How do you do market research?

BlackEdelweiss

I dont know how to do market research for my business idea. I want to sell a fresh food product with a few different modes of selling but I have no idea how to do any research into the viability of the idea. It is a product most people like and they sell in many places but mine would be a fresh healthy version.
How do I go about doing this without spending a fortune on a professional company? I saw the advice about adwords but it dosent really fit into my idea as I am hoping to add a new dimension to the existing system.

surfbored

I have just finished studying design methodology as a college subject and I can pass on some of the relevant notes. It's based around product manufacture but I think a lot of it could be applied to a food product. At worst it might help develop some of your ideas.

PM me if you're interested.

BTW, that was some sound advice you gave Bendycovey!

random.stranger

Hi Op,
I was writing an exceptionally long speel about my experience, but if it doesn't take too much investment on your side, sometimes the best market research is to get out there & start selling your product eg at farmers markets etc.

If this isn't an option, I can post the speel.
Best of Luck.

BlackEdelweiss

I was thinking about the farmers market idea, I'm not sure about the legalities of cooking food in my own house though, we have 2 dogs so I think this rules this out. I have another idea about getting around that though.
My start up costs would be relatively small, the only big one being a small refrigerated van which would cost about €7000+-. The rest of the costs would be basic packaging and raw ingredients, another €200 would probably get this for me.
The nature of the idea is one that I dont think market research would give a accurate response, I think as you say just getting out and doing it is going to be the only way to find out.
Where do I get my 7 grand to get going, I cant do it without the van and I dont think I could get a loan without some kind of market research to back it up, or could I. Are the banks still giving car loans?
I'd love to hear the speel as well if you ever get the time.

random.stranger

If you could hire that van for a day, sounds like you would be flying!

Maybe you could hand out small samples to get people interested in your stall & try coming back a few weeks in a row to see how repeat business goes?

iamthe43

OP:
I was in the exact same position as yourself not so long ago. Get in touch with your local Environmental Health Officer and discuss making the product in your own home. Your pets may be an issue.

I woudnt jump the gun when it comes to buying a refrigerated van. Im selling produce at my local farmers markets and ive been using standard cooler boxes to transport my goods from my home to the market. These can be easily purchased are relatively cheap, along with some ice packs and a thermometer to monitor temperature.

Your packaging can be bought in local pound shops for the moment. Im paying €0.30/ container at the moment as i am buying them in packs of 50, but I intend to buy in bulk to save costs.

Your should consider shouldering to cost of your raw ingredients yourself for the moment, just until you build up a client base. This is what I did and I am breaking even every week.

You will also need product liability insurance to sell your product. I got mine from FBD and have already made back half of that cost.

All of the above is enough to get you selling at the farmers markets and you can begin to do your market research while there.

Dont be disheartened by the initial start up costs as they can easily be overcome with proper planning

Random.Stranger:
I would love to hear your exceptionally long speel about your experience to see if we can learn from it.