As one of the most powerful tools in modern marketing, market research is essential for long-term business success. The sheer volume of competition in almost every major industry means businesses can no longer rely upon simply being ‘the’ option – there is always a competitor. As such, to offer customers the best user experience, businesses need to research their market to understand them.
However, market research is not a catch-all enterprise. The reasons for market research in one industry can be different from another. In Azerbaijan, in particular, various industries use market research in different ways. While much of the Azeri economy is built on natural gas and petroleum, other industries are becoming increasingly important.
As the nation continues to evolve, it is important to note that two-thirds of its economy is powered by these sectors. In these sectors, market research is often aimed at identifying areas where growth can be accelerated, and risks can be limited. However, other key sectors within the Azeri economy include a growing interest in three major sectors: manufacturing, agriculture, and telecommunications.
In these sectors, then, how do these key industries benefit from market research? How can companies learn from the trends and research in these sectors? Let’s take a closer look.
Manufacturing
Among the most important industries within Azerbaijan is its growing manufacturing sector. Manufacturing became a significant industry in the late 2000s, with manufacturing focused on various areas. This includes defence production—countries like Turkey, Ukraine, Belarus, and Pakistan all have long-standing agreements with Azerbaijan’s manufacturing industry to help ramp up the development of goods.
Most market research companies in Azerbaijan that study manufacturing focus on where demand can go next. Diversifying the economy and increasing the type of products manufactured in the economy is a major discussion point. While there is a specific focus on defence-type developments, market research tends to focus more on looking for gaps in the market where Azeri companies can step in.
Manufacturing tends to involve market research to look for countries with strong relations with Azerbaijan that could rely on Azeri manufacturing. However, the quantity of natural resources used in manufacturing also means that market research tends to focus on spotting where these resources can be used. Looking for trends in global manufacturing is commonplace, as well.
The reasoning is simple: focus on diversifying what is manufactured and what materials are used, and Azerbaijan can position itself as a growing market leader in manufacturing. However, market research can also focus on looking for countries with which Azeri manufacturers can partner should they need help accelerating the development of defence structures and equipment, from arms to vehicles.
Agriculture
Agriculture has always been a major focus for Azeri companies, and that is not likely to change any time soon. One area of market research is to find out where Azerbaijan can begin to produce products locally that would usually have been created elsewhere. For example, many products that require Azeri agriculture would then be produced in another country, such as beers and parquets.
These are now more commonly produced within the country, which has become an important diversification element for Azerbaijan’s economy. Market research is being used to find other areas where Azeri agriculture could be better used to benefit all. However, the most popular market research is used to find areas of Azerbaijan’s geography that could be used in agriculture.
The country has a rich history of producing grain and potatoes, while Azeri soil is also ideal for cultivating cotton and tobacco. Market research often focuses on finding other areas of the country where agriculture could be supported. In other cases, market research is used to look for demand from trading partners with Azerbaijan so that agriculture can be tilted towards what is in demand.
Meadows and pastures are a major part of Azerbaijan’s agricultural economy and will not likely stop anytime soon. With market research, though, the major agriculture providers can invest more of their funds into diversifying what is grown and looking out for trends in the standards that are emerging in other countries. This helps Azerbaijan continue to modernize and meet modern standards.
Telecommunications
Telecoms are also a major part of the nation’s economy, though there are always concerns about the sector’s legitimacy. However, the nation has ambitions to build a modern high-tech sector in its economy, and telecoms will play a major role. Due to the lack of competition in the market, though, most market research is based on new entrants into the industry and looking at where they can succeed.
Most market research in this sector focuses on spotting gaps in the market so that Azeri companies can offer something new. The sector has long been dominated by limited competition, so the major suppliers have a limited need for more market research. As the dominant force in the industry, there is little need to innovate. However, the few trying to break up the relative monopoly need research.
This research validates ideas about what Azeri consumers feel they lack. For example, ample research is being conducted to find ways for new entrants to reduce the cost of calls. Call rates in Azerbaijan are some of the highest in a country of comparable size. New competitors in the field then focus their research on finding ways to reduce call pricing so they can beat the big-name competition.
While Azercell and Azerfon control the market, new entrants use research to find ways to outperform these dominant forces.
Looking For Help With Market Research?
Market research in Azerbaijan is fruitful for companies looking to expand into this developing nation. There is much excitement around the country about what the future could hold for this once rapidly growing economy. With so much focus on already dominated sectors, though, market research can be great for companies looking to diversify the economic opportunities found within the country further.
Qafqaz Research can provide comprehensive research support to companies in almost any sector in Azerbaijan. Contact us today to discuss what kind of research you would like to carry out, and our team can help you break new ground. New opportunities are rising as quickly as the dominant market economies; market research ensures that new opportunities are developed in good faith. Do not hesitate to begin market research with the help of respected specialists in the field. The sooner you understand your target market and its potential, the sooner you can profit.
