How to research your market and competitors

Before delving into research of the market and competitors, it’s important to first determine the purpose of your business and whether it is unique in its offering.

To do this, start by defining the product or service you plan to provide and ask yourself key questions such as:

• Is there a need or demand for this product or service in the market?
• What other options are available in the market?

By answering these questions, you can begin your research into your target market and competitors.

There are several free tools available to help you gain a detailed understanding of your market and competition. The more detailed your research, the better equipped you will be to present your business to potential investors or financial institutions.

A good starting point for your research is Statistics New Zealand’s Data for Business website, which offers a wealth of detailed information on various industries, regions, and potential customers.

Data for business — Statistics New Zealand

Tips on developing your unique selling point

Choosing the right type of investment

Discover how a start-up in Wellington leveraged statistics and data to conduct thorough market research, improve its product, establish a compelling investment case, and enhance its business decisions.|

Tal Meser is the co-founder and director of Flatfish, a start-up that aims to create a platform for landlords, tenants, and property managers to rent properties happily. During their exploration of the market, the team utilised various sources, including the New Zealand Tenancy’s website, TradeMe, and Stats New Zealand to obtain valuable data and statistics. This helped them gain a better understanding of their core customers, the size of the market, and the dynamics of the industry. Additionally, they were able to make informed decisions on pricing and investment opportunities by analysing average property and rental prices and testing their value proposition with potential customers.

Tal encourages other business owners to use statistics and data to minimise risks and maximise their chances of success. He advises businesses to establish what kind of data they need and to ask for help when necessary. Finally, he emphasises the importance of using statistics to make a compelling case for investment.

Hear from a Wellington-based start-up

Understanding your target customers and why they would purchase your products or services is crucial for effective planning, whether you are targeting domestic or overseas markets.

To achieve this, it’s important to:

• Ensure that your product or service aligns with the needs and preferences of your target customers.
• Determine the size of your potential market.
• Identify where your customer base is located.

You can utilise Statistics New Zealand’s Market Mapper tool to locate your target customers by:

• age
• gender
• income
• household size
• family type.

The Market Mapper tool utilises data from the 2013 census, and the upcoming census is scheduled to occur in 2023.

Market Mapper — Statistics New Zealand

The availability of market information may vary based on the industry you operate in. For instance, trade associations frequently furnish their members with current data for their respective markets.

Banks also generate research that is accessible without charge, though it generally pertains to the economy and small businesses as a whole.

Get help to find and use our data — Stats NZ

To conduct effective market research, it’s important to analyse your competitors and determine the advantages they hold over your business. This includes examining their pricing and marketing strategies.

It’s important to gather the following information about your competitors:

• Identify who they are.
• Determine their sales figures.
• Determine their location.
• Find out what portion of the market they currently serve.

In case the required data is not available for free, you can opt for paid services from Statistics New Zealand’s Customised Data Services or independent research organisations like the New Zealand Institute of Economic Research and Research New Zealand for more detailed research.

Customised data services — Statistics New Zealand

Market analysis — New Zealand Institute of Economic Research

What we do — Research New Zealand