Question

Kim says that market research is different in the food industry. HOW and WHY. Red Mango offers franchise opportunities explained at redmangofranchise.com. Do you think that franchise opportunity has "potential"? WHY or WHY NOT.

http://www.viddler.com/embed/96544c28/?f=1&autoplay=0&player=simple&disablebranding=0

Answer 1

New product launch is very essential for any business to grow. As mentioned in the video attached, new products help the company to be there in the mind of customers and helps in expansion of the business.

However, launching, marketing and making the new product successful is a hard task for any company. Lot of research should be put in to make it a success.

In general, the companies undertake vigorous market research and launch a new product. However, in food industry, market reseach is very different. It goes the other way round as compared to other products. In food industry the company has to first develop a product considering the taste of consumers, trends in the market and other competitiors producing similar items. Then they use the trial-and-error method to check whether the consumers like the product or not an if there is a viable market for the product. The food company undertakes research whether its own staff likes the new product or not and whether the product is fresh and healthy. Then consumers will easily accept the product; ingredients are important.

Market research in food industry involves a greater role of its staff and managers in accepting the new product to see the market trend. Whether this product is easy to make by them everyday with same taste. Then it should finalise cost ater checking the other competitiors. Marketing of new food product basically is done by the staff who will be making it and the store managers, so that direct results can be obtained and the company can launch its product.

Regarding franchise, it can be said that, one of the successful way of expanding the business is spreading its franchise. This way a company can reach wider population in different countries. It will help them understand different tastes and will help them develop newer products.

So franchise gives an oppotunity to expand range of products, wider market for those products and expand business.