Understanding Local Consumers to Enter New Markets
Expanding into a new market requires more than just translating packaging or ads. You need to understand local consumer behavior, cultural preferences, and buying habits. Focus Group Discussions (FGDs) provide these insights.
FGDs bring together selected participants for a moderated discussion. They reveal deep insights into consumer preferences, purchasing decisions, brand loyalty, and impulse purchases.
Snack food companies rely heavily on FGDs. They use them to test new flavors, branding, and marketing strategies before launching products in local markets.
Objectives of FGDs in Localization
Companies use FGDs to uncover trends, gaps, and opportunities. Here’s how:
1. Understanding Consumer Preferences by Flavor
FGDs help businesses answer key questions:
· Which flavors do local consumers prefer?
· How do age, gender, and culture influence snack choices?
· Do people prefer traditional, spicy, sweet, or fusion flavors?
Example: In Malaysia, FGDs showed that consumers preferred spicy and umami-rich snacks over plain or overly sweet options. Brands adjusted their product lineup accordingly.
2. Spotting Flavor Trends in Malaysia
Trends shift due to lifestyle changes, social media, and health consciousness. FGDs help brands:
· Identify emerging flavors (e.g., plant-based, nostalgic, or spicy trends).
· Test experimental flavors before a full-scale launch.
· See how global trends influence local tastes.
3. Finding Market Gaps and Unmet Needs
FGDs help brands develop products that fill gaps in the market. They uncover:
· Flavors consumers want but can’t find.
· Preferences for packaging, texture, and ingredients.
· Niche demands, like vegan or premium snacks.
Example: A snack company discovered that Malaysians wanted crunchy, spicy snacks with local flavors. They introduced Chili Crab-flavored chips to meet this demand.
4. Evaluating Market Potential for New Flavors
Before launching a new product, businesses must assess market potential. FGDs help by:
· Gauging consumer willingness to pay for premium flavors.
· Identifying which flavors will have the best ROI.
· Refining product positioning based on direct feedback.
Example: FGDs revealed strong loyalty for Salted Egg-flavored snacks in Malaysia. This led brands to expand their product lines to feature this popular flavor.
5. Exploring Cultural Influences on Snacking Habits
Culture shapes flavor preferences, snacking habits, and brand perception. FGDs analyze:
· How traditions impact snack choices (e.g., preference for natural ingredients in certain cultures).
· The role of festivals and social events in snack consumption.
· Religious and dietary restrictions affecting purchases.
Case Study: How FGDs Shaped Snack Flavor Localization in Malaysia
A global snack company used FGDs to refine its product offerings for the Malaysian market.
Challenges:
· Malaysia’s snack market is diverse, with distinct preferences across ethnic groups.
· Global flavors don’t always align with local tastes.
Key FGD Insights:
· Malay consumers preferred spicy and savory flavors like BBQ, sambal, and salted egg.
· Chinese consumers leaned towards milder, umami-rich snacks like seaweed, wasabi, and soy-based flavors.
· Indian consumers favored bold flavors like masala and black pepper.
Results:
· The company introduced Sambal Prawn-flavored chips and Curry-flavored crackers, which became bestsellers.
· Packaging and branding were adjusted to emphasize authenticity and local appeal.
Why FGDs Are Essential for Localization
FGDs help businesses adapt to local markets by:
Identifying flavor trends before launching new products. Understanding cultural influences on purchasing decisions. Tailoring flavors and branding to enhance customer satisfaction. Evaluating market potential to predict ROI.
Companies that use FGDs gain a competitive edge. They create products that truly resonate with their audience, increasing brand loyalty and market share.
Contact VEQTA today to discuss how we can support your company!