It is said that up to 80% of new products will fail within the first 3 years of their introduction. Common drivers for failure include a skewed price/value relationship, faulty or unclear positioning, targeting the wrong market segment or does not fill any unmet need or market gap. The success of a new product is often determined early in its introduction; this is where executing research with early adopters is crucial.
IDG developed a 5-Stage Gate for product development consisting of research tools to fit where our clients are in the process of ideation and development. The 5 stages are hierarchical and are:
- Assess market information, segments and internal goals
- Understand consumer needs, usage and compensating behaviors
- Test and quantify consumer needs in relation to usage and market gaps
- Optimize product/pricing configuration and simulate market reactions
- Optimize in-market materials including messaging, packaging and plan-o-grams
Our rigorous product development process uses what we call the “Ideal Product Model” to clearly communicate the insights. The Ideal Product Model is where the Target Market, Ideal Benefits and Desired Consumer Experience all intersect. The summation of these 3 facets can describe the ideal product in brief, but specific detail.
- Target Market – This represents the audience of consumers who are the primary target given the highest return for the development work.
- Ideal Benefits – These are the benefits or attributes that the target market needs and have the greatest impact on share of preference.
- Desired Consumer Experience – This is a first person account of the ultimate experience that the consumer wants to have. It usually consists of a metaphor representing the ideal.