Is There A Market For My New Product? NUIG-UL MARKET RESEARCH & VALIDATION WORKSHOP Greg Byrne

Is There A Market For My New Product?

NUIG-UL MARKET RESEARCH & VALIDATION WORKSHOP

Greg Byrne

The Venture's Journey | Business Growth Stages

PUSH PHASE PULL PHASE

1. Venture Market 6. Brand Position Analysis 7. Key Account Management 2. Pitch 8. New Product Development 3. Personal Selling 4. Promotion 5. PR


Purpose of Market Research & Validation for a Start Up

1)develop the ‘business model’ for how the new company and new product creates, delivers and captures value and then

2) test that business model in the market place to proof its operability and profitability.



Business Model – The 10 Information, Insight and Data Sets to be sourced, analysed and tested...

1. The New Product

•The ‘good bits’, the ‘bad bits’ and ‘improve its’ in qualitative research

•The ‘interest’, ‘believability’ , ‘purchase intention’ and ‘pricing’ in quantitative research

2. The Buyer

•Who are they? Profile them.

•Where are they?

•What job do they want to get done?

•How many of them are there?



Business Model – The Information, Insight and Data Sets to be sourced, analysed and tested...

3. The Value Proposition•For (define the target audience and industry) who have (define the big problem) we have (solution description-what we offer) that delivers (this big advantageous benefit –over and above competitor solutions) •Here is our track record/credentials (why you should believe us)

4. The Channels•How do buyers want to be reached (made aware) and interacted with (information, advice, service and sales)?

5. Customer Relationship•What relationship are you establishing with each segment – personal, automated, acquisitive, retentive, etc?




6. Revenue Streams

•What are buyers really willing to pay?

•Transactional? Recurring?

7. Key Resources

•What competencies, assets and resources underpin your Business Model?

8. Key Activities

•What key activities do you need to perform well?

•Which ones are crucial?




9. Key Partners

•Who do you need to rely on to operate your business model?

•Who can leverage it?

10. Cost Structure

•What is the resulting cost structure of your business model?

•What key elements drive your cost structure?


Market Research & Validation

in

7 Steps and 2 Stages

SIs There A Market For My New Product?

Product ConceptBusiness Model

Company Context

Competitor

Customer

Collaborator

Stage 1 Secondary Market Research. Steps 1-5



Secondary Market Research, also known as desk research, sources information and data that already exists

Secondary research can provide both quantitative and qualitative information.

•Market Size and Trends

•Customer Profiles including Demographics

•Competitors & Market Share

•Competitor Marketing Mix



Secondary Market Research Information & Data can be sourced from:

1.The Internet –Google2.Online Market Research Websites3.Industry Company websites4.Research Agencies5.State Agencies6.Industry Associations7.Magazines



Company Context

Competitor

Customer

Collaborator


Key Company Resources, Assets, Competencies

Industry , Markets, ProductsDriversChallengesProjections

Who are they?Their productsStrengthsWeaknesses

Who are they?Buying objectivesBuying criteria, process

The supply chainpartners



Company Context

Competitor

Customer

Collaborator

Stage 2 Primary Market Research Steps 6 & 7

Type of companyKey competenciesBrand Proposition, Brand valuesOrganisation StructureCost Drivers

Target MarketsProduct CategoriesRevenuesChannels

Differentiated offering

Target Audience(s)Relationship requirementsWTP

Key Partners


Stage 2 Primary Market Research Steps 6 & 7

Primary market research is where you test the potential areas of advantage and differentiation for your product and for the business (fine-tuned from the secondary market research you’ve done)

Qualitative primary market research methods are exploratory and are used to answer ‘why’ and ‘how’ questions. Perceptions, Attitudes, Beliefs

Quantitative primary market research answers questions as to ‘who’, ‘where’, ‘when’ and ‘how many’ and results can be projected onto larger populations. It is used to size and define markets, customer numbers, quantify interest and purchasing intentions and responses to new product concepts, advertising and branding communications.


Step 1: define your Business Competencies and your New Product & Business Model (concept)

COMPANY

1. Business and Competencies

2. Product Concept &

3. Business Model (version 1)

.


Step 1: define your Business competencies and your New Product & Business Model (concept)

COMPANY

1.Business and Competencies

1. Draw your flower, depicting the core competence, the product applications and markets for those applications. Rank the markets/applications , specifying 1,2 and 3.

