Are you tired of investing time, money, and resources to develop products that don’t resonate with your target audience? Have you ever launched a product that received little to no interest from the market? If so, you’re not alone. 

Launching a successful product in today’s highly competitive market can be daunting. However, concept testing can help you validate your product ideas, refine your concepts, and increase the likelihood of success.

Concept testing evaluates customer responses to a product idea before launching it in the market. It involves gathering feedback from potential customers to understand their preferences, pain points, and expectations. By conducting concept testing at different stages of product development, you can identify potential issues and improve your product before it’s too late.

In this article, we will explore the importance of concept testing in product development and provide an overview of the different stages involved in the process. From idea generation to launch testing, we will discuss how concept testing can help you maximise your product’s potential and increase your chances of success in the market. 

What is concept testing? 

Concept testing, also known as idea testing, is a crucial step in the product development process. It involves testing a product idea with potential customers to gauge their level of interest and gather feedback to refine and improve the idea.

Concept testing aims to validate a product idea before investing significant resources in developing it. It allows product teams to gather valuable insights from potential customers and make data-driven decisions based on their feedback. This helps to reduce the risk of failure and increases the chances of launching a successful product.

Concept testing can be conducted using various methods, including surveys, focus groups, and interviews. It typically involves presenting potential customers with a description, sketch, or prototype of the product and gathering their feedback on various aspects, such as its features, pricing, and overall appeal.

Concept testing is an integral part of the product development process as it can help companies avoid costly mistakes, such as launching products with no market demand. By gathering feedback early on in the product development process, companies can make informed decisions about whether to proceed with the product idea or make modifications to improve its chances of success.

Stage 1: Idea Generation

Ah, the brainstorming stage – the time to let your imagination run wild with new product ideas! But wait, before you start investing time and resources into developing a product, have you considered the importance of concept testing in the idea generation phase?

Concept testing is critical in the idea generation stage, as it helps to validate and refine your product ideas. Imagine spending months developing a product only to discover that it’s not something your target audience wants or needs. That’s where concept testing comes in – it helps you to validate your ideas before you invest significant resources into developing them.

Let’s say you have an idea for a new fitness tracker that tracks your daily water intake. You might think this is a great idea, but will your target audience feel the same? Through concept testing, you can present your idea to potential customers and gather their feedback on your product’s features, pricing, and overall appeal. If your target audience doesn’t see the value in tracking their water intake, you can refine your idea to include more appealing features.

In addition to validating your ideas, concept testing in the idea generation phase can also help you to generate new ideas. Presenting your product idea to potential customers may generate feedback that inspires new features or functionalities you have yet to consider.

Stage 2: Concept Development

Welcome to stage two – concept development! This is where you take your product ideas and start developing them into a tangible concept. But how do you know which concept is the most promising one? You guessed it – concept testing!

Concept testing in the concept development stage can help you to evaluate different concepts and identify the most promising ones. Let’s say you have developed three concepts for your fitness tracker – one that tracks water intake, one that tracks sleep patterns, and one that tracks heart rate. Through concept testing, you can present these concepts to potential customers and gather feedback on their level of interest in each one. Based on their feedback, you can identify which concept most appeals to your target audience.

Not only can concept testing help you to identify the most promising concept, but it can also help you to refine the concept further. Through feedback from potential customers, you may discover areas that need improvement or additional features that would make the product even more appealing.

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Stage 3: Prototype Testing

Now that you have a promising product concept, it’s time to develop and test a prototype with your target audience. This is where concept testing can help to refine your prototype and identify areas for improvement.

Let’s say you have developed a prototype of your fitness tracker that tracks water intake. You present it to potential customers, and while they are interested in the idea, they express concerns about the size and comfort of the tracker. Through concept testing, you can gather this feedback and refine your prototype to address these concerns. You could make the tracker smaller or adjust the design to make it more comfortable to wear.

In addition to refining your prototype, concept testing can help you identify areas for improvement. For example, if potential customers express confusion about how to use certain features, you may need to adjust the user interface to make it more intuitive.

Concept testing in the prototype testing stage can be conducted in various ways, such as usability testing or field testing. These methods allow you to gather feedback on the functionality and user experience of the prototype.

By refining your prototype based on feedback from concept testing, you can increase the chances of launching a successful product that meets the needs and desires of your target audience. So, don’t underestimate the power of concept testing in the prototype testing stage – it can make all the difference between a mediocre product and a successful one.

Stage 4: Launch Testing

Now let’s look at launch testing! This is where you test the market readiness of your product and identify potential issues before launch. 

Concept testing in the launch testing stage can help you gather feedback on your product’s final version before launch. This feedback can help you to identify potential issues, such as pricing concerns or a lack of interest in certain features. 

For example, if you have developed a new smartphone app, you can present it to potential customers and gather feedback on its functionality, design, and pricing. Based on this feedback, you can make necessary adjustments before launching the app to the market.

By gathering feedback from potential customers in the launch testing stage, you can also gain insights into the competition and the overall market demand for your product. This can help you to make informed decisions about pricing, marketing, and distribution strategies.

Concept testing in the launch testing stage can be conducted in various ways, such as beta testing or product demos. These methods allow you to gather feedback on the final version of your product and make necessary adjustments before launching.

Methodologies for concept testing

Now that we’ve explored the different stages of concept testing and their importance in product development, let’s dive deeper into the various methodologies that can be used for concept testing.

There are several different methods for conducting concept testing, each with advantages and disadvantages. The most commonly used methods include surveys, focus groups, and usability testing.

Surveys are a great way to gather feedback from a large number of potential customers. They can be conducted online or in person and are typically used to collect quantitative data on different aspects of a product concept, such as the level of interest in certain features or pricing.

On the other hand, focus groups are more qualitative and involve gathering a small group of potential customers to discuss and provide feedback on a product concept. They are often used to gain more in-depth insights into the thoughts and feelings of potential customers, as well as to gather ideas for new product features or functionalities.

Usability testing is another method that can be used to gather feedback on a product concept. It involves observing potential customers as they use a prototype of the product and gathering feedback on the usability and functionality of the product.

In addition to these methods, there are other types of concept testing, such as A/B and field testing. A/B testing involves presenting two different versions of a product concept to potential customers and gathering feedback on which one is more appealing. Field testing involves testing a product concept in a real-world setting, such as in a store or online marketplace.

Best Practices

Now that we’ve explored the different methodologies for concept testing let’s explore some best practices for conducting effective concept testing. These best practices help ensure that you gather the most valuable feedback and make informed decisions about your product development.

Firstly, defining clear research objectives before conducting concept testing is important. This will help you focus on the most important aspects of the product concept and gather relevant feedback for your goals. Clear research objectives also help ensure you don’t waste time or resources on gathering irrelevant feedback.

Secondly, recruiting the right participants for your concept testing is essential. This means targeting individuals representing your target audience and likely to use or purchase your product. It’s also important to ensure the participants are engaged and invested in the concept testing process. You can achieve this by providing incentives or rewards for their participation.

Another best practice is to use the correct methodology for your product concept and research objectives. This means choosing a method best suited for gathering feedback on the specific aspects of your product concept that you want to test. 

For example, if you want to gather quantitative data on pricing, a survey would be more appropriate than a focus group.

Finally, analyzing the data effectively is crucial to make informed decisions about your product development. This means looking for trends and patterns in the feedback and using this information to refine and improve your product concept. It’s also important to prioritise the feedback based on its relevance and impact on the product’s success.

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Limitations of concept testing

While concept testing is a valuable tool for product development, knowing its limitations is essential.

For example, concept testing can only provide feedback on the specific product concept being presented to potential customers. It may not capture all possible issues or challenges that arise once the product is launched in the market. 

Additionally, concept testing can be influenced by factors such as how the concept is presented, and the language used, or the participants’ demographic.

Another limitation of concept testing is that it may not capture a product’s emotional or experiential aspects. For example, a potential customer may express interest in a product concept, but they may have a negative emotional response once they use the product.

By acknowledging the limitations of concept testing, product development teams can use it as a tool in combination with other methods, such as user testing and market research, to gain a more comprehensive understanding of their product’s potential success in the market.

Case Studies in Concept Testing

Now let’s look at some real-life case studies of successful concept testing in product development. 

One example comes from the UK-based cosmetics company Lush. In 2018, Lush developed a new product concept for a solid shower gel. Before launching the product, Lush conducted concept testing by sending samples to customers and gathering feedback through surveys. The feedback was overwhelmingly positive, with customers expressing interest in the new product and suggesting additional scents for the line. Lush used this feedback to refine the product and launch it successfully in the market.

Another example comes from the US-based fast-food chain Taco Bell. In 2017, Taco Bell conducted concept testing for a new menu item called the Naked Chicken Chalupa. The company used focus groups and taste tests to gather feedback on the product concept and made adjustments based on the feedback. The Naked Chicken Chalupa was a huge success when launched, selling over 25 million units in its first year.

Finally, an example from Asia comes from the Chinese tech company Xiaomi. Xiaomi developed a new product concept for a foldable phone, but before launching the product, the company conducted concept testing by sending out a prototype to potential customers for feedback. The feedback was mixed, with customers expressing concerns about the phone’s durability. Xiaomi used this feedback to make necessary adjustments and launch a successful foldable phone.

Key Takeaways

In conclusion, concept testing is a crucial step in the product development process. It allows brands to gather feedback from potential customers, refine their product concepts, and increase their chances of success in the market. 

Brands can conduct effective concept testing and make informed decisions about their product development by following best practices such as defining clear research objectives, recruiting the right participants, and analyzing data effectively.

Here are some key takeaways to keep in mind:

  • Concept testing can be conducted at different stages of product development, including idea generation, concept development, prototype testing, and launch testing.
  • Different methodologies can be used for concept testing, including surveys, focus groups, and usability testing.
  • Effective concept testing requires careful planning, execution, and analysis of data.
  • Concept testing has limitations, and it should be combined with other methods to gain a more comprehensive understanding of a product’s potential success in the market.

Overall, concept testing is a valuable tool for product development that can help companies to create products that truly resonate with their target audience. By implementing the best practices and key takeaways discussed in this article, you can increase your chances of success and launch a product that will delight your customers.

If you want to conduct concept testing for your next product development project, consider using a market research agency like Kadence International. We have extensive experience conducting effective concept testing and can help you gather valuable feedback from potential customers. To get started, simply submit your research brief.

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Have you ever found yourself hesitating before making a purchase? You may have been unsure about the quality of the product or whether you could afford it. Or maybe you were simply feeling uncertain about the future and didn’t want to commit to something that might not be a wise investment. 

Whatever the reason, you’re not alone. Uncertainty is a common experience for many consumers and can significantly impact buying decisions. It’s important to understand uncertainty’s role in consumer behavior and how we can respond to it to better meet our customers’ needs.

In this article, we’ll explore the fascinating world of consumer psychology during times of uncertainty. We’ll delve into the effects of uncertainty, how consumers respond to it, and what marketers can do to adjust their strategies accordingly. 

We’ll also discuss market research’s crucial role in understanding and responding to uncertainty and provide some practical tips for conducting research during uncertain times. 

So buckle up and get ready for a deep dive into the unpredictable waters of consumer purchasing behavior!

The Concept of Uncertainty

Let’s break down the different types of uncertainty. 

Economic uncertainty is perhaps the most well-known and pervasive form of uncertainty. It can arise from various factors, such as recessions, inflation, or changes in government policies. When consumers are uncertain about their financial futures, they may be more cautious about spending money and prioritize essentials over luxury items.

Social uncertainty, on the other hand, can arise from changes in social norms or cultural values. For example, the #MeToo movement sparked a reckoning in many industries as consumers became more aware of issues related to sexual harassment and assault. This led to increased uncertainty about what behavior is considered acceptable in the workplace and beyond, which may have affected consumer preferences and buying decisions.

Personal uncertainty can stem from various sources, such as health concerns, relationship issues, or significant life transitions. When consumers are experiencing personal uncertainty, they may be more likely to prioritize products or services that offer a sense of stability or comfort, such as self-care products or experiences that provide a sense of escapism.

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The Effects of Uncertainty

For one thing, uncertainty tends to make consumers more cautious about spending money. Consumers may be more likely to save their money for a rainy day when the future feels unpredictable rather than splurge on non-essential items. This can be especially true during times of economic uncertainty, such as recessions or market crashes, when consumers may be worried about losing their jobs or experiencing a decline in their financial well-being.

Uncertainty can also lead consumers to seek out products or services that offer a sense of stability or security. For example, during social or political uncertainty, consumers may be more likely to support brands or businesses that align with their values or offer a sense of community or belonging. Similarly, during times of personal uncertainty, consumers may be drawn to products or services that provide a sense of comfort or escape, such as luxury goods or experiences.

The effects of uncertainty on consumer behavior can be complex and multifaceted. Still, uncertainty can significantly impact consumers’ willingness to take risks and make purchases. It’s essential for brands to be aware of these effects and to adapt their strategies accordingly. By understanding how uncertainty affects consumer behavior, we can better tailor our messaging, products, and services to meet the needs of our customers, even in the most uncertain of times.

Consumer Response to Uncertainty

Consumers may respond in various ways when faced with uncertainty, depending on their personal circumstances and individual preferences. However, some common patterns tend to emerge when consumers feel uncertain about the future.

One of the most notable responses to uncertainty is a tendency to seek more information before purchasing. When consumers feel uncertain about the quality, safety, or value of a product, they may be more likely to do their research and read reviews before making a decision. This can be especially true during times of uncertainty, when consumers may be more risk-averse and less willing to take chances on products they need to learn more about.

