Understanding Concept Testing in FMCG
In this article, we will take a deep dive into concept testing in FMCG. We’ll look at some of its overarching principles (e.g. how it fits into FMCG product launch strategy and market fit analysis), as well as some of the ways of performing it, like A/B testing for FMCG.
What is Concept Testing and Why is it Important?
Concept testing in FMCG is an early-stage market research practice where firms present a new product proposal or a modified version of an existing product in order to gauge interest with the target audience and solicit consumer feedback for product development. It is a key part of FMCG concept validation (that is, making sure the product will work and that people will buy it in sufficient numbers). Concept testing in FMCG also plays a critical role in pre-launch validation.
The Role of Concept Testing in Reducing Launch Risks
Concept testing in FMCG is a key part of market fit analysis, as it helps firms know if there is indeed suitable demand for their proposed product. Likewise, testing is ideally performed early in the product creation process so that there will be an opportunity to gather and incorporate consumer feedback for product development.
Key Benefits of Concept Testing for FMCG Brands
The “try before you buy” deal is a time-honored way of letting consumers confirm their interest in a product before committing to it, and concept testing in FMCG is similar but for brands. Running tests before putting a product on shelves lets brands conduct pre-launch validation and FMCG concept validation more broadly. Ensuring alignment with consumer demand and reducing launch risks with concept testing help brands successfully take products from concept to commercialization.
Validating Consumer Interest and Demand
Part of pre-launch validation is confirming that potential customers are interested in the new product or features. Concept testing in FMCG is a way of figuring out the baseline draw of a brand’s new offering, and then, usually after considering consumer feedback for product development, goods can be refined and iterated so that they better align with consumer interest and demand.
Identifying Potential Improvements Before Launch
Creating opportunities for consumer feedback for product development and other pre-launch validation tasks can clue brands into areas to improve in their products. Concept testing in FMCG can let firms know that certain features or products need to be added, enhanced or eliminated. By performing FMCG concept validation, brands can more accurately understand and capture consumer demand and, accordingly, improve their products so that the final version is perfectly tailored to consumer interests.
Reducing Costs Associated with Failed Launches
Reducing launch risks with concept testing is another key objective. By getting consumer feedback on product development and running pre-launch validation, brands can identify issues at a time when they can still be corrected. Heeding consumer comments, performing A/B testing for FMCG in cases when a decision needs to be made about alternatives, and performing market fit analysis on the revised product means that brands will avoid the costly situation of products sitting on shelves after launch because they were not tailored to buyer demand. Concept testing in FMCG confirms the existence of demand and reduces the risk of a launch that doesn’t go well.
Steps to Conduct Effective Concept Testing
Successful concept testing has several steps. While the exact process may vary based on brand or FMCG product launch strategy, there are still some generally applicable elements that are part of pre-launch validation and market fit analysis.
Defining Clear Objectives and Success Metrics
Concept testing in FMCG needs clear benchmarks for evaluating consumer preferences and decisions. When conducting FMCG concept validation, there need to be bright lines determining when results are favorable or unfavorable. What degree of consumer interest in a product is sufficient to proceed with development? And how is that interest measured? What dollar amount of ROI will justify developing this new product? Relevant metrics for concept testing in FMCG need to be tied to unambiguous standards of success for the results to be practicable.
Selecting the Right Target Audience
One of the basic principles of product design and marketing is market segmentation – that is, grouping members of the target market based on similar characteristics. Since not all potential customers will have the same tastes or purchasing power, identifying the right target audience is key for conducting market fit analysis in the appropriate scope. Additionally, finding the right division of potential customers is essential for conducting any pre-launch validation and for evaluating consumer feedback for product development.
Creating Realistic and Engaging Concept Mockups
Another key part of concept testing in FMCG is making sure that the sample items realistically model the final product and features. This is key for market fit analysis – since any analysis needs to be done on the sort of item that will be made available for sale. Likewise, realistic mockups are essential for incorporating consumer feedback for product development, as buyer comments and concerns are only helpful if they are made in response to accurate models of proposed goods.
Analyzing Feedback and Iterating on the Concept
Paying proper attention to consumer feedback for product development is a critical step. Consumer comments are not helpful if they do not impact FMCG product launch strategy, pre-launch validation or other elements of market fit analysis. After modifying products in light of feedback, brands will present a new, improved version of the product for consumers to offer their opinion on. When there are two or more possible paths for product iteration, A/B testing for FMCG is a common way of letting buyers evaluate those alternatives.
