How Business Feasibility Helps When Entering a New Market in Pakistan

October 24, 2025

Starting a new business in a fresh market is exciting, but it can also be risky. A business feasibility study acts as a safety check before you make large investments. It helps answer the basic but critical question: “Is this idea workable in real life, in this market, at this current time?” For companies looking to set up in the Pakistani market, where opportunities are plentiful but challenges are equally present, feasibility studies are not just useful: they are imperative to the future of the company.

A feasibility study helps to reduce the uncertainty regarding whether or not the company will succeed, by investigating the market conditions, costs, risks, and possible returns, to report if the idea is worth pursuing. Without it, businesses are left to guesswork, and in Pakistan, where market conditions are largely unstable due to currency shifts, government policies, or supply chain issues, this guesswork can end up costing you more than you can afford. The beginning of any great idea lies in foresight and careful preparation.

Feasibility Studies in Pakistan’s Market

Pakistan has already shown both winners and losers when it comes to market entry. Daraz is one of the biggest e-commerce names here. It began as a local platform, understood the market well, and built strong logistics systems that could handle the realities of Pakistan’s roads, traffic, and consumer habits. Because of this adaptability, it caught the eye of global giant Alibaba, which acquired it in 2018. Daraz’s success demonstrates how important it is to study customer habits, city infrastructure, and payment systems before scaling up.

On the other hand, Careem, the ride-hailing app, announced in 2025 that it was shutting down its service in Pakistan. Despite being popular and well-known, it could not survive growing competition, rising costs, and tough economic conditions. This shows that even a strong product can fail if the wider market environment doesn’t support it.

 

Where to Begin?

A good feasibility study for Pakistan begins with understanding the market size and customer base. The country has over 240 million people, but not all of them are reachable or willing to spend on new products. Urban centers such as Karachi, Lahore, and Islamabad drive most of the demand, but spending power and digital access vary widely. For example, young professionals in Lahore may adopt online shopping quickly, while rural households often stick with traditional shops. Ignoring these differences can lead to wasted marketing budgets and disappointing sales.

 

Hiring a Market Research Firm

No matter the size of the product or service, businesses entering Pakistan must hire a market research firm to guide their entry. Professional firms bring structured research methods, verified data, and industry experience to reduce risk. At ACE Research, for example, we carry out both primary and secondary research, interview competitors, and cover every possible angle of feasibility—helping companies test assumptions before committing serious capital.

 

Defining Target Audience

One of the first steps in a feasibility study is narrowing down the target audience. Most companies start with larger cities like Karachi, Lahore, and Islamabad, but even within these markets, consumer demographics vary. Age, income, education, and digital familiarity all shape how people spend. A clear understanding of the target audience ensures that product design, branding, and pricing connect with the right segment.

 

Target Cities

Cities in Pakistan are not uniform markets. Karachi is large and diverse, Lahore has strong consumer culture, and Islamabad caters to professionals and policymakers. Beyond these, mid-sized cities such as Multan, Faisalabad, and Peshawar have untapped potential but require tailored strategies. Choosing the right launch city can determine whether a product gains traction or fades quietly.

 

Consumer Buying Power, Habits & Trends

Feasibility studies also analyze how people actually spend. Disposable incomes vary widely across Pakistan, and so do habits. Younger urban consumers may prioritize fashion, electronics, and dining, while rural customers lean toward essentials and traditional shopping. Trends such as increasing digital adoption or rising demand for convenience-driven services matter, but ignoring the limits of buying power can be fatal.

 

Retail/Distribution Network

For physical products, an effective retail and distribution network is the backbone of success. Through market surveys and local studies, feasibility research identifies how products reach customers today, which intermediaries dominate distribution, and where gaps exist. Without this groundwork, companies risk misjudging costs or failing to place products in front of buyers altogether.

 

Existing Players and Competition Study

Local competition is often underestimated by new entrants. A market that looks wide open may in reality be dominated by companies with strong networks, customer loyalty, or aggressive pricing strategies. A feasibility study maps out existing players and shows where opportunities exist—whether in direct competition, market gaps, or partnerships with established players.

