Product Innovation: The Basics — Greenbook
Product Innovation: The Basics
In regard to value and functionality: What does it do and what’s it worth to consumers? We recommend concept testing early and often.
by Adam Rossow
Marketing Consultant at Benenson Strategy Group
So you have the next big idea, and you’re ready to get it out into the market. Innovation can be exciting, but it’s worth pausing and evaluating whether you’ve done your homework before you move too quickly. As many as 90% of new products fail each year, 1 and 75% of new consumer packaged goods and retail products fail to generate sales of even $7.5 million (far short of the benchmark of a successful launch, $50 million). 2 Market research can help you be part of the 10%, rather than the 90% that are running back to the drawing board scratching their heads. In a new white paper, How to Use Modern Market Research to Fuel Successful Innovation, a few of those research-based success stories are highlighted.
To help propel you into the elusive 10%, we wanted to share some ideas for you to consider when innovating a new product. While every product will have different factors to consider, here’s a list of key questions that you should know the answer to before launch.
Audience
Who is going to buy it, and who isn’t? Knowing your target will help you effectively market, and ultimately sell, your new product in the most efficient way.
- Who needs this product and doesn’t currently have it?
- Who uses something similar, but might switch to your product?
- Who is unlikely to use your product, no matter what?
- What other brands and products does your target audience gravitate toward?
Basics
There’s a lot to dig into around value and functionality. What does it do and what’s it worth to consumers? We recommend concept testing early and often – as long as there’s enough information to understand the basic concept, consumers give robust feedback even on incredibly early stage concepts, such as wireframes or sketches.
- Why should this product exist?
- How many ways could this product be used? Are some use cases more popular or vital than others?
- What is the value of the product to consumers?
- What is the price that consumers are willing to pay for this product?
- What additional features would be helpful?
- What features are superfluous?
- What variations need to exist, if any?
- How does this new product fit under your brand umbrella?
- What makes this product different than its competitors (if any exist)?
- How do consumers want to learn about a product like this?
- What do consumers need to see/hear to want to buy this product?
- Where/how would consumers expect to find a product like this one?
- Where/how would consumers buy a product like this one?
Competitors
Who are you up against, what are they known for, and what makes you different? Knowing how you stack up against the competition will give you a much stronger platform on which to stand when you decide to go to market.
- Who has a similar product on the market?
- What are consumer perceptions of this brand(s)?
- What makes you different than this brand(s)?
- What are consumer perceptions of the differences between you and your potential competitors?
- What makes your product different than their product(s)?
This might seem like a lot of questions – it is. But while some, such as price, necessitate separate quant questions, many can be tackled as part of a conversation about your new product. Online one-on-one qualitative gives you a chance to show the consumer a prototype of what your product might look like and get their unbiased feedback in a fluid conversation. This allows you to cover a lot of ground without it being draining on the consumer. In the right environment, consumers truly enjoy and appreciate being a virtual extension of your R&D team.
For more innovation strategy, tactics and success stories, check out the white paper, How to Use Modern Market Research to Fuel Successful Innovation.
1 “Why Most Innovations Are Great Big Failures,” Anne Fisher, Fortune, October 2014.
2 “Why Most Product Launches Fail,” Joan Schneider and Julie Hall, Harvard Business Review, April 2011.