How can Market and Consumer Research facilitate New Product Development?

What is Market and Consumer Research? 

• Market and consumer research is a collective term used for collecting, analysing and interpreting information about markets, market trends and consumer behaviour. Consumer research can be considered a part of market research. It is also called consumer market research.  

• While market research aims to gather information related to market size, growth potential and opportunities, consumer research delves into understanding consumer preferences, behaviour and attitudes of the target consumers.   
• Consumer Market Research helps businesses make informed decisions, gather consumer insights, develop innovative products and improve their marketing strategies.   
• In addition, consumer market research results in improving existing products, developing innovative products and consumer satisfaction, which is crucial for the success of the business.  

Why is Consumer Market Research important? 

• Evidence shows that about 33% of products fail without properly conducting market research.  

• Consumer market research is crucial for companies who want to stay competitive within the industry.  
• Although the process can be lengthy and challenging, consumer market research help in the growth of an organisation and improve its market share further.  
• Firstly, consumer market research helps minimise potential risks and prepares industries for a successful product launch. The business can understand the market and target audience, which helps them create innovative products and improve the existing product and marketing strategies.  
• Conducting industry and market research helps organisations make decisions based on facts; they can estimate the chances of a product’s success.  
• Thirdly, consumer market research helps industries gauge the resources they require for developing new products. Investors may also want to look at market research before granting funds; they need some security that the product will be successful. 

• Finally, properly conducted consumer market research clearly shows how the concept will be welcomed into the market.

How does Market and Consumer Research help in new product development? 

Market and consumer research help in decision-making for developing innovative products. The following section discusses how market and consumer research helps in new product development: . 

1. Ideation 

Consumer market research helps identify gaps in the market and unmet consumer needs. Businesses can develop ideas for innovative products by analysing consumer preferences and pain points. In addition, market and consumer research can also help identify opportunities for new products. Identifying the present market and consumer preferences can help businesses develop products with higher chances of success. 

 

2. Concept evaluation 

Consumer research allows businesses to evaluate product concepts with potential consumers before investing huge resources in new product development. The evaluation and subsequent validation help identify which ideas align with the intended audience, thereby increasing the chances of product success and minimising the risk of launching a product with low acceptance.  

 

3. Validation in the market 

Businesses can evaluate the potential market size of the new product. Understanding market demand and identifying target consumer groups can aid in the prioritisation of product features. An example is the market analysis for snacks, where the market for extruded and vegan snacks is likely to grow due to their health benefits.  

 

4. Analysis of the competitors 

Consumer market research involves analysing their competitors through a SWOT analysis, wherein the strengths and weaknesses of competitors’ products are analysed. This analysis helps businesses to differentiate their products and create selling points, which are crucial for positioning their product in the highly competitive market landscape.  

 

5. Product Features 

Consumer market research helps gain consumer insights, which can guide new product development. Understanding consumer preferences and features help businesses develop innovative products that meet consumer needs. Suitable examples include the formulation of plant based milk, like almond milk, oats milk and hazelnut milk. 

 

6. Product Testing 

New product development is an iterative process and often involves several rounds of sensory evaluation for food products, beverage products, nutraceuticals and cosmeceuticals. Gaining feedback from consumers helps in making iterative improvements. Testing product with intended consumers helps organisations to gain valuable consumer insights, identify possible issues and make necessary amendments before launching the product.  

 

7. Post-launch evaluation 

Consumer market research is valuable even after when a product is launched into the market. Gaining and monitoring consumer feedback, analysing sales data and keeping track of market trends can lead to improvements in the product. Additionally, market and consumer research can also help in the development of me-too products, products that are similar to competitor products but with other features like being economical and having a better taste [1].   

 

Conclusion 

Consumer market research is a backbone for new product development, for it involves gaining consumer insights and market trends. Consumer market research help at every stage of product development, from generating new ideas to evaluating concepts, product features, and post-launch evaluations. Businesses can minimise risks and increase the chances of a product’s success by thoroughly understanding consumer needs and market dynamics. 

 

How the Food Research Lab can help 

At the Food Research Lab, we are a team of food scientists and technologists who offer B2B services in developing food products, beverages, nutraceuticals and cosmeceuticals. We assist start-ups, skincare industries and nutraceutical companies in formulating innovative products or reformulating existing products. We also conduct consumer market research that help develop products that align with consumer needs and market trends and ensure the formulated product is successful.  

To know more about the various products formulated by our team, check out our portfolio.