 

Product Pricing and Branding

Pricing and branding decisions in Pakistan cannot be generic. Market surveys show what customers are willing to pay, how they perceive value, and what kind of brand messages resonate. Misjudging this balance can make a product seem overpriced or irrelevant. Feasibility work grounds branding and pricing in actual customer insight rather than assumptions.

 

Marketing Strategy and Milestone

A successful market entry doesn’t stop at launch. Feasibility research also informs marketing strategy: which channels to use, which milestones to set, and how to phase entry. Whether through digital campaigns, retail promotions, or city-by-city expansion, mapping a clear sequence of steps helps businesses grow sustainably instead of burning resources too quickly.

 

Rules and Regulations

Regulations and taxes form another key part of the feasibility process. Rules can differ across provinces, and sudden policy changes can disrupt even well-prepared businesses. Import duties, sales tax, and licensing requirements can quietly eat into profits. Companies often face delays in securing approvals, so factoring in extra time and costs for compliance is a must. Without that preparation, businesses may find their launch stuck in bureaucratic slow lanes.

 

Financial Matters

Currency risk is also central to feasibility in Pakistan. The Pakistani rupee has been volatile in recent years, and foreign investors especially must prepare for exchange rate fluctuations. Even local companies feel the pinch when the currency weakens, as it drives up the cost of imported goods, raw materials, or technology. Feasibility studies test how sensitive business plans are to such changes. A model that looks profitable under one exchange rate may look very different when the rupee drops.

Payments and consumer behavior must also be carefully studied. While digital wallets and bank cards are growing, cash-on-delivery remains the dominant mode of payment for many households. If a business relies only on online payments, it risks excluding a large part of the market. At the same time, cash-on-delivery creates its own risks of fraud and product returns. A feasibility study helps balance these trade-offs and design payment strategies that match real consumer habits.

 

Other Factors

Logistics is another major challenge. Getting goods to customers is rarely straightforward. Roads can be congested or damaged, fuel shortages create bottlenecks, and seasonal floods disrupt supply chains. Delivery costs and times are often higher than initial plans assume. Businesses like Daraz only succeeded because they invested heavily in delivery networks, warehouses, and reliable local partners. Any feasibility assessment that overlooks these ground realities is incomplete.

Competition and partnerships are equally important. A market may look wide open on paper, but in practice, local players may already dominate through better distribution networks, lower prices, or strong brand loyalty. Partnering with a local business can help new entrants navigate cultural differences, regulations, and supply chains.

A feasibility study also emphasizes the importance of testing before scaling. Launching nationwide on day one is almost always a mistake. In Pakistan, where each city can feel like a separate market, running a pilot project in one location for three to six months is a safer route. This allows businesses to test customer interest, delivery times, and financial performance in a controlled way. Only once these numbers make sense should companies think about expanding further.

The financial side of feasibility ties everything together. A strong feasibility study builds a detailed financial model showing the best-case, worst-case, and most likely scenarios. This model helps decision-makers understand how much money is required, how long it might take to break even, and what risks could derail the plan. When presented clearly, these findings help attract investors, reassure managers, and provide direction to staff.

 

Conclusion

Pakistan is a market with huge potential, thanks to its young population and fast-growing digital economy. But it is also a market where businesses can burn through capital quickly if they are not careful. A feasibility study helps turn uncertainty into a plan by providing clarity about customers, competition, costs, and risks. The success of Daraz and the exit of Careem both show that feasibility is not just theory: it is the difference between survival and collapse.

By approaching the market systematically, companies can give themselves a better chance of success. In Pakistan, that means doing the groundwork: understanding the customer, testing the operations, planning for regulation, and preparing for financial ups and downs. A business feasibility study turns this complexity into a clear guide, giving businesses the confidence to decide whether to dive in, wait, or walk away.

At ACE Research, we specialize in helping businesses through this exact process. From defining audiences and surveying buying power, to mapping competition, testing branding, and creating robust financial models, we cover every corner of feasibility to give companies clarity and confidence as they step into Pakistan’s challenging but rewarding market.

customer experience

HOW A CUSTOMER EXPERIENCE STRATEGY HELPS SCALE REVENUE GROWTH

July 5, 2022

Business professionals were surveyed by a research report and asked what the top business priority is for the next 5 years – and the answer came out on top. Can you guess what the top priority for a business is? M  If you guessed ‘customer experience’ (or CX), you guessed right.

