Ryan Learns Market Research: Ryan Learns Something Episode 4

It’s so fun though. I’m Ryan, I’m still Ryan. Haven’t learned a new name yet. this week I’m going to be learning about
market research which is researching markets, I think. So here’s market research
we got your market research we’ve got your definition of market research and
then we got your satisfaction- always guaranteed with most things or your
money back then you got the advertising analysis which super bowl commercials
not worth it analyzed done alright and then you get your optimization which is
just a buzzword for things and most of these are just buzzwords for people who
have jobs and keep jobs. Market research to me has always been winging it, gut
feelings. To learn this already got some books these are the top books I’m gonna get on
google I’m gonna find some other resources probably some tutorials
youtube videos and then go talk to Jeff is an expert he has a PhD and he’s
written a book on it so he’s legit and then I’m going to participate in some
market research myself which I don’t know what that means yet time will tell if you’ve ever bought something or had
someone buy something for you you have been the subject of market research in
other words my friend you are just one big guinea pig. Yep, companies want to know a lot of stuff about the people they’re selling to and what these people think and they
use market research to find out it’s a 40 billion dollar-a-year industry- that’s with a B, so is the fur trade the cosmetics business and the diet industry
so yeah it’s a capital B big and people have been doing it ever since world war
two’s propaganda campaigns. But what is market research exactly? Feels pretty
scientific to me turns out it is and a whole lot of other
things as well market research uses anything from focus
groups to in-depth interviews, to mystery shopping to online surveys and even
Twitter to gather data and then use that to make business decisions. Decisions
like the color of next year’s Honda Accord, whether your favorite soap opera
gets renewed or how much you’d be willing to pay for a pair of
skinny jeans. In fact market research has given us famous products like the trapper
keeper the minivan and more natural ingredients in your morning cereal but
market research isn’t a silver bullet there are plenty of products that fail
even when the research said they wouldn’t where do I even start you know new coke, the apple newton, cosmopolitan yogurt, the zune netflix’s qwikster misstep, bic disposable
underwear what could possibly go wrong? We all know crystal pepsi what about pepsi am? there’s the failures of google buzz
google wave and google plus oh wait, no I have that right there are times when a
company ignores the market research and becomes wildly successful like August Busch iii, maybe you’ve heard of his beer? And maybe you’ve seen this Apple
1984 commercial. The research group hated it but the superbowl airtime was already
purchased so they ran it anyway and it became arguably the most famous super
bowl commercial of all time. So it seems market research is more of an art than
an exact science it can’t predict the future, it can’t
tell you what product will make you stupid rich but good market research can tell you
what pain people feel, and what’s important to them. Just don’t get so caught up in it that you become
the next segway now time for me to research researching research markets- see what I did there? So Degreed has this new amazing app which i’m going to be using this episode to find resources as well as track all the learning that I’m doing
if you want to follow along you can hop on my pathway on Degreed and you can
also see it on the app which is pretty cool. so I found a bunch of books on market
research, I like to use audible so I could listen to books while I do other
things. [music and book recording audio] You might think that the modellers is a modeling agency, but they’re actually a
market research firm here in Salt Lake City. This is the multinomial logit model
which is the main choice model we use all the time.So up here, this right
here is basically in a lot of ways that’s the value of your product I and
this down here is the value of all of the competitive products marketing research is all about
understanding people ultimately. How do I understand people and their needs and
what they’re willing to pay what they want to buy what my what my messages
should be that are going to resonate them how I build my brand we live in a
hyper competitive world and it’s harder to make optimal decisions across all
those areas than ever before what are your first steps? the first thing is almost always taking a big step back and asking
now what question are we really trying to answer what is your business problem and
then your next step is what what data do I have available? what are we going to have to gather to
shed light on that on the question I think that’s one of the real problems
which is all the data is how hard it is to stay focused on on the data that
answer the questions that you need to answer to drive your business forward. We
have to be really careful about who we talk to the way we ask the questions and
then how we analyze the data when we’re done Market research and really deeply
understanding people and their motivations and what they’re going to do
and all this prediction all of it comes down to how do I get people to buy my
stuff and why do people buy stuff Jeff had so much wisdom to impart
regarding market research that we couldn’t fit it all into the episode.
Check out his full interview here After talking to jeff at the
modelers I wanted to find a company that was doing something different with
market research so I researched and I found Chapul, which is a rad little utah
company that’s doing something really crazy trying to get people to eat
crickets. My expertise in cricket bar manufacturing? Life? Yeah, life.
Experiential education for sure so when it came to business didn’t have
any experience, so just listen to free podcast took people out to lunch, did as
much free education as possible basically yeah I had a job the time and
I would take the bus to work it was like 45 minute bus ride and so it’s perfect
for a lecture from like Harvard Business School podcast or like Oxford School of
Entrepreneurship I would just listen to a lesson on the
way to work and listen to a lesson on the way back to work sometimes I would listen to a lesson get
an hour early and go to the public library and get a book on accounting
just like skim through and learn as much as I could from free resources available.
