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Unlock This CourseSecondary research involves collecting and analysing data that already exists. Unlike primary research (where you gather new data yourself), secondary research uses information that someone else has already collected. It's a bit like being a detective, looking through existing clues rather than finding new ones!
Key Definitions:
Secondary research is often quicker, cheaper and easier than primary research. It gives businesses a head start by building on what's already known. For example, a new ice cream shop might look at existing market reports about ice cream trends before doing their own customer surveys.
Secondary research is particularly useful at the beginning of a project to understand the bigger picture. It's great for spotting trends, understanding the market size and learning about competitors. Many businesses use it before conducting more specific primary research.
Secondary research data comes from many different places. Let's explore the main sources:
These are sources of information from within the business itself:
These are sources from outside the business:
Census data, economic reports, industry statistics from organisations like the Office for National Statistics (ONS)
Market research reports, industry analyses, competitor annual reports, trade journals
News articles, magazines, social media trends, online reviews, blogs
The internet has revolutionised secondary research, making it easier than ever to access information:
Tesco, one of the UK's largest supermarkets, uses its Clubcard loyalty scheme to collect huge amounts of data about customer shopping habits. This secondary data is analysed to spot buying patterns, which helps Tesco make decisions about stock, store layout and targeted promotions. For example, they might notice that people who buy nappies often buy beer too (new parents treating themselves!), so they could place these items near each other or create special offers.
Not all secondary research is equally valuable. Here's how to judge its quality:
Is the source trustworthy? Government statistics are generally more reliable than a random blog. Check who created the data and their reputation.
Does the data relate to your specific question? Data about ice cream sales in Australia might not help your UK ice cream shop.
How old is the data? In fast-changing markets like technology, even 1-year-old data might be outdated.
A handy way to remember how to evaluate secondary research is the CARRDS method:
Netflix uses extensive secondary research to decide what shows to produce. They analyse viewing data (internal secondary research) to see what genres are popular. They also study industry reports and competitor offerings (external secondary research) to spot gaps in the market. This helped them realise there was demand for original content like "Stranger Things" and "The Crown", which became huge hits.
Here are some ways businesses use secondary research in real life:
Imagine you want to open a vegan café in your town. Here's how you might use secondary research:
Look at ONS data to find out the population of your town and its age breakdown. Research reports on the vegan food market in the UK to understand its size and growth rate. Check local council records for how many similar cafés already exist.
Read social media discussions about vegan food in your area. Check review sites to see what people like and dislike about existing cafés. Look at Google Trends to see if searches for "vegan food" are increasing in your region.
Secondary research is a powerful tool for businesses. It provides a foundation of knowledge that helps make better decisions. While it has limitations (it's not tailored to your specific needs and may be outdated), it offers a cost-effective way to understand markets, spot trends and identify opportunities.
Remember that the best approach is often to combine secondary research with primary research. Start with secondary research to understand the big picture, then use primary research to fill in the gaps and answer your specific questions.
By mastering secondary research methods, you'll be able to make more informed business decisions based on evidence rather than guesswork!