Pages 10 and 11 of Guide


DRAW YOUR ‘FLOWER’ POWER

Write your ‘product’ down on the first petal…then forget What is it that you/team have or do really well…skill…

- Write it down in the centre of your flower

- Fill the other petals with other applications that could be made with your core

- Now rank the petals according to these factors:

- importance of competency to application market

- growth rate of application market

- competitive intensity and competitors

- resource requirement

- Prioritise the petals

- List the top 10 buyers in each priority application market. FLOWER EXERCISE TEMPLATE PAGE 30



2. Product Concept (version 1)

Title/name - XXXXXXXXXX

Who? – The Target Buyer; who will buy, influence?

Why? - Motivation for purchase/use. Why will it be bought and used?

When and where? - Usage Occasion. Time and location; relative to other events?

Buyer Insight- What is the penetrating buyer understanding driving the idea? (The “Aha!”)

What is it?- Idea description, Proposition, Benefit. What it is, what it does, and how does it improve the life of the buyer?

RTB- Reason to believe the benefit

Packaging Format- Format, size, material, function, (e.g. opening, drinking, dispensing, resealing, reusing, stacking, disposing, etc)

Other Notes .................................................

Pages 12- 13 of Guide


WHY BUSINESSES BUY

•Provide their own goods or services more cost effectively•Save money•Cement relationships •Position themselves strategically•Improve public relations•Solve problems More rational, logical


WHY CONSUMERS BUY

•Meet biological needs•Increase security•Gain status or recognition – to belong•Live out fantasies•Reduce anxiety or other strong emotions•Save time or money•Solve problems can be irrational, more emotional



3. Business Model

description of how your venture ‘creates, delivers and captures value’:• The customers / segments you will serve• The value proposition you offer them• The channels through which you will reach and interact with them• The relationships you will establish with them• The revenue stream(s) of what customers are willing to pay , once off / recurring• The key resources and assets that underpin your venture and business• The key activities that are crucial to operate• The key partners / collaborators you need to rely on• The cost structure and key elements that drive costs


Step 2: draw up the ‘product category map’ for the market that you are going to enter

CONTEXT

4. Source Information from the available industry reports, magazines, websites, form 10ks, IPO Documents, competitor websites...

5. Draw the ‘product category map’

6. Identify PEST trends that could / will impact

COLLABORATOR

7. Who else is needed to make, distribute, fund, approve, install, sell, service products in the market?


Step 2: draw the ‘product category map’ for the market that you are going to enter

CONTEXT

4. Gather Information from the available industry reports, magazines, websites, form 10ks, IPO Documents, competitor websites...

Secondary Market Research is where you start a start up!

Secondary research means using published information such as industry profiles, trade journals, newspapers, magazines, census data, and demographic profiles and talking to people who know about the industry, markets and products you are considering.

This type of information is available in public libraries, industry associations, chambers of commerce, from vendors who sell to your industry, and from government agencies.




Available, current known facts about your industry, market, products, providers and customers:

eg• What is the total size of your market?• Current demand in target market.• Trends in target market—growth trends, trends in consumer preferences, and trends in product development.• Provider profiles• Product features, positionings• Customer profiles and buying behaviours• Business models




SOURCES OF SECONDARY MARKET RESEARCH - INDUSTRY /TRENDS ANALYSIS

• Listed Companies ‘form 10K & 10Qs’ from their websites• http://www.magportal.com/c/bus/ind/ (search engine for magazine articles)• Marketresearch.com (Aggregated multi-sourced industry and markets analysis)• Researchandmarkets.com (world’s largest market research resource)• Mintel.com (consumer, media and market research)• Keynote.co.uk (business and market intelligence)• BizJournals.com (industry specific trends)• Companiesandmarkets.com (400,000 market reports, company reports and company financials)• Aberdeenreport.com (benchmark industry and process reports)• Strategy-business.com (industry and issue research and analysis)

APPENDIX 3 Page 32




SOURCES OF SECONDARY MARKET RESEARCH

MARKET RESEARCH DATABASES

• Analysys –Billing & Customer Care, Service & Delivery Platform Strategies, CSP Operator Strategies, Telecoms Software Strategies. http://www.analysysmason.com/

• BCC Research www.bccresearch.com Multisector with emphasis on materials, food, enviro, electronics, pharma, etc • Business Insights www.globalbusinessinsights.com. Reports covering the healthcare, food, technology and energy sectors. • Datamonitor www.datamonitor.com . Multisector, in-depth market research news and reports covering pharmaceuticals, energy, financial

services, etc.