I got a degree in hydrology to think about the big picture or our communities
our civilizations what are we doing with our water where are we going to get it in
the future where where’s our food gonna come from in the future because it’s
very evident that we need some big changes so that’s kind of the the lens
that i was looking through when you know before i started Chapul, I dove into the largest consumer of water which is our food here in the West eighty
percent of our water goes to agriculture and so I tried to figure out how we can
use less water to produce the food that we’re eating and that’s where I was kind
of looking from when I listened to this TED talk about insects and it’s this
Dutch professor, he was like we should be eating insects most the world does and it’s
just cultural reasons why we don’t so I crunched the numbers from a water
perspective and decided that it’s absolutely something that we should be
incorporating into our food supply here you know for the benefit of our children and
the only thing that is preventing it as cultural reasons which AKA marketing and
we decided that an energy bar would be the most familiar product like very
super high convenience we didn’t have any experience with food or making
food other than in our own homes it was trial and error you know? Bring
a bunch of friends over for a party do blind taste test. Do you like this one
better A B or C. And so market research for you
guys from the start was what? Just picking up the phone like talking to
people. We knew that it was a biased sample because people were excited about us and so we tried to eliminate that as much as possible and when we did then there was a lot more hesitation like what is this is crazy like we did a
really specific focus group on like people that love Chapul and why did
they love Chapul, what is it exactly and one thing we found is people that buy
our bars regularly, it was kind of split between three reasons why they’re repeat
purchases it’s either the taste the second reason was the
nutritional aspect and then the third reason was the environmental ethic
almost all of them initially bought it for just curiosity. Having that knowledge
that you guys got for market research how does that affect you know going
forward with your business? It’s interesting because when we launched it
there was no market research about insect protein so that’s that’s
developed over the four years we’ve been in existence as a business and so
now we can take that four years of history and all that market research
that we basically created and develop our next line of products that address that market that now exists now we’re going to tweak our product to to
address kind of the concerns about that initial purchase as well as like
boost each one of those three categories of why people are buying it. In hindsight
I would focus way more energy on market research because everything about your
business everything about your product is all about that end user like the more
you know them the better and everything should be focused and designed around that person around those people that community. Are your crickets free-range? They are not free range but our living conditions mimic
their natural environment they have netflix accounts yeah totally. They like
dark cozy places like under rocks and things like that so that’s what we
provide to them. So chapul wanted to know what kids think of their products so I’m
going to Pegus research to learn how to do a focus group. I’m Kimberly
Anderson I work here at Pegus research I’m an expert and understanding that you
can never predict people. Focus groups and qualitative research in general is very
exploratory so it’s a form to be able to gather people’s opinions and
perceptions the first rule in designing good research is to keep it
simple ask only the questions you need to know a second key rule in terms of
designing good research is to ensure that the the right safety and welfare of
subjects are protected a third key role is to be transparent. Being transparent is key and documentation is critical, in research they say if it’s not documented
it didn’t happen. So we brought in a bunch of kids and we gave them the
option of trying the bar before we told them what the ‘secret ingredient’
was. We’re going to be doing they call this a focus group so stay
focused okay we’re gonna be doing a taste test, are you guys okay with
a taste test? these are like granola bars. You guys know what granola bars are, right? ok so the company that makes these
granola bars wanted to know what kids think about the flavors and so we got
you guys here to try out the flavors and see if you like them or don’t like them, exactly and so these are special bars though yeah they have a special ingredient in
them so do you guys want to try them before I tell you the special ingredient? alright McKay is going for the thai bar. tell me what you think? What do you guys think? That one is kind of weird? ah the chocolate is good, I think that’s a
plus right? What do you think, does it taste good though? Do you like it? Cede is not stoked. What don’t you like about it? What do you think Titan, did you like that? Would you ask your Mom for more of those? Did you like it? okay you guys wanna know the secret
ingredient is? It was fun to see their reactions once we told them they were
crickets in them. Freaked out a little bit no kids were harmed in the filming of
this focus group. Crickets, can’t say the same lots of them ground up. So the older
kids the cricket side of the bar didn’t even faze him at all but they definitely
had some ideas on you know how to market it to younger kids a lot of the younger
kids said you know if they added more fruit made it more sugary basically take
all the health factors out of it so good luck Chapul, good luck. so after digging through all
the resources that I found for this episode from the books the articles and
some of YouTube tutorials and talking to Jeff at the Modellers talking Chapul and
seeing what they wanted to find out and then going to Pegus research and
seeing how to do a focus group and doing the focus group these are kind of my
takeaways from this episode number one knowing why someone is buying your
product is almost as important as who is buying your product and you can find
that kind of stuff out using market research number two there are so many
ways besides focus groups and interviews to find data about your product people
like the modelers can dig in and find data in everything. My third takeaway is
that all companies should be using market research in their business
decisions you gotta gather the data and then you
have to trust the data if you need to do it on your own it’s totally doable. I
started off the season with 15 thousand dollars for learning resources have
$12,315 that left for the rest of the topics here’s what I spent learning about
market research a lot of books so I bought Predictably Irrational on Audible
for $19.55, I bought Blue Ocean Strategy for $18.33 I bought Influence for $10.16 I bought Buyer Personas for $20.20 the biggest book I bought was Marketing Research, I got the seventh edition it was used and I bought it for $61.20 I also read jeff’s book Seven Summits of Marketing Research and he
gives it away for free there’s also a ton of stuff online for
free like articles and podcasts if you want to learn more check that out On the next episode of Ryan Learns Something I learn how to sell stuff on the internet. Not this way turned up blocker on! I still like pop-ups, they’re kinda fun.

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