Developing a new product
To develop a new product, let's say, a new toothbrush, you may need a cross-functional team. That could include product developers, marketers, procurement and raw materials specialists, supply chain, and business analysts who all get together to ideate and assess the risks. Even at the idea development stage, you are already investing money into this new product development (NPD) as you are at least paying salaries. Going into the later development stages, you may invest hundreds of thousands into product trials, legislations, approvals, etc. If you don't test with real consumers for the demand, your product may fail, and you will lose your money. That will negatively impact your Company's performance.
You can check a dozen ideas at the concept level using a quick survey.
The cost is just a couple of thousand, and you'll get your results back within hours, not days or weeks.
The survey will allow for the:
- cut off unpromising ideas,
- prioritising promising ideas, and
- clarifying and tweaking those ideas
This way, you will TEST viable ideas and get all information about how people NEED these ideas. The overall cost-effectiveness of the development cycle will be much better than the real-life testing approach.
Airing a new advert
Creating and shooting a commercial costs hundreds of thousands, and airing a commercial in mass media often costs millions. During the draft stage or even with an animatic, you can check its appeal for a couple of thousand (less than 1K on www.fastuna.com
!). Here's an example.
So you will understand whether the idea is appealing to your target audience, whether it is worth investing in production and if yes, what can be improved to get the best hit, maximising ROI of your media spends. Changing the packaging
To launch and test a new packet design of crisps, you need to spend thousands of euros. And if the new packaging sells the product worse than the old one (sometimes it happens — check the Tropicana
case!), then there will also be lost profits. A quick consumer survey
will allow testing the new packaging concept for just a fraction of the packaging costs. This research will show whether the new packaging will perform better than the current and/or competitors' packaging.