Gift Basket Business Market Research

Before you decide to go ahead with the planning phase of a gift basket business startup it is prudent to do some market research. To put together a business plan and a marketing strategy you need to understand more about what kind of market opportunities exist and what kind of products and services you should be creating to cater to market needs. You also need to learn more about the profile of a typical gift basket customer so that you know how to market and advertise your products effectively to them. Here are some thoughts on market research and the gift basket business.

Professional or Independent?

It is possible to outsource market research these days and there are many companies that you can contract to do so. However, the best way to go is to do your own independent research as you will save money, make some new connections and ultimately have a better understanding of your market.

Demographic Analysis

Firstly you should look into the demographics of the area that you are wanting to target. Gift basket consumers are more likely to be women than men and they are also more likely to be from the middle class or wealthy socio economic groups.

Survey Prospective Customers

Once you understand the demographics better it is time to sit down with some typical gift basket customers and find out more about them. Set up some interviews with some friends or associates who admit to being frequent gift basket buyers. To survey a wider crowd you can even approach people directly in your community, at church or outside the supermarket for example. Try to find out everything that you can about their experience with buying gift baskets. Ask them why they were attracted to a specific company and what they liked about their products and services. Try to find out their likes and dislikes regarding the company in question and ask them if they think there is a way that their products and services could have been improved.

Some of the people that you meet while doing your market research may later become your customers if you manage to get their contact details and let them know when you have opened your business.

Investigate the Competition

Do some investigation into how your competitors are running their businesses. Study their product ranges and take note of how their baskets are put together. Read their websites, call them on the phone or visit them posing as a customer in order to find out as much as you can about their gift basket pricing and their ordering and sales processes. Look for aspects that you like and don't like about these other companies and decide which things you would like to implement or adapt for your new venture.

While you are studying the competition you should also think about how you will differentiate your products and service from them so that you have some originality and can stand out in a crowded market.

Before you risk your startup capital on a new gift basket venture make sure that you have completed thorough market research to reduce your risk and help you to plan more effectively. And even once your business is up and running it doesn't hurt to continue to research the market through your customer feedback and other methods.

Additional Articles -

Gift Basket Business Statistics - Overview of the Industry in the US

Preparing a Gift Basket Business Plan

Gift Basket Business Startup Costs and Funding Options