COMPANY DATABASES • Kompass www.kompass.com Global database of companies by sector, including manufacturers, distributors and services• FoodLine Web source of information for the food and drinks industry. They include Market, Science and News journals, books & patents.• MEED Projects www.meedprojects.com Project pipeline information covering the Middle East• OneSource http://www.onesource.com/ US company directory and financials. Also Freedonia market profiles for US on a number of

sectors.• Emerging Medical Technologies Database http://lifescienceintelligence.com/emt.php Database only. • BioPharm Insight http://www.biopharminsight.com/ includes the entire drug discovery and development pipeline, approved drugs,

licensing deals, pharmaceutical sales/projections, medical devices, management contacts and more.





KEY NEWSLETTERS• Clinica (World Medical Technology News) http://www.clinica.co.uk/home/• Scrip (World Pharmaceutical News) http://www.scripnews.com/home/• MedTech Insight www.medtechinsight.com (access to mag articles only, not reports) • AnimalPharm http://www.animalpharmnews.com/• Informa (2 newsletters Media + Comm)• MEED www.meed.com (Middle East business intelligence)





GOOGLE

• Keyword searches

• Google alerts

Pages 16 -17 of the Guide




EXAMPLE Wound care product

GOOGLE SEARCHING ‘Wound Care’

The Explosive Growth of the Wound Care Market

We spoke with Nerac Analyst, Ron Sills, about the explosive growth we are seeing in the wound care market, the factors driving the growth, the latest products as well as how the medical and healthcare industries are attempting to reduce the costs associated with wound care.

“Industry leaders like 3M, Johnson & Johnson, Convatec, Coloplast, Closure Medical, Smith & Nephew continue to develop innovative solutions for wound care as evidenced by their patent portfolios and product approvals”




FORM 10K INSIGHTS

Wound Care...physicians and nurses are critical to the adoption and use of advanced medical systems, a major element of the sales force's responsibility is to educate

and train these medical practitioners in the application of our products, including the specific knowledge necessary for optimal clinical outcomes and reducing the cost of patient care.

...we employ approximately 200 specialists who consult with our customers regarding the often demanding and complex paperwork required by Medicare and private insurance companies. In fulfilling the paperwork requirements, these specialists enhance the overall productivity of our sales force.




Form 10K - Stratsys

Our sales organization is responsible for the sale of our products on a worldwide basis and for the management and coordination of our growing network of authorized resellers. Our direct sales force consists of salespersons who work throughout North America, Europe and in parts of the Asia-Pacific region. Our application engineers provide professional services through pre-sales support and assist existing customers so that they can take advantage of our latest print materials and techniques to improve part quality and machine productivity. This group also leverages our customer contacts to help identify new application opportunities that utilize our proprietary processes and access to our parts printing service, 3DpropartsTM. As of December 31, 2010, our worldwide sales, application and service staff consisted of 159 employees.



5. Draw the ‘product category map’

Product Market categories are created by needs, buying power, and products to satisfy needs.

For each customer need, there are typically several products available

NEED PRODUCT TYPE MARKETS BRANDS

Pages 14-15 of the Guide



Oil, Gas & ElectricityEnergy Displacement

Ocean

Biomass

Solar PV

Geothermal

Wind

Day Light Thermal

Solar Thermal

Viessman

Ritter

Thermo Photonics Energy Co.

‘



6. Identify PEST trends and changes that could / will impact

• Change in Technology• Change in government regulations• Change in the Economy• Change in your Industry• Change in Social and culture life (style, mores)

Page 18

Demographics

RecessionOnline

Mobility



SOURCES OF PEST INFORMATION

• Trendhunter.com• Trendwatching.com• Springwise.com (new ideas, products and businesses)• JWTintelligence.com

Fundamental changes and trends = change = opportunity




– Mobile Money: The digital wallet became a reality for more consumers in more markets,• although we’ll see more tech advances in 2011 that will help drive this trend further into the mainstream. In 2010,

among other things, the practice of texting donations became widespread after the Haiti earthquake, an updated PayPal app allowed users to exchange money by bumping phones, and various new tools turned phones into credit card terminals.