Common Methods for Concept Testing in FMCG
While every product and brand will have its own process for concept testing in FMCG, there are a few common ways for conducting pre-launch validation and soliciting consumer feedback for product development.
Surveys and Questionnaires
Surveys and questionnaires are commonly used when conducting pre-launch validation and concept testing in FMCG. With these tools, customers and potential customers can offer their opinions about products and suggest improvements. Brands can also use surveys and questionnaires as FMCG concept validation tools, sounding out baseline interest in a product and making sure that there is indeed a market to be served. Opinion instruments like these also help refine FMCG product launch strategy, as they provide a picture of consumer interest, which lets brands tailor product rollouts in light of buyer tastes.
Focus Groups and In-Depth Interviews
Firms may also organize focus groups and in-depth interviews with buyers. These may be conducted when setting FMCG product launch strategy or during pre-launch validation, or they may also be done after A/B testing for FMCG, once consumers have had experience with possible product varieties. Focus groups provide opportunities for conversation, and consumers may be more revealing than on a survey because the focus group environment lends itself to freer expression. Likewise, in-depth interviews are an opportunity to zero in on a consumer who comes from a demographic of particular interest or made notable comments in a focus group. Such interviews can be helpful when expanding on consumer feedback for product development, as well as when evaluating highly specific or important use cases when performing FMCG concept validation. Focus groups and in-depth interviews are important parts of pre-launch validation and market fit analysis because their qualitative nature lets them capture feelings, moments of doubt or ambivalence, and other important human sentiments that are hard to gauge with quantitative tools.
A/B Testing and Comparative Analysis
A/B testing for FMCG and performing comparative analysis is also a common way of gauging consumer interest. The basic idea is to offer two versions of something (usually a product, as opposed to a service, when performing concept testing in FMCG) and seeing which one is better received. This process is particularly helpful when gathering consumer feedback for product development, as the preferences revealed during a test give brands clues about what consumers are looking for. A/B testing for FMCG and comparative analysis can help identify consumer interests at an earlier stage too. If, for instance, the first version of the new product/variant is popular among testers, then that may indicate high baseline interest in the market and an eventual favorable outcome in the wider FMCG concept validation process.
Digital Prototyping and Virtual Testing
Digital prototyping and virtual testing are growing areas of innovation in the concept testing in FMCG space. They also have the potential for major cost savings. A McKinsey study found that consumer goods companies can bring their products to market 50% faster and at 30% lower cost with digital FMCG concept validation, which means speed and savings for pre-launch validation and when refining an FMCG product launch strategy. When performing concept testing in FMCG, digital prototyping and virtual testing can be especially helpful when studying extreme use cases in FMCG concept validation (such as using a computer simulation to predict how a cleaning product holds up to heat if the target market is in a region with high average temperatures).
Why Partner with ESR Research for Concept Testing
ESR Research has worked with a wide variety of firms and markets when conducting concept testing in FMCG. No matter where your firm is in the process of bringing a new product to market – running FMCG concept validation, developing an FMCG product launch strategy or gathering consumer feedback for product development – ESR Research will combine our expertise with an understanding of your strengths and needs in order to give you the insights you need.
Expertise in FMCG Concept Validation
ESR Research can point to a record of success in FMCG concept validation. Our firm can assess market size and comparative shares, helping with your market fit analysis in the process. Likewise, we have worked with brands of all sizes in the FMCG space, with a focus on reducing launch risks with concept testing and conducting FMCG concept validation to make sure that there is demand there for you to capture.
Customized Testing Solutions for Your Brand
At ESR Research, we are committed to your success and will take the time to understand your objectives, the insights you need and how you need them delivered. Our work in this field is aimed at reducing launch risks with concept testing, and making sure that you have a clear picture of the market you plan to serve. The interviews, focus groups, surveys and A/B testing in FMCG you trust us with will be a custom fit for your firm.
Advanced Tools for Data Collection and Analysis
ESR Research captures the large-scale and the individual pictures alike. Our firm employs the most advanced tools for concept testing in FMCG to identify trends in the broader market and perform FMCG concept validation. At the individual level, ESR Research draws on sophisticated analytical techniques to find insights on the decisions that consumers make during A/B testing for FMCG and to provide consumer feedback for product development.
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