1. What Is Market Research?
Market research is the process of collecting and analyzing data about your target market, competitors, and industry to make informed business decisions. It helps you validate demand, tailor your products, and reduce risk.
2. Market Research Example: Starting a Vegan Coffee Shop in Manchester
Let’s look at a hypothetical market research example for a small business:
Business Idea: Opening a vegan coffee shop in the Northern Quarter of Manchester.
3. Objective of the Research
To assess demand, customer preferences, and local competition before launching the business.
4. Methods Used
- Primary Research: Conducted street interviews with 100 potential customers
- Secondary Research: Used data from Mintel, Statista, and local council reports
- Competitor Analysis: Reviewed menus, prices, and reviews of five local cafes
- Social Listening: Monitored vegan hashtags and Google Trends for Manchester
5. Key Findings
- Target Audience: 18–35-year-olds, health-conscious, students and professionals
- Customer Preferences:
- 76% want plant-based milk options
- 64% seek gluten-free and dairy-free snacks
- 48% want eco-friendly packaging
- Price Sensitivity:
- £2.50–£3.00 for coffee is the most accepted price range
- Peak Times:
- Weekday mornings (8–10am) and weekend brunch (10am–1pm)
- Competition Insight:
- Most local cafes are not fully vegan—offering partial menus only
- Average customer ratings: 4.3/5, with limited sustainable packaging use
6. Market Size and Trends
- The UK vegan food market is projected to grow by 9.5% annually
- Manchester is the third-highest UK city for vegan searches in 2024
- Increasing consumer interest in ethical consumption and plastic-free packaging
7. Conclusions and Recommendations
- There is a clear gap in the market for a fully vegan, sustainability-focused coffee shop in the Northern Quarter
- Pricing must remain competitive while emphasising value
- Store design, packaging, and marketing should reflect eco-conscious branding
- Strategic location and loyalty schemes could drive repeat visits
8. How This Example Helps Your Business
This market research example shows how:
- Real-world data guides decisions
- Competitor gaps reveal opportunities
- Surveys, interviews, and data reports all contribute valuable insights
- Clear objectives and analysis improve your confidence to invest or pivot
Frequently Asked Questions
Do I need to do market research before launching a business?
Yes. It reduces risk and helps align your offering with real customer needs.
How long does market research take?
It depends, but even 2–4 weeks of focused effort can yield strong insights.
Can I do it on a small budget?
Yes. Use free surveys, social media analysis, and Google Trends for low-cost insights.
What’s the difference between primary and secondary research?
Primary is original data (e.g., surveys), while secondary uses existing data (e.g., reports, websites).
Is market research only for new businesses?
No. It’s valuable anytime you launch new products, enter new markets, or face new competition.
How often should I update market research?
Every 6–12 months or when major changes occur in your industry or customer base.
Conclusion
This market research example shows how even small businesses can make smart, data-driven decisions. Whether opening a vegan coffee shop or any other venture, conducting thorough research helps you understand your audience, beat competitors, and build a sustainable business strategy.