Concept testing is an established method in market research that aims to test the potential of product concepts before they are launched on the market. The origins of the method date back to the 1920s, when concept tests were first used as part of advertising and marketing campaigns. Since then, the method has evolved and is now used in many industries, particularly in product development.
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Four examples where concept tests are used
1. risk reduction at Coca Cola
Concept tests make it possible to identify potential weaknesses in a product concept at an early stage and thus minimize the risk of failure on the market. Early feedback allows companies to optimize their product ideas and eliminate potential problems before they reach the costly development and marketing phase.
Example: In 1985, Coca-Cola introduced the "New Coke" in response to growing competition from Pepsi. Despite extensive pre-testing and positive results, the new product met with considerable consumer disapproval, which ultimately led the company to revert to the original formula. Had Coca-Cola conducted more extensive concept testing, the risk of such a failure might have been minimized.
2. identify the idea with the greatest potential at Kellogg's
Conducting concept tests before product development helps to identify the idea with the greatest potential. This creates capacity for companies to invest in other projects or improvements.
Example: Kellogg's carried out two-stage market research to identify the idea with the greatest potential for a new product. Various product ideas were evaluated with the help of focus groups and subsequent quantitative surveys. The results showed that "Crunchy Nut Bites" was perceived as the most promising product concept of all the ideas tested. The market research data was also used as the basis for a corresponding sales forecast.
3. customer-centered development at Migros
Concept tests ensure that the needs and wishes of customers are at the center of product development. By involving the target group in the development process, companies can develop products that meet customer expectations and increase their loyalty and satisfaction.
Example: One example from Switzerland is Migros' Migipedia platform , which involves customers in product development and improvement. On this platform, customers can rate products, share their opinions and make suggestions for improvements.
4. refinement of marketing strategies at P&G
With the help of concept tests, companies can optimize their marketing strategies by finding out which aspects of the product are most appealing to the target group. This makes it possible to develop targeted advertising measures and increase the effectiveness of marketing campaigns.
Example: Procter & Gamble (P&G) conducted concept tests for Febreze to better understand consumer expectations and requirements and to optimize the product's marketing strategy. Thanks to these tests, P&G was able to tailor the new positioning of Febreze to the needs of customers and develop targeted advertising measures. The concept tests also enabled the new marketing campaign to be tested and improved, resulting in greater brand awareness and customer loyalty.
Conclusion
In conclusion, concept testing plays a crucial role in the development and launch of products and brands. Concept testing can also be combined with other market research methods to get a complete picture of consumer preferences. For example, observational data from social media can help identify consumer behavior patterns and attitudes that are relevant for concept development.
By using cutting-edge AI-powered technology and methodologies, Innohack helps companies better understand their products and brands and strengthen their position in the market. Visit Innohack's website now to learn more about live concept testing and contact us to see how we can help you revolutionize your concept testing.
"The live concept test has two fundamental advantages for us: we can use it several times financially, it is iterative and you can optimize continuously. It's fast and agile."
Valentin Haag, Head of Marketing Maestrani
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