Customer insights and its importance in new product development…
In today’s world you can never sell a product you want to sell but you sell the need of the customer.
thanks to the well believed BLUE OCEAN STRATEGY, a concept which redefined Marketing in the totally new paradigm, as a student of marketing I once went through the study of experience of AG LAFLEY former Chief of PnG.
We all have heard the brand named OLAY initially Oil of Clay was the product for ladies for anti aging and glowing skin, AG LAFLEY considered that the market is very big still this product is not being targeted or not been sold to the complete segment of young ladies he questioned WHY???
His marketing team was unable to answer this specific question. Mr. Lafley planned a marketing research method to identify the causes of the the problem this research was to find the reason, the marketing team was out there asking questions to the young ladies and what benifits they are looking for in a product like Oil Of Clay.
This allowed to correctly identify the issues and the company was able to generate double the profit after the re-launch of the product.
An other simple example is TESCO. the TESCO top level management every year for a short period of time communicate and corresponds with the customer in the stores to get insights as to what development they need and how satisfied they are.
All these examples suggest one thing i.e. how important a customer insight is to develop or to promote a product. you can only sell your product if it is really needed in the market. Consumer in 21st century is very well educated He believes what he sees.
Next time you plan a product consumer insight should be the first step to your R&D.