|
|
|
|
|
|
|
 |
|
|
 |
|
|
| Design
Research, LLC • Why
Conduct Research? |
|
- The product development climate has changed dramatically
in the past 5-10 years.
- Increased access to global products has added
complexity to the choices US retailers make.
- The US market is the most sought-after consumer
market in the world, with many international companies
launching unprecedented quantities of new products
into the US annually.
- New products are the life blood of any business,
but are high risk, high reward.
- According to the "Product Development Management
Association" survey, new products account
for approximately 29% of company sales and 39%
of company profits.
- According to Phillip Kotler, "Marketing
Management", March 13, 2001, Over 80% of
new consumer products fail, due to lack of differentiation,
lack of performance, or lack of understanding
of the consumer audience to which the product
is targeted.
- Economic challenges increase the pressure on the
sales performance of companies.
- Careful choices must be made to ensure maximum
return on resource investment.
- Resources in a down economy become scarce. Every
new product must contribute to its fullest potential.
- Successful new product efforts rarely work in a
vacuum. An understanding of consumer motivations,
and product/design acceptance is essential.
- Proven research methods reduce risk by helping
managers select products with the highest potential
to succeed.
- Finding success as well as failures is the job
of research:
- Fail with small $, succeed with big $$$.
|
|
|
|