It’s no surprise that customer experience is so high.

Research by American Express found that 86% of customers are willing to pay more for a better experience.

Companies that successfully implement a customer experience strategy achieve higher customer satisfaction rates, reduced customer churn, and increased revenues. Surprisingly, less than half of all organizations will be investing in the customer experience next year.

What is customer experience?

The customer experience (also known as CX) is defined by the interactions and experiences your customer has with your business throughout the entire customer journey, from first contact to becoming a happy and loyal customer.

CX is an integral part of Customer Relationship Management (CRM) and the reason why it’s important is that a customer who has a positive experience with a business is more likely to become a repeat and loyal customer.

In fact, a global CX study by Oracle found that 74% of senior executives believe that customer experience impacts the willingness of a customer to be a loyal advocate. If you want your customers to stay loyal, you have to invest in their experience! Happy customers remain loyal.

It makes sense, right?

The happier you are with a brand, the longer you stay with them. So, if you treat your customers poorly or ignore their customer service emails, then they are more likely to stop doing business with you. This is why companies that deliver a superior customer experience outperform their competitors – and this means they’ll be spending more with your business (and less in theirs!).

For example, here are a few statistics that caught our eye:

  • Customer experience is set to be the number one brand differentiator in recent years
  • 1 in 3 customers will leave a brand they love after just one bad experience,
  • Customers are willing to pay a price premium of up to 13% (and as high as 18%) for luxury and indulgence services, simply by receiving a great customer experience,
  • 49% of buyers have made impulse purchases after receiving a more personalized customer experience.
  • Customers who rate companies with a high customer experience score (i.e. 10/10) spend 140% more and remain loyal for up to 6 years.

So, it’s extremely important that you focus on the experience you deliver to your customers.

In most cases, a customer’s first point of contact with a company is usually by interacting with an employee (either by visiting a store or by speaking on the phone). This gives your business an opportunity to deliver great customer service. However, customer service is only one aspect of the entire customer experience. For example, if you book a vacation on the phone and the person you are speaking with is friendly and helpful, that’s good customer service. Yet, if your tickets arrive early and the hotel upgrades your room, then that’s a great customer experience!

Like most things in today’s marketplace, customer experience has changed – it’s more than person-to-person service, and thanks to technology, companies can connect with their customers in new and exciting ways.

For example, using CRM software, you can view customer purchase history and to predict future needs even before the customer knows they need it. Having the ability to predict a future need will let you be proactive and attentive and, it means you can do things like;

  • Provide related products based on purchase history
  • Create and deliver targeted email marketing campaigns
  • Understand the 360-degree view of the customer

Customer service is still as important as ever, but it’s no longer the sole focus of the customer experience. Now, the customer experience brings new ways to strengthen customer relationships through technological breakthroughs.

The challenge here is that even though it’s a high priority, most companies are failing to deliver a good customer experience.

Customer expectations are rising, faster than the speed that companies can improve their customer experience. Customers expect every interaction, end-to-end, to be the best experience they have with any company – not just yours!

Impact of bad customer experiences

If a great customer experience is focused on ensuring all interactions and touchpoints with your business is easy, enjoyable, and seamless, then the exact opposite is true when it comes to a bad customer experience.

More than $62 billion is lost each year to bad customer service. Meanwhile, another study found that 91% of unhappy customers leave a brand without complaining.  It doesn’t get any better. Only 10% of consumers say brands meet expectations for a good experience.

Some of the most common causes of bad customer experiences involve:

  • Difficult purchasing processes
  • Negative experiences with customer support
  • Compromising a customer’s personal security
  • Waiting too long on hold
  • Ignoring customer feedback

So, the question remains, how can your organization create a great customer experience strategy?

7 ways to improve the customer experience

Let’s take a look at seven ways to create a great customer experience strategy to help you improve customer satisfaction, reduce churn and increase revenues – including examples.

