Marketing a new product can be very unpredictable. Look at Pepsi’s Share a Coke campaign. They received over a million likes on Facebook, 235,000 tweets from 111,000 fans using the #ShareaCoke hashtag, and Over 730,000 glass bottles personalised via the e-commerce store. It was, without question, a successful campaign. Then there is marketing gone unexpectedly wrong by H&M. During times of racial awareness and uprising of gender equality, H&M’s ‘coolest monkey’ hoodie was a controversial hype. All these reasons make it vital to do a 360 degree research before launching a new product.
Market research is finding the targeted audience and collecting information and remarks about the product you will be launching. The market runs on a pretty simple logic of demand and supply – where there is demand, there will be a supply. If there is no need for a product, there is no need for a supply.
So, market research will first tell you whether there is a demand even before the product is fully developed. Here, you find your target audience and determine if the size of the audience is enough to make profit at the end of the day.
There may come a time when you may even dig up new opportunities and new ideas for a different sort of product by doing research on your existing product. Your potential customers can help minimize the risk of launching a new product by sharing insights on packaging, branding, service, website and so on. Planning ahead is absolutely crucial to help you predict the future trends as well. That’s how a market research can be unquestionably beneficial to you.
At the end of the day, it’s all about delivering value, also to a certain demographic. You need to know what will drives your target customer to buy your product, how much money they are willing to spend, and if they perceive your product as something that offers value. Only a thorough market research before launching a product will answer these question.