Depending on who you ask, the product failure rate for consumer packaged goods (CPG) is anywhere between 70 – 90%. The healthcare industry fares a little better, with failure rate hovering at 35 – 40%. As the debate about the exact numbers rages on, what’s clear is, the odds are not good.
We agree with Business Journals when they say, “Successful new product launches are not to be taken for granted.” The good news is “failure to launch” is preventable.
Research during the product development process can answer key questions and prevent expensive mistakes or missteps. Here’s what you should know (and what research can tell you) before diving into any product development, launch, or business expansion:
Your answer to the question “Who are you targeting?” shouldn’t be “Everyone”. Narrowing down your audience lets you plan product design and marketing activities for your ideal customer.
Through surveys, social listening, in-store observations and other tools, a qualified research partner will create detailed buyer personas to help you learn about your customers. A buyer persona based on market research and real data about your existing clientele helps you understand:
This data tells you where to focus your time, guide product development, and help you design better messaging, point of purchase systems, loyalty programs and more.
When you attract the most valuable leads and customers to your business and then tailor the buyer journey to their needs, you get more sales and repeat business.
Through over 30 years in the industry, we have seen too many companies perform consumer testing far too late – or worse, not at all.
Start research early in the development process to catch potentially fatal flaws in your product or plan. When introducing a new product or breaking into a new market, testing can answer key questions. Is the product is intuitive enough for consumers? Does it have too many features or not quite the right mix of features? Or, maybe it’s an excellent product but it’s designed for the wrong market segment.
Through a customized research plan, an experienced research consultant will test your product features to learn how consumers feel about it, as well as if they want and will actually buy it.
These days, your product may land anywhere from a big box store to a small chain, local boutique or online shop. Consumer testing and product research can help you find out where you belong.
Qualitative and quantitative studies allow major brands to reposition themselves for a better market fit and better product placement. This process, when done correctly, can even uncover untapped markets leading to a major spike in profits. In fact, we have a stack of examples where research directly helps companies make more sales. Read more here.
To pitch a product, you have to know what sets it apart from other options in the market. To beat your competition, you need to understand them. Know their market position including strengths, weaknesses, and approach to pricing.
With this knowledge you can learn exactly what to give your audience, how to price it, and how to talk about it. Find out what your competitors do well and do it better. Find out where their product, service, or marketing falls short and then pick up the slack.
“Put yourself at a competitive advantage with research.”
Voccii works with many B2C and B2B2C product companies and product innovation firms in product testing and launch to the best target audiences. In addition, we help companies insert the right research in the correct phase of their product development process.
We can help you too.