  1. Create a clear customer experience vision

The first step in your customer experience strategy is to have a clear customer-focused vision that you can communicate with your organization. The easiest way to define this vision is to create a set of statements that act as guiding principles.

Once these principles are in place, they will drive the behavior of your organization. Every member of your team should know these principles by heart and they should be embedded into all areas of training and development.

Often companies lack the required foresight and skills to develop a customer experience vision. In such a case, our company Ace Research with a hands-on experience profile can create a practical, target-oriented, and sustainable CX vision.

  1. Understand who your customers are

The next step in building upon these customer experience principles is to bring to life the different types of customers who deal with your customer support teams. If your organization is going to really understand customer needs and wants, then they need to be able to connect and empathize with the situations that your customers face.

Ace Research also possesses vast experience in customer profiling. With numerous projects successfully completed, our team of experts acquired sufficient knowledge to develop responsive and outcome-based profiles of existing and prospective customers.

  1. Create an emotional connection with your customers

You’ve heard the phrase “it’s not what you say; it’s how you say it”?

Well, the best customer experiences are achieved when a member of your team creates an emotional connection with a customer.

When a customer was late in returning a pair of shoes due to her mother passing away. When Zappos found out what happened, they took care of the return shipping and had a courier pick up the shoes without cost. But, Zappos didn’t stop there. The next day, the customer arrived home to a bouquet of flowers with a note from the Zappos Customer Success team who sent their condolences.

Research by the Journal of Consumer Research has found that more than 50% of an experience is based on an emotion as emotions shape the attitudes that drive decisions.

Customers become loyal because they are emotionally attached and they remember how they feel when they use a product or service. A business that optimizes for an emotional connection outperforms competitors by 85% in sales growth.

How you handle your customers and make them feel, at every step of their journey, has a huge impact on if and when they buy, how long they stay, if they go – and if they turn into raving fans.”

A positive experience for customers means a lot, as studies prove time and again:

  • 64% of consumers are more likely to recommend a brand to others if it offers simpler experiences and communications.
  • 71% of people recommend a product or service because they received a “great experience”.
  • 65% of all consumers find a positive experience with a brand to be more influential than great advertising
  1. Capture customer feedback in real-time

How can you tell if you are delivering a WOW customer experience?

You need to ask – And ideally, you do this by capturing feedback in real-time. Use live chat tools to have real-time conversations and when done, send a follow-up email to every customer using post-interaction surveys and similar customer experience tools.

  1. Use a quality framework for the development of your team

By following the steps above, you now know what customers think about the quality of your service compared to the customer experience principles you have defined. The next step is to identify the training needs for each individual member of your customer support team.

Many organizations assess the quality of phone and email communication, however, a quality framework takes this assessment one step further by scheduling and tracking your team’s development through coaching, eLearning, and group training.

  1. Act upon regular employee feedback

Most organizations have an annual survey process where they capture the overall feedback of your team; how engaged they are and the business’s ability to deliver an exceptional service.

  1. Measure the ROI from delivering a great customer experience

And finally, how do you know if all this investment in your teams, process, and technology are working and paying off?

The answer is in the business results. Measuring customer experience is one of the biggest challenges faced by organizations, which is why many companies use the “Net Promoter Score” or NPS, which collects valuable information by asking a single straightforward question:

“How likely are you to recommend us?”

NPS, which was created by Rob Markey and Fred Reichheld at Bain and Company, is a highly suitable benchmark for a customer experience metric because a lot of companies use it as the standard customer experience measurement.

And the fact that it’s simple to implement and measure makes the NPS a favorite with company boards and executive committees.

We’ve used NPS at Ace Research for several years now.

  1. It shows our customers that we care. We use the feedback to open up a dialogue and build relationships with our customers.
  2. NPS helps us understand common issues among our customer base so we can quickly solve them.
  3. We invite customers who participate in NPS to collaborate with us on projects, such as webinars, our ambassador program and to act as referrals for new customers.

The real value in NPS lies in having conversations with customers.

Inflation

Your Business Must Sustain Inflation, But How?

