Product Research

As we have seen already, the aim of Market Research is not merely to avoid failure, but to also identify how a product can be modified, where necessary, to give it the strongest possible competitive advantage. It is always important to identify product preferences in any market as these have been found to differ greatly, not only from one country to another, but also from one region to another in the same country.

Product preferences could be dictated by such things as Color, Taste, Size, Design and style, Materials, Performance and Technical specifications.



Many exporters have suffered heavy losses because they overlooked the fact that their products must meet the preferences and requirements of the buyers in the target market. Although it is possible to change people's preferences through advertising, it is much easier and cheaper to change the product or to find a market where the product meets requirements.

Product preferences and requirements should never be assumed. There is usually a big difference between what the manufacturer thinks is good about a product and what the consumer thinks is good about the same product. Products that are not right for a particular market are bound to fail in the long run no matter how much they are promoted. Some of the products preferences are dictated by environmental or psychological factors or traditions.

Brand Royalty:

Brand royalty is a situation where consumers identify a product type with a brand name. This occurs when a product runs for a very long time in a particular market without a competitor and gets entrenched in the mind of the consumers to the extent where they are not willing to try a similar product with a different brand name.

For example, a community may have used only one type of detergent known as "X" for a long time and they have come to like it. If you go to a shop and ask for "X" you will be given the detergent straight away. When another detergent is introduced in the same market it is likely to be seen as an imitation and may not be accepted.

Such a situation may be too expensive to penetrate and a good research should point this out.

Packaging:

Just as important as the product itself is the manner in which it is presented - Packaging. And here we are not talking about Packaging for Shipment which ensures that the product does not suffer any physical damage during handling and transportation, but the product pack that is presented to the consumer. This is what creates the first impression in the mind of the consumer. Apart from being attractive, it should contain brief but sufficient details to enable the consumer make informed decision. What can be considered attractive packaging in any specific market is the subject of Product Research.

For industrial products it is always preferable that customers specify how they want the packaging done. The specification will be determined by how the pack is expected to function, that is,

how it is stored;
if all the contents will be removed at the same time or if the pack should be re-closable;
how the product is removed from the pack (poured, scooped, etc);
how the contents should be identified;
disposal requirements (re-use, return etc)
In conclusion, it is necessary to emphasize that research into product requirements must involve studying the user as well as the middleman to understand the need for particular characteristics of the product and or its packaging. Some of the requirements will be dictated by trade requirements and regulations in force in particular countries.
Festus Muga
Hello Fellow Small Scale Entrepreneur,
I am a freelance writer and have a wealth of experience in the Banking Industry. I have worked as a member of the management team of an international bank and am well versed in Business Development and Financing, Financing of Foreign Trade, Import/Export Processing and Documentation.

I have successfully managed an Export/Import Agency of my own which has given me quite an experience in the pros and cons of international business.

I am now in full time home based Internet Marketing. I find it enjoyable and easy to manage risks. But, like any other real business, it calls for dedication and a lot of hard work. I keep myself focused on that all the time.