The Essential Role of Market Research in Planning a Japan Market Entry 

2023 JMEC Lecture
Summary of lecture by Dominic Carter, CarterJMRN
Introduction

In 2023, CarterJMRN CEO Dominic Carter delivered a lecture to JMEC participants on the role of market research in business planning. Drawing on over two decades of experience in Japan, he outlined why market research is essential to de-risking decisions, identifying opportunities, and creating credible market entry strategies. Below is a cleaned transcript of the lecture and Q&A, published alongside the video for those who want to explore the content in detail.

Why Market Research Matters

When you’re developing a business plan, clients usually have strong financial and operational expertise. What they often lack is direct access to the market itself. That’s where research comes in.

Market research gives teams an advantage by providing access to consumers, cultural context, and evidence that supports—or challenges—strategic assumptions.

I define market research as the systematic gathering, reporting, and analysis of qualitative and quantitative data for marketing products and services. At its core, it helps businesses describe, diagnose, and predict market dynamics.

Applications of Market Research

Research can serve many functions:

• Situational awareness: tracking brand awareness, competitors, and customer satisfaction.
• Opportunity identification: spotting gaps and unmet needs in the market.
• Idea development: co-creating new product and service concepts with consumers.
• Concept testing: gauging reactions to advertising, products, or services.
• Performance monitoring: evaluating campaigns and customer experience over time.
• De-risking: reducing the chance of making poor or suboptimal decisions.

Outputs range from descriptive (what is happening) to diagnostic (why it is happening) to predictive (what is likely to happen next).

From Description to Action

For example, car ownership among young people in Japan has been steadily declining. That’s descriptive. Asking why reveals diagnostic insights: high maintenance costs, insurance burdens, and limited parking. And predictive research tells us that only 22% of the Japanese population expects to acquire a car in the next three years.

The important part is not just reporting numbers but telling clients what those numbers mean and what actions they should take.

The Pathway to Insight

Market research follows a pathway:

• Gathering evidence – desk research, secondary sources, and early hypotheses.
• Exploration – qualitative work to uncover buyer decision-making and cultural context.
• Measurement – quantitative surveys to validate hypotheses and test demand.
• Application – synthesizing insights, aligning with client capabilities, and creating strategy.

This ensures you’re not just collecting data—you’re building a coherent, evidence-based plan.

The Importance of Context

Buyers are shaped not only by marketing but by society itself. Japan has unique demographic and cultural forces at play:

• Aging population: nearly a third of people are over 65.
• Women in the workforce: participation rates are high, but management representation remains low.
• Internationalization: global influences are changing business and consumer culture.
• Sustainability: growing concern over environmental and social impact.

Understanding these megatrends helps place client opportunities in context.

Categories, Channels, and Culture

Before speaking to consumers, map the structure of the category:

• How is it defined in Japan versus elsewhere?
• Who are the players, and what business models are in play?
• What are the norms, regulations, and cultural expectations?
• How do channels and distributors work, and where does power sit?

Even seemingly obvious categories can look different in Japan. For instance, “balance” and “aesthetics” are critical in food marketing—cultural codes that shift the way messages should be crafted.

Desk Research and Expert Interviews

Secondary research (published reports, statistics, trade journals, government sources) helps build a 30,000-foot view. But be cautious—many sources are outdated, biased, or unreliable. Triangulate and verify wherever possible.

Pair desk research with expert interviews: journalists, influencers, retired executives, industry insiders. They can validate findings, point to new sources, or offer operating advice beyond consumer feedback.

Primary Research: Exploration Comes First

Primary research is designed for the current issue at hand. It breaks into two streams:

• Qualitative research – exploration through interviews, focus groups, ethnography.
• Quantitative research – measurement through surveys.

Never start with surveys. Qualitative should always come first to uncover language, motivations, and buyer journeys. Only then can surveys be well-designed and meaningful.

Qualitative Methods

• Depth interviews: one-on-one conversations, useful for sensitive or B2B topics.
• Focus groups: structured discussions that reveal shared perceptions and group dynamics.
• Ethnography: observing consumers in their natural environments.
• Usability testing: evaluating digital and product interactions.

These methods reveal the “why” behind behavior and help create buyer personas and journey maps.

Quantitative Methods

Surveys add statistical confidence: market sizing, measuring attitudes, or testing concepts with predictive accuracy. They work well for consumer markets but less so for niche B2B contexts.

