All products usually pass through a lifecycle – introduction, growth, maturity and finally decline. The longevity of each stage depends on the equity of the brand and varies market-wise. Hence, to diversify risks and grow sales, companies operate in different markets. However, a dedicated consumer research must precede any new market entry in order to have relevant product strategy in place.
Companies can either grow domestically or internationally. Either ways, there is a push and a pull which is required to be created around the products to make them successful in a market. A consumer research can provide inputs around the same in order to formulate a product strategy. Push involves retailers recommending the product which would require the input in terms of whether any product adaptations are required for a market or not. Pull involves creating relevant buzz around the product which would require sensing the attitudes & perception around the product.
Channelplay is a market research firm which conducts a lot of consumer research and help companies typically derive the following strategies:
- Product & Communication Extension
Companies pursuing this strategy sell exactly the same product, with the same advertising and promotional appeals in new markets as used in the existing market. This is the easiest product marketing strategy and, in many instances, the most profitable one as well. Mobile Applications are marketed with this approach.
- Product Extension & Communication Adaptation
When a product fills a different need, appeals to a different segment, or serves a different function under conditions of use that are similar to those in the existing market, the only adjustment that may be required is in marketing communications. Bicycles and motorcycles are examples of products that have been marketed with this approach.
- Product Adaptation & Communication Extension
This strategy keeps the existing communications strategy & product appeal unchanged while adapts the product to local use or preference conditions. Electrical products are marketed with this approach.
- Product & Communication Adaptation
Sometimes, when comparing a new geographic market to the existing market, companies discover that environmental conditions or consumer preferences differ; the same may be true of the function a product serves or consumer receptivity to advertising appeals. In such a situation, companies seek for inputs to adapt both the product and communications as per the market needs. Greeting Cards are marketed with this approach.
- Product Invention
When a prospective market does not have the requisite demand for the product or may not have the purchasing power to buy it, companies develop an entirely new product, designed to satisfy the need or want at a price that is within the reach of the potential customer. Product invention is also necessary in case where there are unfulfilled needs of consumers. Packaged foods do a lot of market-based product inventions.
In case you are looking to conduct Consumer Research, then Channelplay is a market research agency which carries relevant experience across various types of product segments. Please feel free to leave a message in the form at the end of this page or visit our website.