How to Conduct Secondary Market Research
Contents
Knowing your customer is good, but every MVP development starts with understanding global market trends. At the pre-seed stage, startups are all looking for free ways to gain relevant expertise. And conducting secondary market research is one of the rarest shortcuts to getting the data you need without breaking the bank.
Secondary research involves gathering existing data from previously published reports, studies and other resources – saving you time and money. But simply studying the information is not enough to draw the right conclusions, find your niche and determine the main direction of your business development. In this article you’ll learn what secondary market research is, how to use it while building your MVP, which free services and sources in the UK are crucial to follow, and how to turn the insights you gain into product market fit.
What is Primary Market Research?
In simple terms, the definition of secondary market research is the process of collecting data from government departments, universities and reputable organisations such as research agencies, industry leaders and others. It is usually presented in the following formats:
- Published reports;
- Market analyses;
- Academic studies;
- Customer reviews.
Analysing existing information to gain insights that can help you make business decisions based on market conditions, trends and consumer behaviour.
Secondary market research is also known as desk research. It consists of gathering data that already exists and has already been produced by external sources, known as secondary data. This research method involves research being collected from internal sources and external sources from a business.
While primary research gives you highly specific data tailored to your business, it's time-consuming and expensive. Secondary research is faster and cheaper, but may lack the nuances specific to your startup. For pre-seed startups on a budget, it is a great way to get started without additional costs.
The other benefits of secondary market research are:
- Quick turnaround – because the data already exists, you can start analysing it immediately, speeding up your go-to-market plans;
- Broad perspective – secondary research often covers large-scale trends, giving you a bird's eye view of your industry or market, which can help you refine your business strategy;
- Risk mitigation – by using data from reliable sources, you reduce the chances of making decisions based on gut feeling, which is particularly risky in the early stages of a startup.
What are the basic types of market search for your MVP
Let's give a short overview of their objectives, differences, the tools they use, and the results you can get.
How do business use secondary market research
Let us look at examples of how well-known global companies use secondary market research tools and capabilities.
Entering new markets
Customer attitudes and demand for particular products or services can vary greatly from one region to another. As a result, the size of the market that a new business can potentially occupy also varies. Secondary market research can help you estimate the potential reach of your product or service among different groups of people.
✍ Example. When launching in new markets, Spotify uses secondary research to study music consumption habits. They analyse existing data on genre preferences, streaming trends and cultural differences to tailor their offering.
Finding product market fit
A wide range of demographic research reports identify not only the interests, but also the concerns and desires of your potential customers. By building a product around the needs of the audience, you can provide the market with features and tools that will help to satisfy them.
✍ Example. Revolut reviewed research from financial institutions and identified growing consumer frustration with hidden banking fees and cumbersome international payments. This helped to design fee-free international money transfers and a disruptive banking model that quickly gained traction.
Optimising workflow
Use secondary market research data that skips costly steps that do not affect potential profits. This kind of insight can be found in statistics on the costs of certain processes: human resource management, waste management, downtime.
✍ Example. Deliveroo, the UK food delivery company, analysed publicly available food consumption trends, city demographics and competitor reports. This helped them to target cities, launch in areas of high demand and optimise their logistics model.
Secondary Market Research Methods
There are a number of secondary market research techniques and services that you can use to gather the relevant and verifiable data – free of charge.
Data Analysis from Public Sources
This involves reviewing data from government agencies, trade associations, and industry reports. It’s great for getting up-to-date information on market trends, customer behaviour, and economic forecasts.
Free Services:
- GOV.UK – officials website.
- World Bank Data – global databases, pre-formatted tables, reports, and other resources.
Literature Reviews
Reading past research studies, industry white papers, or academic articles can help identify broader trends, challenges, or innovations in your field. It’s a cost-effective way to learn about market dynamics and competitors.
Free Services:
- Google Scholar – aggregator of scientific articles and publications
- ResearchGate – commercial social networking site for scientists and researchers to share work, ask and answer questions, and find collaborators.
Industry Reports
These reports from market research firms provide detailed analysis on specific sectors, consumer preferences, and growth opportunities. Although many premium reports come with a price tag, some companies offer summary versions for free.
Free Services:
Competitor Analysis
Monitoring your competitors is another valuable technique. By reviewing competitors' websites, annual reports, and customer reviews, you can gather insights into their strengths, weaknesses, and customer pain points.
Free Services:
- Glassdoor – company reviews;
- SimilarWeb – website traffic analysis and marketing insights.
Market and Trade Publications
Industry publications often provide access to recent news, trends, and expert opinions. These can be useful for staying updated on sector developments, even in niche markets.
Free Services:
- TechCrunch – perfect for tech startups;
- The Grocer – insightful for food industry and retail;
- Business Insider – focused on various sectors.
And here are some examples of use cases where you can gain valuable data through secondary market research to change strategy and rock the industry:
Food tech
Use government data on UK consumer spending habits, available from sources such as the Office for National Statistics, to identify which segments spend more on such services.