Another common response to uncertainty is a preference for familiar brands or products. Consumers may be more likely to stick with brands or products they know and trust when the future feels unpredictable rather than experimenting with new or unfamiliar options. This can be especially true during times of economic uncertainty, when consumers may be looking for ways to save money and reduce risk.

Additionally, during times of uncertainty, consumers may be more likely to prioritize practical needs over aesthetic or luxury desires. For example, during a recession, consumers may be more likely to purchase essential items like food and clothing rather than splurge on expensive vacations or high-end fashion items.

Implications for Marketers

As we’ve seen, uncertainty can significantly impact consumer behavior, affecting everything from purchasing decisions to brand loyalty. For marketers, it’s important to be aware of how uncertainty affects their target audience and to adapt their strategies accordingly.

One key implication for marketers is the need to reassure consumers during times of uncertainty. This can involve emphasizing the quality, safety, and reliability of products and services and addressing any concerns or questions consumers may have. By providing clear and transparent messaging, marketers can help build trust and loyalty among consumers, even during times of unpredictability.

Another critical consideration for marketers is pricing strategy. During times of uncertainty, consumers may be more price-sensitive and risk-averse, making it challenging to attract and retain customers. To address this, marketers may need to adjust their pricing strategies to reflect changing consumer behavior, such as offering discounts or promotions to incentivize purchases.

Additionally, marketers must be more flexible and adaptable in their approach, as consumer behavior can shift quickly in response to changing circumstances. This may involve experimenting with new marketing channels or tactics or being open to adjusting messaging or product offerings as needed.

Lessons from Past Uncertain Times

The 2008 Financial Crisis 

During the financial crisis of 2008, many consumers became more cautious about spending money, particularly on luxury goods and services. As a result, brands that relied heavily on discretionary spending, such as high-end fashion labels and luxury hotels, saw a significant decline in sales. At the same time, consumers became more interested in value-driven products and services, such as budget airlines and discount retailers. 

Many luxury fashion brands responded by offering affordable options like diffusion lines and collaborations with fast fashion retailers. For example, designer Versace partnered with H&M, a popular fast fashion brand, to reach a wider audience and appeal to price-sensitive consumers. Similarly, many luxury hotels responded by offering promotions and deals to attract customers looking to save money.

The COVID-19 Pandemic

The COVID-19 pandemic has significantly impacted consumer behavior, as many people have experienced economic, social, and personal uncertainty. During the pandemic, consumers have been more cautious about in-person shopping and have increasingly turned to online retailers for their purchases. Additionally, consumers have become more interested in health and wellness products, home improvement, and DIY products as they spend more time at home.

For example, beauty brand Sephora launched a virtual makeup try-on tool, allowing customers to test out products from the comfort of their own homes. Additionally, many brands pivoted their messaging to emphasize safety and hygiene, such as restaurant chains highlighting their contactless delivery options or airlines emphasizing their cleaning procedures.

The #MeToo Movement

The #MeToo movement has profoundly impacted consumer behavior, particularly in the fashion industry. Brands perceived as promoting unrealistic beauty standards or perpetuating gender stereotypes saw a decline in sales, while brands that embraced inclusivity and diversity saw increased demand. 

For example, lingerie brand Aerie launched a campaign featuring unretouched photos of models with a range of body types to promote body positivity and self-confidence. 

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The Role of Market Research

Market research is a crucial tool for understanding consumer behavior, particularly during times of uncertainty. By gathering data and insights on how consumers respond to changing circumstances, market researchers can help marketers develop effective strategies that meet the needs of their target audience.

One of the main benefits of market research during times of uncertainty is the ability to identify changing consumer needs and concerns. For example, during the COVID-19 pandemic, market research has helped brands understand how consumers adjust to working from home, their concerns about public health and safety, and what products and services they are most interested in. By gathering this data, marketers can develop messaging and products that resonate with consumers’ changing needs and priorities.

Another role of market research during times of uncertainty is to identify changes in consumer behavior. Brands that use market research can identify trends and patterns that may indicate more significant shifts in consumer behavior by analyzing purchasing patterns, brand loyalty, and other key metrics. This can help marketers anticipate changes in the marketplace and adjust their strategies accordingly.

Finally, market research can help marketers develop messaging and branding that resonates with consumers’ emotions and values. During times of uncertainty, consumers may be more sensitive to trust, safety, and social responsibility issues. Market research can help identify the most effective ways to communicate these values to consumers.

Overall, market research is a crucial tool for navigating the complex and unpredictable world of consumer behavior during times of uncertainty. By gathering data and insights on consumer needs, behavior, and values, marketers can develop effective strategies that meet the changing needs of their target audience and build long-term success.

Key Takeaways

Uncertainty is a fact of life that can significantly impact consumer behavior. From economic downturns to social movements to global pandemics, uncertainty can make consumers more cautious, risk-averse, and focused on practical needs. However, by understanding how uncertainty affects consumer behavior, marketers can develop effective strategies that meet the changing needs of their target audience and build long-term success.

Key takeaways include the importance of reassurance, adaptability, and flexibility in uncertain times. Marketers must be attuned to their target audience’s changing needs and concerns and be willing to adjust their strategies accordingly. Additionally, market research is crucial for understanding how consumers respond to uncertainty and can provide valuable insights into changing behavior and priorities.

Moving forward, brands should prioritize building trust and loyalty among their target audience, emphasizing practical needs and value-driven products and services, and remaining flexible and adaptable in the face of changing circumstances. By doing so, marketers can weather even the most uncertain times and emerge stronger and more resilient.

So, let’s approach uncertainty with optimism and confidence. By embracing change, staying attuned to consumer needs, and remaining flexible and adaptable, we can build a more resilient and successful future for ourselves and our brands.

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Did you know that, on average, shoppers spend just two seconds deciding whether to pick up a product or not? In that short amount of time, packaging has to grab their attention, communicate key information, and entice them to purchase. As a marketer, understanding the psychology behind the packaging is essential for capturing those fleeting moments and making the most of your opportunity on the shelf. In this blog, we’ll explore the fascinating research into shopping behaviour and eye-tracking studies and show you how to design packaging that influences consumers’ decisions. So, if you want to know the secrets to gain consumers’ attention from a shelf, keep reading!

The Science of Shopping Behavior

To create effective packaging, it’s essential to understand how shoppers behave in a store. Numerous studies into shopping behaviour offer key insights into how to design packaging that resonates with your target audience.

One important insight is that shoppers tend to make decisions based on emotion rather than logic. Packaging that conveys a sense of excitement, pleasure, or indulgence is more likely to attract their attention than packaging that simply lists the product’s features.

Another crucial insight is that shoppers look at a product’s upper left corner first. This area should contain the most vital information, such as the product’s name or a key benefit. 

It is important to note that this insight is based on eye-tracking studies conducted primarily in Western societies, such as the United States and Europe. Shoppers in other countries may have different eye-tracking patterns or prioritise different areas of a product’s packaging. 

Finally, shoppers prefer products that are easy to understand and use. Clear and concise communication on packaging regarding the product and its usage will help the product stand out on the shelf.

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The Power of Eye-Tracking Studies

While studies into shopping behaviour can provide valuable insights, they can also be limited by the self-reported nature of the data. Researchers have turned to eye-tracking studies to get a more accurate picture of how shoppers behave in-store.

Eye-tracking technology allows researchers to see where shoppers are looking and for how long. This provides a more objective way of measuring shopper behaviour and can reveal insights that might not be captured through self-reported data.

One key finding from eye-tracking studies is that shoppers focus on the front of the package first, then move on to the sides and back. That means that the front of your package needs to be eye-catching and convey essential information clearly and concisely.

Another important insight from eye-tracking studies is that shoppers tend to look at products at eye level more than those that are higher or lower. If your product is on a lower or higher shelf, you may need to use packaging design elements that stand out even more to attract attention.

Eye-tracking studies can also reveal how shoppers scan a package for information. For example, they tend to look at the product name, the image or graphic, and then any claims or benefits listed on the front of the package.

By using the insights from eye-tracking studies, you can design packaging that is even more effective at attracting attention and communicating key information to your target audience. 

Designing Packaging to Stand Out

Now that we better understand how shoppers behave in-store and the insights gained from eye-tracking studies, let’s explore some specific design elements that can help your packaging stand out on the shelf.

Colour

Colour is one of the most powerful design elements for attracting attention. Using bold and bright colours can help your product stand out. Consider using colours not commonly seen in your product category to make your product even more distinctive. 

However, colour can be perceived differently in different countries, and marketers need to be aware of these differences when designing packaging for a global audience. For example, in Western cultures, black is often associated with luxury and sophistication, while in some Eastern cultures, it is associated with mourning and sadness. Similarly, the colour red is often associated with love and passion in Western cultures, while in some Asian cultures, it is associated with luck and prosperity.

It’s also important to consider the context in which the product will be sold, as colours can have different meanings in different contexts. For example, green may be associated with nature and health in some contexts, but it may relate to money and finance in others. By carefully considering the cultural and contextual implications of colour, marketers can create packaging that effectively communicates the product’s value and resonates with the target audience.

Typography

Typography refers to the style, size, and arrangement of text on your packaging. Using clear and easy-to-read fonts can help shoppers quickly understand what your product is and what it offers. It is also important to note there can be differences in buyer behaviour and preferences regarding typography in different cultures. 

For example, in many Asian cultures, calligraphy and other forms of intricate handwriting are highly valued, and this may influence the types of typography that are preferred by consumers. Similarly, different scripts and writing systems may have different connotations and associations in different cultures, impacting buyer behaviour. 

It’s worth noting that typography can also significantly impact accessibility and readability for people with visual impairments or other disabilities. Designing clear and easy-to-read typography can help ensure your product is accessible to the broadest possible audience, regardless of cultural or linguistic background.

Imagery

Compelling imagery can help your product stand out and connect with shoppers emotionally. Consider using high-quality photos or illustrations that convey the benefit or feeling your product provides.

Packaging Shape

The shape of your packaging can also help it stand out on the shelf. Consider using unique shapes or structures different from the typical packaging in your product category.

Branding 

Finally, branding can also play a crucial role in attracting attention and building loyalty. Ensure your packaging design is consistent with your brand identity and conveys your brand values.

Real-World Examples of Successful Packaging Design

One of the best ways to learn about effective packaging design is to look at real-world examples. Here are a few successful packaging designs that have used the principles we’ve discussed:

  1. Burt’s Bees: Burt’s Bees packaging stands out on the shelf with its natural, earthy colours and simple, elegant typography. Using natural images and illustrations of bees and flowers helps to communicate the brand’s commitment to using natural ingredients.
  2. Oatly: Oatly’s packaging for their dairy-free milk products stands out on the shelf with its bold use of typography and graphics. The packaging features a simple black and white design with clever and irreverent messaging, such as “It’s like milk, but made for humans.”
  3. Chobani: Chobani’s yoghurt packaging features a distinctive, curved shape that differentiates it from other yoghurt brands. The packaging also features bold, colourful graphics and typography that help it stand out on the shelf.
  4. Method: Method’s cleaning product packaging features bright, cheerful colours and playful illustrations that help it stand out from the typically bland and boring cleaning products. The packaging also features witty product names that add to the brand’s playful personality.
  5. Nivea: Nivea’s skincare packaging features a simple, classic design that has become synonymous with the brand. The packaging features a clean, white background with the brand’s iconic blue logo, which helps it stand out on the shelf and communicate its commitment to quality skincare products.

A Case Study on Packaging that Missed its Mark

While the above are great examples of packaging that resonate well with buyers, marketers can also learn from many packaging failures.

Case Study: Bic For Her

In 2012, Bic introduced a line of pens called “Bic For Her,” marketed as pens designed specifically for women. The pens featured pastel colours and a thinner barrel size and were priced higher than regular pens. The packaging also included a tagline “Designed to fit comfortably in a woman’s hand.”

The product was met with widespread criticism and mockery on social media, with many people questioning why women would need pens explicitly designed for them. Some critics also pointed out that the pens were more expensive than regular pens, despite offering no significant additional features or benefits.

There are several steps that Bic could have taken to avoid the Bic For Her disaster. Here are a few possible strategies:

  1. Conduct Research: Before launching a new product, it’s essential to conduct thorough market research to understand the needs and preferences of your target audience. In the case of Bic For Her, Bic could have conducted surveys or focus groups to better understand whether there was a demand for pens designed specifically for women.
  2. Avoid Stereotypes: The marketing of Bic For Her relied heavily on gender stereotypes, such as the idea that women have delicate hands that require special pens. To avoid this, Bic could have focused on creating marketing messages that were more inclusive and resonated with a diverse range of consumers.
  3. Price the Product Appropriately: One of the criticisms of Bic For Her was that the pens were priced higher than regular pens, despite offering no significant additional features or benefits. To avoid this, Bic could have priced the product more competitively or provided clear and compelling reasons why the pens were worth the higher price.
  4. Test the Product: Before launching a new product, testing it with a smaller audience is vital to see how it is received. In the case of Bic For Her, Bic could have tested the pens with a smaller group of consumers to see whether the product resonated with them before launching it on a larger scale.
  5. Learn from Feedback: When the negative feedback about Bic For Her started to emerge, Bic could have responded more quickly and effectively to address the concerns. 

By taking these steps, Bic could have avoided the Bic For Her disaster and created a product that resonated with consumers and drove sales. The key is to understand your target audience, create marketing messages that are inclusive and relevant, and be responsive to feedback and criticism when it arises.

