How insights inspire innovative new products

Product Launch Research

American consumers are stuck on “same”. They frequent the same restaurants over and over, buy the same brands again and again, and prefer products they’ve already used. In fact, US consumers repeatedly use about 85% of their money to buy the same 150 products over and over, according to consultant Jack Trout.

Because consumers are creatures of habit, it’s not surprising that launching new products is a high-stakes affair. Corporations must sufficiently invest in product conceptualization, advertising testing, pricing research, and human talent if they want to win in a crowded market where 30,000 new consumer products are launched annually.

Qualtrics surveyed 250 verified product management, marketing, and research decision makers in a US-based study. Qualtrics used multi-variate tools like regression and other methods to understand how they collaborate, research, and innovate for successful product launches.

Study conducted August 2018
MOE +/-6.2% at the 95% CI
Industry breakouts are directional only

Corporations are increasing the pace of their new product introductions.

Calendar 45% - Nearly half of these companies are launching products at least every other month on average.

This strategy may be paying off, as companies that launch products more frequently are succeeding at roughly the same rate as companies that launch products less frequently.

This means they land more successful products in the marketplace overall.

Launches led by product management teams are more likely to succeed.

Most companies put marketing in charge of new launches, but launches are 25% more likely to succeed when product managers take the lead.

50%

of companies let the marketing team take the lead on new launches

28%

of companies let the product management team take the lead on new launches

The #1 way to help a product launch succeed is product concept testing, but only 53% of companies sufficiently fund them.

Multi-variate studies show that product concept testing is a key driver of launch success.

The three tasks that make the biggest positive difference to the success of a launch are:

Product concept testing

80%

Product ad testing

76%

Competitive analysis

76%

Companies say research helps improve the accuracy of their launch decisions.

ADVERTISING CONCEPT TESTPRICE OPTIMIZATION STUDYPRODUCT CONCEPT TESTMESSAGE CONCEPT TESTType of study53%MORE ACCURATE DECISIONS54%MORE ACCURATE DECISIONS52%MORE ACCURATE DECISIONS49%MORE ACCURATE DECISIONS

Top executives are “extremely involved” in product launches 45% of the time, but their involvement does not have an observable difference on the success of the launch.

Industries where executive involvement makes the greatest positive impact on new launches:

  1. Scientific services
  2. Educational services
  3. Technology
  4. Hospitality & travel
  5. Consumer packaged goods

Industry breakouts are directional only

New product rollouts are risky, so many companies seek help from research professionals to read the landscape. For most of them, it pays off.

56%

of companies hired a market research agency to help them with their launch and 78% of them say the agency was worth their fee

89%

of companies say they don’t provide sufficient launch funding for

Message testing

81%

of companies say they don’t provide sufficient launch funding for

Segmentation Research

67%

of companies say they don’t provide sufficient launch funding for

Price Sensitivity Testing

24%

Of companies struggle to meet their product launch goals on time.

26%

say their product launch goals are too ambitious.

The most common new-product goals are:

  1. Sales revenue
  2. New customers or users
  3. Gross profit
  4. Untils sold
  5. PR coverage

Companies have an insight gap when it comes to product launches

97%

of companies that run advertising concept tests say they help create a successful launch, but only 55% of organizations regularly conduct them.

98%

of companies that run message concept tests say they help create a successful launch, but only 49% of organizations regularly conduct them.

95%

of companies that run price optimization studies say they help create a successful launch, but only 57% of organizations regularly conduct them.

96%

of companies that run product concept tests say they help create a successful launch, but only 57% of organizations regularly conduct them.

Companies have an expertise gap when it comes to product launches

97%

of companies that run advertising concept tests say they help create a successful launch, but only 56% of them say they have employees with a lot of expertise to run them.

98%

of companies that run message concept tests say they help create a successful launch, but only 56% of them say they have employees with a lot of expertise to run them.

95%

of companies that run price optimization studies say they help create a successful launch, but only 53% of them say they have employees with a lot of expertise to run them.

96%

of companies that run product concept tests say they help create a successful launch, but only 57% of them say they have employees with a lot of expertise to run them.

Are the right product launch functions being funded?

Qualtrics asked 250 product and marketing leaders if their most important launch activities are sufficiently funded by their organizations.

The study results show that most launch activities are evenly funded, even though some activities are more important than others.

All industries

MoreimportantLessimportantNot well fundedWell funded
Content MarketingProduct Concept TestingCompetitive AnalysisPublic RelationsSocial Media MarketingPricing ResearchPaid AdvertisingPrice Sensitivity TestingMessage TestingProduct Ad Testing

Retail industry

MoreimportantLessimportantNot well fundedWell funded
Product Concept TestingCompetitive AnalysisContent MarketingPaid AdvertisingPricing ResearchSocial Media MarketingPublic RelationsMessage TestingPrice Sensitivity TestingProduct Ad Testing

High tech

MoreimportantLessimportantNot well fundedWell funded
Product Ad TestingCompetitive AnalysisContent MarketingPublic RelationsPricing ResearchSocial Media MarketingMessage TestingPrice Sensitivity TestingPaid AdvertisingProduct Concept Testing

Consumer packaged goods

MoreimportantLessimportantNot well fundedWell funded
Product Concept TestingContent MarketingProduct Ad TestingPublic RelationsSocial Media MarketingPricing ResearchPaid AdvertisingPrice Sensitivity TestingMessage TestingCompetitive Analysis