How To Improve Your Product Testing Program

The Dieringer Research Group, Inc.
www.thedrg.com Confidential and Proprietary
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How The DRG Can Improve Your
Product Testing Program

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Product Features Do Not Make Sense
Why Do Product Testing?
To identify and solve some of these common problems…
It is estimated that over 45% of product development and refinement resources go to ventures
that do not succeed, and 80-90% of new products introduced in the market fail.1 Some of the
problems that can be prevented with testing include:
Example: McDonald’s Arch Deluxe
In 1996, McDonald’s spent at least $150 million in advertising to promote this burger,
targeting ‘sophisticated’ consumers. However, they soon learned that consumers looking
for a higher-end burger do no typically go to McDonald’s.
Example: Maxwell House Ready-to-Drink Coffee
Maxwell House promoted the convenience of this pre-brewed product. But coffee
drinkers preferred to freshly brew their coffee, even if it was slightly more work.
Example: Clairol’s ‘Touch of Yogurt’ and ‘Look of Buttermilk’ Shampoos
Many consumers did not like the idea of washing their hair in yogurt. And
Clairol’s buttermilk Shampoo left people wondering ‘What exactly is the look of
buttermilk and why do I want it?’
Poor Concept
Product Does Not Fit the Market
1 “Doing it Right, Winning with New Products” by The Product Development Institute, 2006

Other Common Problems Include…
Outdated Product(s)
• Example: Polaroid Cameras
• While at one time very
profitable, Polaroid cameras
lost market share due to not
keeping up-to-date with
technology
• With the average product
lifespan shrinking 400% within
the past 50 years, companies
cannot rely on existing product
offerings1
Ineffective Packaging
• Example: Kellogg’s
Breakfast Mates
• Similar to Lunchables, this
product packaged together
everything children needed to
prepare their own breakfast: a
small box of cereal, milk and a
spoon. A television ad featured
parents peacefully sleeping
while their children made
breakfast
• The problem was the
packaging was too difficult for
a young child to open!
Confusing Brand Name
• Example: Frito Lay
Lemonade
• Just because a current brand is
well-known, does not
necessarily mean it can
naturally be extended to other
product categories
• While it is great to leverage
brand awareness, it sometimes
does not make sense. For
example, consumers did not
associate a refreshing glass of
lemonade with the brand of
their potato chips
1 “Doing it Right, Winning with New Products” by The Product Development Institute, 2006

The Importance of Product Testing
There is no guarantee that a
product is always going to succeed
However, well-designed product
testing research can aid in
identifying these problems early on
before products fail in the
marketplace
With the growth of social media, more
users are sharing their product
experiences (both positive and negative)
with others. With this trend, it is even
more important to identify and correct
any concerns as early as possible, before
the reputation of your product and brand
is affected.

100 Days Until
Product Launch!
ADD
YOUR
TEXT
Do you know if
your product will
stand out in the
marketplace?
The goal is to ensure you get the most value from your
research investment and you have the market insights
you need to make product decisions with confidence.
The DRG customizes each study to our
client’s business needs, product
category and target market, helping
our clients choose the right path!
There is no “one size fits all”
product testing research study

Product Testing Research Considerations
• Where are you in the product development process?
• What type of information are you looking for?
• What are your specific goals and objectives?
Business Goals
and Information
Needs
Product Type
Target Market
• What are the characteristics and features of your product?
• How does the user interact with your product?
• Who is your target market?
• What are the lifestyle characteristics of your potential
buyers?
• Are there specific segments or groups you would like to
compare?
Some of the questions we ask our clients when designing and implementing
product testing research include:
Following is more detail on a few of these considerations.
Contact The DRG for additional information!

