Few parts of Europe are as unique in terms of geography and culture as the Caucasus. This part of the world has a very different culture and style from surrounding nations. Many retailers and investors make the mistake of entering Azerbaijan and Georgia, assuming that they are culturally identical to nearby nations like Bulgaria, Serbia, and Russia. This, though, could not be further from the truth.
For any company intending to move into these industries, market research has to be particular. In other countries in Western Europe, for example, various types of market research like customer surveys and polls are an accurate method of investigating and analyzing a retail market. In the Caucasus, though, that is not the case – nor has it ever been. For that reason, market research has to be adapted to the region.
Understanding what potential customers in this region are looking for is very important indeed. The culture of this part of the world, though, means that the target market of the same age group in a nearby nation might be looking for something totally different.
Trying to adapt the same methods used in, say, France to market to people in Azerbaijan and Georgia is likely to fail. Trying to follow the same trends, too, would be a mistake; these countries have their own distinct cultures and personalities. When compared to other nations in Europe, they are often very little alike.
So, companies must turn to different forms of market research to get ahead. Key business decisions need to be made on how to best locate target customers. Understanding that the target audience here differs from most nations in Europe, though, is very important. This will help to set-up marketing campaigns that are backed by valuable insights into what people in the Caucasus actually want.
What Makes The Caucasus Unique?
Various factors make countries in the Caucasus unique compared to their nearby neighbours. While many countries in Europe share many similarities, the Caucasus nations are not much alike to those nearby. In many ways, they can feel more representative of the cultures found in Asia and the Middle East; this means that market research techniques used elsewhere in Europe must adapt.
Since the Caucasus is one of the major transport corridors between Asia and Europe, though, it is a vital marketplace for companies of all sizes. Thanks to the agreements it holds with the European Union, Azerbaijan, in particular, is a fantastic place to build a business network. The geography of the region also ensures there is a vast competition to get involved in the natural resources available here.
For example, Azerbaijan has incredible reserves of essentials for the future. Its hydrocarbon reserves are massive, while the agricultural sector in the Caucasus is one of the most impressive in the world. The climate is perfect, meaning investment in the hydrocarbon and agriculture sectors is rife. This has brought an increasingly educated workforce to the Caucasus, especially compared to the past.
Successful Research Methods In Azerbaijan and Georgia
The main thing to focus on when it comes to the Caucasus is using market research methods to spot new opportunities. For example, a marketing strategy built around information gleaned from online surveys might not be as useful in this region as elsewhere. Any market research study conducted, or market researcher hired, has to be understand that this region is undergoing a period of incredible growth.
The byproduct of so much growth in sectors like the hydrocarbon industry and agriculture is vast competition. That increased competition, though, does bring new opportunities. The market size is growing, too, with more people in the region keen to spend and benefit from the growing economies of Caucasus nations.
For example, we mentioned that the workforce here is increasingly educated. This means that the country benefits massively from investments in more high-class pursuits, from leisure activities to a higher standard of retail therapy. Companies can use market research to understand this changing demographic, thus introducing goods and services that are certain to pair well with the workforce here.
Competitor analysis is vital, though, because the Caucasus is seeing unprecedented investment from large firms. Understanding what the biggest investors in your industry or sector are bringing to the table is going to be very important indeed. External factors are increasingly diverse here, too, thanks to the rapid change in the business landscape. The potential for conflict nearby, too, has had an impact on the region.
That is why there is such a demand for research to look into factors such as:
· The impact of conflicts in surrounding nations has had on investor confidence
· What opportunities are still being developed, and what lies untapped so far
· Market entry strategies: how can a business encourage customers and partners?
· Analysis to spot potential weaknesses in competitors to be taken advantage of
· Analysis of strengths in the major players to help avoid stepping on their toes
· An understanding of the culture of the nations of the Caucasus relative to other nations
Businesses must understand that this is a unique part of the world. The doors are open across the region for people to invest and take on new opportunities that are as daunting as they are exciting. Researching deeper into the region’s culture, economy, trends, and external factors is very important. This is not like investing in a high-income economy in Central Europe; this is an emerging economic area.
The opportunities are massive, but the cultural differences and the proximity to potential areas of conflict need to be carefully understood before any express action is taken.
Looking To Expand Into Azerbaijan or Georgia?
If your business ambitions to build a presence in Azerbaijan and Georgia, you would do well to invest heavily in market research. Every company has its own goals, meaning that the most effective research methods will change. As such, companies looking to expand into the region must take the time to undergo extensive analysis of how successful – or not – their products/services will be.
If you intend to expand into this region, know that customer loyalty is essential to people here. Your current customers are very important, so knowing what they are looking for in terms of products and services is vital to customer satisfaction. Generally, though, market trends here are very different from those in other nations nearby.
This is why it is always better to hire a market research firm that has a clear understanding of Azerbaijan and Georgia. They can provide actionable insights to help take your marketing efforts in a new, more effective direction than before.
Ensuring compatibility before entering into a new investment opportunity in Azerbaijan and Georgia is almost a requirement. There are too many factors that might sway your success or failure to simply go in blind. Instead of looking to mimic another’s success or make assumptions, hire research specialists like we have at Qafqaz Research to carry out a comprehensive analysis of the region on your behalf.
