Developing a new product for your business and putting it on the market can result in failure if you have not researched how your target base would react to it. To have your product succeed you need to have extensive knowledge about your target base and your competitors. This information must be accurate and detailed and is therefore critical to form a successful marketing plan.
Through market research, your need the following information:
- Who will buy your product?
- How often do they buy?
- How big is the market?
- What drives decisions?
- Which location or store is the best?
- What price is the best?
- What packaging is most appealing?
- Who are your current competitors?
- What are their strengths and weaknesses?
- What share of the market do they have?
- Are there new competitors planning to enter the market?
You need to know as much about your competition as possible in order to draw up a successful marketing strategy.
Two Research Methods
There are two research methods to determine all the information you need. The first is desktop research: this is using the internet to research your competition, market shares, other information, news and statistics about the product that you are or want to develop. The second method is to take your product to the customers and observer their reaction to it. Many factors play a part in this step – price, packaging and how if differs from similar products. To determine the success of a newly developed product, Research Collective uses a single-blind randomised controlled trial method. This method tends to yield more reliable results than more traditional methods such as focus groups.
The Research Collective is a dedicated marketing research Cape Town agency. We are something quite different and really unique in the market research South Africa community. Run by a team of research specialists, we focus on qualitative, quantitative and customer-focused research. We also do impact evaluation, which quantifies the financial impact that a change to any element of a company’s mix (e.g. a new product or a change to packaging or price) will likely have on its sales volumes.