75,000 babies...• That is the number of babies it’s expected will be born in Ireland this year. We have the highest fertility rate in Europe, and the number

of families with young children is expected to grow continuously over the rest of the decade.• Ireland’s 20-something population peaked in ‘07• It is the 30-something population that is now causing the baby boom• Families are fashionable again after a decade of youth-driven individualism

Focus on mums: they make most of the decisions about spending, savings & borrowing -for their families as well as for themselves




1,230,000 getting older• People over the age of fifty –all 1.2 million of them –make up over a quarter of Ireland’s total population (and over a

third of the adult population). Their numbers will grow steadily over the next ten years, as will those of over 50s throughout the world.

• There are approximately as many 50-somethings as teenagers in Ireland• Over 50s tend to have the lowest levels of debt across the age groups• Our cultural obsession with youth will increasingly give way to a new appreciation for maturity




1,940,000 online lives....• Never has a product or service been adopted by so many people in Ireland so quickly. We’re talking Facebookof course.

Nearly two thirds of internet users –that’s over 4 in 10 adults –now uses Facebook. And the number is still rising.• Internet usage in Ireland has continued to rise steadily throughout the recession –from just 4 in 10 adults in 2006 to nearly 8

in 10 today.• Irish consumers are spending a growing share of their time and money online.• The wider cultural consequences are only emerging: expect new sources of trust and authority to emerge post the

recession.




80,000,000 euro• That’s the approximate amount in euro Irish consumers are expected to spend this year. They’ll probably save another

€10 billion on top of that. Consumers spent the same amount back in 2003-4. But they won’t spend it on the same things this year. That’s the challenge if you want to get more than your fair share of the cake.

• The consumer zeitgeist has been permanently changed by the recession –recovery won’t mean a return to the way things were

• Consumers will remain focused on value –but that doesn’t mean a focus just on price. New priorities –driven by new needs and circumstances –will provide growth for some



COLLABORATOR




COLLABORATOR


THE TOTAL PRODUCT VALUE....

• The physical product itself• The brand name• Company reputation• Pre-sale activities ( eg education, demonstration by salespeople)• Post sale activities ( eg installation, technical support)• Maintenance, repair, warranty• Financing• Convenience• Availability• References• Reputation of retail outlet• Re-seller, partners

Steps 1-2 Where have we got to? Business Model Concept

Market/Customers

Size

Trends

Growth ProductProducts Concept Template

Brands

Competitors

Collaborators Core Competence

Flower Template

+ PEST Impact -- PEST Impact


Step 3: for your ‘product type solution’ category, identify the existing brand leaders and go to each ‘brand leaders’ website and extract how they describe their ‘corporate positioning’ and also their ‘product positioning’.

COMPETITORS

Focus on the top three.



COMPETITORS

Example...for your ‘product type solution’ category, identify the existing brand leaders

NEED PRODUCT TYPE SOLUTION BRANDS

Brain Cognitive Nutraceutical/ Health Nawgan

Function Drinks NeuroSonIQ

Benevia

Guide Page 19



COMPETITORS

8. Identify their corporate positioning and their product positioning

9. Check against the Business and Competencies you defined in Step 1.

Where do you fit? You can’t be, or offer the exact same!

Guide Page 19-20



COMPETITORS

8. Identify their corporate positioning and their product positioning

Corporate Positioning

Product Positioning

Key Customer Values

Nawgan - Cognitive Beverages - Based on Science. What to drink when you want to think

Nawgan is an all-natural brain fitness beverage developed by a neuropsychologist , formulated to sharpen the mind. It's a non-carbonated refresher for the mind that features a patent-pending blend of ingredients combined and formulated to improve memory and cognition. Age +30.



COMPETITORS

9. Check against the Business and Competencies defined in Step 1. Where do you fit?

You can’t be, or offer the exact same!


