Identifying New Business Targets with Market Research

New businesses seem to appear every day and understanding which are worth watching, or potentially partnering with, requires real-time, data-driven intel.

WHAT GOES INTO YOUR AI-ENABLED CONSUMER INTELLIGENCE

Consumers are drawn to everything “new” and that includes novel products produced by competitors. The excitement and goodwill that consumers feel toward new offerings is significant – so there’s something to be said for capturing that energy first.

The trick, of course, is understanding which new products – and companies – have staying power. And there are two very distinct sides to this coin – one calling for a very buttoned up investment tracking, and the other requiring consumer understanding. We’ll explore both.

Spotting Opportunities with Staying Power

With new business opportunities and challenges cropping up daily, focusing efforts on new concepts, products and companies with staying power is essential. The volume of new businesses being created continues to grow as solopreneurs seek to disrupt categories. In fact, “new business statistics from 2022 show that over 1.26 million new business applications were filed in the first three months.” And although “[t]his marks a 7.3 percent annual decrease, . . . it is 50 percent more than two years prior.”

new-business-applications

And of those businesses, only 25% of them will make it to 15 years or more – but how old is your company? If it’s less than 10 years old, you undoubtedly understand that 65% of businesses similarly positioned will fail in the first ten years. And you can be sure that the 25% of new businesses that are ultimately successful are committing to reinventing themselves as needed. They know when to pivot because they’re closely monitoring online for emerging trends and competitors. When they spot shifts in the market or changes in consumer sentiment, they’re ready to adapt and overcome – or acquire . . .

Continuous Monitoring to Inform Competitive Moves & Acquisitions

From a business development standpoint, speed to market is a critical metric for new offerings. Therefore, having a massive volume of potential products or services makes sense. But the volume also poses a distinct challenge for business development teams, as tracking thousands of new businesses starting up, or products being launched is like boiling the ocean. Impossible and frustrating, with the occasional hotspot surfacing in front of you, by chance.

There’s little chance of knowing whether or not this is just a “hot right now” company or trend that hit the news cycle right, or one that poses a real threat – or opportunity! And then how can you know which new businesses are starting up, receiving investments, or gaining traction?

Unfortunately, the small size of most business development teams using manual methods to track companies means they cannot effectively scale to identify top targets. And this is where continuous monitoring comes in. We’ll quickly cover how things look for monitoring both emerging companies and emerging trends.

Monitoring Emerging Companies

Leading companies feed real-time consumer and market intelligence to their BI software. Our AI-powered platform allows businesses to continuously track companies, up to tens of thousands of them, and helps business development teams scale to spot those emerging opportunities – and track these opportunities consistently.

For example, we helped one fortune 100 technology company identify new business development opportunities. Its business development team spotted two new acquisition targets within four months. After taking this target to the CEO to consider potential acquisition, the team was free to refocus their efforts on strategic tasks, such as due diligence.

They continuously rank and prioritize companies, using standard metrics like investment, CAGR, and revenue plus custom metrics like partnership activity and volatility, with dynamic dashboards that rank companies and are updated in real-time.

merger-acquisition-crosstab

Beyond that, they could layer it with relevant consumer and market and media conversation to provide next-level context to every analyses. For example, knowing the investment intel of emerging companies in a category makes more sense when viewed through the lens of emerging market conversation – as we can see below in the supply chain conversation that was happening as the pandemic was spinning up:

Data-visualization-of-top-tier-US-and-UK-media-articles-discussing-global-supply-chain-crisis

This provides an ongoing framework, where companies can switch out underperforming competitors and add emerging challengers to the space. This way, they’re never caught off guard.

And then there are emerging trends to monitor as well. This is where many shiny objects surface, and where companies need to proceed with caution.

Monitoring Emerging Trends with Consumer Conversation

One way to catch wind of up-and-coming competitors in a category – or the potential creation of an entirely new category – is to monitor consumer conversation and see what your target category is obsessed with right now. It offers a good starting point for investigation but shouldn’t stop there.

NetBase Quid reveals conversations and word clouds within specific topics that help you to identify relevant talking points that are resonating with a target audience. As we can see below in “new products” hashtags that capture a wide variety of general conversation spanning multiple categories, we see NFTs, art, real estate, Mother’s Day and Lisa of Black Pink going solo with a new album out:

new-things-hashtags

In the land of “new” a company monitoring the space would come to realize the importance of K-Pop to a specific audience – this one capturing the Gen Z crowd. If your company caters to this demographic, understanding things that are important to them leads to more impactful trend discovery. And we know that K-Pop has staying power, so any company not understanding the cultural nuances driving its clientele is headed for trouble.

demographics-by-age

Not every Gen Z person is interested in Korean pop bands though, so this overarching generalization is an example of the wider conversation happening online, not the specific conversation that will apply to a company’s specific niche. Though it does resonate with certain sectors, like the media and entertainment Industry, which offers intriguing opportunities for merger and acquisition activity. This industry finds itself on the forefront of digital transformation, thanks to COVID, with acquisitions to increase market share serving as a primary planned activity for 41% of EY’s 2022 CEO Survey. For these folks, an understanding of companies winning market share through creative partnerships with industry influencers that resonate with audiences will matter a great deal.

primary-planned-activity-for-businesses-in-2022

And maybe that partnership isn’t with Lisa of Black Pink, but another niche Indie artist earning online awareness. Having that intel to round out an investment analysis is certainly valuable – and relevant insight that can be similarly found for pretty much any niche industry. It all comes down to knowing how and where to look, and having a tool that accurately captures, aggregates and facilitates real-time analysis of the insight

NetBase Quid® does that and more. Be sure to reach out for a demo and we can walk you through a scenario that fits your business needs.

WHAT GOES INTO YOUR AI-ENABLED CONSUMER INTELLIGENCE

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