get familiar with the categories, themes and products on show and find out interesting stands and contacts. Check also if there are any seminars or workshops at the trade fair that are worth visiting. Especially international seminars may provide a global overview of the sector, an insight of main players, the supply chain or other useful information. b. Structure your personal interviews Think about what you want to know, or your research subject (see chapter 2.1) and which countries. You also could verify the information you already have collected from desk research. For example, whether the German market for tennis balls has really grown and whether this will continue. c. Who you want to interview? You could make a distinction here, depending on your sector:

- Visiting potential customers Checking your chances in the markets of buyers from importers, wholesalers department stores, hypermarkets, or industry. - Visiting competitors Checking how they approach their markets and what they sell there. (You could pretend to be a buyer) - Visiting key persons Getting relevant information from experts from trade associations, trade press, sector experts. Try to set a realistic target on how many people to interview, the duration of the interview of for example, 6 potential customers (2 in 3 countries) in the morning, 20 minutes per interview; 3 competitors and 3 key personnel in 3 countries. You can take more interviewing time; it all depends on what you need to know from them. d. Making appointments Try to find out the right contact person and make an appointment beforehand. You can use name dropping here by saying that you received their name from company X or from the trade association. Briefly explain that you are interested in their company, products and production system. Once you are in contact with the right person, that allows you to enter the stand. Often large stands do not allow people to enter without having an appointment. Even if your contact person is away or too busy, you may be able to speak to someone else and take the opportunity to look at their products and collect relevant brochures and leaflets. e. The right timing When visiting people at a trade fair, get your timing right. At the beginning of the fair, people are not really in the mood to answer questions from someone they do not know well. So try to choose a quiet moment, or one of the last days of the fair, when people are more relaxed or sometimes bored. A good opportunity is the golden moment, when people are taking a coffee or having some food.

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f. The questions Think well beforehand about the sort of questions. Try to keep them short and simple. If questions are long or complex, people will quickly get confused, often leading to wrong interpretations and answers. There are different types of questions: - Open questions, for example Could you tell me how satisfied you are with your current product X? People can answer this question more freely in their own words and this can turn quickly into a conversation, jumping from one subject to another. A disadvantage is that it is more difficult to keep control of the conversation. There is a higher risk of misunderstandings and the answers are more difficult to analyse. - Closed questions, which can be:

o Dichotomous on which only two answers are possible yes/no or agree/disagree or see/did not see. o Multiple choice, meaning four or more stated answers are possible.

Closed questions are useful to structure your questions. You also can ask several questions in a short time. They are easier to analyse. The disadvantage with closed questions is a lack of spontaneity and that they force people to give too simple an answer, while the reality is much more complicated.

The best thing is to start your interview by asking a few simple spontaneous dichotomous questions from the top of your head, followed by some open questions. This semi-structured approach leads a conversation. You could prepare a questionnaire with 10 - 15 questions. Here are some hints when making your questionnaire: Ask 2 or 3 general and easy questions first; Is the person willing to answer your questions? Is the person able to answer your questions? Questions must be closely related to what you need to know and not what is nice to know. Questions should not lead the person to say what you want to hear because he/she finds you a very friendly person. Ask the difficult/important questions in the middle or at the end of the interview, depending on the available time of the person. Try to briefly confirm his answer to prevent misunderstandings. Structure your questions by putting them in a logical order so that you can memorize them easier. There is less risk that you may lose track after the third question, if the respondent talks a lot. Dont ask two things in one question, for example: (1) Could you tell me how satisfied you are with your current product X and (2) why? You can ask this second question as follows: (2) If you are not satisfied, what could be the reason? Avoid questions with different replies, for example: Which trends have influenced the success of your product? The reply includes more trends, such as more single households, healthy eating, growing affluence in that country and fashion influences. Therefore, ask instead: Which major trend has influenced the success of your product?

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Tip: You can test your questions beforehand with your staff or colleagues at some quiet moments and make adjustments, if necessary. Because many people at the stand are sales staff, they are likely to talk about their product. When they ask who you are, briefly introduce yourself and mention that you are trying to get familiar with their market. Avoid selling your product. g. The conversation Start the conversation by making a compliment about their product or stand or by showing an interest in their culture; this will be often appreciated. Try to come quickly to the point by asking him/her some simple questions. Once the person carries on talking, try to get control of the conversation by asking your next question. You do not need to say that it is an interview. A small conversation sounds less demanding than showing up an endless list of questions. Try to get a bit deeper into each subject, which usually generates an ongoing conversation. When jumping from one question to another, it creates chaos for both of you. Find out the persons position and what responsibilities he/she has within the company. You may be able to get the name and function of a contact person with whom you can get in touch later. If the person you have interviewed has given you good information, you can give a small present or gadget from your country in return.

After visiting each stand, you can use a note pad to write down relevant information and some details of the company, their products, contact person, special things he was talking about, which could also be personal (he visited your country last year). Tip: When doing your interview in a semi-structured way, you have a higher chance of getting names of important buyers. Combine visits to trade fairs with visits to relevant organisations When you are at a trade fair, try to put aside some time to go to stands of relevant organisations such as trade associations and trade press, where you can also pick up information. If they are not at the fair, you could visit them. Let them know beforehand about your visit and try to make an appointment with a key person. Just explain what information you are looking for, as there could be a mis-communication between you or staff from the organisation, dealing with your request. They may not be familiar with your product or your situation. Therefore, make a friendly but polite email or letter. Avoid asking too many questions, start with 2 or 3 questions and try to be as specific as possible. In your request, it is important to set a date, which gives you a reason to follow up later. Bear in mind that when asking for information free of charge, you cannot be sure to get specific answers.


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2.2.3.2 Observations at trade fairs and other places When visiting a trade fair and you find it difficult to do interviews, try to reserve 0.5 1 day to observe what is going on in your sector. The information should be easily apparent and not be too complicated. Observation research is a method t

Documents

CBI EXPORT MANUAL: YOUR GUIDE TO MARKET RESEARCH