While Bic For Her was widely criticised, the brand was able to learn from its mistakes and move forward. In subsequent marketing campaigns, Bic focused on creating messages that resonated with all consumers, regardless of gender. By acknowledging their missteps and making changes based on feedback, Bic was able to salvage its brand reputation and avoid making similar mistakes in the future.

Putting It All Together

Now that we’ve explored the psychology of shopping behaviour, the power of eye-tracking studies, and specific design elements that make packaging stand out, let’s bring it all together.

A deep understanding of your target audience is essential to create effective packaging. What are their values, preferences, and pain points? How can your packaging address those needs and stand out from the competition?

Once you clearly understand your audience, you can incorporate the design elements we’ve discussed. Consider using bold, bright colours, clear and easy-to-read typography, compelling imagery, unique packaging shapes, and consistent branding.

It’s also important to communicate key information clearly and concisely. What is your product? What are the key benefits or features? Why should consumers choose your product over the competition?

Finally, don’t be afraid to be creative and have fun with your packaging design. Consumers are drawn to brands that have personalities and stand out from the crowd. By incorporating unique design elements and messaging that reflect your brand’s personality and values, you can create packaging that resonates with your target audience and leads to increased sales.

Testing Your Packaging Design

After you’ve invested time and resources into creating effective packaging, testing your design to ensure it resonates with your target audience is important. Here are a few methods for testing your packaging design:

  1. Surveys: One of the simplest ways to test your packaging design is to survey your target audience. You can show them different packaging designs and ask for feedback on their preferred design and why. This can provide valuable insights into what design elements are most appealing to your audience.
  2. Focus groups: Conducting a focus group is another effective method for testing your packaging design. This involves bringing together a group of individuals from your target audience and showing them your packaging design. You can then ask for their feedback on what they like and don’t like about the design and what changes they would suggest.
  3. A/B testing: A/B testing involves creating two different versions of your packaging design and testing them against each other to see which performs better. This can be done through online surveys or by conducting in-store tests.
  4. Eye-tracking studies: Eye-tracking studies can provide valuable insights into how shoppers interact with your packaging design. Eye-tracking technology lets you see which design elements attract the most attention and how shoppers scan the package for information.

Testing your packaging design ensures that it resonates with your target audience and leads to increased sales. This investment in testing can ultimately save you time and money in the long run by ensuring that your packaging design is effective before it goes to market.

Adapting Your Packaging Design Over Time

Even the most effective packaging designs may need to be adapted over time to stay relevant and resonant with your target audience. Here are a few reasons why you may need to adapt your packaging design:

  1. Changes in consumer preferences: Consumer preferences and values can change over time, which may require you to adapt your packaging design to stay relevant. For example, if consumers become more concerned about sustainability, you may need to incorporate eco-friendly packaging materials into your design.
  2. Changes in the competitive landscape: Your competitors may change their packaging designs, requiring you to adapt your design to stand out from the crowd. Keeping an eye on your competitors and their packaging designs can help you stay ahead of the curve.
  3. New product features or benefits: If your product evolves and offers new features or benefits, you may need to update your packaging design to communicate those changes effectively.
  4. New marketing strategies: If you change your marketing strategy, you may need to adapt your packaging design to align with those changes. For example, if you shift your focus to a new target audience, you may need to adapt your packaging design to appeal to that audience.

Packaging design captures consumers’ attention, communicates key information, and drives sales. By understanding the psychology of shopping behaviour, utilising eye-tracking studies, and incorporating key design elements, you can create packaging that stands out on the shelf and resonates with your target audience.

Starting with a deep understanding of your target audience, you can incorporate design elements such as bold colours, easy-to-read typography, compelling imagery, unique packaging shapes, and consistent branding to create effective packaging. Communication of key information clearly and concisely is important, as is creativity and personality in your design to stand out from the competition.

Testing your packaging design using surveys, focus groups, A/B testing, and eye-tracking studies is essential to ensure it resonates with your target audience. Regular evaluation and adaptation of your packaging design can help you stay relevant and effective over time.

By investing in effective packaging design, you can set your product apart from the competition and increase your chances of success in the competitive world of retail. So, take the time to invest in your packaging research and design, and watch as your sales soar.

Kadence International has expertise with the world’s leading brands in package testing. Get in touch or submit a research brief.

As a marketer, you’re constantly juggling multiple priorities. You need to develop compelling campaigns that resonate with your target audience, stay ahead of the competition, and demonstrate the value of your products or services. With so much to do, it can be tempting to skip the research phase and jump straight into execution mode. However, this can be a costly mistake. Your marketing efforts will likely fall flat without a solid understanding of your customer’s needs, preferences, and pain points.s

That’s where market research comes in. By conducting research, you can gather valuable insights into your target audience and use these insights to inform your marketing strategy. However, knowing when to conduct research and how to do it right can be challenging. 

In this article, we’ll explore some telltale signs that indicate it’s time to conduct research and provide practical tips on how to conduct research effectively. Whether you’re a seasoned marketer or just starting out, this article will help you navigate the marketer’s dilemma and make informed decisions that drive growth.

Signs that It’s Time to Conduct Research

Several telltale signs indicate it’s time to conduct research. If you’re experiencing any of the following issues, it may be time to consider conducting research:

  • Declining Sales: If you’ve noticed a decline in sales, it could be a sign that your marketing strategy is no longer effective. Conducting research can help you identify the root cause of the decline and develop a plan to turn things around.
  • Customer Complaints: Are you receiving a lot of complaints from customers? This could indicate that your products or services aren’t meeting their needs. Research can help you understand what’s causing the complaints and how to address them.
  • Lack of Customer Engagement: If your customers aren’t engaging with your brand or products, it may be time to conduct research to understand why. This can help you develop more effective marketing campaigns that resonate with your target audience.
  • New Competitors: If new competitors have entered the market and are gaining market share, it’s important to conduct research to understand what they’re doing differently and how you can stay ahead.

Changing Market Conditions: Markets constantly evolve; what worked yesterday may not work today. Conducting research can help you stay up-to-date on changing market conditions and adjust your strategy accordingly.

Steps to Take Before Conducting Research

Before conducting any research, you must take some preparatory steps to ensure you’re clear on what you want to achieve. Here are some steps to consider:

  1. Define the Problem: The first step is to define the problem you’re trying to solve. What questions do you need answers to? What insights are you hoping to gain? It’s essential to be clear on the problem before embarking on any research.
  2. Set Research Objectives: Once you’ve defined the problem, you must set research objectives to help you achieve your goal. These objectives should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, if you’re trying to understand why sales have declined, your research objective might be to identify the key factors contributing to the decline.
  3. Identify the Target Audience: Next, you must identify your research’s target audience. Who are you trying to reach? What characteristics do they have? It’s essential to define your target audience so that you can design research that will yield meaningful insights.
  4. Choose the Right Research Methodology: There are many different research methodologies available, such as surveys, focus groups, interviews, and observational research. Each method has pros and cons; the right choice will depend on your research objectives and target audience. Choosing the right methodology ensures you get the insights you need.
  5. Develop the Research Instrument: Once you’ve chosen your methodology, you need to develop the research instrument – the tool you’ll use to collect data. This might be a survey questionnaire, a discussion guide for a focus group, or an interview protocol. It’s important to design the research instrument carefully to ensure you collect high-quality data.
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Crafting the Right Research Question

Once you’ve defined the problem, set research objectives, identified the target audience, and chosen the right research methodology, the next step is to craft the right research question. The research question should be clear, concise, and focused on the problem you’re trying to solve. In addition, you can develop supplemental questions to provide more context and depth around the issue. Here are some tips for crafting the right research question and creating additional questions:

  1. Start with a Broad Question: Begin by crafting a broad research question that captures the main issue you’re trying to address. For example, if you’re trying to understand why sales have declined, your general research question might be, “What factors are contributing to the decline in sales?”
  2. Narrow the Question: Once you have a broad research question, you need to narrow it down to something more specific. This will help you focus your research and ensure you’re collecting the correct data. For example, you might narrow your research question to “What are the key drivers of customer churn?”
  3. Make the Question Measurable: It’s important to make your research question measurable so that you can collect data that will help you answer it. For example, you might ask, “What percentage of customers who churn cite price as a factor?”
  4. Ensure the Question is Relevant: The research question should be relevant to the problem you’re trying to solve and the research objectives you’ve set. Ensure that the question will yield insights to help you make informed decisions.
  5. Keep the Question Simple: Keep the research question simple and easy to understand. This will help ensure that participants can answer it accurately and that you can analyse the data effectively. Let’s say you’re conducting research to understand why customers are not using a new feature on your product. Instead of asking a complex question like, “How do you feel about the usability of the new feature compared to previous versions of the product?” which may confuse participants, consider asking a simple and direct question like “Are you currently using the new feature?” This question is easy to understand and can be answered with a simple “yes” or “no,” making it easier for participants to answer accurately and for you to analyse the data effectively. 
  6. Develop Supplemental Questions: Once you have the key question, develop supplemental questions that provide more context and depth around the issue. These questions should help you understand the nuances of the problem and provide a more comprehensive view of the issue. For example, suppose you’re trying to understand why sales have declined. In that case, you might develop supplemental questions such as “How has customer sentiment changed over time?” or “What are customers saying about our competitors?”

Conducting the Research

Once you’ve defined the problem, set research objectives, identified the target audience, chosen the right research methodology, and crafted the right research questions, it’s time to conduct the research. Here are some tips for conducting the research effectively:

  1. Recruit Participants: Depending on your research methodology, you’ll need to recruit participants who fit your target audience. This might involve contacting customers via email, social media, or in-person events. Make sure to screen participants carefully to ensure they meet your established criteria.
  2. Structure the Research: Once you’ve recruited participants, you must structure the research to yield meaningful insights. For example, if you’re conducting a focus group, you might structure the discussion around key topics or questions. If you’re conducting a survey, you must design the questionnaire carefully to ensure you’re collecting the data you need.
  3. Collect Data: The next step is to collect the data. This might involve recording the discussion in a focus group, administering a survey online or in-person, or conducting interviews. Make sure to collect the data in a way that is consistent with the research methodology you’ve chosen.
  4. Analyse the Data: Once you’ve collected the data, you must identify patterns and insights. This might involve coding the data, running statistical analyses, or using qualitative analysis techniques. Analyse the data rigorously to ensure the insights are accurate and meaningful.
  5. Draw Conclusions: Finally, use the insights you’ve gained from the research to draw conclusions and inform your marketing strategy. What did you learn from the study? How can you use these insights to address the problem you identified at the beginning of the research process?
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Interpreting the Results

Once you’ve researched and analysed the data, it’s time to interpret the results and use them to inform your marketing strategy. Here are some tips for interpreting the results effectively:

  1. Look for Patterns: As you review the data, look for emerging patterns and trends. Are there any common themes or issues that participants identified? What insights can you gain from the data?
  2. Compare Results: If you conducted multiple research methods, compare the results to determine any consistencies or discrepancies. This can help you triangulate the data and ensure accurate insights.
  3. Consider the Context: When interpreting the results, it’s essential to consider the context in which the research was conducted. What external factors might be impacting the results? How do the results align with what you know about the market and your target audience?
  4. Draw Meaningful Conclusions: Based on the insights you’ve gained from the research, draw meaningful conclusions that will inform your marketing strategy. What changes do you need to make to your strategy? What opportunities can you pursue based on the insights?
  5. Communicate the Results: Finally, communicate the research results to your organisation’s stakeholders. This might include senior leadership, sales teams, or product development teams. Communicate the results clearly and effectively, and emphasise how they can be used to drive business growth.

Key Takeaways

The marketer’s dilemma of knowing when to conduct research and how to do it right is a challenge many marketers and product marketing managers face

However, by following best practices and taking a structured research approach, you can gather valuable insights into your target audience and use these insights to inform your marketing strategy.

  • Defining the problem is the first step in conducting research, followed by setting research objectives, identifying the target audience, choosing the correct methodology, and crafting the right research question.
  • Signs that indicate it’s time to conduct research include declining sales, customer complaints, lack of customer engagement, new competitors, and changing market conditions.
  • Conducting research involves recruiting participants, structuring the research, collecting data, analyzing the data, and drawing conclusions.
  • Interpreting the results involves looking for patterns, comparing results, considering the context, drawing meaningful conclusions, and communicating the results to stakeholders.
  • By taking a strategic approach to research and using the insights gained to inform your marketing strategy, you can develop compelling campaigns, stay ahead of the competition, and drive business growth.

No matter your experience level, prioritising research and using it to inform your marketing strategy is crucial for driving business growth. Following the steps outlined in this article, you can conduct research that yields valuable insights and helps you make informed decisions. 

If you’re ready to take the next step and conduct a research project, consider working with a trusted partner like Kadence International. With 30 years of expertise and offices in 10 countries, Kadence is a leading and award-winning market research firm that can help you conduct research that delivers actionable insights. Contact us to learn more and get started on your next research project.

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Gamification, the use of game mechanics and design elements in non-game contexts, has become a popular strategy for encouraging healthy behaviours. By making healthy activities more engaging and fun, gamification has the potential to motivate individuals to adopt healthier lifestyles. 

In recent years, many brands have embraced gamification to enhance consumer engagement and loyalty. This approach effectively creates lasting behaviour change, a significant challenge in health and wellness.

One of the key benefits of gamification is its ability to leverage intrinsic motivation. By tapping into people’s natural desire for mastery, autonomy, and relatedness, gamification can create a sense of enjoyment and satisfaction that makes healthy behaviours more appealing. Additionally, gamification can provide a sense of social support and accountability as users compete with friends and track progress toward shared goals. By making healthy behaviours more fun and engaging, gamification has the potential to create lasting behaviour change and drive positive outcomes for both consumers and brands.

