Why Conduct Research?

• New products are the life-blood of any business, but are high risk, high reward.
• New products account for approximately 29% of company sales and 39% of company profits.¹
• Over 80% of new consumer products fail due to lack of differentiation, lack of performance, or lack of understanding of the consumer audience²
• Economic challenges increase the pressure on the sales performance of companies.
• Careful choices must be made to ensure maximum return on resource investment.
• Every new product must contribute to its fullest potential.
• Successful new product efforts rarely work in a vacuum. An understanding of consumer motivations and product/design acceptance is essential.
• Proven research methods reduce risk by helping managers select projects with the highest potential to succeed.
• Identifying successful products and eliminating products that are likely to fail before they are launched in the market is our job. Fail with small $, succeed with big $$$.

¹Product Development Management Association survey
²Phillip Kotler, “Marketing Management”, March 13, 2001