Market Research Guides
United Kingdom
The ultimate guide on how to find the best market research firm in the UK
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Table of Contents
- Understanding market research: what are your options?
- Market research methodologies
- What types of market research companies are available for businesses?
- The market research environment in the United Kingdom
- How to find market research companies in the United Kingdom
- Pitfalls of traditional market research methods
- Key considerations when choosing a market research firm
- Traditional market research vs modern strategies
Market research firms are more integral to businesses than you might realise. They form the foundation of research-driven decisions for companies that are clear about their market goals and objectives.
If you're reading this article, you're likely already aware of the benefits that data-driven decisions can bring to your business. However, gathering data through market research firms—renowned for their industry expertise—can be costly. Therefore, your investment in data-driven decision-making should be carefully considered.
This article will guide you through the key considerations when engaging with market research firms. We will explore general expectations within the market research industry, with a focus on the United Kingdom, as well as the different research methods commonly employed. Additionally, we will discuss how to choose the right type of market research firm based on your investment needs.
Understanding market research
You can access various forms of data depending on the source you choose. There are a lot of companies that offer different forms of research and data that suits well for your business, too. The most common research types are the following:
Quantitative Research
Quantitative research is a method that companies that focuses on quantifying data. It involves the collection and analysis of numerical data to identify patterns, test hypotheses, and make predictions.
Think: "How many consumers are interested in our new product?"
Example: Imagine you're launching a new vegan protein bar. You can use quantitative research to:
- Survey a large sample of consumers.
- Analyse their purchase history and preferences.
- Identify key demographics interested in vegan products.
Qualitative Research
Research methods that lie under the qualitative are those that focus more on non-numerical data and in-depth human experience that is not quantifiable.
Think: "What are consumers' motivations for choosing our brand?"
Example: A leading coffee company wants to understand why some consumers prefer their premium coffee over competitors. They use qualitative research to:
- Conduct focus groups to understand consumer attitudes and perceptions.
- Analyse social media conversations to uncover unfiltered opinions.
- Discover the underlying emotions driving consumer behaviour.
Observational Research
Observational research involves recording behaviours, actions, and interactions of subjects in their natural settings without interference or manipulation.
Observational Research: See the Real-World Picture
Think: "How do consumers interact with our product in their daily lives?"
Example: A supermarket chain wants to understand how customers interact with their fresh produce. They can implement observational research by:
- Observing consumer behaviour in stores, whether by physically evaluating how they interact, or by installing cameras in the stores for observational purposes in the fresh produce isles.
- Analyse online reviews and social media interactions if customers are highly showing enthusiasm in your fresh produce posts.
- Gain insights into how your product fits into consumers' routines.
Desk Research
Desk Research, also known as secondary research, involves the collection and analysis of existing data that has already been gathered and published by others.
Think: "What are the latest trends in the market?"
Example: In order to have a visualisation of the overall market interest in the natural ingredients market for skincare, a beauty brand can make use of observational research to:
- Explore industry reports and market analyses.
- Access government statistics and academic research.
- Identify key competitors and their strategies.
Methodologies
Some of these research methods are well-known, while others are less familiar. Market research firms often have preferred methodologies for conducting research. Below are the top 5 methods that these research firms do, what they are, and why:
Surveys (Both Quantitative and Qualitative)
- Description: Surveys are a research method style that is used in both quantitative and qualitative research methods. It is used to collect structured responses from a large group of people in order to gather data.
- Research Type: Qualitative and Quantitative Research
- Pros: Cost-effective, scalable, and easy to analyse
- Cons: Limited depth, potential for low engagement, susceptible to survey fraud
Online Research
- Description: Online research method is the process of collecting data via the internet, including other potential data sources such as social media monitoring sites and online communities.
- Research Type: Quantitative Research and Desk Research
- Pros: Cost-effective, scalable, real-time insights
- Cons: May not be representative accurate, data quality can vary.
Competitor Research
- Description: This type of research method is used in evaluating competitors’ strengths and weaknesses in the market.
- Pros: It helps with identifying market trends, benchmarking performance, etc.
- Cons: Limited to public data, and may miss emerging trends
Secondary Research/Desk Research
- Description: Desk research (or secondary research) is the research process that involves the collection and analysis of existing data that has already been gathered and published by others.
