[ Summer 2010 ]

Bringing the Right Products to Market: Combining Custom Quantitative Research, Behavioral Insights to Get from Concept to Winner

By Audrey Rosen & Neal Heffernan

Taking the right products to market is never a one-step process; to get from dozens of product concepts to a few "best chances" and, finally, to a winner often requires research of many varieties. Making those choices wisely is essential to sales success, and it can be an arduous process.

One obstacle – many times the business issues companies are trying to solve cannot be addressed through custom or behavioral research alone; and determining the right mix of the two requires close collaboration with researchers who have expertise in both areas. It's rare to find a company that truly offers that dual focus in a holistic approach that can be molded to a variety of situations.

An end-to-end solution

Knowledge Networks provides a unique, end-to-end approach, combining deep experience and resources in concept optimization, in-store research (such as controlled store tests), and advanced analytics to bring greater depth to research insights. To offer this one-stop solution we draw on two exceptional resources for consumer research:

• KnowledgePanel®, the only online panel that is representative of the entire U.S. population that also has statistical projectability, and
• KN's frequent shopper database, National Shopper Lab.

Through its expertise and its consumer panels, KN is able to

• help clients identify the right research approaches for their goals
• apply discrete choice and other analytical techniques to accurately identify the best concepts among dozens in an online survey
• create a highly accurate controlled store test to see how the two or three winning products compare when placed in a retail environment

As an example, an important consumer goods manufacturer came to KN seeking help in developing a new line of yogurt products. At a time when shelf space is more limited and new product failure rates are at an all time high, shelf space is hard to come by – so having a new product that stands out in the marketplace is key.

Working closely with the client, we tested a series of 25 concepts, asking members of KnowledgePanel® which they would be most likely to try, based on package design and price points. We found that four of the client's products ranked in the 80th percentile or higher in a top-two-box purchase intent score with consumers in a nationwide, representative sample.

The manufacturer produced two of these products for test marketing. We then staged a head-to-head comparison on store shelves in two test markets. Using purchase data from National Shopper Lab, we were able to track actual trial and repeat and compare it back to the purchase intent scores and build an accurate Year 1 volume forecast for the new products. We also conducted a source of volume analysis, so we could measure incremental category growth and determine how much the new products' volume would cannibalize purchase of the company's existing brands – as well as the amount of volume they would steal from competitive brands. Test market #1 proved to be 30% more successful than market #2, and the manufacturer used the research to launch the more successful product nationally. This added 15% growth to the company's yogurt business, and 3% growth to the category overall.

KN's end-to-end approach provided continuity and assured that the research techniques at each phase were compatible and well suited to the client's needs.

Teaming early & often

Throughout the process, it is important to recognize the in-house approaches of the client company and design a research program that will work with the schedules, priorities and budgets involved. Teaming early and often is key to reaping the greatest benefit from our end-to-end approach. And KN's experiences working with both manufacturers and retailers give it a unique knowledge base for making the right research decisions at every turn.

When possible, working with a research vendor that can take a holistic approach to your information needs – applying quantitative, behavioral and analytic techniques with equal comfort – will simplify your insight process and produce a more actionable result.

Audrey Rosen is Executive Vice President, Client Service, at Knowledge Networks.

 

 

 

Neal Heffernan is Senior Vice President and General Manager, at PDI/Knowledge Networks.