An observatory consists of the compilation, analysis and interpretation of excellent information for the knowledge of a market. The common characteristics to most of the observatories of market are the following ones:

• The observatory centers on a category of product / service or on a sector of activity determined. For example, the sector insurances, the category of products «refreshing drinks», the tourist market, etc.
• He tries to obtain information of all the factors that intervene on the market: production, import - exportation, distribution, logistics, legislation, consumers, prescriptores, etc. The observatory goes beyond the diagnosis of the situation of a certain mark.
• As a result of the previous point, the observatories usually combine information
  obtained of different sources: official organisms, market researches, sectorial associations, etc.
• In the observatory, the information collection has a periodic character: in contrast to a market research ad hoc (that tries to solve a problem of information in a given moment), the observatory does special emphasis on the evolution of the information.
• Due to the importance of the evolutionary character of the results provided by the observatory, this one must answer to a systematical design of collection of information, which should guarantee the comparability of the indicators obtained in different waves.

A) How is it done

The first step in the design of an observatory is the determination of the contents of information that is going to reach port, and that normally will be reflected in the results in the shape of indicators. Some examples of basic indicators for an observatory in a category of products of big consumption would be:

• Market structure:

– Entire value of the market and volume in units.

– Number of companies and number of present marks on the market. Market shares of each of them.

– Variedades/subsegmentos in the product category: quotas of each of them.

– Prices.

– Other elements that they affect to the evolution of the market (legislation, international environment, etc.).

• Channels of distribution and commercialization:

– Types of channel.

– Numerical distribution (number of points of sale) and considered (I weigh on the market volume).

– Supplying rules (frequency, logistics, exclusivity, etc.).

– Attitudes and perceptions of the points of sale towards the marks (satisfaction, image, loyalty, etc.).

• The consumer:

– Profile: characteristics sociodemográficas. Consumer's segments / typology.

– Attitudes and perceptions towards the product category: motivations and brakes to the consumption.

– Behaviors of buy and consumption: frequency, volume and expense for buy act, moments of buy and moments of consumption.

– Relation with the marks: indicators funnel: knowledge-> buy consideration-> it tries-> I consume-> loyalty / exclusivity.

– Attitudes and perceptions towards the marks (image of mark).

– Key drivers: weight of different elements in the mark election: typical of the product, image of mark, price, etc.

As soon as the contents of the observatory were determined, one proceeds to the definition of the information sources, beginning for checking what sources of the existing ones at present can contribute information to the observatory fulfilling the requisites of consistency, importance and validity (update).

Between these sources we are provided usually with official organisms (National Institute of Statistics, departments, etc.), statistical yearbooks, and yearbooks or annual memoirs of professional / sectorial associations.

Normally these sources only cover a part of the indicators planned for the observatory, therefore it be usually necessary to appeal specializing information providers, as there are the consumers' panels and the distribution panels.

Finally, for those indicators not covered by none of the previous sources, guy they will design studies to themselves tracking: periodic surveys to samples representative of consumers and/or points of sale.

Pilot wave: normally, the first edition of the observatory serves to fit and to validate both the information sources and the resultant indicators: what statistical treatment is going to happen to the information, what the information consistency is between different sources, how they are going to present before themselves or edit the results.

But the real value of the observatory is obtained from the second wave, across a periodic pursuit, when the results can be analyzed from an evolutionary point of view. The regularity in the indicators update will be determined normally by two factors:

• The availability of information updated in the secondary sources (official organisms, etc.).
• The biggest or minor dynamism on the market, which can involve major or minor frequency in the achievement of the waves of the tracking.

B) Applications of the observatory and utility

With regard to a standard sectorial study, the observatory takes as a target to give a wider vision and – especially – with evolutionary character of the situation of the market in question. In this sense, in addition to the knowledge of the market in every moment, it contributes a series of utilities worthy of mention:

• The possibility of detecting tendencies allows to the users of the observatory to place in an advantage position at the time of designing strategies facing future stages.
• Correctly interpreted, the indicators of the observatory work like a system of early alert before harmful changes in the environment of competition (appearance of new actors, changes in the strategy of the competitors, etc.), reducing the reaction times.
• With a sufficient historical series, the observatory allows to create an experience bank on different events happened in the past: for example, price wars, cooling of the economy, etc. In these cases, the user of the observatory will be provided with a knowledge – based on previous experiences – what the most probable reactions of the market can be and act consequently.

From now on justification does not exist to say that the market evolves so quickly that it has taken us with the changed foot. Our future is the sufficiently important thing to begin putting into practice one of the hardware that is going to assure the sales of permanent form to us.