Awareness of changing ground realities in the market scenario is necessary to survive and grow for any chemical industry,whether they are small, medium or large .
It is not as if the demand for product would always be going up. There are many instances in the past when the demand for products have shrunk to such an extent that there would be no alternative other than closing down the production facilities itself. Most of such instances of demand falling down occur due to development of superior substitute or products with similar applications but lower price and higher efficacy.
Most of the chemical industries often pay attention to process and cost optimization to improve the yield and efficacy of the operation but adequate attention are not paid to develop the market for the product in new direction by developing new application. Such scenario causes turbulence in the market for the product, whenever any substitution possibilities occur due to technological or other reasons.
With the product obsolescence becoming too frequent in chemical industries and environmental compulsion driving away number of chemicals from the market and frequent structural changes in chemical industries taking place at global level, market research has become the most vital function in chemical industries.
In such circumstances, market research is now considered to be highly specialized and intricate function in chemical industries.
In earlier times, market research for chemical products were used to be carried out by people with different background including MBAs and economists. Now, it is being realized that without understanding the technology issues and the dynamics of the chemical industries, market research with adequate standards can not be carried out. To carry out market research competently, service of specialized agencies have to be sought, who would combine the knowledge of chemistry and technology factors, understanding of consumer behaviour and preferences, environmental issues, government policies and social conditions and compulsions prevailing in different regions.
For carrying out the market research at reliable level, it is necessary that research agency should have adequate and up dated data base covering the Indian and international scenario, relating to technology issues, price factors, acquisitions and mergers, new projects etc. In the absence of such strong and updated data base, it is almost impossible to carry out credible market research at acceptable standards.
In Indian scenario, where organized data and information are still unreliable and inadequate, it is necessary to carry out extensive field research to ascertain the details and views of the consumers. For market research agency, getting cooperation of the consumers to obtain adequate data and information is a big challenge. Generally, consumers are reluctant to part with the information, particularly since maintaining the secrecy of the operational parameters and consumption norms is considered very important in the mind set of promoters and professionals in the chemical industries these days.
In India, even getting reliable data with regard to imports and exports are extremely difficult. Several of the ports do not publish the import and export data adequately. Many times, the data on import and export of several related chemical products are combined. Further, name of importers or exporters and name of the suppliers are not provided in the import and export data in recent times.
Such problems make the market research more complex and difficult as well as time consuming exercise.
It appears that several companies, whether in medium or large sector, still do not appreciate the highly specialized expertise required by market research agency and seem to think that market research ends up in mere collection of demand and supply figures. The importance of analysis and interpretation of data to arrive at appropriate recommendations require considerable experience and expertise in the market research team.
Market research ultimately paves the way to take decisions relating to capacity expansion, setting up of new projects, deciding project location etc.
Such decisions have far reaching significance. Therefore, the market research job has to be given to agencies who are adequately competent.
Today, in India there are only a handful of organizations,who can claim competence to carry out the market research at globally competitive standards.
It is high time that Government of India and chemical industries should take some special measures to strengthen and encourage the market research companies and provide them necessary importance and recognition.
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