Step 4: for each ‘corporate and product positioning’ identified in a competitor’s website, list out the ‘key customer values’

CUSTOMER

10. What are they offering in benefits to customers? What customer benefits do they talk about?

11. Identify the top, recurring (amongst existing competitors) key customer values

12. Check against the Product Concept (version 1) in Step 1.

Guide Page 21



CUSTOMER

10. What are they offering in benefits to customers? What customer benefits do they talk about?


Product Positioning Key Customer Values

Nawgan - Cognitive Beverages - Based on Science. What to drink when you want to think

Nawgan is an all-natural brain fitness beverage developed by a neuropsychologist (that’s a brain scientist to you and me), formulated to sharpen the mind. It's a non-carbonated refresher for the mind that features a patent-pending blend of ingredients combined and formulated to improve memory and cognition. Age +30.

Brain Science,Natural Support, No Artificial, No preservative, Low Calorie,Doctor DevelopedCaff / Decaff



11. Identify the top, recurring (amongst existing competitors) key customer values


Product Positioning Key Customer Values

Nawgan NeuroSonIQ Benevia

Natural Support, No Artificial, No preservative, Convenient



CUSTOMER

12. Check against the Product Concept (version 1) in Step 1.


Step 5: test the key customer values offered by your product and company against those offered by your competitors

CUSTOMER

13. Are you offering value that is not being offered by competitors or are you offering better values than they are?

This gives you a potential market differentiated positioning.

Market Research & Validation in Seven Steps

Step 5: Test the key customer values offered by your product and company against those offered by your competitors and then write out your market differentiated positioning statement

Brain Science, Natural Support, No Artificial, No preservative, Low Calorie, Doctor Developed Caff / Decaff Organic Kosher Herbal Antioxidant Anti Ageing, Busy Life, Convenient

Who? - is your target customer ?

Why?- will your product be bought and why will it be used?

When & where?- would your product be used by the buyer?

Buyer Insight- the essential insight you have into the buyers mind and need for your product?

What is your new Product?- proposition, features, advantages ,benefits

Reason To Believe- your product will deliver those advantages and benefits?


Step 5: test the key customer values offered by your product and company against those offered by your competitors

13. Are you offering value that is not being offered by competitors or are you offering better values than they are?

Write out your market differentiated positioning statement

POSITIONING STATEMENT

Define and describe:

1. Target Audience

2. Market Product Category

3. Unique, Relevant Valued Benefit

4. Proofs


Step 5: test the key customer values offered by your product and company against those offered by your competitors. Write out your market differentiated positioning statement

13. Are you offering value that is not being offered by competitors or are you offering better values than they are? This gives the potential market differentiated positioning

1. TARGET AUDIENCE

CUSTOMER PROFILES

Describe your ideal customer or client by answering the questions below. The questions take you from specific characteristics to a definition of a market or market segment:

– How will they use your product or service?

– Why might they buy it?

– What will they pay for it?

– Are they men, women, or both?

– What is their age group?

– What is their approximate average income?




1. TARGET AUDIENCE

CUSTOMER PROFILES

– What is their employment type (blue-collar, white-collar, managerial, professional, homemaker, etc.)?– What is their lifestyle (personality, self-image , etc.)?– Where are they located (local, statewide, national and international)?– How many of them are there?– How many do you expect to get as customers?– What percentage of the market do you expect to get? – What’s the growth trend of your target market?– What are their buying habits?




1. TARGET AUDIENCE

CUSTOMER PROFILES

– What magazines do they read?– What organizations do they belong to?– What conventions or events do they attend?– Is there a directory that lists them?– Are there mailing lists of them available?– What is the best way to reach them?




1. TARGET AUDIENCE

BUSINESS-BUYER PROFILES


– How will the firm benefit from buying your product or service?– How much are the benefits worth to them – in savings, increased market share, profile, etc.– Who buys? Who influences? Who facilitates? Who decides? What buying procedures are in place? What controls?– What level of service do they expect?




1. TARGET AUDIENCE



– How are they used to buying? Salesperson? Directly? Other? – How is the transaction started, facilitated, completed?– What industry norms govern the transaction? Discounts, payment terms, warranties, types of contracts.– Where are they located (local, national and international)?




1. TARGET AUDIENCE


– What piece of the market are you aiming for? – How many of target firms are there?– How many do you expect to get as customers?– What’s the growth trend of your target market?– What are their buying habits?– What organizations do they belong to?