- Pros: Cost-effective, time-saving, accessible
- Cons: Timeliness, accuracy, lack of specificity
Others:
- Experimental Research
A research method that focuses more on manipulating variables to determine their effect on an outcome
- Focus Groups
Research method that involves guided discussions with a small group of participants
- Ethnographic Research
Research method that involves immersive observation and interviews to understand consumer behaviour
- Observational Research
Observational research is a research method where researchers observe and record behaviours, actions, and interactions of subjects in their natural settings without interference or manipulation.
- Mystery Shopping
Mystery shopping is a type of observational research where researchers pose as customers to evaluate service and experience.
What types of market research companies are available for businesses?
Businesses have a lot to choose from in the UK when it comes to market research companies. Every company is different: their methodologies, and their platforms, all depend on what you need for your project at the end of the day.
Here are the main types of main types of market research companies available in the UK:
Traditional market research firms
- What is it? These firms offer comprehensive research services, including surveys, focus groups, and in-depth reports, typically handling large-scale research projects.
- Market research methods? Surveys, focus groups, secondary research.
- Pros: Full-service, experienced staff.
- Cons: Time-consuming, expensive, slower to adapt to market changes. Can be expensive and time-consuming.
Market research platforms
- What is it? The market research platforms that allow users to conduct and analyse research using specialised tools and software. Some market research platforms also translate third-party data into consumable information in the form of graphs and insights.
- Market research methods? Surveys, focus groups, secondary research, online research
- Pros: Cost-effective, user-friendly.
- Cons: Requires user expertise, limited to the platform’s capabilities.
Report providers
- What is it? These are firms that generates ready-to-consume reports for different industries.
- Market research methods? Sell pre-prepared market research reports.
- Pros: Quick access to comprehensive information.
- Cons: Not tailored to specific needs, may be outdated.
The market research environment in the UK
Market research in the UK
The UK's market research industry is substantial, valued at around £9 billion, employing over 70,000 people across more than 4,000 enterprises (Market Research Society). This demonstrates the extensive scope and significance of market research within the UK economy.
Industries that often tap market research firms are the retail and consumer goods industry, the financial services industry, and the healthcare and pharmaceutical industries. This also means that there are a lot of firms that cater to these industries so looking for a firm if you’re in one of these industries wouldn’t be difficult.
The only trouble now is how to ensure that the firm that you preliminarily chose is trustworthy.
Ethics and GDPR Policies
Ethical practise is important in the market research industry. Considering the number of businesses and organisations that need research data, whatever deliverables they will release to the public and their clients will be a reflection of the firm.
Due to the EU's GDPR (General Data Protection Regulation), market research firms in the UK are highly regulated. This ensure that respondents' privacy is respected, and the research process remains transparent and fair.
What types of market research companies are available for businesses?
In the UK, businesses have a wide range of market research companies to choose from, each offering different methodologies and platforms based on project needs.
Traditional Market Research Firms
- What is it? These firms offer comprehensive research services, including surveys, focus groups, and in-depth reports, typically handling large-scale projects.
- Research Methods? Surveys, focus groups, secondary research
- Pros: Full-service, experienced staff
- Cons: Time-consuming, expensive, slower to adapt to market changes
- Notable Companies: Nielsen, Ipsos, Kantar, B2B International, GfK
Market Research Platforms
- What is it? Platforms that allow users to conduct and analyse research using specialised tools and software, often translating third-party data into consumable information.
- Research Methods: Surveys, focus groups, secondary research, online research
- Pros: Cost-effective, user-friendly
- Cons: Requires user expertise, limited to the platform’s capabilities
- Notable Companies: Mintel, YouGov, Savanta, Dynata, Toluna
Report Providers
- What is it? Firms that generate ready-to-consume reports for different industries.
- Research Methods: Pre-prepared market research reports
- Pros: Quick access to comprehensive information
- Cons: Not tailored to specific needs, may be outdated
- Notable Companies: Euromonitor International, GlobalData, Research and Markets, MarketLine, Technavio
Pitfalls of traditional market research methods
Conducting market research comes with its risks, especially if you’re new to the practice. Common pitfalls in traditional market research include:
Survey Bias
- Survey bias occurs when the design, conduct, or analysis of a survey leads to results that systematically differ from the true values in the population. This bias can arise if firms conducting the research have established associations with third-party affiliates.
- How to mitigate survey bias?
Research the firm you’re considering for your project. Investigate their affiliations with industry names and look for any related news about potential bias issues.
Survey Fraud (with survey platform)
- Survey fraud happens when participants do not diligently complete surveys, often due to the incentives provided. This practice can skew results and diminish the research’s reliability.