Where are you in the product
development process?
The DRG works with clients to understand where they are in development and tailors the
research design accordingly.
Exploration /
Investigation
• Explore initial
impressions, likes and
dislikes; Investigate
competitors’ offerings
as well as internal
customer data to
uncover any unmet
needs
• Research
Techniques:
Qualitative focus
groups, in-depth
interviews and/or
secondary research
Development &
Refinement
• Determine ideal
product features and
benefits. Also start
planning name, logo,
packaging, pricing
and key selling
features
• Research
Techniques:
Quantitative survey
often with conjoint,
MaxDiff or other
trade-off technique.
Web surveys are
ideal for showing
pictures/video of
your product
Testing
• Test one or several
product prototypes
with potential buyers
prior to finalizing the
product; product
testing can begin as
soon as a prototype is
developed
• Research
Techniques:
CLTs or in-home use
tests conducted to
evaluate usability and
perceptions of target
market; More testing is
also now conducted
via online and mobile
techniques (e.g. online
journals where
pictures/video can be
posted of the products
being used)
Validation
• Confirm and validate
the product prior to
full-scale launch.
Develop marketing
plan and go-to-market
strategy
• Research
Techniques:
Surveys often
conducted to obtain
feedback of final
product as well as
positioning, taglines,
ads or other
communications used
to sell the product
Launch
• Bring product to first
test market(s). Full-
scale launch after
gathering feedback
from test markets.
• Research
Techniques:
Pre and post-launch
interviews and/or
surveys with test and
control groups help
measure effectiveness
of product and
marketing, and identify
any potential issues
early
Even products already on the market are continuously going through this process, as companies need to
constantly be evaluating modifications and improvements to ensure their product’s continued success
Business Goals
and Information
Needs

What type of information are you looking
for – Qualitative or Quantitative?
Qualitative
Often conducted when you are
evaluating a few preliminary
concepts and have done little
previous research
Example Applications:
- Brainstorming/refining ideas and
concepts
- Exploring how people feel about a
product or concept
- A first step to identify initial reactions
before making the decision to invest
further
Quantitative
Typically used when you already
have products or concepts developed
to test but you want to understand
market reactions prior to launch
Example Applications:
- Measuring how many potential
buyers feel a certain way toward a
product or concept
- Testing already-known hypotheses or
solutions to a potential issue/
concerns
- Comparing attitudes and perceptions
of different segments or groups
The most
comprehensive
approach
combines
qualitative and
quantitative
methodologies
Business Goals
and Information
Needs
This can even be done in the same project. For example, you
can quantitatively test a food product in CLTs/taste tests but
still ask participants a few qualitative questions, incorporating a
short open-end discussion about the product to provide more
insight and uncover the reasons behind their responses

Are you considering a feature
change in an existing product?
(Comparing your existing product to a
new prototype)
• Use sequential monadic testing,
which involves each participant
testing more than one product
• Have participants test both the
current product and the new
product so they can identify
preferences
Do you have a few options
developed and would like to
test which is best to launch?
• If you have quite a few options, a
monadic testing strategy may
work best, where each participant
only tests one product option
• Make sure you have a large
enough sample size for each
product so comparisons are
possible
• After your final product is
narrowed down to 2-4 options, it
may then be beneficial to have
participants try multiple products,
so they can make direct
comparisons
Are you comparing your
product to competitors’
product offering?
• Testing against competitors
provides an understanding of your
product’s strengths and
weaknesses, as well as insight on
where to focus future product
development
• Competitor comparisons also help
you decide how to position and
promote your product
• Keeping the brand concealed from
participants is important so they
can make unbiased evaluations
What are your specific goals and
objectives?
For example…
Business Goals
and Information
Needs

Where the Product is Purchased and Used
• If evaluating packaging or appeal of your product compared to competitors’, you may
want to consider in-store intercepts or ethnographies
• Can also simulate a store shelf in a CLT or focus group setting, as well as online in a web
survey
• When evaluating usability and specific features, it may be ideal for participants to test the
product where they typically would use it (home, work, etc)
What are the characteristics and
features of your product?
Product Complexity
Complex products may be best tested using in-person methods:
• IDIs, focus groups or CLTs allow you to demonstrate how to use the product
• For example, while a car or lawn mower is easy to use, you may want to explain and
demonstrate the specific features that make your product unique
• You can also then see first-hand where participants are having difficulty
• Home Use Tests (HUTs) may still be used to test complex products. But you may want to
provide instructions/demonstrations when the product is picked up or delivered
Product Type
• Consumer packaged goods are commonly tested through home use tests
• Food/beverage products are often evaluated in central location tests / taste tests
• Large durable goods are often tested using in-depth interviews, focus groups, central
location tests or product clinics (more difficult for testers to take the product home and use)
• Services may be tested via mystery shopping or ethnography. Online journals may also be
considered, where users can post comments/pictures of their experience
Product Type