And analysing competitor customer reviews on Glassdoor or website traffic on SimilarWeb can provide insights into what customers love (or hate) about existing services.
More food tech trends 2024 you can find here.
E-commerce
View free segments of IBISWorld or Statista reports to gauge current retail industry growth, understand customer buying patterns and benchmark your approach against existing solutions.
Learn more about e-commerce trends 2024 here.
Fintech
Regularly reading TechCrunch or Business Insider can help you spot emerging trends, such as 'buy now, pay later' services, which could help shape your product roadmap or partnerships.
Health tech
Use ONS data to study the rise of health-conscious consumer habits or look at NHS spending trends to see how health services are evolving.
SaaS products
Review literature on cloud technology adoption rates or previous SaaS launches to better understand the opportunities and pitfalls in your space.
Trusted Research Agencies for Startups in the UK
If you're looking for secondary research and reliable data sources, these agencies can help:
- Mintel – offers comprehensive market research reports and insights across a range of industries. If you're launching a food or technology startup, Mintel can provide a detailed understanding of consumer trends;
- Euromonitor – provides industry reports on global markets. They are ideal for start-ups looking to expand or understand international market dynamics. For example, if you're looking to expand overseas, Euromonitor's reports can provide insights into international competition, regulation and consumer behaviour;
- ONS (Office for National Statistics) – as the UK's largest independent producer of official statistics, ONS provides open access to national data. Their datasets can help you understand the UK economy, regional trends and population demographics - all valuable for refining your market strategy.
Step-by-Step Guide to Conducting Secondary Market Research
Step 1. Define Your Research Goals
It's important to know what you're looking for. Are you trying to better understand your target market, study the performance of your competitors or assess overall industry trends? Clearly defining your objectives will help you stay focused and avoid being overwhelmed by irrelevant data.
✍ Example: Your research objective may be: Identify customer preferences for product features; Identify the strengths and weaknesses of competitors; Assess market demand for a new product or service.
Step 2. Gather The Relevant Data
Use a combination of public and paid sources, depending on your budget and the depth of research required. Focus on information that is directly relevant to your research objectives. This can be done by:
- Reviewing industry reports – look for reports that provide market analysis, trends and forecasts;
- Reviewing government databases – use public records, census data and economic reports to gain insight into broader industry or demographic trends;
- Competitor analysis – visit competitors' websites, read reviews and analyse their marketing strategies.
✍ Example: Compare data from multiple sources to get a clearer and more accurate picture of the market.
Step 3. Organise and Analyse the Data
Now it's time to sort and make sense of the data you've collected. This is where you start to identify patterns, trends and insights that are relevant to your business:
- Group related data – for example, if you're looking at customer preferences, collect all related reports and articles in one section;
- Identify key insights – look for trends that recur across different sources. For example, if several reports indicate an increase in demand for sustainable products, that's a trend worth noting;
- Compare the data with your original objectives – does the information you have found answer your research questions? Are there any gaps in the data?
✍ Example: If your goal was to assess competitors' pricing strategies, create a simple chart comparing the pricing structures you found on competitors' websites or reports.
Step 4. Apply Insights to Your Business Strategy
Now that you have all the information, it's time to use it. The results of secondary market research should inform key business decisions and answer the following questions
- Product development – Are there features or services offered by your competitors that you can improve or differentiate?
- Marketing strategy – Are there specific customer needs or pain points that your marketing can better address?
- Market Positioning – Does the data reveal underserved markets or customer segments that you can target?
✍ Example: If research shows a growing consumer preference for eco-friendly packaging, you could consider offering a sustainable version of your product.
Step 5. Monitor and Update Your Research Regularly
The market is constantly evolving, so it's important to keep your research up to date. Make secondary research an ongoing part of your business and revisit it regularly to keep abreast of the latest market trends and competitor activity:
- Set a schedule for updating your research, whether it's quarterly or annually, depending on your business needs;
- Subscribe to industry newsletters or join relevant trade associations for ongoing insight.
✍ Example: Identify hypotheses and trends about the development of the industry to which your product belongs, and collect all the current trends to use them.
Using the right secondary market research methods seems to be the first interaction with the users you want to attract. That’s why it may be the first complimentary step while building the MVP.
FAQ
What is secondary market research?
Secondary market research involves collecting and analysing data that already exists from external sources like industry reports, government databases, academic studies, and competitor analysis. It’s more cost-effective than primary research, which gathers new data directly from the market.
What are some examples of secondary market research sources?
Common sources include:
- Government databases (e.g., Office for National Statistics in the UK)
- Industry reports from companies like Statista, Mintel, and Euromonitor
- Competitor websites and annual reports
- Academic journals and literature reviews
- Online reviews and user feedback from platforms like Trustpilot
What are pros and cons of secondary market research sources?
Advantages of secondary research – fast, low cost and easy to find. You can do secondary research yourself using a computer and internet connection. Disadvantages of secondary research – provides broader results than primary research which offers more detailed, targeted data specific to research objectives.
What is the cost of conducting secondary market research?
You can use data from verifiable sources free of charge if it's in the public domain.
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