Overview:
A "qualitative evaluation" of the market potential for any new
product concept is a security blanket for managers; it gives users a warm,
snuggley -- and completely unfounded -- sense of well-being. Unless a
quantifiable concept screening technique is used to provide hard data
on key marketing issues -- stuff like trial intent, repeat purchase potential,
competitive insulation, price/value relationships, personal relevancy
and user profiles -- the NPD team is not getting a reality check.
In the final analysis it all boils down to this -- how many consumers
will buy the new product and how often will they do it? It's a hard
question. One capable of quantitative measurement, hard data response
and 95% levels of confidence. Five-Box purchase intent and projected
purchase cycles are the currency of quantitative research. It's available
for as little as 150 consumers. And $30,000.
Function:
A new product concept screening technique should produce ten specific
pieces of data; without the info managers just don't get the big picture.
This tool provides all ten:
- Trial intent: buying
interest (traditional five box & averaged).
- Repeat purchase:
number purchases per year & units per purchase.
- Profit potential:
quality of consumer franchise (frequent or loyal users).
- Competitive insulation:
concept exclusivity (brand differentiation).
- Price / value relationship:
good value for the money.
- Personal relevancy:
concept fit with consumer identity & situational usage.
- Source of volume:
competitive contribution or cannibalism of corporate brands.
- User profile: standard
demographic breaks.
- Attitudinal profile:
custom attitudes/behavior patterns.
- Target segmentation: definition of market segments & micromarket opportunities.
Using conventional "top-box" research methodology familiar to most package goods marketers, the tool screens concepts in a monadic or multiple-concept research design. Consumer response can be executed in geographically dispersed shopping malls or via pre-recruited direct mail.
Data can be compared to corporate norms or used to benchmark against established corporate standards/experience; in the absence of pre-established benchmarks it provides rank order prioritization of leading candidates.
The wealth of data also has direct bearing on subsequent business analysis and plans to commercialize winning concepts.
Application:
The tool has been used to screen seven new low calorie (NutraSweet) product concepts for McDonald's. Measured customer acceptance for McKesson's Value-Rite prescription buying service and identified the perceived shortcomings in the "me-too" technology. Domaine Chandon discovered the major impact a subtle change in package design would have on the core users that drove 90% of corporate volume. Continental Baking compared screening data to Five Box corporate norms and discovered even a breakthrough innovation -- properly positioned to pre-empt disbelief -- did not intimidate bread consumers.
As for potential applications, what NPD manager doesn't need to identify -- with statistical certainty -- the best of all viable concepts in which to make the $2,000,000 investment in new product development and commercialization?
home • site map • company • services • experience • commentary • contact
copyright © 2002 Polaris Marketing All Rights Reserved