How does the user interact with your
product?
Frequency of Use
Daily-Use Product
• Participants can test multiple products and make effective comparisons when testing
products that are used every day, such as diapers, toothbrushes, shampoo, etc.
Occasional-Use Product
• Participants may need to be limited to one test product when the product is only used
occasionally (e.g. hair dye)
User Interaction
• Consumers sometimes need to interact with a product for a period of time before they
can develop a complete opinion or preference
 For some products, participants should have the opportunity to use the product for at
least 1-2 weeks so they are comfortable with all the features (e.g. smart phone)
 In this case, a longer-term home-use test or online journal/community may be the
best methodology
 This works well when you want to test many product attributes or if you want
feedback on the overall product experience
• However, if the product can be experienced with 1 use (e.g. a food or beverage), testing
can likely be done in a day or less (focus groups, CLTs, taste tests)
 There are also some products where testing in a one-on-one setting (IDI) may be
more appropriate, as you do not want participants’ experiences influenced by others
Product Type

Who is your target market?
Anyone who would potentially purchase and use
your product should be considered for testing.
But you still may want to consider narrowing your target
or oversampling specific segments.
• Overall, testing the product among a wide range of
participants helps you understand and segment your
target market(s)
 This is helpful when you are introducing a new
product and unsure exactly who your target market is
• But exclude those that realistically would never (or
rarely) use your product
 For example, a food product designed for children’s
lunches/snacks should be primarily tested among
households with children
• If your product/brand is already on the market and
you are testing changes, remember to include both
current purchasers and non-purchasers!
 Assuming you want to increase your market share
and attract new buyers, do not limit participants to
just existing buyers
Target Market

Consider the lifestyle characteristics of the type of users you are trying to target
for your product when designing your methodology and recruitment plan. For
example:
What are the lifestyle characteristics
of your potential buyers?
Target Market

Are there specific segments or groups
you would like to compare?
• Levels of experience with the product, including:
 Frequent users who may even influence others
to purchase
 Occasional users
 Non-users (but would consider using in the
future)
• Brand preferences, including:
 Loyalists –purchase a specific brand exclusively;
may want to recruit a few loyal to your brand
and those loyal to your key competitors
 Buyers – purchasers of your brand but also
occasionally buy other brands as well
 Switchers – purchasers who are not brand loyal
and typically base their purchase decision on
price, what’s on sale, etc
• Demographics
 You may also want to compare age, gender,
ethnicity, geography, income, etc
Target Market

Benefits of Product Testing Customized
to Your Business Needs
Higher Product
Satisfaction
and Loyalty
• Keep current
purchasers
• Grow
recommendations
and referrals
A Better
Defined Value
Proposition
• Well-defined,
unique product
benefits
• Improved
marketing/sales
strategy
Improved
Competitive
Position
• Maintain and grow
your market share
Stronger Brand
Equity
• Positive reputation in
the marketplace
Increased Profits!
• Higher Sales/Revenue
• Maximize Product
Development/
Refinement Budget (You
will know early on which
ideas are more likely to
succeed)

P.S. Remember to Test Early and Often!
• Many make the mistake of testing once early in
development, then making changes and going
straight to market
• Others make the mistake of waiting to test until
right before launch
• The DRG recommends testing early and often!
Ongoing testing should be incorporated into
your product development plans and
budgets. For each wave of product
changes, try to conduct at least
a few quick tests with
potential users.
Tips to Save Time and Money for
Ongoing Testing
• Have the same participants evaluate
product prototypes
 This saves on recruiting expenses
and time
 Participants will also then be able
to tell you whether they consider
your updates to be an
improvement over the previous
version they tested
 You can still add a few new
participants later in development
to get a fresh perspective
• Consider web surveys for some of
your testing
 While HUTs or CLTs may be ideal,
a quick web survey showing
pictures/video of the product can
also provide valuable insights
Ongoing testing can save your product development team time and money. You will spot
potential problems earlier, and you won’t be spending resources on product “improvements”
that your target market isn’t interested in

The DRG can be your single point of contact
for nationwide product testing efforts
• While based in the Milwaukee area, we
coordinate with partners throughout the US
to field in-person research in other regions
• However, all projects are centrally managed
from our headquarters
• When working with partners, our Project
Managers will often travel to other US
regions to train interviewers or oversee
fieldwork in other cities, to ensure
consistency in data collection
• All data is centrally processed and reviewed
at The DRG before sending to our clients,
ensuring the information we provide meets
our high quality standards
The DRG’s Milwaukee location is also
a great place to conduct
product testing!
Milwaukee’s slogan, “Genuine American,”
reflects the city’s all-American culture. With
over two million area residents and a wide
range of industries, Milwaukee is an ideal
market to conduct research. Focus groups,
IDIs and CLTs can be held at The DRG Focus
Center, designed and built in 2010.

For more information, please contact:
E-mail: sales@thedrg.com
Phone: 888-432-5220
www.thedrg.com

How To Improve Your Product Testing Program

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