One of the main features of gamification is using rewards to incentivise desired behaviours. Unlike traditional games, which are primarily focused on entertainment, gamification is designed to encourage specific behaviours or outcomes. For example, a fitness app might award badges or points to users who reach certain milestones, or a loyalty program might offer discounts or exclusive perks to customers who make repeat purchases. By creating a sense of progress and achievement, gamification can motivate users to continue engaging with the product or service.

Benefits of gamification for health and wellness

Here are a few of the main benefits of gamification for health and wellness:

Increased motivation: One of the primary benefits of gamification is that it can increase motivation for healthy behaviours. By tapping into people’s natural desire for achievement and mastery, gamification can create a sense of satisfaction and progress that makes healthy behaviours more appealing.

Increased engagement: Gamification can also increase engagement with health and wellness programs. By making activities more fun and interactive, gamification can encourage people to stick with their programs and continue making progress toward their goals.

Increased retention: Gamification can also increase the retention of healthy behaviours over time. By creating a sense of community and accountability, gamification can encourage people to continue engaging with health and wellness programs even after the initial novelty wears off.

Examples of gamification use in health and wellness

Many health and wellness brands use game mechanics and design elements to encourage healthy behaviours. Here are a few examples of how gamification has been used in health and wellness:

Fitness apps: Many fitness apps use gamification to motivate users to exercise and track their progress. For example, the app Strava allows users to compete with friends and track their running or cycling routes, while Fitbit and other wearable devices use badges and challenges to encourage physical activity.

Weight loss programs: Weight loss programs like Weight Watchers have incorporated gamification elements to increase engagement and motivation. For example, the program allows users to earn “FitPoints” for physical activity and offers rewards for reaching weight loss milestones.

Mental health apps: Gamification has also been used in mental health apps to encourage mindfulness and stress reduction. The app Headspace, for example, uses game-like elements to encourage users to meditate regularly and track their progress.

Chronic disease management: Gamification has also been used to help people manage chronic diseases like diabetes. The app MySugr, for example, allows users to track their blood sugar levels and provides feedback and rewards to encourage healthy habits.

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Best practices for using gamification

By following these best practices, brands and organisations can create effective gamification strategies that encourage healthy behaviours and deliver measurable value. With the help of market research, they can identify and prioritise the most effective gamification features and continuously improve their approach over time.

  1. Set clear goals: To create effective gamification strategies, you must set clear goals for what you want to achieve. This might involve defining specific behaviours or outcomes you want to encourage, such as increased physical activity or better medication adherence.
  2. Create meaningful rewards: Rewards are a vital aspect of gamification, and creating meaningful and motivating rewards for users is essential. This might involve offering tangible rewards like discounts or prizes or more intangible rewards like badges or social recognition.
  3. Design a user-friendly experience: To encourage engagement and retention, it’s essential to design a user-friendly experience that is intuitive and easy to use. This might involve testing different user interfaces and gathering user feedback to identify improvement areas.
  4. Use data to inform strategy: Market research can gather data and insights on user behaviour and outcomes, which can inform the development of gamification strategies. This might involve analyzing user engagement and retention rates, conducting surveys or focus groups to gather feedback, or using analytics tools to track user behaviour over time.
  5. Evaluate ROI: It’s important to evaluate gamification investments’ return on investment (ROI) to ensure they deliver value for the organisation. This might involve measuring the impact of gamification on key metrics like user engagement, behaviour change, or health outcomes and using this data to prioritise and refine gamification features.

Market Research’s role in gamification

Market research is a critical component of developing and implementing effective gamification strategies. By gathering data on consumer needs and preferences, testing prototypes, and evaluating the effectiveness of campaigns, brands can create gamification experiences that are engaging, effective, and sustainable over the long term. 

Here are some specific ways that market research can contribute:

  1. Identifying consumer needs and preferences: Market research can gather insights into consumer needs and preferences related to health and wellness. This might involve conducting surveys, focus groups, or user testing to understand what motivates consumers to adopt healthy behaviours and their preferences for gamification features and rewards.
  2. Testing prototypes: Once a gamification strategy is developed, market research can test prototypes and gather user feedback. This might involve conducting user testing or focus groups to identify areas for improvement and refine the user experience.
  3. Evaluating the effectiveness of campaigns: Market research can also evaluate the effectiveness of gamification campaigns over time. This might involve tracking user engagement and retention rates, conducting surveys or interviews to gather feedback, or using analytics tools to measure the impact of gamification on key metrics like behaviour change or health outcomes.
  4. Prioritizing features: Market research can help prioritise gamification features based on their potential impact on user engagement and behaviour change. By gathering user needs and preferences data, brands can identify the most critical features and allocate resources accordingly.

Important considerations when developing a gamification strategy

When using gamification in health and wellness, it’s important to consider ethical considerations to ensure that users are treated fairly and respectfully. Here are some ethical considerations that should be taken into account:

  1. Privacy and data security: Gamification often involves collecting and storing user data, which can raise privacy and security concerns. Brands should protect user data and ensure it is only used for its intended purpose.
  2. Transparency and informed consent: Users should be fully informed about how their data will be used and have the opportunity to provide informed consent. Brands should be transparent about their data collection and use policies and provide users with clear information about how their data will be used.
  3. Inclusivity: Gamification should be designed to be inclusive of all users, regardless of their race, ethnicity, gender, or other personal characteristics. Brands should be sensitive to the potential for bias or discrimination and take steps to ensure that gamification features are designed to be accessible and inclusive.
  4. Accuracy and fairness: Gamification should be designed to measure and reward user behaviour accurately. Brands should avoid using gamification features that are misleading or unfair and should be transparent about how rewards are calculated and distributed.

Limitations of gamification

While gamification can be an effective strategy for promoting health and wellness, it is not without potential limitations or drawbacks. Here are some of the key considerations:

  1. Short-term impact: Gamification is often used to motivate users in the short term, but it may not lead to lasting behaviour change. Users may lose interest in gamification features once they become less novel and may revert to their old habits over time.
  2. User preferences: Not all users may find gamification features engaging or motivating. For some users, gamification may feel trivial or inauthentic and may not lead to sustained engagement or behaviour change.
  3. Potential for addiction: Gamification features, particularly those involving rewards or points systems, may potentially create addictive behaviours. Users may become overly focused on achieving rewards or points at the expense of other aspects of their health or well-being.
  4. Privacy and data security: As mentioned earlier, gamification often involves collecting and storing user data, which can raise privacy and security concerns. Brands must protect user data and ensure it is only used for its intended purpose.

Potential for bias or discrimination: Gamification features may inadvertently reinforce existing biases or discrimination, particularly if designed without considering users’ diverse needs and preferences. Brands must be careful to avoid any features that may perpetuate stereotypes or bias.

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The role of social influence in gamification

Social influence and peer support can play an influential role in the success of gamification strategies. By creating a sense of community and accountability, gamification can tap into users’ social networks to increase engagement and motivation. Here are some ways that social influence and peer support can be incorporated into gamification:

  1. Social features: Many gamification strategies incorporate social features, such as leaderboards or social sharing, that allow users to compete or collaborate with their peers. By tapping into users’ natural desire for social validation and recognition, social features can increase engagement and motivation.
  2. Peer support networks: Gamification strategies can also leverage peer support networks for encouragement and accountability. For example, fitness apps like Nike Training Club allow users to join virtual workout groups and connect with other users who share similar fitness goals.
  3. Rewards for social engagement: Brands can incentivise social engagement by offering rewards or recognition for users who share their progress on social media or invite friends to join their program. This can create a sense of community and encourage users to support each other in their health and wellness journeys.
  4. User-generated content: User-generated content, such as user reviews or success stories, can also be a powerful tool for creating social influence and peer support. By highlighting the achievements and experiences of other users, brands can inspire and motivate new users to join their programs.

Health and Wellness gamification success stories

There are many examples of gamification strategies that have been successful in promoting health and wellness. Here are a few specific examples, along with their respective outcomes and impact:

  1. Pokemon Go: Pokemon Go is a popular mobile game incorporating gamification elements to encourage physical activity. Players must walk or run to different locations to catch virtual Pokemon characters, earning points and rewards along the way. One study found that Pokemon Go players increased their physical activity by an average of 1475 steps per day or about 25% more than their baseline activity levels.
  2. Habitica: Habitica is a gamification app that tracks users’ daily habits and tasks, earning rewards and points for completing them. The app incorporates social features that allow users to connect with friends and join virtual communities based on shared goals. One study found that users who used Habitica for four weeks were likelier to continue using the app than those who used a non-gamified habit-tracking app.
  3. Blue Shield of California’s Wellvolution program: Blue Shield of California’s Wellvolution program uses gamification to encourage healthy behaviours among its members. The program offers challenges and rewards for completing healthy activities like exercise or healthy eating and allows users to connect with health coaches and track their progress over time. One study found that users who participated in the Wellvolution program had significantly lower healthcare costs than non-participants.
  4. Mango Health: Mango Health is a medication management app that uses gamification to encourage medication adherence. Users earn points and rewards for taking their medications on time and can connect with friends and family members for support. One study found that Mango Health users were 1.5 times more likely to take their medications on time than non-users.

Case Study: Zombies, Run!

Zombies, Run! is a popular mobile game that combines storytelling, fitness tracking, and gamification elements to encourage physical activity. The game has been credited with increased physical activity in users. Let’s look at how the game works and why it has been so successful.

The premise of Zombies, Run! is simple: players are runners in a post-apocalyptic world overrun by zombies. The game combines immersive storytelling with fitness tracking, allowing users to experience a thrilling adventure while getting in shape. Players start by selecting a mission, which might involve gathering supplies or rescuing survivors, and then begin running. The game tracks their distance, pace, and burned calories as they run while immersing them in a rich audio narrative.

The game’s developers, Six to Start, conducted a study to evaluate the impact of Zombies, Run! on physical activity levels. The study included 3,906 participants who completed a survey before and after using the app for six weeks. 

The results were impressive: on average, participants who used the app increased their weekly physical activity by 23 percent. In addition, 90% of participants reported that the game had motivated them to exercise more, and 80% reported that they were more likely to continue using the app in the future.

So why has Zombies, Run! been so successful at increasing physical activity levels? One key factor is the game’s immersive storytelling. By creating a compelling narrative that users can engage with, the game makes running more enjoyable and engaging. The game also incorporates gamification elements, such as rewards for completing missions and progress tracking, that give users a sense of accomplishment and motivation. In addition, the game’s community features, such as leaderboards and social sharing, allow users to connect with other players and provide a sense of accountability and support.

Overall, the success of Zombies, Run! highlights the potential of gamification to increase physical activity and promote healthy behaviours. By combining storytelling, fitness tracking, and gamification elements, the game provides users with an engaging and motivating experience that can lead to sustained behaviour change. 

Case Study: SuperBetter

SuperBetter is a website developed to help people recovering from traumatic brain injuries, and it uses gamification elements to encourage users to set goals, track progress, and build resilience. Let’s look closer at how the website works and why it has been so effective.

The concept behind SuperBetter is simple: users set goals for themselves, such as managing pain or reducing stress, and then use the website’s tools to track their progress and build resilience. The website incorporates gamification elements, such as quests, power-ups, and challenges, that give users a sense of accomplishment and motivation. Users can also connect with friends and family for support, creating a sense of community and accountability.

The study published in the Journal of Medical Internet Research evaluated the effectiveness of SuperBetter among 388 participants who were recovering from traumatic brain injuries. The participants were randomly assigned to use the website or receive standard care. 

The results were striking: after 12 weeks, participants who used SuperBetter reported a 50% decrease in symptoms of depression and anxiety, compared to a 20% decrease among participants who received standard care. In addition, users of SuperBetter reported a 55% increase in their ability to cope with stress, compared to a 16% increase among those who received standard care.

So why has SuperBetter been so effective at reducing symptoms of depression and anxiety? One key factor is the website’s focus on building resilience. By providing users with a range of tools and strategies for coping with stress and setbacks, the website helps users feel more in control and better manage their symptoms. The website also incorporates social support and community features, allowing users to connect with others who share similar experiences and provide encouragement and accountability.

Overall, the success of SuperBetter highlights the potential of gamification to promote mental health and well-being. By incorporating gamification elements and community features, the website gives users a sense of accomplishment, motivation, and social support that can lead to sustained behaviour change. The study also underscores the importance of using market research to evaluate gamification strategies’ effectiveness and continuously refine and improve them over time.

Key Takeaways

Gamification has emerged as a powerful strategy for promoting health and wellness, with many brands and organisations using game mechanics and design elements to encourage healthy behaviours. 

Market research plays a critical role in developing and implementing effective gamification strategies by gathering insights on user behaviour and outcomes, testing prototypes, and evaluating the effectiveness of campaigns. 

Here are some key takeaways from this blog:

  • Gamification can be an effective tool for promoting healthy habits by increasing motivation, engagement, and retention.
  • Best practices for gamification in health and wellness include setting clear goals, creating meaningful rewards, designing a user-friendly experience, using data to inform strategy, and evaluating ROI.
  • Ethical considerations, such as privacy and data security, should be considered when using gamification.
  • Social influence and peer support can play an influential role in the success of gamification strategies by creating a sense of community and accountability.

Gamification can potentially transform how we approach health and wellness by making healthy behaviours more engaging, fun, and sustainable. By incorporating best practices, ethical considerations, and social influence, brands and organisations can create gamification programs that are effective, inclusive, and impactful. 