May 23, 2022

Businesses lacking a way forward for economic downturns are the most affected in times of crisis. Adequate analysis of the business environment, based on authentic data, validates your plan of action and steers your business in achieving its objectives.

Inflation and Risk Reduction

Inflation occurs when an economy grows due to increased spending without an accompanying increase in the production of goods and services. When this happens, prices rise and the currency within the economy is worth less than it was before. The currency essentially won’t buy as much as it would before. Inflation is a decline in the purchasing power of money over time.

Impact of Inflation on Startups

Lacking proper mentorship, a practical approach toward conducting business, and foremost important, experience makes, the life of startups short-lived. An overwhelming initiative become the victim of internal and external failures. Such failures, if managed and planned can be overcome very easily but lack of business insight, hesitation and unawareness to conduct pre-requisite research and analysis make things difficult with time.

Companies tend to deal with inflation by raising prices, accepting smaller margins, or reducing product costs (and often quality). Managers can upset their customers by raising prices, upset their investors by cutting margins, or upset practically everyone by cutting corners in order to cut costs. If customers are more price-sensitive than quantity sensitive, they are less liable to notice a price increase in the form of a smaller quantity at a constant price. It’s likely that consumers’ willingness to spend on discretionary items will diminish while costs remain high.

When inflation rises, the purchasing power of consumers erodes – in simple terms, they can now buy fewer goods and services than they used to. This means businesses will record lower sales, reducing the total revenue of the business. The pandemic has hit sectors differently, and the general inflation data and trends may not apply to all industries. For instance, sectors still recovering from the pandemic impact, like airlines and hotels, have not seen price levels fully recover to their previous levels. For businesses, it is important to reevaluate the current industry positions and the existing business dynamics within the sector. Some sectors were severely impacted, and now industry players are left with fewer competitors, while others face supply chain disruptions and need to source new suppliers. But here the question arises, who will be redefining business priorities? How to gauge changing customer perspectives and above all what actions need to be taken for improving growth and returns. Well, although these questions require the length of deliberation and analysis; both micro and macro but for this to happen, authentic information required to make decision making is very crucial. Here comes the role of market research agency and we here at Ace Research strive to provide the best possible solution to your business needs. Our panel of expert business analysts has worked with a handful of organizations for retracting the loss-making units and redefining business goals for optimum results.

Ways to contain inflationary pressure with proactive strategies

The most fundamental way of protecting against inflationary risk is to build an inflation premium into the interest rate or required rate of return (RoR), which is demanded by an investment. More serious inflationary risk occurs when the actual rate of inflation turns out differently from what is anticipated. Rising inflation means that the interest payments have progressively less purchasing power, and the principal, when it is repaid after several years, will buy substantially less than it did when the investor first purchased the bond.

To mitigate the impact of uncertainty, contingencies play a very vital role. Ace Research not only assess the market needs but also, analyses from various perspectives the risks associate with doing any type of business. We work on different strategies to keep our clients informed about various types of risk associated with your business and also, way to minimize and eradicate its negative impact on your operations and returns; both in the short and long term.

Our Role

Ace Research System is a market research firm that helps startups and businesses, capitalize on understanding the importance of data collection, and the interpretation and analysis of that data. Research is an essential component as it helps us find out which action works best, it also plays an important role in discovering alternate roles and solutions for the inflation in the market and making sure that the already existing solutions are utilized to their best capacity. Conducting research develops a better understanding and enhances decision-making capabilities in the firms. Research helps you understand what you are up against and then, it builds a foundation for your company to help you make better decisions.

We offer numerous models of analysis, based on business requirements such as;  pre/post product evaluation surveys, activation evaluation, and pre-launching surveys to check that the product being launched in the market does have any opportunity to survive in the market and if it is being demanded by the customers or not. With the help of this, you will make an informed decision along with a calculated risk. It helps you in understanding that your product has enough potential that if, one day you raise your prices a little and increase your profit margins, you will still be able to survive in that condition. But if you are unaware of the potential your product holds, or the features you can add to make your product better, then you are taking the risk of losing your potential customers. Ace Research help brands identify their substitute products and competitors so that you have ample of information next time they plan a move.