How to conduct market research and market sizing with SagaCube

It’s safe to say that the world has been turned upside down by the ongoing impacts of the Covid-19 pandemic. In some countries, it can feel like the rules are constantly changing, forcing consumers to alter their shopping and consumption habits. As a result, it’s important for those involved to know how to conduct market research effectively.

This is crucial to find out how usage and purchase habits vary between countries and product types, so that you can make well-informed strategic decisions.

How to conduct market research and market sizing using SagaCube?

SagaCube provides annual data for 3 or 4 key metrics for 139 different product categories for countries all across the African continent. For fast-moving consumer goods (FMCGs), SagaCube gives you access to penetration (consumption or usage), consumption or usage frequency, purchase frequency, and purchase locations. For Appliances & Equipment, 3 KPIs are provided – ownership, purchase location and purchase new or second hand. 

Understanding how a particular product category is performing in different countries can help to guide where to invest and how to prioritize your markets.

Read on to learn more about SagaCube. 

SagaCube in action

Let’s take an example – three companies selling air conditioning – one operates in Kenya, one in Uganda, and the other in Ethiopia. All three are based in the East African region, yet ownership of AC units is actually rather different. In Uganda, only 8% of SagaCube respondents said they own AC, in Kenya 11%, and Ethiopia 17%. So, whilst there would obviously be other factors at play, such as competition and profit margins, this information may help to advise your investment decision – it is unlikely that demand for AC would be particularly high in Uganda, or even any of these three countries, and therefore, it may be more financially savvy to seek out an opportunity for AC in somewhere like Nigeria, where ownership is higher (32%). 

 In Uganda, only 8% of SagaCube respondents said they own AC, in Kenya 11%, and Ethiopia 17%.

Equally, the SagaCube tracker can help you to decide which product categories within a certain country could generate the best return for your money. For example, in Kenya, fresh milk consumption (38%) is over seven times as much as powdered milk consumption (5%), with most people consuming fresh milk on a daily basis, whereas most only consume powdered milk once per week. Therefore, there are two ways to look at this; 

1. More demand for fresh milk = more potential sales = opportunity for profitable investment in fresh milk dairies
2. Potential for a brand to grow demand / fill a gap in the market for powdered milk

Option 2 is more risky but often greater risks bring greater rewards. Before investing, make sure you understand these risks by using SagaCube data as part of your due diligence.

Consultants and private equity investors

Ensure your team has a sound understanding of the relevant market size before you talk with your clients or with a target company, by diving into the market data we collect via our proprietary panel. Integrate statistics about your market into your conversations to confidently demonstrate your knowledge of the industry and showcase your expertise.

SagaCube can also be used as a time and cost-efficient method for conducting market sizing exercises. The advantage of using a syndicated product like SagaCube, is that the data is collected on an ongoing basis for multiple clients. This means you get access to the latest data, without having to wait for a custom study to be completed.

Marketing teams

Trackers can provide you with insight into customers’ overall relationships with a given brand (brand trackers) or product (consumption trackers) so that you can make informed decisions relative to your target population. 

Research may discover that females purchase your product twice as often as males…

For example, percentage purchase could be high but purchase frequency low, and so your marketing should reflect this. When consumers purchase on a daily basis, you may wish to sell the product in smaller quantities, whereas, you could consider promotional offers for large ‘family packs’ of products that consumers purchase in bulk less frequently. If you wanted to encourage more frequent purchases, you could promote individual units. 

Market research importance

Equally, the research may discover that females purchase your product twice as often as males . Therefore, advertising to males may have less success than an advert in a female magazine, for example. OR, if the demand exists, it could have the opposite effect, and could increase male purchase frequency. You can track the effects of these strategies year on year!

SagaBrand for brand awareness

You can also use the purchase location data to influence where you market your products. If you want to increase brand awareness you may try advertising your product in new locations where consumers don’t usually purchase from, could raise awareness. Alternatively, knowing that the majority of purchases are made in specialty stores rather than supermarkets, for example, may mean you focus your advertising budgets here to ensure your brand remains front of mind for your existing customers.

Sales and export managers in your market research process

Our SagaCube tool will provide you with a solid and consistent source of key metrics across the continent. The data is easy to access from anywhere in the world via our interactive platform. Plus, you can download automatic reports to support your presentations.

Find out which categories and / or countries have the highest penetration and purchase levels so that you can order stock that is most likely to sell. 

Want to find out how we can help your business excel?

Drop us an email at sagacube@sagaciresearch.com or register your interest. 

Methodology

SagaCube, the syndicated category consumption tool across the African continent.

Ownership: Do you currently own the following product? (e.g. Air conditioning) 

Penetration: Which of the following products did you use in the last 4 weeks? (e.g.Milk) 

Base: All respondents within the surveyed country

Population: Adults above 18 years old

Period: 12 month period ended May 2021