Less than 10 % of new product launches achieve success. These 2 statistics are very telling about the amount of money being spent
With every launch organizations spend millions in dollars in researching new products, test marketing it and releasing it to the broader market. If the new product launch succeeds, it will result in significant enhancement to their revenue stream. If it fails it could result in millions of dollars going down the drain. It is a high risk, high returns game.
In these troubled economic times, organizations may want to be more cautious with their new launch initiatives as if the product 'bombs' in the market it could have disastrous financial consequences. The traditional process of assessing new launch product consists of analyzing a limited set of data like new product market survey data may need to be enhanced by understanding consumer engagement at a deeper level
Increasingly organizations are increasing the breadth of data analyzed to give a more holistic understanding of consumer acceptance of products which include the following additional inputs to the data
- Mimic a small virtual game for new product and observe people exploring the product
- Sentiment analysis of consumer feedback from blogs and social network sites
Traditionally these additional inputs were not accessed, but as many organizations are finding out, they may be better indicators of which products to bet on than traditional market survey data which is sample based and error prone.. CPG companies must reduce the high failure rate of new products; unearthing what “most people want. Today’s high niche market requires companies to add new tools to their research methodology that enable them to connect with thought-leading consumers and fully understand their demographic mix
The web provides an immersive environment for consumers to play around with new products which are launched
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