It is estimated that up to 80-90% of new products do not succeed in the marketplace. Over the years, businesses have spent significant resources on products that do not make it long-term. Driven by technology advances and ever-changing customer needs, the product lifecycle is decreasing. Therefore, companies cannot rely on their existing products, but must continuously have new ideas in the pipeline. Marketing research can give companies a competitive advantage, and The DRG partners with you to help ensure your products succeed in today’s competitive marketplace. Examples of product research studies we conduct include:
- Product Development Lifecycle Research – Provides market feedback to businesses as they develop and refine a product(s), from initial exploration of a new concept to planning the
go-to-market strategy for product launch.
- Trade-off Research – Simulates real-world purchase decisions so businesses better
understand how potential buyers make choices between products.
- Pricing Research – Identifies the optimal price point that will be attractive to buyers.
You can leverage the insights from our product research to increase satisfaction and loyalty with your products, better define your value proposition, improve your competitive position, strengthen brand equity, and ultimately increase your sales and profits.
Learn more by downloading our eBook: Be a Product Trailblazer: The Path to Brand Longevity
Product Development Lifecycle Research
…Leveraging Market Insights to Help Products Succeed
While there is no guarantee that a product is going to succeed, research conducted at various stages of the product lifecycle aids in identifying any problems early and provides insights to help develop successful launch strategies. Businesses can benefit from market feedback at each of the following phases of the product development lifecycle:
- Exploration/Investigation – Research explores initial impressions, likes, and dislikes. We also investigate competitors’ offerings as well as internal customer data to uncover any unmet needs.
- Development and Refinement – Market information helps determine the ideal product features and benefits. Perceptions around the product name, logo, packaging, pricing, and key selling features are also explored.
- Testing – During this critical phase, The DRG tests one or several product prototypes with potential buyers.
- Validation – Research confirms and validates the product prior to launch. Market information is used to develop the go-to-market strategy.
- Introduction – The product is introduced to a test market, and The DRG gathers feedback from users prior to full-scale launch.
The DRG tailors the product research plan to fit your information needs, product category, and target market. The insights we provide during product development help businesses:
- Create successful new products and improve existing products
- Maximize internal resources, as product concepts that are not likely to succeed are identified early in development
- Discover new markets and fresh opportunities for existing products
- Confirm competitive advantages
- Develop positioning and communications that will resonate with the target market
- Refine marketing and advertising strategies
…Simulating Real-World Purchase Decisions
If you have asked customers what is most important to them, only to be told everything is important, you’ll love the idea of trade-off research. Trade-off research simulates the purchase experience and provides insight into how the customer makes decisions about which product attributes are most important and which attributes can be traded off for another. Trade-off research uncovers users’ true preferences – not just what they say they want, but what they prefer when they have to make choices.
The two trade-off techniques used by The DRG most frequently are conjoint and MaxDiff. Both simulate the real-world purchase decision and provide information about which product attributes are most and least important.
The DRG’s trade-off product research studies help you answer the following business questions:
• What are the most critical product features, and which are less important?
• What are the most preferred product options?
• How will adding a new product impact sales of existing products?
• What is the market willing to pay for a product?
• Who is most likely to be interested in a product?
• How well will a new product compete in the market? (Some conjoint techniques can even predict market share.)
• What are the key selling features?
• Do the selling features vary for different customer groups?
• How do perceptions of products (existing or new) compare to competitors’ products?
…Finding the Optimal Price Point
What is the ideal price for a product? Will the market tolerate a price increase? Or is a price cut necessary to keep customers from switching to the competition? The DRG uses a number of research techniques to help you better understand the ideal pricing for your products and services. Each technique is unique and appropriate for different situations depending on the stage in product development, whether a price range is known, and if there are specific price points available to test. The DRG often evaluates pricing as part of a trade-off study. However, there are situations where we will instead recommend Van Westendorp, Gabor Granger, or Monadic techniques.
Pricing products is a challenge for all businesses but is one of the more critical components of the marketing mix. Conducting product pricing research gives businesses the assurance that they have identified a price that is both attractive to potential buyers and profitable to the business.