If you seek a market research partner to help with your gamification strategy, Kadence International is happy to help.

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The allure of new and improved products is undeniable. We constantly see updates and revised versions of our favourite products and wonder if and when we should buy the updated versions of products that already work for us. 

The truth is that brands frequently release products as new and improved, and consumers feel compelled to buy even when there is little objective improvement. Revising things may or may not make products better than their previous versions, yet, consumers perceive them as improved products. This is the reason brands release improved flavours, revised editions of books, and technology updates. 

For product development teams to release product improvements, it is vital to consider market research to collect consumer preferences and behaviour data. Product development includes innovating and creating new products based on these insights. In this blog post, we will explore why updates and revised products are more appealing to consumers and how market research and product development play a part.

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Why do consumers think updates and revised products are better even if they are not?

When a new version of a product is released, consumers often perceive it as being better than its predecessor. This can be seen in technology, from smartphones to video game consoles. 

Research studies show consumers have difficulty passing up on a product labelled new, improved, or revised, even if it isn’t objectively better than its previous version. 

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So why do consumers think updates and revised products are better than their previous versions? It is due to a combination of consumer psychology and behaviour.

Consumers no longer make decisions solely based on rationality, as evidenced by the financial crisis and a wealth of research. The leader in this space, Daniel Kahneman, has presented his groundbreaking book, “Thinking, Fast and Slow.” The book explains how our minds possess two distinct methods of thinking, which he calls System 1 and System 2 thinking.

Kahneman’s work on the System 1 and System 2 thinking models helps explain why people make certain decisions about purchasing updated products. System 1 is instinctive, fast, and emotional, while System 2 is logical, slow, and analytical. In many cases, people are drawn to updated products due to the former type of thinking, which means they are likely to be swayed by the allure of what appears to be a shiny, new object. 

People often assume new versions of products and services are better, even if the improvements are insignificant.

One study by the University of Michigan found that people are more likely to choose new products than old ones, even when the products are identical. The researchers also found that people are willing to pay more for products labelled as new than those labelled as old.

Another study published in the Journal of Consumer Research found that consumers are more likely to choose products labelled as new or improved than those not labelled in this way. The researchers found that consumers associate these labels with innovation and quality and are more likely to be attracted to them.

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This behaviour is further explained by Kahneman’s distinction between “fast” and “slow” thinking. Fast thinking is the instinctive, automatic response to the perceived differences between old and new products. Slow thinking involves more deliberation, where consumers compare the cost of the new product against the benefit it provides.

Market research into what consumers want and need has revealed that people tend to view these new versions as more desirable because they offer additional features or more convenient use than earlier versions. 

How high technology product developers and marketers make decisions regarding updates. 

If you’ve ever agonised over the perfect time to replace your mobile device with a shiny new model, then you can appreciate the difficult decisions technology developers and marketers have to make when planning their product updates. 

To assist planners of high-tech consumer products in making these kinds of decisions, V. “Seenu” Srinivasan, a distinguished professor at Stanford GSB, and Sang-Hoon Kim, an assistant professor at Seoul National University, created a mathematical model which forecasts the sales pattern of a new version of an existing product. 

In an article titled “What Makes Consumers Want to Buy the Latest Model?” Srinivasan describes the model as simple, saying it is based on how much the benefits of a new product (compared to an old one) outweigh any obstacles that may inhibit a customer from upgrading. For instance, the probability of a customer buying a new laptop will increase if it is much better than their existing one and the upgrade is easy and not overly expensive. The obstacles taken into consideration for this model include not just the financial, procedural, and psychological costs of upgrading but also a consumer’s expectations on how soon future technology improvements will occur, the customer’s level of innovativeness, and the customer’s existing opinion of the product.

As anticipated, if the gains of upgrading outweigh any perceived drawbacks, it is more probable that the consumer will upgrade in a specific month.

Exploring such an analysis in the actual world is far more complex and expensive. For some products such as laptops, printers, and cell phones, Srinivasan states, their new versions come out so quickly that some technical supervisors think there needs more time for this kind of market exploration.

But educators are enthusiastic as the model is an imaginative blend of two prevailing methodologies in marketing science: conjoint analysis and hazard rate modelling. Conjoint analysis, which includes asking a sample of customers from the goal market how essential they consider various features to be, has been applied for some time to determine which group of product features to offer. However, since conjoint analysis provides a static snapshot of the marketplace at a specified moment, it does not provide the sorts of answers linked to product upgrades. It requires the inclusion of hazard rate modelling, traditionally used to compute the time discrepancy between a product’s initial purchase and future replacement purchases.

Coke Zero

The importance of Market research in product development.

The idea of buying something new and improved can be seen in many industries, from food or beverages to technology and streaming services. Smartphone companies typically announce a new version of their device every year or two, even though the updates are relatively minor. Similarly, streaming services offer different packages with additional features or added content. In all cases, the companies use this lure of new to boost their sales and keep customers interested in their products.

When it comes to developing high-tech products, market research plays an important role. Companies must carefully evaluate consumer preferences, pricing strategies, and other factors to ensure their product is attractive to customers and has the potential for long-term success. Market research also helps companies predict when to introduce a new version of an existing product. By understanding consumer behaviour, companies can make informed decisions about when to launch a revised product that will maximise its success.

Ultimately, combining consumer psychology and behaviour helps explain why consumers find updates and revised products more attractive. As marketers plan out their product releases and try to find the best ways to reach consumers, understanding these factors is essential for success.

Take a deep dive into Gen Z’s psychology, behaviour, preferences, beliefs, and attitudes. Download our exhaustive guide to understand and engage with this target segment.

keeping-up-with-Gen-z

Microsoft recently made a substantial commitment to OpenAI’s ChatGPT —a chatbot released late last year, announcing its intent to invest $10 billion, while tech giant Google is scrambling to produce a rival for ChatGPT called Bard.

Artificial Intelligence (AI) is advancing at a remarkable rate, raising several questions about the dangers and risks of an AI takeover in every walk of life. 

Artificial Intelligence (AI), the ability of computers to perform tasks that typically require human intelligence, such as speech and image recognition, iterative learning, and creative thinking, has been a touchstone of hope and anxiety for decades. 

AI is within reach of many industries, including healthcare, education, retail, and, believe it or not, mining. Of course, the field of market research is no exception. 

In market research, will AI put jobs on the chopping block, or will it set off a renaissance of new market research innovation and jobs? Will machine learning in market research annihilate the human element or propel the industry forward with accelerated momentum?

Stephen Hawkings cautioned the world about the rise of artificial intelligence.

Stephen-Hawking-quote-on-AI

These questions have been a major source of anxiety for many. But before we dive into these questions, let’s look at a brief history of AI, the types of AI, and how to use AI. 

A Brief History of Artificial Intelligence

Let’s look at how AI has evolved over the past few decades. 

history-of-ai

Artificial Intelligence can be divided based on capabilities and functionalities.

There are three types of Artificial Intelligence-based on capabilities. 

Narrow AI

Also known as Weak AI, Narrow AI specialises in one task and cannot exceed its boundaries. This subset of AI is advancing in that single domain, becoming more ubiquitous in everyday life as machine learning and deep learning progress.
Let’s look at the capabilities of Narrow AI using real-world examples. From the iPhone’s Siri virtual assistant to self-driving cars, utilising vision recognition and product recommendation engines, this type of AI utilises pre-programmed abilities to serve users but often fails to assist with tasks outside its scope. On the other hand, IBM Watson is an advanced data analytics processor that employs natural language processing, an advanced technology that deciphers human language for syntax and significance. Watson has the power to rapidly perform analytics on enormous volumes of data to respond to human inquiries accurately. Interestingly, Watson competed and outsmarted a contestant on the popular TV game show Jeopardy!

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Other popular examples of Narrow AI include Google Translate, image recognition software, recommendation systems, spam filters, and Google’s page-ranking algorithm.

General AI

General AI, otherwise known as strong AI, is a form of Artificial Intelligence (AI) that has the potential to understand and learn any task a human being can. AI researchers have yet to develop this technology to its fullest capacity, needing a method to give machines the ability to think cognitively. 

Fujitsu has built the K computer – one of the world’s fastest supercomputers- to create strong AI. Meanwhile, China’s Tianhe-2 has been deemed the most powerful supercomputer in the world, as it can calculate 33.86 petaflops (quadrillions of cps). This still needs to catch up to what the human brain can accomplish.

Super AI

Artificial Superintelligence (AI) has surpassed human intelligence and can do any task more efficiently than a person. Super AI is imagined to be so close to the human sentiment that it not only comprehends them but can create its own feelings, requirements, opinions, and wishes. As of now, its concept remains just hypothetical. However, it is thought to possess significant abilities like contemplating, resolving issues, and generating its own judgments and decisions.

In terms of functionality, there are four main types of Artificial Intelligence.

  1. Purely Reactive

    As the name suggests, these AI machines do not use any data or memory. They specialise in one field. An example would be in a chess game where the machine observes the player’s moves and makes the best possible decision to win.
  2. Limited Memory

These machines use previous data, but memory is limited. They have enough previous data to make decisions, but their memory is minimal. An example is suggesting users a convenience store based on the location data.

  1. Theory of Mind

This type of AI goes beyond hard data and can interpret emotions and thoughts. 

  1. Self-Aware


Self-aware machines are smart as well as conscious. These are the future of AI. 

So how does AI work?

Artificial Intelligence utilises an abundance of data and intelligent algorithms, in tandem with high-speed processing, to understand patterns in the data and self-teach accordingly.

Artificial Intelligence is expected to revolutionise the market research industry in several ways:

  1. Data Collection and Analysis: AI-powered tools can collect, process and analyse large amounts of data faster and more accurately than humans, leading to more comprehensive and actionable insights.
  2. Customer Insight: AI can help uncover hidden patterns and connections in customer data, providing deeper and more personalised insights into consumer behaviour.
  3. Predictive Analytics: AI-powered predictive analytics can help companies anticipate consumer behaviour, market trends, and buying patterns, allowing businesses to make more informed decisions.
  4. Sentiment Analysis: AI can analyse large volumes of customer feedback, social media data, and other unstructured data sources to provide insight into consumer opinions and emotions.
  5. Chatbots and Virtual Assistants: AI-powered chatbots and virtual assistants can interact with consumers and collect data, freeing up researchers’ time to focus on analysis and interpretation.
  6. Improved Efficiency and Accuracy: AI can automate repetitive tasks, reducing errors and allowing market researchers to focus on more creative and strategic initiatives.

Artificial Intelligence is a powerful tool that can significantly enhance the work of market researchers, but it is unlikely to replace them completely. 

Here are some ways in which AI will not replace the role of market researchers:

  1. Interpretation and Analysis: AI can provide vast amounts of data and insights, but it is up to market researchers to interpret the results and provide meaningful insights and recommendations.
  2. Creative Problem-Solving: Market researchers are responsible for devising and executing research strategies, which requires creative problem-solving and human intuition. AI is not capable of replacing this critical aspect of the research process.
  3. Ethical Considerations: AI operates based on algorithms and data inputs, sometimes resulting in biased or unethical outcomes. Market researchers must consider ethical considerations and ensure that research methods and results align with the values and goals of the organisation.
  4. Communication and Presentation: Market researchers are responsible for communicating the research results to stakeholders, which requires strong communication skills, the ability to tell a story, and the ability to present data in an engaging and actionable manner.
  5. Contextual Understanding: AI operates based on patterns and algorithms, but it cannot replace the human understanding of context, culture, and individual circumstances that is critical to providing meaningful insights.

AI disruptions are everywhere.

AI is quickly disrupting how brands approach customer service, product creation, marketing, and data analysis. Companies are beginning to integrate AI into many aspects of their operations. Here are a few of the major brand disruptions that AI is bringing to the market:

One brand that has caused a disruption in the marketplace through AI is Amazon. By incorporating machine learning, Amazon has made real-time decisions to respond to customer needs. By taking into account past customer behaviours and preferences, Amazon offers personalised product recommendations. Amazon has also used AI-enabled facial recognition technology in their warehouses to automate and improve the inventory process.

jeff-bezos-quote-on-personalization

Another brand that has disrupted the market using AI is Microsoft. Microsoft provides businesses with advanced predictive analytics and natural language processing capabilities through its Azure AI platform. With these features, businesses can use machine learning to develop more accurate forecasting models. Additionally, brands can more effectively identify customer trends and behaviour, enabling them to respond quickly to changing customer demands.

Finally, Tesla is another company that has used AI to disrupt the market. The company has enabled its autonomous vehicles to read and recognise their environment using computer vision. This allows their cars to recognise traffic signals and lane markings, resulting in a safer driving experience. Additionally, their AI-powered Autopilot system allows their cars to make real-time adjustments to improve their driving performance.

Tesla-and-ai

Will robots dominate the world?

Artificial Intelligence has progressed at a phenomenal rate, and its expansive possibilities have prompted fears about the probability of an AI takeover. 

In Nick Bostrom’s book Superintelligence, the opening story “The Unfinished Fable of the Sparrows” offers a parable of how AI’s growing strength and abilities can stir feelings of unease and worry. The story follows some sparrows that sought a pet owl, disregarding the worries of one sparrow that cautioned about the difficulty of controlling such a creature. Instead of addressing this doubt, the group simply deferred the issue for future resolution.

Elon Musk, the founder of Tesla, SpaceX, and Neurolink, has also openly expressed the potential dangers of AI. However, since the benefits of AI are enormous, he suggests a regulatory body to minimise the dangers and risks associated with it. 

