When launching a new product, it is not enough to understand how the product is performing. It is crucial to know who is buying, where the volume is being sourced, and whether the product is attracting new or existing category buyers. Key questions include:
- How many households have tried the new product? Are these buyers new to the category?
- How did trial consumers respond to advertising and promotions?
- What effect did the activity have on the category?
- Has the new brand increased the category and bought in new category buyers?
Failure to grasp the specific needs of a new market can be costly, both financially and in terms of damaged corporate image. In volatile, ever-changing markets, mistakes can mean wasted costs in advertising, distribution and production expenses, as well as damage to your brand name and equity.
Developing new products requires effective ways to minimize risk and maximise gain. New ideas need to be thoroughly tested and evaluated to reduce risks and helps fine-tune the marketing mix before launch. The key issues range from idea generation to final marketing mix development:
- Which of our concepts should we push for development?
- How good is my concept and product?
- What are the strengths and weaknesses of my concept and brand?
- How likely is my new product to succeed?
- Does our advertising communicate the right message?
- Which of our concepts should we push globally?
Nielsen Can Help
Homescan data can determine if enough consumers make a trial purchase during the early days of launch and if they make repeat purchases. Find out more.
Our wide range of services offer support across all stages of product development, including concept development, packaging design, advertising and communications, pricing and performance assessment. Find out more.