Turning Insights into Strategy

Research must translate into strategy. That means:

• SWOT analyses populated with research findings.
• Personas that make customer needs tangible.
• Positioning statements that define the mental space a brand should own.
• Recommendations aligned with the client’s capabilities and market demand.

One JMEC team I mentored won the competition by combining multiple research methods to create personas, test price points, and map cultural codes. Their evidence-based outputs made their business plan both credible and compelling.

Q&A Highlights

Q: What incentives work best for qualitative participants?
A: Money helps, but many people simply enjoy sharing opinions. When the topic is relevant, engagement itself can be rewarding. For duller topics, creativity (meals, tokens of appreciation) can help.

Q: How do you know if participants are telling the truth?
A: Moderation skill is key—building rapport, probing gently, and sometimes asking respondents to write answers before sharing aloud. It’s also about triangulation: seeing if patterns repeat across groups.

Q: Can we quote experts in reports?
A: Yes, with permission. Always secure explicit consent for using names, quotes, or video.

Q: Is it okay to highlight only the findings that support our plan?
A: You must remain ethical, but you should absolutely use supportive evidence to strengthen your case. Just ensure permissions and documentation are in place.

Closing Thoughts

Market research isn’t about data collection alone—it’s about synthesis and judgment. It connects business plans to real buyer demand and de-risks strategy in a market as complex as Japan.

As I told JMEC participants: if you’re doing business in Japan, start with research, do it well, and always connect insights back to action.

Key Takeaways from the 2023 JMEC Lecture

• Market research de-risks strategy: it describes what’s happening, diagnoses why, and predicts what will happen next.
• Start with exploration: always begin with qualitative methods before moving to surveys.
• Context is critical in Japan: demographic shifts, cultural codes, and distribution channels shape every opportunity.
• From insight to action: research must translate into buyer personas, SWOTs, positioning, and concrete recommendations.
• Evidence builds credibility: clients and judges expect more than data—they want a point of view supported by clear proof.

CarterJMRN is an independent Japan market research agency based in Tokyo. For more than two decades, we have helped international companies succeed in Japan by combining deep cultural understanding with world-class qualitative and quantitative research methods. 

Our multicultural team specializes in: 

• Market entry research and strategy 
• Qualitative research in Japan (focus groups, ethnography, in-home interviews) 
• Quantitative research in Japan (surveys, segmentation, concept testing) 
• Trend and cultural analysis 

Whether you are developing a new product, testing a concept, or building a full market entry strategy for Japan, CarterJMRN provides the insights and recommendations needed to de-risk decisions and connect with Japanese consumers. 

https://carterjmrn.com

With offices in Tokyo and Osaka hosting a team of more than 70 full time researchers and 100 staff interviewers, CarterJMRN is a full service Japan-based market research and innovation insights agency. Our history began in 1989 with the founding of the Japan Market Resource Network, which merged with Carter Associates in 2012.

In those more than 30 years we have worked with most of the major international brands to have entered and prospered in Japan. As a proudly multicultural agency, we are known for the cultural depth and effectiveness of our responses to clients’ challenges, applying intelligent and efficient design to deliver actionable outcomes. We work to deliver highly practical, prescriptive and actionable insights, no matter how difficult the challenge seems.

We believe that, although the terrain you face in building a successful marketing strategy and activation path sometimes seems obscure, the path to success is knowable and that the consumer is the guide who will show you the way. Our work is creative and stretching yet grounded in the consumer’s life, their culture and the truths they reveal. We combine the tools of the market research trade with our sense of collaboration, thinking, creativity and boundless enthusiasm to help you create the understandings that drive you to action. Our goal is nothing less than to help you create a successful partnership between your brand and the people who trust it.

Born and raised in Australia, Dominic studied Marketing and Japanese at the University of New South Wales. He began his career at Millward Brown in Australia, a consultancy focused on branding, media, and communications, before moving to Japan in 1999 to help set up the company’s local office.

With over 25 years of experience in Japan, Dominic has cultivated strong relationships with clients and partners. He specialises in providing prescient marketing analysis and strategies, attuned to both Japanese culture and buyer habits.

In addition to his work, Dominic regularly contributes to the community through guest lectures and consultative roles. He offers insights on market entry, entrepreneurship, and consumer trends in Japan, providing a balanced perspective on the complexities of the contemporary Japanese market.