@DoubleDee
In the early 2000’s we did market research on a health club product. We contacted health clubs, spas, nutritionists, and equipment manufacturers and found out from them ‘What are the biggest under-serviced needs in your sectors’ . We heard the same story from hundreds of these types of interview - many by phone.
Although that doesn’t qualify as a Market Research Companies type of research, we were able to ask these sectors “If this product existed how much would you be able to pay each month to use it - where would it make business sense to use it?”. We asked other targeted questions and felt we had a good handle on what those markets needed.
We then asked 15 different clubs if they would participate in our starting product if they could secure a great deal for the lifetime of the service. We were able to get all 15 clubs.
We then built a web application that serviced the needs in these sectors. In the end we had 1000000 plus users in the system with about 100 000 per day. It made good money.
We sold this business in 2009 and made quite a bit. Since then we have been researching the next thing we are going to get into but have turned down 5 different promising ideas based on researching them with people that represented the target market. Just recently we found another idea that is resonating with people, so we are starting to build a modern web application that services the needs of this sector.
I can’t recommend this type of research enough before you try to launch your business. The ‘build it and they will come’ is great in Movies but not great at all in real life. Research it, give them what the need and want and they will come. I can’t stress enough how important the ‘give them what they want’ is!
A little over a year ago we were asked to advise and consult on a big budget web application; they had over 1 million to spend. They came up with an idea that business really need, but they didn’t find out if there was an appetite for it. For our part, we flagged this as a risk and did some of our type of research and found that although businesses thought it was a good idea they were not willing to spend money on it. We advised the company to not do the project because of this. They disregarded our advise and gave us the reason that we have over $500, 000 in marketing set, we will create the appetite as the need is there.
One year later the company is out of business and the people are now working out of their basements still trying to make the web idea work, where for 15 years they owned their own building and had many employees. Sad yes, but the reality is they did not pay attention to what the market wanted.
Hope this helps,
Steve