Elon-Musk-quote-on-AI

Overall, while AI can significantly enhance the work of market researchers, it will not replace their expertise and creativity. Instead, market researchers will likely embrace AI as a tool that enables them to do their jobs more efficiently and effectively.

Sun Tzu famously said, “Know thy self, know thy enemy.” In today’s competitive business landscape, those words apply as much to market positioning as they do to warfare. Understanding your brand’s strengths—and how they stack up against competitors—is at the heart of effective market and competition analysis.

Global e-commerce sales surpassed $6.3 trillion in 2023, and the growth continues in 2024. In this environment, brands cannot afford to operate without a clear view of the competitive landscape. A structured market competitive analysis helps businesses assess their place in the market, uncover threats and opportunities, and sharpen their strategy. This guide outlines the critical steps of market competition analysis. It offers practical tools to improve your positioning—whether you’re leading a marketing team, managing a product portfolio, or refining your brand strategy.

Identifying Competitors

Any market competition analysis begins with identifying who your competitors are. This includes both direct competitors—those offering similar products or services to the same customer segments—and indirect competitors, who provide alternative solutions that address the same need.

Direct competitors operate in the same category, sell comparable products or services, and target overlapping customer segments. They compete head-to-head for market share and brand loyalty. Nike and Adidas, for example, are direct competitors in the global athletic footwear and apparel industry, vying for dominance through similar offerings, from running shoes to performance gear aimed at active consumers.

Indirect competitors don’t sell the same product, but they serve the same core need. Their offerings may look different, but they compete for the same pool of customers. Take Uber and public transport: one is a private ride-hailing service, and the other is public infrastructure. Still, they compete in the same transportation market, especially when convenience, cost, or availability influences consumer decisions.

Identifying market competitors begins with sector and audience research. Look for brands offering similar solutions to a comparable customer base. Customer interviews and surveys can also reveal which brands consumers view as viable alternatives—information that’s often more revealing than assumptions made internally.

Digital tools like Google Trends, SEMrush, and SimilarWeb can assist with market and competition analysis. They provide data on search visibility, website traffic, referral sources, and social engagement—helping you benchmark your performance against top competitors and spot strategic gaps..

After mapping your competitors, the next step is classification. Separating direct from indirect competitors helps clarify their positioning, strengths, and blind spots. A fitness app, for instance, may face direct competition from MyFitnessPal or Fitbit, while competing indirectly with personal trainers, wearables, or wellness platforms. Understanding how these players position themselves in the market informs your own market strategy.

Analysing your competitors’ pricing models, customer engagement strategies, and feature sets is critical to differentiation. As Harvard Business Review puts it, “It’s not enough to know who your competitors are. You need to know how they think.” A strong market competitive analysis gives you more than a snapshot of their performance—it reveals intent, positioning, and market dynamics that shape how your own brand should evolve.

How to Conduct Market Competitive Analysis Effectively

Once you’ve mapped out your competitors, the next step in a market competitive analysis is to evaluate their strategy across several dimensions: product or service features, pricing models, marketing tactics, customer targeting, and overall market positioning.

Start with digital touchpoints. Visit your competitors’ websites and social media platforms to examine product features, UX design, pricing models, and engagement tactics. Look for how often they publish content, which channels they prioritise, and how customers respond. These cues can signal where they’re investing and what’s resonating in your shared market.

Go hands-on. Using your competitors’ products or services gives you direct insight into their user experience, service quality, and value proposition. This is where market analysis competition becomes tangible—revealing where your brand can outperform or where parity may already exist.

Conducting a SWOT analysis—strengths, weaknesses, opportunities, and threats—can help benchmark competitors in context. This exercise supports competitive positioning by revealing where a brand is overperforming, under-delivering, or vulnerable to disruption. A well-executed SWOT elevates market competitor analysis from a surface-level review to a strategic tool.

For instance, if you run a restaurant and a nearby competitor offers similar cuisine, reviewing their pricing, menu variety, and online reviews might reveal they charge more but offer broader options. Your opportunity might lie in focusing on ingredient quality or offering niche items at a better price point—an approach rooted in real-world market competition analysis.

Evaluating Your Market Position Against Competitors

Once you’ve completed your competitor analysis, the next step is evaluating your market position. This means assessing your brand’s relative strengths, performance gaps, and areas for differentiation in a competitive landscape. A clear view of your standing in the competitors’ market is the foundation of a winning business strategy.

A good starting point is conducting a SWOT analysis—assessing your internal strengths and weaknesses alongside external opportunities and threats. This tool helps frame your position relative to competitors and highlights where strategic shifts are needed to compete more effectively in your market.

Customer feedback is another critical source of insight. Analysing reviews, surveys, and support data can reveal how your audience perceives your value compared to other brands. Identifying where satisfaction is high—or where pain points persist—can shape more customer-centric competitive strategies.

Pricing and promotion are often where competitive advantage is won or lost. Assess whether your price points align with your value proposition and whether your marketing effectively reaches and resonates with your target audience. These are key levers for shaping your market and competition analysis.

Suppose you offer a productivity app and your competitors provide similar functionality but charge more. Highlighting your lower price point and optimising for value-conscious users could position your product more competitively. Strategic pricing in competitor markets often shapes perception as much as features do.

As Jay Abraham famously noted, “Your competitors can teach you everything you need to know about your own customers.” Evaluating your competitive position isn’t just an internal exercise—it’s a direct window into shifting customer expectations, unmet needs, and emerging threats. It’s how brands stay relevant—and ahead.

Turning Competitive Analysis into a Market Strategy Action Plan

As Forbes puts it, “The key to success in competitive analysis is to turn insights into action.” Once you’ve evaluated your market position and analysed your competitors, the next move is translating those insights into a strategic action plan. A good action plan defines clear next steps to strengthen your brand’s competitive positioning and drive tangible gains in the market.

Start by prioritising the most impactful findings from your competitive analysis. If your pricing is misaligned with competitors, that may call for a tiered pricing review. If you’ve uncovered a gap in reaching a high-potential segment, redirect your marketing spend to campaigns that speak directly to those customers. Focus first on changes that improve your market strategy where it matters most.

Next, define clear goals and metrics to measure progress. For instance, if customer experience is falling short, you might aim to lift your satisfaction score by 15% within the next quarter. Align each KPI with a specific action in your plan so that improvements in your competitive positioning can be tracked and attributed.

Implementation matters as much as planning. Assign owners for each initiative, allocate the necessary budget, and set timelines that reflect urgency and feasibility. A market and competition analysis is only as valuable as its execution, so ensure that responsibilities are clearly defined and milestones tracked.

Why Ongoing Market and Competitor Analysis Is Essential for Growth

Market dynamics rarely stand still. New competitors surface, consumer expectations evolve, and technologies disrupt overnight. That’s why competitive analysis isn’t a one-off task—it’s a continuous discipline. Brands that integrate regular market and competitor analysis into their decision-making processes are better equipped to stay agile, refine their market positioning, and pre-empt disruption.

The most effective companies don’t just monitor competitors during quarterly reviews—they embed that vigilance into daily operations. This includes tracking shifts in pricing strategies, campaign themes, customer sentiment, and product updates. Tools like SimilarWeb and SEMrush can automate much of this competitive intelligence, while social listening reveals market reactions in real time. The goal isn’t to copy—it’s to calibrate your own strategy as new data comes in.

Frequent competitor reviews also help identify threats before they become existential. Is a rival shifting to a freemium model? Is a new player gaining traction with a feature you don’t offer? Regular analysis lets you spot these shifts early—giving you a strategic advantage in reshaping your own value proposition or route to market.

It also sharpens internal focus. When you dissect a competitor’s strengths, you often uncover your own blind spots—gaps in messaging, pricing, innovation, or service. The point isn’t just benchmarking; it’s building a better version of your own brand by learning from the moves others make.

Case Study: How Market Competitor Analysis Redefined the Hospitality Industry

Few examples of competitive disruption are as instructive—or as widely studied—as the rise of Airbnb and its impact on the traditional hotel sector. What started as a scrappy startup in 2008 evolved into a platform that not only redefined travel but forced the hotel industry to re-examine its competitive positioning and market analysis practices.

Airbnb introduced a compelling alternative to hotel accommodations: access to real homes, local neighborhoods, and experiences that felt less corporate and more personal. While hotels focused on consistency and service, Airbnb focused on flexibility, affordability, and authenticity. What followed was not just a shift in consumer preferences, but a recalibration of the entire accommodation category.

Airbnb’s Competitive Position: Strengths, Weaknesses, Opportunities, and Threats

Strengths:
Airbnb’s core advantage lies in its ability to offer differentiated, often lower-cost lodging options that feel unique and tailored to the traveler. Its platform model scales without owning property, and its user-friendly tech—particularly its search algorithm and host messaging—streamlines the booking experience.

Weaknesses:
However, its reliance on hosts means quality control is inconsistent. Airbnb has also faced regulatory headwinds in many major cities, and it lacks the service infrastructure of traditional hotels, such as housekeeping and room service.

Opportunities:
Airbnb continues to expand into adjacent segments, such as boutique hotel partnerships and curated experiences. Personalisation powered by user data remains an untapped asset. Strategic alliances with tourism boards and destination marketers present further growth opportunities.

Threats:
The biggest threat is the hotel industry’s response. As traditional players incorporate more local, lifestyle-focused experiences, the differentiation gap narrows. Regulatory pressure and consumer trust issues around safety and cleanliness also persist.

Hotel Sector’s SWOT in Response to Airbnb

Strengths:
Hotels benefit from established brand equity, consistent service standards, and a comprehensive suite of amenities. Major players like Marriott and Hilton have built loyalty ecosystems that drive repeat bookings.

Weaknesses:
However, many hotels remain locked into legacy pricing models and operate with higher overheads. Their experiences often lack the bespoke charm that newer travelers seek.

Opportunities:
The industry has begun pivoting to lifestyle and boutique formats. Hotels now leverage local partnerships, design-forward properties, and digital check-in to modernize the guest experience. Personalisation through AI and CRM platforms is a growing area of focus.

Threats:
Competition from Airbnb is no longer fringe—it’s mainstream. Hotels must also contend with the risk of stagnation, especially if they fail to keep pace with shifting expectations around flexibility, digital engagement, and community-driven travel.

How Competitive Analysis Shaped Strategic Responses

Early on, many hoteliers dismissed Airbnb as a niche platform for backpackers. But as it began eating into both budget and premium segments, that attitude shifted. Brands like Marriott restructured their competitive market analysis processes, identifying the need to not only protect their market share but rethink what hospitality means to the modern guest.

In 2019, Marriott launched its Homes & Villas program, offering curated home rentals in over 100 global destinations. This move wasn’t just a reaction—it was the result of strategic insight grounded in competitor research. Marriott leveraged its strengths in quality assurance, loyalty, and service to create a differentiated home-sharing model that spoke to Airbnb’s audience, but with hotel-grade consistency.

Hotels also began redesigning spaces to reflect a sense of place, introducing co-working lounges, hyperlocal food and beverage offerings, and smart room tech. These shifts, spurred by competitive analysis, helped them re-enter the consideration set for digitally native travelers.

Competitive Lessons for Any Business

The Airbnb vs. hotel case illustrates a broader truth: competitors can force transformation—but only if you’re paying attention. Some of the most powerful lessons include:

  • Disruption isn’t always loud at first. Airbnb’s early growth was underestimated. Continuous market competitor analysis helps brands detect early signals of change.
  • Adaptability is a strategy. Hotels that thrived didn’t just respond—they reinvented aspects of their service, pricing, and positioning.
  • Consumer preferences evolve quickly. Airbnb won market share by aligning with rising demand for personalisation, informality, and flexibility.
  • Innovation breeds more opportunity. Airbnb’s rise didn’t just disrupt—it created an entire ecosystem of adjacent businesses, from property management firms to travel experience curators.

Understanding your market competitors isn’t just about benchmarking features—it’s about interpreting strategy. The brands that succeed are the ones that don’t merely track their rivals. They out-think them.

Examples of Competitive Analysis That Changed the Game

Some of the most iconic shifts in modern business strategy have come from companies willing to dig deep into their competitors’ playbooks. Competitive analysis is not just about watching the market—it’s about anticipating moves, identifying blind spots, and rethinking your own approach in response. The following examples highlight how brands used market competitor analysis to shape their trajectory and pull ahead.

Coca-Cola vs. Pepsi: Leveraging Brand Legacy in a Crowded Market

The rivalry between Coca-Cola and Pepsi is a masterclass in sustained market competition. By the early 2000s, both companies had strong global reach, but Pepsi’s aggressive youth-oriented campaigns were beginning to erode Coca-Cola’s dominance. Coca-Cola responded not with more of the same, but with insight. A deep dive into Pepsi’s messaging, pricing shifts, and consumer engagement revealed an opportunity to play a different game. Coca-Cola leaned into its heritage, nostalgia, and emotional connection with consumers. The result: a global marketing campaign that reasserted the brand’s identity, reinforced loyalty, and differentiated it in a saturated market.

This wasn’t reactionary—it was a strategic pivot grounded in competitor analysis. By studying not just what Pepsi did but why it resonated, Coca-Cola repositioned itself without mimicking its rival.

Netflix vs. Blockbuster: Turning a Weakness Into a Market Reset

Netflix’s rise wasn’t just a product of innovation—it was a direct result of targeted competitor analysis. In the early 2000s, Blockbuster was the undisputed leader in home entertainment. Netflix, then a mail-order DVD rental service, identified friction points in Blockbuster’s model: late fees, limited stock, and lack of convenience. But rather than compete on physical footprint, Netflix studied consumer frustration and shaped its offering around that pain.

