In the fast-paced FMCG industry, product innovation is essential for ongoing relevance and success in the market. However, many products fail as they weren’t properly launched to the market. Market research is essential for product innovation for FMCG businesses and has been widely embraced by the industry. To assist you with learning more about FMCG research, we’re outlining some of the most commonly used market research methods which can be implemented by your business.
Product research is the bread and butter of the FMCG sector and involves businesses researching new products which they can then release to the market. However, before this can happen, businesses need to understand the needs and desires of their consumers through market research techniques such as focus groups, interviews, questionnaires and surveys. How will the market respond to your new idea? What products are consumers looking for?
When you have an idea for a new product that you wish to proceed with, it can be difficult to predict how the market will react. Product testing is an essential aspect of FMCG market research and it doesn’t just involve the product itself – you can also gauge the impact of the branding, packaging and overall impact. Product testing can include a Central Location Test, where a product is tested in a controlled environment, or an In-Home Usage Test, where consumers test a product in their own home.
Monitoring the product lifecycle
There are four main stages to the FMCG product lifestyle – introduction to the market, growth stage, maturation stage and decline stage. Close monitoring is required if one of your products is reaching the decline stage and this is often indicated by diminishing sales and interest. This is the best time to decide on the next move for the product and market research can assist with this as you can look into rebranding for your product, alter the marketing message or phase the product out completely depending on consumer impact.
Understand the competition
Overlooking the competition is a serious oversight into the FMCG industry. The FMCG sector is traditionally highly competitive and it can be difficult to find a niche. You might think that a new product is innovative but you may find after conducting research that many other FMCG companies have thought of the same product. Understanding what your competition is doing, and whether they’re doing well, allows you to stay ahead of the curve in identifying how you can differentiate yourself.
Industry analysis and research
The successful launch of a new FMCG product requires FMCG businesses to have a broader understanding of the current trends of the market. Data is becoming increasingly accessible which allows FMCG to carry out through analysis on an ongoing basis. Secondary research of this nature can be carried out easily and inexpensively to better understand the purchase and consumption of goods to tailor product research and development.
For support with your FMCG research, including design and product testing, contact Colmar Brunton today.