This document discusses various aspects of conducting market research for a new product idea. It provides guidance on defining the target consumer group, analyzing competitors and market trends, testing the initial product concept with consumers, and gathering feedback to help identify gaps and opportunities in the market. Key aspects discussed include developing a feature analysis and positioning map to understand how the new product compares to others, conducting a SWOT analysis of strengths, weaknesses, opportunities and threats, and using the results of market research to help minimize risks and ensure the product is well-positioned to meet consumer needs. The overall aim is to guide readers on how to systematically research the market and gather customer insights to improve chances of success for a new product introduction.

2. Market research
next big thing?
consumer
competitors
analysis

3. Market research
next big thing?
consumer
competitors
analysis

4. Looking for the gap in the market…
 We have an original idea
 It does not exist yet
 The competitors don’t have it
So…
A gap in the market?

5. Looking for a gap in the market…
When a product
does not exist yet…
there may
sometimes be a
good reason…
there is no need
for it

6. Innovation = Risky Business
 For companies, innovation is a
driving force for growth but…
 Innovation is also a risky
enterprise:
 90% of the new consumer products
are a failure
 30% of the new industrial products
fail at the launch

7. Top or flop?

8. Top or flop?

9. Top or flop?

10. Top or flop?

11. Top or flop?

12. Top or flop?

13. Top or flop?

14. Looking for the gap in the market…
The market
offer does not exist yet
demand there is a need for it

15. Introductory Terms
 Key factors for the introduction of new products:
 Meticulous study of the needs of the customer
 Involve future customers in the development process
 Provide commitment and support at the design phase
to the highest possible extent
 Make and reserve sufficient resources for the market
introduction

16. Introductory Terms
Market segment Market niche
 A large part of the market:
potential buyers who have
similar needs, wishes, value
perception and purchase
behaviour
 e.g. car buyers with a high
income
 A smaller specialized formed
segment
 e.g. performing sports cars

22. Content
next big thing?
consumer
competitors
analysis

23. Analysis of the market:
demand side
 desk research
 google
 newspapers
 magazines
 trendwatchers
 field research
 quant.
 qual.

24. Field research: testing product concepts
 Concept testing
 testing the idea in the market, amongst consumers
 Product concept
 description of the product on paper, on video, in the
form of a model…
 development of the idea, without actually
manufacturing the product

25. How to test?
 Product concept is presented to a group of consumers
taken from the target market
 Comprehensibility?
 Credibility?
 Attractiveness?
 Positive/negative points?
 Where would you buy it?
 What can it cost?
 Purchase intention?
 …

26. Two ways
Qualitatively Quantitatively
 Limited group of
respondents: in-depth
interview, focus group
 Insight in positive and
negative points, motivations
 …
 Extended, representative
random test
 Quantitative appraisal of
interest, purchase intention

27. In-depth interview (qualitatively)
 Conversation interviewer - respondent
 Unstructured:
 No standard questions list
 Interviewing guide: checklist with themes
 Probing questions:
 Further questioning, asking for more explanation
 Other angle of incidence
 Including non-verbal communication
 Observation: one-way mirror, video

28. Focus groups (qualitatively )
 = “In-depth interview in group”
 Cheaper than in-depth interviews
 Interaction between group members--> new ideas
 Unstructured:
 No standard questions list
 Interviewing guide: checklist with themes- see e.g. Leho
 Important: composition of the group
 Group size: 6-12 members
 Sufficient number of eloquent members
 Not too homogeneous --> few discussions
 Not too heterogeneous --> quarrels
 No people who know each other --> inhibitions

29. Focus groups
 Important role of moderator:
 Steer the conversation in the right direction
 Not impose own opinion
 Follow themes list
 Weaken dominant figures, stimulate silent figures
 Create a relaxed atmosphere
 Including non-verbal communication
 Observation: one-way mirror, video
 Example: check you tube: ‘focus groups’

30.  “We have put a survey online and already 100 people
have responded!” 
 Who has responded?
 Are these people representative for your target group?
 Size is not everything! ;-)