Their subscription model eliminated fees and shifted the power to the user. By the time streaming became viable, Netflix had already cultivated a loyal base and was poised to scale. Blockbuster, by contrast, failed to take the threat seriously and ignored the strategic signals. The lesson? Competitive positioning means more than knowing who’s out there—it means understanding what they’re missing.

Amazon vs. Barnes & Noble: Redefining the Customer Experience

In the 1990s, Barnes & Noble was the titan of book retail. But as e-commerce grew, Amazon quietly began mapping every inefficiency in the traditional retail model. It wasn’t just about cheaper books—it was about building a better experience: one-click ordering, user reviews, massive inventory, and fast delivery. This wasn’t an accidental evolution. Amazon’s strategy was built on a clear understanding of its competitor’s vulnerabilities: limited shelf space, slower logistics, and a store-based model that couldn’t scale with digital demand.

By the time Barnes & Noble responded with its own digital initiatives, Amazon had redefined the category. This case highlights the power of foresight—and the danger of underestimating competitors operating outside your traditional frame.

Tools and Resources for Conducting Competitive Analysis

Conducting competitive analysis can be a complex and time-consuming process. Fortunately, many tools and resources are available to help brands conduct competitive analysis effectively. Here are a few examples:

  1. Competitive analysis templates: Many business and marketing websites offer free or paid templates for conducting competitive analysis. These templates provide a framework for identifying and analysing your competitors’ strengths and weaknesses and opportunities and threats in the market.
  2. Industry reports: Industry reports provide valuable data and insights into the competitive landscape of a particular industry. These reports may include information on market share, pricing trends, consumer preferences, and more. They can be purchased from market research firms or industry associations.
  3. Online tools: Many online tools are available to help businesses conduct competitive analysis, such as SEMrush for analysing online advertising and search engine rankings and SimilarWeb for analysing website traffic and engagement.
  4. Social media analytics: Social media platforms offer valuable data on customer sentiment, engagement, and trends. You can gain insights into your marketing strategy and customer preferences by analysing your competitors’ social media presence.
  5. Market Research Agencies: Hiring an expert market research agency can be a valuable investment for businesses that lack the expertise or resources to conduct competitive analysis in-house. Agencies can provide a deep understanding of your industry and competitors and insights into emerging trends and opportunities.

Tips for Staying Ahead of the Competition

Conducting competitive analysis is an essential part of developing a successful business strategy. However, it’s not enough to simply analyse your competitors – you also need to use the insights gained to stay ahead of the competition. Here are a few tips for staying ahead:

  1. Stay up-to-date on industry trends: Keeping up with the latest trends and developments in your industry can help you anticipate changes in the market and stay ahead of the competition. Subscribe to industry newsletters, attend conferences and trade shows, and follow industry leaders on social media to stay informed.
  2. Focus on customer needs: While it’s essential to understand your competitors’ strategies, it’s even more critical to understand your customers’ needs and preferences. Conducting market research and gathering customer feedback can help you tailor your products and services to meet their needs and gain a competitive edge.
  3. Invest in innovation: Innovation can help you differentiate your business and stay ahead of the competition. Invest in research and development, experiment with new technologies and business models, and encourage a culture of innovation within your organisation.
  4. Build strong partnerships: Building strong partnerships with other businesses can help you expand your reach and offer more value to your customers. Look for opportunities to partner with companies that complement your own, such as suppliers, distributors, or complementary service providers.
  5. Embrace change: Finally, it’s essential to be flexible and adaptable in the face of change. The business landscape is constantly evolving, and it’s important to be willing to pivot your strategy when necessary to stay ahead of the competition.

Tools, Tips, and Pitfalls in Competitive Analysis

Conducting a thorough competitive analysis requires more than instinct—it takes structure, consistency, and the right tools. Whether you’re benchmarking your market position or planning a strategic shift, having access to effective resources can turn observation into actionable insight.

Tools and Resources for Market Competition Analysis

A growing number of digital platforms and frameworks are available to help businesses navigate competitive analysis more efficiently:

  • Competitive analysis templates offer a clear framework for identifying and evaluating your competitors’ strengths, weaknesses, opportunities, and threats. These can be found on many business and marketing platforms and help streamline the process, particularly for teams with limited time or experience.
  • Industry reports provide macro-level data on market share, pricing trends, consumer behavior, and future forecasts. These are particularly useful for understanding market dynamics and are available from firms like Statista, IBISWorld, and Nielsen.
  • Online analytics tools such as SEMrush, Ahrefs, and SimilarWeb allow businesses to monitor competitor traffic, keyword strategies, and online visibility. These tools are vital for understanding how competitors rank and where their digital strategies are gaining traction.
  • Social media analytics platforms like Brandwatch, Sprout Social, and native tools from X (formerly Twitter), LinkedIn, or Instagram offer insights into brand sentiment, content engagement, and audience trends. Analysing a competitor’s social presence can highlight gaps and emerging preferences in your shared customer base.
  • Market research agencies remain a gold standard for brands that need deep, tailored analysis. These agencies combine competitive benchmarking with qualitative and quantitative methods to provide insight that goes beyond surface-level data.

How to Stay Ahead of the Competition

Tools and data are only as good as the action you take. To keep your business ahead of competitors in fast-moving markets, consider the following approaches:

  • Track market trends continuously. Subscribe to newsletters, follow analyst updates, and attend industry events. Staying informed is the first step to being adaptable.
  • Prioritise customer feedback. Competitive analysis should never distract from understanding your own customers. Gather direct feedback regularly, and compare it with your competitor insights to identify underserved needs.
  • Commit to innovation. Whether through product improvements, operational efficiency, or brand experience, investing in innovation keeps you from competing solely on price or scale.
  • Build strategic alliances. Collaboration with suppliers, partners, or even adjacent brands can create shared value and differentiate you in a crowded market.
  • Be ready to pivot. Market conditions shift quickly. The best competitive strategies are responsive, not rigid. Agility beats perfection.

Common Challenges in Competitive Analysis

Despite its value, market competition analysis isn’t without limitations—and recognising these from the outset can help ensure better decision-making:

  • Data quality varies. Not all competitive data is accurate, current, or complete. Companies don’t always disclose performance figures, and third-party estimates can be misleading without context.
  • Over-analysis leads to imitation. Excessive focus on competitors can result in reactive decisions or copying strategies that don’t align with your brand’s unique strengths.
  • Reports can be outdated. Industry whitepapers and syndicated research often reflect past quarters. Supplement these with real-time tools and direct research.
  • Markets shift fast. Emerging technologies, new entrants, or evolving customer values can quickly make past analyses obsolete. Competitive analysis must be iterative, not static.
  • It’s just one lens. A complete view of your business requires triangulation. Combine competitor insights with internal data, customer interviews, and market research to form a well-rounded strategy.

Frequently Asked Questions About Competitive Analysis

What is the purpose of competitive analysis in marketing?
Competitive analysis helps businesses understand their position in the market relative to others. It reveals competitors’ strengths and weaknesses, identifies opportunities and threats, and informs strategy on pricing, product development, and messaging.

What are the key components of a competitive analysis?
A thorough analysis typically includes competitor identification, SWOT analysis, market share estimates, pricing and positioning assessments, and an evaluation of digital marketing strategies, product offerings, and customer feedback.

How often should a business conduct market competition analysis?
Ideally, companies should conduct a formal competitive analysis quarterly, with ongoing tracking of key competitor moves and market changes in between. In fast-moving industries, more frequent reviews may be necessary.

Which tools are best for competitor analysis?
Tools like SEMrush, SimilarWeb, and Ahrefs are widely used for digital performance tracking. For broader strategy insights, platforms like Statista or industry-specific research firms can offer up-to-date market data. For deep dives, working with a market research agency often yields the most actionable intelligence.

Can small businesses benefit from competitive analysis?
Absolutely. Even basic competitor research can help small businesses identify unique value propositions, find gaps in the market, or adjust pricing to remain competitive. Many affordable tools and templates are available to get started.

What’s the difference between direct and indirect competitors?
Direct competitors offer similar products or services to the same target audience. Indirect competitors meet the same need through different solutions or business models. Both should be considered in a market and competition analysis.

Future-Proofing Your Competitive Analysis Strategy

Competitive analysis is no longer a static snapshot—it’s a real-time, multi-dimensional process shaped by technology, consumer sentiment, and data. As businesses recalibrate their strategies to keep pace, several trends are transforming how we assess market competition and define strategic advantage.

Artificial Intelligence in Competitive Strategy
AI is reshaping the competitive analysis process by enabling faster, deeper data insights. From automating trend detection to comparing pricing models across thousands of SKUs in real time, AI-powered platforms allow marketers and strategists to move from hindsight to foresight. These tools don’t just track what competitors did—they help predict what they might do next.

Social Media as a Competitive Signal
With over 5 billion global users across platforms, social media is now a vital arena for brand positioning and customer influence. Social listening tools like Brandwatch, Sprout Social, and Meltwater allow businesses to monitor competitor engagement strategies, influencer partnerships, and campaign sentiment in near real-time. As algorithms evolve, so too does the value of mining social data for competitor insights.

Predictive Analytics and Market Foresight
Using historical data, predictive analytics helps businesses forecast competitor moves, market shifts, and emerging threats. Whether it’s identifying declining customer loyalty to a rival brand or modelling adoption rates of a new pricing strategy, predictive modelling enables businesses to act early—not react late.

The Scale and Speed of Big Data
As the volume of available information continues to grow, competitive analysis tools must handle vast and varied data sets—financials, patents, customer reviews, third-party benchmarks, and more. Big data analytics platforms allow companies to cut through the noise and identify meaningful patterns, helping teams build a more accurate view of where they stand in the market.

Knowledge Sharing and Cross-Sector Insights
Industry silos are dissolving as competitive insights increasingly come from adjacent sectors. Auto brands are studying tech platforms, fintechs are watching logistics firms, and global retailers are tracking emerging startups. Structured collaboration—whether through benchmarking alliances, joint research, or external advisory partnerships—is becoming an integral part of forward-thinking market competitor analysis.

Why Market Research Still Anchors Competitive Strategy

While tools and technology have evolved, one element remains irreplaceable in any competitive analysis strategy: rigorous market research. Understanding customer needs, motivations, and shifting behaviour provides the foundation on which competitive insights gain context and value.

For companies that don’t have dedicated internal capabilities, partnering with a market research agency can elevate both the speed and accuracy of decision-making. Here’s why:

  • Expertise and Tool Access: Agencies come equipped with advanced analytics platforms, survey software, and proprietary data sources that are often inaccessible to internal teams.
  • Objective Analysis: An external partner brings a neutral lens to competitor benchmarking—free from internal assumptions or biases that can cloud strategic judgment.
  • Efficiency and Focus: Market research firms streamline the process, from designing competitive intelligence frameworks to gathering, analysing, and interpreting findings, freeing your team to focus on execution.
  • Flexible Methodologies: Whether you need in-depth interviews with B2B buyers in five countries or a rapid survey to test consumer perceptions, agencies offer scalable approaches aligned to budget and timelines.

In today’s saturated markets, where competitors launch, pivot, or fade within months, having an agile and intelligent market competition analysis strategy is no longer optional—it’s mission-critical. And the difference between knowing the field and owning your position often comes down to the quality of insight behind your next decision.

If you’re ready to move beyond surface-level tracking and build a competitive analysis strategy that delivers real market impact, Kadence can help. Our global team of research experts brings together advanced tools, sector-specific experience, and a deep understanding of evolving competitive landscapes. Whether you’re entering new markets, launching a new product, or trying to outmanoeuvre aggressive rivals, we’ll help you see the competitive field clearly—and act with confidence.

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Data visualisation analysts are crucial in helping organisations use and interpret data effectively. Using their technical and visual design skills, they can effectively transform complex data sets into easy-to-understand visuals that tell a powerful story. 

Data visualisation specialists use graphs, charts, maps, and diagrams to communicate insights and provide decision-makers with the actionable information they need, positively impacting their bottom line. 

Hassen Morad leads the data team at our Americas office, and his primary focus is to build and maintain our data infrastructure. Hassen is passionate about helping brands deliver innovative products, services, and solutions through informed decision-making. 

During a recent interview, he led us into the world of data visualisation to give us an inside view of what it looks like to decode complex data sets, the tools he uses, how he ensures precision and accuracy, and what keeps him ticking. 

Tell us about your Senior Data Visualisation Analyst role at Kadence Americas.

I lead the data team at our Americas office, and my main focus is to build and maintain our data infrastructure. I work with various tools, including Google Sheets/Excel, AWS, Outsystems, Tableau, and others. Most of my day-to-day is focused on supporting active projects, while a portion is devoted to longer-term developments. I especially enjoy working on the latter with my co-workers in the data team – Bridgette and Vinny – as we seek to develop innovative client offerings in areas like data science and app development.

What inspired you to pursue a career in data visualisation?

I entered the data space almost six years ago and was immediately drawn to the impact of the visual medium. Not only can visualisation be an effective tool for relaying data insights- it can also create them. Merging technical and aesthetic considerations can be a fascinating balance when visualisation extends beyond more basic tried and tested forms like bar charts and histograms- though those require expertise to be effective as well! One visualisation series that was especially inspiring to me was a series by Nadieh Bremer on the relocation of homeless across the US for the Guardian newspaper. I was mesmerised by how beautifully she told this story through her visualisations, and I still am blown away by it when I see it today. She’s one of many incredibly talented data viz professionals I look up to for inspiration.

Describe a challenging project you have worked on involving data visualisation.