- How to mitigate survey fraud?
Before engaging with a market research firm, inquire about their processes for preventing survey fraud, any previous encounters with this issue, and the measures they implemented to address it.
Time (takes ages)
- Research projects require significant time for planning and execution. Delays often arise due to the stringent requirements of GDPR and other policies. Consequently, time management becomes a major consideration when conducting market research.
- How to mitigate time issues in research projects?
Plan ahead and work closely with your chosen market research firm to develop a realistic timeline for your project.
Cost (using agencies)
- High costs are a significant consideration in market research. Therefore, businesses must thoroughly research their chosen firms to ensure they have adequate expertise and deliver value for their investment.
- How to mitigate cost issues with market research agencies?
Compare the costs of services offered by different market research firms. Be wary of firms that propose exorbitant fees without providing a breakdown of their services.
Reports can be outdated and stale
- Market trends can change rapidly and what used to work in the past, say even in the last 6 months, may not be the same trends that will work in the present. Brands need to be aware of using old reports because of the risk of purchasing old reports which can lead to wasted resources for the company.
- How to mitigate the possibility of buying outdated and stale reports?
Request with the market research firm for any updated data on the reports that you requested. Often, firms do make revisions to their reports to update it to the current trends.
Key consideration when choosing a market research firm
When choosing a market research firm, it's crucial to establish your objectives before making an investment. Here are some key considerations to help guide your decision:
Define research objectives
Defining the purpose of the projects and why the company needs a market research agency. It is important to align the methods of the agency with your business goals.
Example: Understanding customer needs vs exploring new markets.
Depending on your research needs, you might need to find an agency that has experience with your project goals allowing them to provide you with guidance in the process.
Time constraints
Consider the project timeline for this project and its subsequent projects. Take into account how the importance of these timelines influences your research choices for other projects to ensure that the work is 1) timely, 2) on schedule, and 3) efficient.
Example: Quick turnaround vs. long-term studies.
For a project that needs immediate insights, such as a product launch, you might select a firm with a strong track record of fast data collection and analysis, possibly utilising online surveys or automated data platforms.
Budget Considerations
Research projects can get expensive. You'll need to consider cost for every single project especially if this involves multiple research methodologies that will require additional cost.
Adjust your needs for the project, balancing the cost and quality of the research.
Example: Small-scale studies vs extensive studies
For larger, more comprehensive projects, like a full market entry strategy, you might allocate a higher budget to partner with a full-service firm that offers a wide range of research services and expertise.
Existing audience
Take into consideration if this project will require a new group of target audience or an existing one.
Considering this will help you figure out which companies to go for: if they already have previous existing data to support your projects and could perhaps reduce research costs, and so on.
Example: Reaching new demographics vs. leveraging existing customer data.
If your project aims to reach a new demographic, such as younger consumers, you might choose a firm with expertise in reaching and engaging that specific audience through innovative methods like social media listening or influencer research.
Traditional Market Research vs Modern Strategies
Market research firms are increasingly adopting modern strategies that leverage technology and data analytics. These strategies are often more efficient and cost-effective than traditional methods. Consider the following when deciding between traditional and modern market research approaches:
- Traditional Methods:
These methods involve in-person interviews, focus groups, and paper surveys. They can be time-consuming and costly but provide in-depth insights.
- Modern Strategies:
Modern strategies utilise online surveys, social media analytics, and data-driven insights. They are faster, more cost-effective, and can reach a broader audience.
- Hybrid Approaches:
Some firms offer a hybrid approach that combines traditional and modern methods to provide a comprehensive view of the market.
The platform directly sources its data from existing sources found on the internet, which reveals real product/service experiences from real people. With &facts, you can experience market research without the hassle of doing traditional market research practises, removing the “middleman” from proactively sourcing out this data, therefore &facts data can't be biased and fraudulent.
The traditional way doesn’t always mean the bad way, but if there’s a faster, and better way to do it, why not try it?
What are other benefits of using &facts vs traditional research methods
- Real-time insights from billions of consumer signals
- Fast, accurate, up-to-date insights
- Cost-effective
Are you feeling overwhelmed? It's common when navigating the complexities of market research. You might even be left with more questions now after that whole information dump that we just made (we’re sorry!).
If you’re still confused about what to do, we suggest that you try out our market and consumer insights platform, &facts. It’s free and you can easily navigate it at your own pace.
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