Page 3: The importance of market research
An essential part of market growth strategies is to make sure that you know what your customers want (the product), and then to provide them with it - where they want it (place), at the right prices, supported by the right sorts of promotion and advertising.
Market research is the process of researching your customers and the market. Market research enables a company to minimise its risks. Entering a new market always involves risk because it means entering the unknown.
For Dixons this involved desk research into consumer trends (e.g. examining existing surveys of consumer buying habits in Eastern Europe, and figures relating to income and expenditure), as well as 'on the ground' primary research. This included, for example, discussions with local affiliates of the global manufacturers that Dixons already purchases from and meetings with other UK and international retailers to learn of their experiences.
Before going ahead with a new development Dixons cross-references the different types of research (both internal and external) to make sure that all the results agree and it can be sure that it is making the right business decisions.