1. TARGET AUDIENCE


– What conventions or events do they attend?– What places and sources , online and off line do they use to find out about products, developments, innovations?– Is there a directory that lists them?– Are there mailing lists of them available?– What is the best way to reach them?




2. WHAT IS THE PRODUCT CATEGORY

The commercial need being targeted




3. WHAT IS THE UNIQUE, RELEVANT VALUED BENEFIT


CUSTOMER VALUE PROPOSITION

• For (define the target audience and industry) who have (define the big problem) we have (solution description-what we offer) that delivers (this big advantageous benefit –over and above competitor solutions)

• Here is our track record/credentials (why you should believe us)




4. PROOFS

Standards to be met

Regulations to be complied with

Key customers and influencers




4. PROOFS

The first DTES in Europe to gain the new Global Mark of Energy Efficiency ‘ENERGY STAR’ Accreditation- designating it as a top 25% most energy efficient solar hot water system.

The only DTES in Europe, USA and China to hold both the AS/NZS 4234:2008 and the ENERGY STAR Mark.

Under the TRNSYS performance measurement standard used by the US Government in 2011

- Our DTES is 95% more powerful than the best German CPC

vacuum collector. You need twice as many of their collectors.


Steps 1-5 At this point you will have collected and developed much of the information and insight on how your venture and product ‘creates, delivers and captures value’:

• The new product concept

• The customers / segments you will serve

• The value proposition you offer them

• The channels through which you will reach and interact with them

• The relationships you will establish with them

• The revenue stream(s) of what customers are willing to pay , once off / recurring

• The key resources and assets that underpin your venture and business

• The key activities that are crucial to operate

• The key partners / collaborators you need to rely on

• The cost structure and key elements that drive costs


Step 6: Draw up your Primary Market Research Strategy and prepare the Research Materials

PRIMARY MARKET RESEARCH

1. Research Strategy

2. Areas & Questions to explore

3. Materials to be used




Qualitative Market Research

Depth Interviews to clarify and define the agenda of investigation for focus groups consisting of target audiences.

Focus Groups of 8-10 prospective customers, competitor customers and non-customers.

Panel of Experts: six to ten ‘experts’ in roundtable interactive discussion or interviewed individually about the future drivers and direction of your market and industry and responding to your proposed new product and customer relationship concepts.

Quantitative market research

Omnibus Survey question(s) to size the ‘who’, ‘where’, ‘when’, ‘how many’ and , interest and purchasing intentions with the results projected onto larger populations.

Market segmentation research study to size and define the key market segmentations by description and response bases.




To present the new ‘product concept and the ‘business model’ to target market samples, with the objective(s) of understanding (qualitative data):

.....the current provider and product category,

.....it’s importance to buyers and sellers,

.....how and when interest/purchase is triggered,

.....the current provider brand familiarity and favourability perceptions and associations,

.....the current buying process/steps/channels,

.....past experiences in purchases and outcomes,

.....criteria used to select ,

.....the perceived significant product segmentations ,

.....the significant buyer market segmentations




Ascertain the first impressions (qualitative)of the new product and corporate provider and capture the ‘hot’ buy/sell features and benefits ( the good bits)

• Test the hypothesised ‘brand personalities’ ( name, logo, tag lines, screens) • Invite improvement ideas ( the improve its) • Make sure we know the negative perceptions ( the bad bits) • Initial testing on pricing • Get Market ‘verbatims’




In addition to seeking qualitative information and data, the research strategy will aim to quantify a number of key elements of the ‘business model’: (quantitative data)

- Importance of the ‘problem’ in the market- Levels of ‘interest’ in the solution offered- Levels of ‘credibility’ perceived in the solution offered- Degree of ‘innovation’ in the new product- Willingness to pay a price- Numbers in the interested market- Demographic and geographic profile



2. Areas & Questions to be explored



2. Areas & Questions to be explored in Qualitative Market Research

CURRENT BRANDS IN THE MARKET CATEGORY • Ask what provider brands are known?• If you met this brand at a party – how would it introduce itself? What would it say about itself? What would it wear? • Show different product providers’ logos. What is your opinion of each of these companies?• What are the first thoughts that come to mind when you see each one?• What sorts of products do they sell?• What products could they sell?• What types of people buy from them?• How would you group them?• Who are the key competitors?• Why?• What are their key sales and service activities?



