NEW is one of the powerful words in marketing. The word ‘new’ invokes the belief that a brand is moving forward, it is different and is something contemporary. The truth is, people are attracted to new products just like a magnet. Therefore, introducing new products on a consistent basis is the best way to draw the attention of the audiences and is an invaluable publicity for a business. However, to make a new product successful in the market, prior insights, especially market analysis is important to see how customers are willing to accept the product and recommend others for the same.
Why market research is important for a new product development?
- Market analysis involves a systematic gathering, recording and analysing of data about the customers, your competitors and marketers
- Analysis help you to determine the costs involved in your proposed new product development
- Research refine product designs and plans before committing yourself to expensive product development costs
- Forecast the profit you make from the new product in future financial year
- Eliminate inappropriate ideas and unnecessary costs that may get involved in the product development.
In this context, Redshift Market Research agency conducted a research on new products, to let the brands understand what customers really want, and accordingly allowing them to tailor their product offering to meet their needs and give a real competitive edge. Their research for new product development can actually help your brand understand the following factors
Target the right audiences
When you launch a new product it is vital to focus exclusively on the prospects you believe are most likely to purchase from you. These may be those segment of customers who are currently buying something similar and will definitely appreciate the additional features your product or service provides. Or may be your best prospects have a perceived need for what you offer, can afford to buy it and have expressed a willingness to do so. The fact is, it is easier to fill a need than to create one.
Better understanding of the competitors
Redshift researchers perform SWOT (strength, weaknesses, opportunities and threats) analysis. The research starts with
Making a list of the businesses that offer products or services similar to the one you plan to launch
Put yourself into customer’s shoes and imagine what they might purchase in lieu of what you plan to offer
Once you know whom your competitors will be, review their marketing materials, their ads, brochures and websites and evaluate how your new product and service will stand up against what’s already being offered
Which other brands and their offerings can pose the greatest threats to your success.
Establish a unique value proposition
Do you know why customers will want to buy from you? How vast is the competition field out there? What is that extra benefits and features you can provide so that your prospective customers will value the most? Market research help you to understand that your product and service should be unique and meet the needs and desires of your best potential customers.
Test the product concept
It is not a wise decision to immediately rush headlong while you bring a new product and service to the market. You must test your product before launching it in the market. But what should you test? Examine your product or service bundle, your marketing message and the marketing materials. Depending on what you want to market and your budget, you may use focus groups, host roundtable discussion with the target customers, employ online research studies or even distribute your products to a select group of users for testing. Once the testing phase is complete, you can proceed with the final launch of your product.
Learn about your product’s lifecycle
Once you monitor your market analysis results carefully, you’ll then be able to determine when it’s time to revise the product or service, modify the media message, when to phase out the particular offering and finally lay the groundwork for the launch of your next big project.
New product development research is used at all the stages of the product life cycle – from its conceptual stage through to maturity. A good market research can unleash the potential opportunities for new products, rejuvenate the existing ones and incorporate new features and find new markets. And given the costs involved in innovation, new product development research can undoubtedly provide a high return on investment.