Market Research in Starting Up Agricultural Business: Case Study of Kosovo Dairy Industry

Abstract

The main purpose of starting up each business is to establish a long-term profitable business. One of the key factors that maintain the sustainability of business success is to have an updated depth and specific market research about the certain industry. The market research aims to collect important information about the market trend and demand, market size, its potential competitors as well as its major buyers. Thus, it is fundamental to analyse the market to identify and understand the current and future opportunities and difficulties within the business field. In general, market research joins together with other factors such as budget, location, professional acquaintances determines the potential level of sales and business success. Most of the dairy businesses in Kosovo are small-sized and have a limited budget and this reflects the level of market research, how research has been done and by who has been done on the opening stage of the businesses. The study will assist in evaluating the degree of market research from the value chain actors in the dairy industry and the effect of market research in the development of the industry. The data used in this study were obtained through interviews with the main actors of the value chain in the dairy industry, in seven regions throughout Kosovo. Research findings have shown that market research is not in satisfactory level and not given sufficient importance especially by small companies in the lower part of the value chain in the milk industry of Kosovo. Therefore, more consideration should be given to market research by all value chain actors, in order to have a successful and sustainable business.