MARKET RESEARCHfor PRODUCT DEVELOPMENTAUTHOR: ELENA TRANHTTPS://WWW.LINKEDIN.COM/IN/ELENATRAN9026/08/15

A NEW PRODUCT A completely new producto Innovation to the marketoMay create a new market

Additions to existing product lineso New supplements to current products

Modifications of existing productso Improve product performance to meet higher demands

Product life cycle

Develop Launch Grow Maturity

TIME

SALE

DEVELOP - RESEARCH FLOW

Define the needs

• Set research objectives

• Identify possible marketing actions

Research questions

• Specific constraints

• Identify essential data metrics for marketing actions

• Determine how to collect data

Collect information

• Secondary data• Primary data

Analysis & suggestions

• SWOT analysis• Profit analysis• User analysis• Competitor analysis

Take marketing actions

• Implement recommendations

• Evaluate results

Step 1 Step 2 Step 3 Step 4 Step 5

Clarity & purpose of the product:o Is the purpose of the new product clear?o Can potential users be persuaded of the product’s benefits?oWhat value do we deliver to the customer?

Assess demand for the product:o Does the product meet the need?oWhat is the specific nature of target customers’ requirements?

User analysis of new productoWho are potential customers? What are user persona?oWhich customer’s problems are we solving?o How likely are potential customers buy the product at face value?

DEVELOP – RESEARCH QUESTIONS

User behavior of existing products:o How long are existing product used?o How frequency does customers contact for updates?oWhat do they demand for existing product upgrades?

Identify market gapsoWhat challenges do people face while using existing products?oWhat demanded requirements are missing?o How are current customers satisfied with the existing products?

Value-based pricingo Is the price reasonable to benefits?o How is the price compared with competitors?

DEVELOP – RESEARCH QUESTIONS

Secondary Research via external sourcesoMarket sizingo Forecasts

Primary ResearchoQuantitative (surveys, polls, crowdsourcing, social media)oQualitative (one on one interviews, focus group, etc.)

New approacheso AB tests of products and pageso Online focus groups/forums, crowdsourcingo Social media pools, ID of early product testers and influencers

DEVELOP – COLLECT INFORMATION

Stre

ngth

Wea

knes

s

Opp

ortu

nity

Thre

at

DEVELOP – SWOT ANALYSIS• What does

EngineThemes do better than others?

• What are EngineThemes USP?

• What do competitors and customers in your market perceive as your weakness?

• What is EngineThemes competitive edge?

• What PEST changes are taking place that could be unfavorable?

• What restraints is EngineThemes facing?

• What are competitors doing that could negatively impact EngineThemes?

• What do other companies do better than EngineThemes?

• What elements of the business add little or no value?

• What do competitors and customers in WordPress market perceive as your weakness?

• What PEST changes are taking place that could be favorable?

• Are there currently gaps in the market or unfulfilled demand?

• What new innovation could EngineThemes bring to WordPress market?

DEVELOP – PROFIT ANALYSIS (Five Forces)

Supplier power

Number of suppliers of product

Uniqueness of product

Size and strength of the supplier

Cost of switching suppliers

Buyer power

Buyer information

Buyer volume

Buyer price sensitivity

Buyer switching

costs

Bargaining leverage

Threats of substitution

Buyer switching

cost

Buyer tendency to substitute

Product differentiati

on

Threat of new entry

Switching costs

Economies of scale

Learning curve

Capital requiremen

ts

Patents

Rivalry

Number of competitor

s

Size of competitor

s

Industry growth rate

Differentiation

Exit barriers

Market share

Market growth

DEVELOP – COMPETITOR ANALYSIS (Four Corner)

Motivation• Financial goals• Corporate culture• Organization structure• Leadership team backgrounds• External constraints• Business philosophy

Current strategy• How their business creates

value• Which field their business is

targeting• Relationships and networks

their business has developed

Management assumptions• Company’s perceptions of

strengths and weaknesses• Cultural traits• Organization value• Perceived industry forces• Belief about competitor’s goals

Capabilities• Marketing skills• Ability to service channels• Skills and training to work force• Patents and copyrights• Financial strength• Leadership qualities of CEO

FUTURE COMPETITOR STRATEGY