31. Tip 1: question the right people
1. Define the target group for your concept (= population)
 Business to business?
 Which business?
  which is the Decision Making Unit (DMU)?
 E.g. IT purchase managers of Flemish SMEs
 Business to consumer?
 What kind of consumers?
 E.g. Flemish seniors between 65 and 80
2. Of these, question a representative random test
 = with the same composition as population for important
characteristics

32. A question from the concept test:
 Do your think this product is interesting?
1. Yes
2. No

33. A question from the concept test:
 Q1 To what extent do you think this <product> is interesting?
 1. Very interesting go to Q2
 2. Interesting  go to Q2
 3. Not really interesting  go to Q3
 4. Not interesting at all  go to Q3

 Q2. Why do you think the proposal is interesting?
 ENQ. Good further questioning, do not make suggestions, note
everything literally
 ………………………………………………………………………………………………………………
…………………………………………....
 V3. Why don’t you find the product interesting?
 ENQ. Good furhter questioning, do not make suggest, note everything
literally
 ……………………………………………………………………………………………

34. A question from the concept test:
 Would you buy this product?
1. Yes
2. No

35. A question from the concept test:
 How likely is it that you would buy this product?
1. Certainly
2. Probably
3. Maybe, maybe not
4. Probably not
5. Certainly not

36. Tip 2: ask the right questions
 Sufficient nuance (see previous slides)
 Relevant “Do you like Brussels sprouts?”
 Simple “Do you sometimes visit Facebook or LinkedIN?”
 Unequivocal “Are you a heavy internet user?”
 Simple “Do you sometimes visit sites with user-generated content?”
 Concrete “To what extent are you durable in your daily behaviour?”
 Neutral “Do you find our services also as good?”

37. Free online surveys:
 http://nl.surveymonkey.com/
 http://www.enquetemaken.be/
 http://www.thesistools.com/

39. To do: concept test
• Describe the concept of your product / service (what?)
• Describe your target group (for whom?)
• Small-scale test of your concept with the target group,
qualitatively or quantitatively

40. Market research
next big thing?
consumer
competitors
analysis

41. Analysis of the market:
offer side
 desk research
 google
 newspapers
 magazines
 trendwatchers
 field research
 quant.
 qual.
 use ‘students’

42. Informatiebronnen (vervolg)
 NIS (nationaal instituut voor statistiek)
 http://statbel.fgov.be
 ECODATA
 http://ecodata.mineco.fgov.be
 Nederlandse kamer van koophandel voor België in Luxenburg
 http://www.nkvk.be/
 www.trendstop.be

44. Market evolution
 Technological, Economic, Values and Norms

45. Market share of the competition
21%
7%
25%
18%
29% concurrent A
concurrent B
concurrent C
concurrent D
concurrent E

46. Portfolio of the competitors
 Company name/ address / location / contact details
 Products
 Active on the following markets: …
 Evolution
 Differentiators (how do they distinguish themselves)
 Target groups
 What does the company stand for/ image
 Turnover, profit/loss figures,…
 …

47. Information sources
 Private sources
 Non-profit organizations
 Professional organizations
 Voka (www.voka.be)
 Members organizations (consumers, fan clubs,…)
 …
 Profit-oriented organizations
 Salesmen (manufacturers, suppliers,…)
 Catalogues, samples, test data,…
 Consultants
 Business contacts
 …

48. Information sources (continued)
 NIS (national institute of statistics)
 http://statbel.fgov.be
 ECODATA
 http://ecodata.mineco.fgov.be
 Nederlandse kamer van koophandel for Belgium in
Luxemburg
 http://www.nkvk.be/
 www.trendstop.be

49. Information sources
 Patents
 Delphion Intellectual Property Network
 http://www.delphion.com
 US Patent and Trademark Office
 http://www.uspto.gov
 European patent office
 http://www.european-patent-office.org
 www.espacenet.com

50. Financial information
 blueberry hill Kortrijk
 www.ondernemingsnummers.be
 address
 employees
 statues ( www.staatsblad.be)
 balance (www.nbb.be)

