Have a brilliant idea for a new product? You probably also have a lot of questions like:
- Who would buy my product?
- What audience(s) should I target?
- What products are competitors?
- What’s the market share for competitors?
- How much should I sell my product for?
- How should I promote my product?
A new product feasibility study answers these questions and other key performance indicators.
Keep reading as our market research company defines new product feasibility studies and how to conduct them successfully.
What is a new product feasibility study?
A new product feasibility study is a market research methodology that aims to provide predictive analytics to guide the next steps for marketing, sales, and product development.
The objectives of this type of market research often include obtain insight on:
- Product placement
- The target market
- Marketing and advertising
- The competition
- Pricing strategies
There may also be several secondary objectives included in the study depending on your company's needs and specifications.
When our new product feasibility studies company conducts this type of market research, we recommended incorporating five different components.
The five components include:
- Demographic analysis
- Competitive assessments
- Pricing analysis
- Online surveys
- Stakeholder interviews
We’ll dig into each of these later in the post!
Why are new product feasibility studies important?
Companies conduct a new product feasibility study to prove demand for the new product and provide data-based recommendations for the next steps when entering the market.
Oftentimes companies allot space in their budget to spend money on new product development research to assure they will earn the highest return on investment possible.
Another important piece is to have a third-party market research company conduct the new product feasibility study.
This reduces bias when designing the research, analyzing the results, and created recommendations.
What type of information does a new product feasibility study collect?
A new product feasibility study collects both primary and secondary research.
Primary research is newly designed for the specific project at hand.
It collects new data and information to meet the goals and objectives of the study.
Primary research for a feasibility study typically includes online surveys and stakeholder interviews.
Secondary research is data or information gathered from past research that is relevant to meeting the goals and objectives of the study.
Secondary research for a feasibility study typically includes a demographic analysis and desk research.
What are the components of a new product feasibility study?
Below is an overview of what’s included in each of the five components of a new product feasibility study.
Component #1: Demographic analysis
A demographic analysis assesses the information gathered by the U.S. Census Bureau and other reputable demographic data collection sources.
This component often includes:
- Population assessments
- Race and ethnicity breakdowns
- Gender breakdowns
- Age groups breakdowns
- The number of people in households
- Presence of children in households
- Household income
Component #2: Competitive assessment
A competitive assessment assesses what is currently on the market.
This typically includes investigating each competitor to better understand offerings, price points, and marketing strategies.
Ultimately these findings are summarized and used to provide recommendations and next steps when entering the market.
Component #3: Pricing analysis
A pricing analysis looks at the pricing for the competition and uses survey data to shed light on how much consumers expect to pay for the new product.
Component #4: Online survey
The online survey piece helps shed light on a multitude of factors such as:
- Awareness of competitors
- Interest in the new product
- Target audiences
- Best ways to market the product to consumers
Typically these surveys include 20 to 25 questions and take 3 to 5 minutes to complete.
Component #5: Stakeholder interviews
Stakeholder interviews are great at answering questions when it comes time to dive into specific questions about the next steps, marketing, and what makes the product more or less appealing.
Typically these interviews last 20 to 30 minutes and provide great insight to support the quantitative data findings.
Drive Research is a national market research company that partners with brands across the country to conduct new product feasibility studies. Whether you are looking to utilize a few or all of the components mentioned in this blog post, our team can help.
Contact us today to receive a project proposal or quote!
- Message us on our website
- Email us at firstname.lastname@example.org
- Call us at 888-725-DATA
- Text us at 315-303-2040
As a Senior Research Analyst, Emily is approaching a decade of experience in the market research industry and loves to challenge the status quo. She is a certified VoC professional with a passion for storytelling.
Learn more about Emily, here.