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Why Do Product Testing? to Identify and Solve Some of These Common Problems… How The DRG Can Improve Your Product Testing Program We gather information to create and launch market research insights that enable better business decisions The Dieringer Research Group, Inc. www.thedrg.com ConfidentialConfidential andand ProprietaryProprietary Why Do Product Testing? To identify and solve some of these common problems… It is estimated that over 45% of product development and refinement resources go to ventures that do not succeed, and 80-90% of new products introduced in the market fail.1 Some of the problems that can be prevented with testing include: Product Does Not Fit the Market Example: McDonald’s Arch Deluxe In 1996, McDonald’s spent at least $150 million in advertising to promote this burger, targeting ‘sophisticated’ consumers. However, they soon learned that consumers looking for a higher-end burger do no typically go to McDonald’s. Product Features Do Not Make Sense Example: Maxwell House Ready-to-Drink Coffee Maxwell House promoted the convenience of this pre-brewed product. But coffee drinkers preferred to freshly brew their coffee, even if it was slightly more work. Poor Concept Example: Clairol’s ‘Touch of Yogurt’ and ‘Look of Buttermilk’ Shampoos Many consumers did not like the idea of washing their hair in yogurt. And Clairol’s buttermilk Shampoo left people wondering ‘What exactly is the look of buttermilk and why do I want it?’ 1 “Doing it Right, Winning with New Products” by The Product Development Institute, 2006 The Dieringer Research Group, Inc. Page 2 40 Years Strong | our experience…your success Confidential and Proprietary Other Common Problems Include… Outdated Product(s) Ineffective Packaging Confusing Brand Name • Example: Polaroid Cameras • Example: Kellogg’s • Example: Frito Lay • While at one time very Breakfast Mates Lemonade profitable, Polaroid cameras • Similar to Lunchables, this • Just because a current brand is lost market share due to not product packaged together well-known, does not keeping up-to-date with everything children needed to necessarily mean it can technology prepare their own breakfast: a naturally be extended to other • With the average product small box of cereal, milk and a product categories lifespan shrinking 400% within spoon. A television ad featured • While it is great to leverage the past 50 years, companies parents peacefully sleeping brand awareness, it sometimes cannot rely on existing product while their children made does not make sense. For offerings1 breakfast example, consumers did not • The problem was the associate a refreshing glass of packaging was too difficult for lemonade with the brand of a young child to open! their potato chips 1 “Doing it Right, Winning with New Products” by The Product Development Institute, 2006 The Dieringer Research Group, Inc. Page 3 40 Years Strong | our experience…your success Confidential and Proprietary The Importance of Product Testing There is no guarantee that a product is always going to succeed However, well-designed product testing research can aid in identifying these problems early on before products fail in the With the growth of social media, more users are sharing their product marketplace experiences (both positive and negative) with others. With this trend, it is even more important to identify and correct any concerns as early as possible, before the reputation of your product and brand is affected. The Dieringer Research Group, Inc. Page 4 40 Years Strong | our experience…your success Confidential and Proprietary There is no “one size fits all” product testing research study 100 Days Until Product Launch! The DRG customizes each study to our client’s business needs, product ADD category and target market, helping YOUR our clients choose the right path! Do you know if your productTEXT will stand out in the marketplace? The goal is to ensure you get the most value from your research investment and you have the market insights you need to make product decisions with confidence. The Dieringer Research Group, Inc. Page 5 40 Years Strong | our experience…your success Confidential and Proprietary Product Testing Research Considerations Some of the questions we ask our clients when designing and implementing product testing research include: Business Goals • Where are you in the product development process? and Information • What type of information are you looking for? Needs • What are your specific goals and objectives? What are the characteristics and features of your product? Product Type • • How does the user interact with your product? • Who is your target market? • What are the lifestyle characteristics of your potential Target Market buyers? • Are there specific segments or groups you would like to compare? Following is more detail on a few of these considerations. Contact The DRG for additional information! Where are you in the product Business Goals and Information development process? Needs The DRG works with clients to understand where they are in development and tailors the research design accordingly. Exploration / Development & Testing Validation Launch Investigation Refinement • Explore initial • Determine ideal • Test one or several • Confirm and validate • Bring product to first impressions, likes and product features and product prototypes the product prior to test market(s). Full- dislikes; Investigate benefits. Also start with potential buyers full-scale launch. scale launch after competitors’ offerings planning name, logo, prior to finalizing the Develop marketing gathering feedback as well as internal packaging, pricing product; product plan and go-to-market from test markets. customer data to and key selling testing can begin as strategy • Research uncover any unmet features soon as a prototype is • Research Techniques: needs • Research developed Techniques: Pre and post-launch • Research Techniques: • Research Surveys often interviews and/or Techniques: Quantitative survey Techniques: conducted to obtain surveys with test and Qualitative focus often with conjoint, CLTs or in-home use feedback of final control groups help groups, in-depth MaxDiff or other tests conducted to product as well as measure effectiveness interviews and/or trade-off technique. evaluate usability and positioning, taglines, of product and secondary research Web surveys are perceptions of target ads or other marketing, and identify ideal for showing market; More testing is communications used any potential issues pictures/video of also now conducted to sell the product early your product via online and mobile techniques (e.g. online journals where pictures/video can be posted of the products being used) Even products already on the market are continuously going through this process, as companies need to constantly be evaluating modifications and improvements to ensure their product’s continued success The Dieringer Research Group, Inc. Page 7 40 Years Strong | our experience…your success Confidential and Proprietary What type of information are you looking Business Goals and Information for – Qualitative or Quantitative? Needs Qualitative Quantitative Often conducted when you are Typically used when you already evaluating a few preliminary have products or concepts developed concepts and have done little to test but you want to understand previous research The most market reactions prior to launch comprehensive Example Applications: Example Applications: approach - Brainstorming/refining ideas and combines - Measuring how many potential concepts buyers feel a certain way toward a qualitative and product or concept - Exploring how people feel about a quantitative product or concept - Testing already-known hypotheses or methodologies - A first step to identify initial reactions solutions to a potential issue/ before making the decision to invest concerns further - Comparing attitudes and perceptions of different segments or groups This can even be done in the same project. For example, you can quantitatively test a food product in CLTs/taste tests but still ask participants a few qualitative questions, incorporating a short open-end discussion about the product to provide more insight and uncover the reasons behind their responses The Dieringer Research Group, Inc. Page 8 40 Years Strong | our experience…your success Confidential and Proprietary What are your specific goals and Business Goals and Information objectives? Needs For example… Are you considering a feature Do you have a few options Are you comparing your change in an existing product? developed and would like to product to competitors’ (Comparing your existing product to a test which is best to launch? product offering? new prototype) • Use sequential monadic testing, • If you have quite a few options, a • Testing against competitors which involves each participant monadic testing strategy may provides an understanding of your testing more than one product work best, where each participant product’s strengths and • Have participants test both the only tests one product option weaknesses, as well as insight on current product and the new • Make sure you have a large where to focus future product product so they can identify enough sample size for each development preferences product so comparisons are • Competitor comparisons also help possible you decide how to position and • After your final product is promote your product narrowed down to 2-4 options, it • Keeping the brand concealed from may then be beneficial to have participants is important so they participants try multiple products, can make unbiased evaluations so they can
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