51. Blueberry- hill

54. Gouden Gids: quick & easy
 also financial information
 Blueberry-Hill

56. 5 forces Porter

57. Suppliers
 Bargaining power
 Few suppliers
 No substitute products available
 High overflow costs
 …
 Approach by
 Partnership
 Supplier takeover
 Making the supplier more dependent
 Knowledge of the costs and methods of the supplier
 …

58. Customers
 Dangers
 The customer knows the production costs
 The product is not of strategic importance to the customer
 Customers can make the product themselves
 Product is undifferentiated -> can be substituted
 Approach by
 Increasing loyalty
 Increasing added value and inducement to buy
 Lead away the purchase decision from the price
 As little intermediate channels as possible

59. New entrants
 Dangers
 Depends on the accession barriers
 Economies of scale (minimum size)
 High initial start-up/investment costs
 Loyalty of customers to the brand
 Distribution channels already checked
 Patents
 Legislation
 …

60. Substitutes
 Dangers
 Depend on:
 Loyalty of the customer towards the product
 New trends
 The relative price new existing product
 Transition costs for the customer
 …

61. Competition
 Dangers
 Dangers are high in case of
 Many players with the same size
 Players with the same strategy
 Little differentiation
 Small market growth
 …

62. Market research
next big thing?
consumer
competitors
analysis

63. Analysis
feature
analysis
positioning
map
SWOT

64. Feature analysis
 Frequently heard with starters
 Our product is much better than the one of the competition
 Our product can do a lot more than the one of the competition
 Our product is different from the one of the competition
 We don’t have any competitors
 …

65. Feature analysis
Feature 1
Feature 2
Feature 3
Feature 4
Feature 5
Feature 6
Feature 7
Competing products
Product A Product B Product C Product D Own product

66. Test-Aankoop

67. Feature analysis
 Example: event agency
Feature Comp. A Comp. B Comp. C Our
company
Teambuilding X X X
Quests X
Concerts X
Cultural events X X
Parties X

68. Feature analysis
 Example: hotel
Feature Comp. A Comp. B Comp. C Our
company
Central location X X
Free WiFi X X
Soundproof rooms X X
Swimming pool X X
Roomservice X X X
Shuttle service X
Air conditioning X X X X
Skyroom X

69. Positioning map

71. Positioning map: multiple
dimensions

72. Positioning map

73. Positioning map

74. Importance of USP and
Differentiation
 Distinguish oneself from the competition by means of:
 Product attributes, price, extra service, quality,…
 Positioning for specific use
 Distinguish for typical user
 Distinguish by product class

75. The right strategy
 To put the right product in
the marketplace
(useful, added value,…)
 To put the product in the right
way in the marketplace

76. red ocean blue sea
strategy  strategy

77. Common mistakes
 More focus on characteristics of the products than on the
benefits for the customer.
 Underestimate the importance of FOCUS:
sell a specific product to a specific target group.
 Unclear product definition (my product can do
EVERYTHING and is good for EVERYONE)?
 Assume that the product sells itself.
 Too broad a target market.

78. SWOT analysis
 Strengths
 Weaknesses
 Opportunities
 Threats

79. SWOT analysis
Name: Own company or competitor
Strenghts Weaknesses
 High technological knowledge
Well-known brand
 Supplies very high quality
 Makes big innovative efforts
 Long history of good products
 Money reserves available for large investments
 Extensive network of distributors
 Rusted company hierarchy
 Company location
 Low flexibility of the production process
 Large time-to-market
 Already had to throw away many innovative
ideas
….
Opportunities Threats
 New markets appreciate the technology
 New trends
 Takeover
 Changing customer values and norms
 Fastly increasing competition
 Changing laws
 Rise of low-wage countries

80. Market research
next big thing?
consumer
competitors
analysis
to do

83. Assignment
• Definition of target group
• Evolution of the market
• Portfolio of the competitors
• SWOT analysis (SWOT of yourselves + SWOT of the competitors)
• Feature analysis
• Positioning Map
• Risk analysis
(Suppliers, Customers, Newcomers, Substitute products, Competitors)

84. So let’s get started