Ever heard of the toy company LEGO? Did you know that this renowned brand was geared towards boys for decades, so much that only 9% of their primary users were female? The company took to sending out researchers to conduct a four-year study involving over 3,500 girls, focusing on their playing habits, and gathering feedback to better understand how to increase the percentage of female users.
With results from the intensive research process, the team worked on a new line of toys involving vibrant colours, additional figurines, and manufactured them in a larger size to cater as an add-on to kids’ accessories. The line, “Friends”, first launched in 2012, has since been a hit with girls and continues to have an inclining market share in construction toys. In addition, research firm NPD Group found that the value of girls’ construction toys tripled to a whopping $900 million in 2014, showing a significant difference from three years prior. This is evident that the direction taken by LEGO in conducting in-depth research has propelled them to remarkable heights and is a building block for their success.
What is Research defined as?
It is acquiring details in all aspects of the business, then using scientific methods to break the information down. Results from the findings would then be distributed through various mediums, such as reports, presentations, and strategic initiatives. Often, research is done in many forms and conducted internally or by an external consultant or firm.
Research is further defined as the capture of accurate data through a systematic approach, using actual observations to deduce real-time data. Generally, the goal is to understand which direction to pump funds into for better sales, profits, and market share.
Types of Research methods:
Think of it as getting coffee with somebody for the first time, where you ask questions to find out more about their hobbies and interests. This method involves structuring open-ended questions in a way where a precise conclusion can be drawn. The goals of this are to get in-depth knowledge about the subjects of the research and to better understand the beliefs of the responders through their behaviour and response.
Data of this research method is collected through the following:
● In-depth Interviews
● Case Study Research
● Focus Groups
● Ethnographic Research
It aims to test theories by objectively collecting and analyzing numerical and statistical data to predict variables of interest. The main goal of it is to test a theory and hypothesis for it to be confirmed. An example is coming up with a questionnaire to understand the percentage of people who play sports on a weekly basis.
This research method includes:
● Numerical Observations
● Closed-ended Surveys
While the approaches provide a vast difference in insights and perspectives, many companies engage in the combination of both to attain the most vital information. This enables them to work smarter in delivering benefits, comparing results, as well as gain deeper insights.
Why is Research important?
Customers should not be purchasing products with the benefit of the doubt. Having sufficient facts from valuable data provides a solid foundation for findings and leaves them with lesser room for contemplation.