What is the purpose of market feasibility study?
In an ideal world, every customer would like your product. But as we all know, that isn’t the case in the real-world. Although your new product might appeal to a huge target audience, introducing a new product without conducting a market feasibility study would be more of a shot-in-the-dark approach.
Today it’s imperative for consumer goods manufacturers to address rapidly changing consumer needs by offering relevant product experiences and accelerating new product development (NPD). During the initial stage of every new product development (NPD) process, companies must gather and evaluate market data to assess market feasibility. The fact that the cost of design changes increases two-fold after the feasibility stage also emphasizes the importance of conducting a market feasibility study well in advance.
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Conducting a market feasibility study can help businesses find answers to the most pressing questions, like:
- Does a market exist for the product?
- Is there a genuine need for the product?
- Which markets might benefit from a new product launch?
- How profitable is the opportunity?
- What technologies are required to accelerate NPD?
- Do we have the technical capabilities in-house, or are there opportunities to license or acquire what we need?
- Is the proposed product competitive?
- Are development costs affordable and acceptable?
With product failure costs exceeding the development cost, it is crucial for consumer goods manufacturers to determine a new product’s market feasibility and understand the steps in the new product development process. This success story sheds light on how Infiniti Research helped a consumer goods manufacturer develop a new product development process to accelerate product testing and evaluation. The objective was to develop a roadmap that would accelerate the product development and launch process and increase the new product’s success rate.
Business Challenge
Known for its new product innovation and design, a leading consumer goods manufacturer based out of Italy approached Infiniti Research seeking guidance and support to accelerate product development (NPD), testing, and evaluation process. By collaborating with our global team to conduct a market feasibility study, the client wanted to understand their new product’s potential in terms of profitability, market demand, consumer needs, and future growth potential.
Their main objective was to evaluate the viability of rolling out a new product in target markets. With the help of a market feasibility study, the client also wanted to gauge the market size in terms of volume. Since there was no standard approach in place, the client needed our support and guidance to co-create a custom solution that could address their needs.
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Our Approach
To succeed in their new product development initiative, the client needed smart insights and market intel to gauge the feasibility of launching a new product, investment opportunities, and growth potential. Hence, we adopted a holistic approach to market feasibility – one that offered a complete array of solutions covering socio-economic factors, technical aspects, market dynamics, and financial viability.
The project began with implementing a top-down approach that focused on analyzing the market at a country-level and potential target segments to map market size, the performance of competitive products, and consumer needs. In the second phase, the market feasibility study focused on assessing the macro-level drivers and barriers in the consumer goods industry. Based on the insights obtained from the market feasibility study, a strategic roadmap was developed for the client outlining new product innovation opportunities, growth potential, competitive landscape, and qualitative insights gathered from industry stakeholders.
Infiniti Research has helped leading businesses accelerate new product development by conducting detailed market feasibility studies. Request more information to learn how we can help you.
Outcome
The market feasibility study was staggered into multiple phases, inclusive of generating in-depth competitive insights and developing a go-to-market strategy. The final deliverable was a holistic market research report and actionable data-driven insights, which helped the client to deliver an exceptional product within a short turnaround time. The benefits include:
- Evaluated the total addressable market
- Accelerated product launch
- Developed a business plan
The market feasibility study also helped the consumer goods manufacturer analyze the pertinent market and competitive dynamics to identify new white space opportunities, address scalability issues, accelerate product testing and evaluation, and market viability of the new product. This was followed by the formulation of a strategic product development roadmap complete with entry routes, target market segments, and financials for a period of three years.
