If you are a business owner ready to introduce your new product to the retail market, make sure you take the time to do your research. Here are four easy steps to follow that can help you position your product in the market:
Step 1. Know your competition. Make a list of all the major companies that offer a brand similar to the one you are trying to create. For example, if you are developing a new conditioning shampoo with rich oils for straight hair, make a list of all the popular brands that sell a conditioning shampoo with rich oils for straight hair. Then search for smaller brands that offer something similar to your product.
Step 2. Analyze your competition. Write down the top 5-6 brands. Figure out the answers to these questions:
Who are your competitors?
What makes their brand unique?
Have you tried the product before?
What are customers saying about the brand?
Take note of the things that make each brand different. Is there an ingredient that sets a competitor apart from the others? Figure out which ingredients are used over and over. For example, do all the formulas contain Argan oil? Does your product have Argan oil, too? Are any of the products all natural or organic? What can you do to create a formula that stands out from the crowd?
Step 3. Organize your information. Now that you know who your competitors are, create a table. Take note of pricing. Which product has the best price per ounce? Where is the product sold, online or in a retail store? If you have the time, visit a local retailer to check the placement of each of your product. Is the product on the top shelf, in the middle at eye level, or on the bottom shelf? Does the placement of the product correlate with the pricing or product reviews?
Step 4. Draw your conclusions. What has your market research taught you? Is your market saturated, or do you see a need for what you have to offer? According to your chart, which brand stands out the most? Why? Also, you should be able to determine a competitive price for your product, depending on whether you are selling online, in a retail store, or in your place of business. Make sure to take into consideration the cost per unit for your item. You want to make sure you price competitively and make a profit.
There are websites that are designed to help you do your market research. However, you can also hire a marketing specialist to do this work for you. Doing your research could lead you to make changes to your formulation that will make your product unique. Filling a void in the market is your goal for creating a strong sellable product.
For more information on product comparisons, or to connect with a Market Researcher, contact www.freelanceformulations.com.