Ultrarapid market test of a new product

How to verify the market potential?
Scope: Market research, value proposition, Digital communication
Industry: FMCG drinks
Duration: 3 weeks

Executive summary

Challenge
  • The "Healthy Adult Drinking" market segment is growing rapidly
  • It was critical to quickly test market potential of new products
Actions
  • We defined hypotheses about new value propositions
  • We used a Digital campaign to test product concepts
  • We designed and conducted field product tests
Results
  • The tests we created were highly effective
  • We were able to identify and reach key target customer segments
  • We created guidelines for product features and its communication

Service description

Ultrarapid market tests of new products provide hard data, allowing to make the right decisions and avoid mistakes in formulating the best answers to the following questions:

  • why and for whom

  • what and how we will delivered it

  • how to communicate it

Our client

The project involved collaboration with the International Research and Development (R&D) team of the world’s leading producer of healthy beverages in the Fast Moving Consumer Goods market.

Challenge

The first signs of the “Adult Healthy Drinking” trend made the company interested in creating products in a category completely new to them. The company’s R&D department was tasked with testing the feasibility of creating a new, modern beverage. The development trial was successful; several flavors were created.
However, the questions of creating a product strategy and market potential remained. Many issues were not known – how to position, communicate, and present the product, how the market would react to it.

Our goals

Our task was to perform ultrarapid tests to gather data on the market’s interest in the new product. We also wanted to determine which customer segments would respond best to the new product, which value proposition would be best suited to them, and it needs to be communicated.

Key actions

After development of hypothetical value propositions, we used a Digital campaign with landing pages about the product concepts under test. The participants provided us with very valuable data about the product’s opportunity in the market. Those involved in the process did not know they were participating in the tests. Many of them decided to voluntarily take the time to fill out an additional survey. This allowed us to understand who the recipients of the product were and what they valued in the product concepts. We also conducted the beverages sensorics tasting and packaging test to gather feedback from potential customers. For the tasting venue, we chose the Koszyki Hall in Warsaw which represented a real market environment – modern, gathering people with very different profiles.

Results

The tests proved to be highly successful. We were able to get 4,500 entries on landing pages with 1,000 surveys were completed within 24 hours and 35 field tests were effectively delivered. We confirmed the target customer segments and the most desirable product usage scenarios. We also set guidelines for product development, defining preferred flavors and packaging details (material, style, colors). We also provided recommendations for product’s effective communication.

Client benefits

In just three weeks, our client got hard data that proved the new product had a lot of market potential. He also got advice on how to further develop the product as well as learned how to test new market ideas in a very short amount of time and for a relatively small amount of money.

Without such tests, it is difficult to make the right decisions in product development.

Katarzyna Królak-Wyszyńska
 | Project Manager, CEO Innovatika

Summary

New product development is based on unverified hypotheses and always involves uncertainty. The risks can be minimized by conducting regular tests and market experiments. By introducing them at an early stage, we can gain more market information and thus increase the product’s chances of success.

An excellent product must meet genuine customer need, be effectively presented and communicated, and made available through the right channels. Ultrarapid market tests provide hard data on the market’s interest and customer engagement, help refine the product’s key features, and prepare effective communication.
They allow you to make the right decisions and avoid mistakes in formulating the best answers to your questions:

  • why and for whom

  • what and how we will delivered it

  • how to communicate it

therefore maximize the business market opportunity while reducing development risks and costs.

For us, it is a mandatory part of any new product development process. For our clients, it is an opportunity to gain valuable data in a very short time at relatively little cost.

Let’s do great things together

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Consent
Jerzy Kurgan
Managing Director