2. Areas & Questions to be explored in Qualitative Market Research

CURRENT MARKET PRODUCTS

• Probe ownership of product x type and other category products.• Which product x types have you heard of?• Probe full list to gauge understanding of products available.• What product x’s do you own?• What was the trigger to purchase?• What others did you consider?• What are your main reasons for having a product x?• Are certain product x’s more suitable/better than others to meet your objectives?• What were the main things you were looking for when you bought the product?• Who did you buy it from?• Why?



Quantitative Market Research –Example Omnibus Question

Q.1 Which of the following elements or aspects would you personally worry about in relation to your own health as you get older?

• Developing diabetes• Becoming breathless to the extent that exercise or walking becomes difficult• Having a stroke or a similar condition that might lead to incapacity• Experiencing progressive joint pain or a condition such as arthritis• Having difficulty remembering things



Quantitative Market Research –Example Omnibus Question

Q.1 Which of the following elements or aspects would you personally worry about in relation to your own health as you get older?

• Suffering from angina or a similar condition• Losing ones hearing to the extent that it is hard to socialise or chat• Losing ones eyesight to the extent that driving is impossible• Losing ones eyesight to the extent that reading is impossible• Having difficulty concentrating or paying attention to things that used to be easy• Forgetting things that you heard recently• Losing things and not being able to find them• Developing Alzheimer's disease




Quantitative Market Research –Example Survey Monkey

“ Modify Watches is a cool new watch company seeking opinions and feedback. Our company sells great, interchangeable watches and prices watch straps and faces separately, in order to give customers ultimate choice. All of our straps and watch faces are interchangeable, so any band you buy can be mixed-and-match with any face. The bands are silicone, so swapping in new bands is easy, and the watches are made from high quality, water-resistant materials.”




Modify Watches- Survey Questions:

WATCH BASICS• 1) Do you wear a watch on a daily or frequent basis?• 2) Approximately how many watches do you own?• 3) How often do you purchase watches?

WATCH PRICING AND PURCHASING• 4) On average, how much do you spend when purchasing a new watch?• 5) Have you ever purchased a watch online?• 6) How did you purchase your last watch?• 7) When you think of watch brands, which brands come to mind?




1) Do you wear a watch on a daily or frequent basis?

...about half of people wear a watch on a regular basis




4) On average, how much do you spend when purchasing a new watch?Encouragingly, more than 80% said they spend $20+ when purchasing a watch and the weighted average price people spend was

around $70 per watch. So, without yet exposing their current pricing, Modify had an unbiased view of what watch buyers are willing to pay for a new watch.

Given their current pricing of around $40 per watch, this shows that they aren’t overpriced for the typical watch buyer and may have room to increase pricing over time as they keep a low entry point to gain market share and awareness.



3. Materials to be used


The Product Explained in the following paragraph sequence

should express the core idea simply and succinctly with as few adjectives as possible

The Insight should be an expression of the need derived from consumer understanding

a clear statement of the offer

should be clear and descriptive

can be practical or emotional or a mixture of both.

builds the idea and understanding of it.

Promise

Consumer Insight

Proposition

Reason to Believe

End Benefit

Image / Visual of the New Product Concept


Step 7: Execute the Primary Market Research and Interrogate the Results to Adjust / Refine your New Product Concept and the Business Model.


Flavoured bite-size pizza balls

When you want something more than a packet of crisps, these bite-size pizza balls are the satisfying snack you’re looking for.

Tasty little balls of pizza dough - with fresh herbs, chopped sun-dried tomatoes or even cheese and onion – [that give you the taste of real pizza whenever you want.]

They are easy to eat and make a great snack anytime.

Range• Herby Pizza Bites• Tomato Pizza Bites • Cheese And Onion Pizza Bites

Evening in pub?

Key differentiator

Key benefit

Can we register?

Foil pack

Recloseable

Same size asGrab bag

Max 3cmfor kidsbite-size

No greasy fingers

And the Typical Go-To-Market ?

And the Typical Go-To-Market ?

1.Website & Online Marketing Programme2.PR3. Industry Exhibitions & Trade Events4.Online Sales

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Free help at ...www.marketing4entrepreneurs.org

Date post:	03-Jan-2016
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