Small Business Planning for Market Research

How to Do Primary Market Research for a New Brand

Introduction

Starting a business is exciting, but it’s risky without market research. Market research helps you understand your customers, check if your idea works, and plan for growth.

This Blog focuses on primary research, which means talking directly to potential customers about your product or service. It’s different from desk/secondary research, where you look at existing reports or data to understand market trends and get an idea of the demand numbers for your idea/product/service.

From the deskResearch Business Plan, you will have:

  • Found a clear, identifiable,  market gap
  • Sized up the market 
  • Decided to invest some time and money into serious research.

 

Here is some more information about what you will need in your start-up Business Plan.

The primary research explained in this Blog should give you confidence that your product/service can sell regularly, profitably, and eventually grow beyond Australia.

Budget Smart

Aim to spend under $5,000 at this stage. If you don’t have $5000 set aside, look into grants, a co-founder, or early investment.

For context, major brands spend well over $100,000+ on research before launching.

Step 1: Get Ready

Know Your Target Market

Define your customer clearly using facts, not just personality types. For example:

“Men aged 35–44, high income, metro areas, no kids, shops at major supermarkets.”

This helps you talk to the right people in your research.

Identify Your Competitors

Do a table sort:

  • Show your test product to people in your target group.
  • Ask: “What do you currently buy that’s similar to this?”

Take photos of competitor products—they’ll be useful later.

Step 2: Understand What Customers Want

Figure out what’s missing in current products—ingredients, packaging, flavour, etc.—and what could make customers switch to yours.

How to Do It

  • Find 4–5 strangers from your target audience (not friends).
  • Offer a $25–$100 gift card.
  • Meet in a quiet place (e.g., a library room).
  • Use a simple list of questions like:
    • What do you buy now?
    • What do you think of this product idea?
    • When and how would you use it?
    • How much would you pay?
    • How likely are you to switch from your current product or what you use or buy now to do the same thing as this new product?

These one-on-one interviews help shape your product and messaging. As you go, your questions will get better and your confidence will grow.

Step 3: Focus Groups – Go Deeper (Qualitative)

A focus group is a group of 6–10 target customers. You’ll talk about your product, packaging, messaging, and what would make them buy it.

Use insights from your interviews to build a Discussion Guide. This isn’t about taste tests (that comes later). Focus groups are more about branding and positioning.

Tip: Keep it simple. Use a community room, offer an incentive of at least $100, and focus on exploratory and open questions that get people talking.

Not sure how to do this? For quick help, use our one-hour, one-on-one coaching via Teams, Zoom, or Google Meet.

Step 4: Try Real-Life Testing

In-Home Use Tests (IHUTs)

Send samples to customers to try at home. Ask for feedback on taste, convenience, and packaging.

Shop-Alongs

Go shopping with a target customer. Watch how they choose products like yours—what stands out, what they ignore.

Not sure how to do this? For quick help, use our one-hour, one-on-one coaching via Teams, Zoom, or Google Meet.

Step 5: Quantitative Testing of Your Concept

Before you fully launch, test your product name, packaging, and brand story with real customers.

Use:

  • Online surveys (e.g., SurveyMonkey)
  • Mock-ups or 3D images of your product

Ask:

  • Do they understand it?
  • Do they like it?
  • Would they buy it?
  • How much would they pay?

Hiring Help?

  • Big budget (over $100K): Look for full-service research agencies.
  • Small budget (under $10K): Break the project into parts and hire freelancers via Airtasker, Fiverr, or Expert360. Start with a small test task before committing. You can also use our experienced and expert Consultants via our one-hour, one-on-one coaching over Teams, Zoom, or Google Meet.

Other helpful sources