When building my portfolio of personal projects years back, one project that was a little tricky to get off the ground was an analysis of mail theft data in my neighbourhood. I submitted a FOIA request to the USPS on mail theft in Irvine, CA, and they sent me printed pages of the data I requested and refused to send a digital file. So I had to do quite a bit of work digitising all those records myself by scanning these pages, and thankfully I was successful in the end. This experience taught me that cleaning data could extend beyond the digital world. I produced a map in Mapbox where users could zoom into a particular area and view the number and type of mail-related thefts over five years.

How do you ensure accuracy and precision in data visualisation? What strategies have you employed to increase data analysis and visualisation efficiency?

While the presenter’s perspective will likely shape any presentation of data, it’s crucial to abide by basic common sense design principles to ensure an honest representation of data. It is embarrassing to present a visualisation of data with clear errors. I critically examine the data I work with to avoid falling into this trap, though it’s always helpful to have a second pair of eyes if possible. In terms of efficiency, I’ll use some of the more user-friendly visualisation tools (like DataWrapper) to create a visualisation quickly.

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How do you balance technology and design skills when creating data visualisations?

I don’t consider myself the artistic type, so I let the practical objective of a project guide my design choices. Often I’ll seek inspiration from other works that present data effectively and excitingly. An aesthetically appealing design plays a role in a visualisation’s effectiveness, so I consciously work to produce works pleasing to the eye- though not every visualisation can or should be an artistic masterpiece!

What tools and programs are you most comfortable with in data visualisation?

I’ve used several visualisation tools throughout the years, spanning a range of customisation. Initially, I started with Python visualisation libraries like Matplotlib and Altair, which require coding and are sufficient for producing most charts. I then shifted to more ‘plug and play’ tools like DataWrapper and Tableau, where I could import a properly structured dataset and create visualisations using that UI. Tableau was especially useful given the amount of community adoption since I could learn from others’ work and ask questions to active users if I was stuck creating a chart feature.

Describe when you identified an insight or pattern in data analysis or visualisation.

My first personal data visualisation project was analyzing a dataset of US birth names over the last 100 years. It was fascinating to dig through that and discover patterns of how specific names gained popularity. I enjoyed the discovery process as I created these visualisations and the additional inquiries and questions this process sparked. I hope to revisit this project in the future.

What techniques do you use to interpret complex data sets?

Thankfully the datasets I work with most days are simple. However, if tasked with investigating a complex data set, I break down the data cleaning process into manageable sections to make it digestible. That might involve removing records with critical data missing or collecting data from another source to merge with the original file. I enjoy the in-depth data detective work that’s required occasionally. Remember that the grunt work needed to clean complex data sets is critical to extracting real benefit, as insights are only as solid as the data they’re based upon.

How do you stay current with the changing trends and data visualisation techniques?

It’s essential to keep one’s finger on the pulse of this field as tools and techniques are advancing rapidly. I’m on several email lists of individuals and organisations that share interesting visualisation content, such as the Data Visualisation Society. I also follow leaders on social media and occasionally attend data viz conferences.

How do you develop data visualisations that effectively convey a message?

I view the visualisation I’m creating through the lens of my target audience during the design process, which is a more difficult task than some might imagine. I’ll usually share a preview of a visualisation I’m working on to get feedback on certain design elements or to check if the message I’m relaying is instantly clear. Frequently, the feedback I receive results in meaningful changes to the final output.

What have you found to be the most rewarding aspect of data visualisation?

In my opinion, the most rewarding part is seeing that visualisation is understood easily and allows the viewer to form a clear understanding of the topic.

What do you like to do in your free time?

I play soccer regularly and am a major fan of Arsenal. I also like to cook for my family, and when I have the time, I enjoy diving into classical academic works in the social sciences.

How has Kadence International helped shape your career?

Kadence was my first full-time job in the data space. I’m grateful to work with leadership and a team that trusts me greatly, and I recommend this company to anyone looking for a career in the market research field. 

The beauty industry is constantly evolving and growing, with global sales projected to reach $716 billion by 2025. However, in this crowded and competitive market, it is becoming increasingly challenging for brands to stand out and capture the attention of their target audience.

Did you know that 75% of consumers expect personalised experiences from beauty brands? To provide personalised experiences and create effective marketing strategies, brands in this space must understand the consumer behaviour of their target audience.

Demographics

Understanding the demographics of the beauty and cosmetics consumer is essential for product marketing managers to create effective campaigns and products that resonate with their target audience. Over the years, the demographics of the beauty industry have evolved significantly, with changes in age, gender, and socioeconomic backgrounds.

Traditionally, the beauty industry was primarily marketed towards women, but in recent years, there has been a shift towards inclusivity and diversity, with many brands now targeting men, non-binary individuals, and individuals of all ages and ethnicities.

According to a report by Euromonitor International, in 2020, the global beauty and personal care market saw a 6.5% increase in male grooming products, and 60% of men reported using skincare products daily. This trend is expected to continue in the coming years, with more men becoming interested in grooming and personal care.

In terms of age, the beauty industry targets a wide range of age groups. The younger generation, especially millennials and Gen Z, have been particularly influential in driving trends and shaping the industry. This demographic is more likely to be influenced by social media and celebrity endorsements and is more open to trying new products and experimenting with different looks.

Socioeconomic background also plays a role in consumer behaviour in the beauty industry. High-end luxury brands tend to target a more affluent audience, while drugstore brands aim to be more accessible to consumers on a budget.

Psychographics

In addition to demographics, understanding the psychographics of your target audience is essential for product marketing managers in the beauty industry. Psychographics refers to consumers’ attitudes, values, and beliefs and how these factors influence their purchasing decisions.

For example, some consumers may prioritise sustainability and ethical sourcing when choosing beauty products, while others may prioritise convenience and affordability. Some consumers may be loyal to a particular brand or product, while others may be more open to trying new products and experimenting with different looks.

To better understand the psychographics of your target audience, it can be helpful to conduct market research, such as surveys or focus groups, to gather insights into their preferences and purchasing habits. Social media can also be a valuable tool for understanding the attitudes and values of your target audience, as it provides a platform for consumers to share their opinions and engage with brands.

Once you have a better understanding of the psychographics of your target audience, you can tailor your marketing strategies and products to meet their specific needs and preferences. For example, if sustainability is essential to your target audience, you could focus on using eco-friendly packaging and ingredients in your products. If convenience is a priority, you could develop products that are easy to use on-the-go.

Consumer Behaviour Models

Exploring different consumer behaviour models can be helpful to better understand the consumer behaviour of your target audience in the beauty industry. These models provide a framework for understanding consumers’ purchasing decisions and can help brands develop effective marketing strategies.

  • Traditional Marketing Funnel: This model is a widely used framework for understanding the customer journey. It consists of four stages: awareness, interest, decision, and action. At each stage, consumers have different needs and requirements, and it is the job of product marketing managers to provide the right information and support to move them through the funnel toward a purchase.
  • Customer Decision-Making Process: This model is a more in-depth framework that focuses on the internal thought processes of consumers. It consists of five stages: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. This model highlights the importance of understanding the needs and preferences of consumers at each stage of the decision-making process.
  • Consumer Adoption Process: The consumer adoption process model focuses on how consumers adopt new products. It comprises five stages: awareness, interest, evaluation, trial, and adoption. This model benefits brands introducing new products to the market, as it helps them understand the factors that influence consumers’ adoption of new products.

By understanding these different consumer behaviour models, product marketing managers can tailor their marketing strategies to better meet the needs and preferences of their target audience at each stage of the customer journey. 

For example, suppose a brand is launching a new product. In that case, the consumer adoption process model can be used to develop a targeted marketing campaign that focuses on building awareness, generating interest, and encouraging product trialling.

Understanding the different consumer behaviour models is crucial for brands in the cosmetics and beauty industries to develop effective marketing strategies that resonate with their target audience. These models provide a framework for understanding the customer journey and can be used to create targeted campaigns that meet the needs and preferences of consumers at each stage of the decision-making process.

Purchase Decision Factors

To better understand the consumer behaviour of your target audience in the beauty industry, it is essential to identify the key factors that influence their purchase decisions. Some of the factors that can influence purchase decisions in the beauty industry include:

  • Brand Loyalty: Brand loyalty is a significant factor in the beauty industry. Consumers often develop strong attachments to specific brands and are more likely to purchase products from those brands. This can be influenced by factors such as product quality, brand reputation, and the consumers’ emotional connection to a particular brand.
  • Price Sensitivity: Price is another significant factor in consumer purchase decisions in the beauty industry. Consumers may be willing to pay a premium for high-end luxury products but also look for affordable options that provide value for money. Price sensitivity can be influenced by factors such as the consumer’s budget, the product’s perceived value, and the market’s competition.
  • Product Quality: Product quality is a crucial factor in the beauty industry. Consumers expect high-quality products that deliver on their promises and provide the desired results. Quality can be influenced by factors such as the ingredients used, the manufacturing process, and the testing and certification of the product.
  • Social Influence: Social influence can also significantly influence consumer purchase decisions in the beauty industry. Consumers may be influenced by the recommendations of friends and family, as well as social media influencers and celebrities. This can be particularly important for younger generations, who are more likely to be influenced by social media.

By understanding these key purchase decision factors, brands can develop marketing strategies and products that meet the needs and preferences of their target audience. 

For example, if brand loyalty is a significant factor for the target audience, the marketing strategy could focus on building emotional connections and highlighting the brand’s reputation and heritage.

Consumer Segmentation

Consumer segmentation divides consumers into groups based on shared characteristics, such as demographics, psychographics, and behaviours. This approach allows brands to understand their target audience better and develop products and campaigns that meet their specific needs and preferences.

In the beauty, personal care, and cosmetics industries, consumer segmentation can be beneficial due to the wide range of products and needs of different consumers. Some examples of different consumer segments within the beauty industry include:

  • Age-Based Segmentation: This segmentation approach targets consumers based on their age groups, such as millennials, Gen Z, or Baby Boomers. Each age group may have different needs and preferences regarding beauty products, and marketers can tailor their products and campaigns to meet those specific needs. For example, younger consumers may be more interested in social media and influencer marketing, while older consumers may prefer traditional advertising.
  • Gender-Based Segmentation: While the beauty industry has traditionally targeted women, there has been a shift towards gender-neutral and inclusive marketing in recent years. Gender-based segmentation can help marketers develop products and campaigns that speak to the specific needs and preferences of different gender identities.
  • Skin Type-Based Segmentation: Consumers may have different skin types, such as dry, oily, or combination. Products can be tailored to meet the specific needs of each skin type, such as developing products for oily skin that focus on reducing shine and controlling oil production.

By understanding the needs and preferences of different consumer segments, brands can develop targeted products and campaigns that resonate with their target audience. For example, if a brand targets younger consumers, it could focus on developing products that are Instagrammable and easily shared on social media. Alternatively, if a brand targets consumers with specific skin concerns, it could develop products that address those concerns, such as anti-ageing products for mature skin.

Consumer segmentation is a valuable tool for product marketing managers in the beauty industry to understand their target audience better and develop products and campaigns that meet their specific needs and preferences. By tailoring their marketing strategies and products to different consumer segments, product marketing managers can increase the effectiveness of their campaigns and better connect with their target audience.

Trends in the Beauty Industry

The beauty industry constantly evolves, and brands must stay current with the latest trends and developments. Here are some of the current trends in the beauty industry:

  • Clean Beauty: Clean beauty refers to products made with non-toxic, natural ingredients free from harmful chemicals. Consumers are becoming increasingly concerned about the ingredients in their beauty products and are looking for products that are better for their health and the environment. This trend is influencing consumer behaviour and driving demand for clean beauty products.
  • Sustainability: Sustainability is becoming a top priority for consumers in the beauty industry. Consumers are looking for products that are produced in an environmentally-friendly way and packaged in sustainable materials. This trend drives innovation in product development and packaging and encourages companies to adopt more sustainable practices throughout their operations.
  • Inclusivity: Inclusivity is a growing trend in the beauty industry, with consumers looking for products that cater to a diverse range of skin tones, hair textures, and gender identities. This trend drives increased representation and diversity in advertising and product development and encourages companies to be more inclusive in their messaging and branding.

Brands can adapt to these trends by developing products and campaigns that align with consumer values and preferences. For example, a brand could create a line of clean beauty products that use natural ingredients and are free from harmful chemicals. They could also focus on sustainability by using eco-friendly packaging and reducing their carbon footprint. Additionally, they could incorporate inclusivity into their marketing strategies by featuring a diverse range of models in their advertising and offering products that cater to a diverse range of skin tones and hair textures.

Staying up-to-date with the latest trends in the beauty industry is crucial for product marketing managers to develop effective marketing strategies that resonate with their target audience. By adapting to trends such as clean beauty, sustainability, and inclusivity, product marketing managers can create products and campaigns that meet the needs and preferences of their consumers and drive demand for their brands.

Case Studies

To better understand effective product marketing campaigns in the beauty industry, analyzing successful campaigns and understanding why they effectively reached their target audience can be helpful. Here are some examples of successful product marketing campaigns in the beauty industry:

Dove Beauty Case Study

Dove is a brand synonymous with inclusivity and body positivity in the beauty industry. In 2004, Dove launched its “Real Beauty” campaign, which quickly became one of the most iconic marketing campaigns in the industry.

The “Real Beauty” campaign focused on celebrating the natural beauty of women of all ages, sizes, and skin tones. The campaign featured real women in their advertisements rather than professional models or actresses. The campaign also included a series of viral videos that challenged traditional beauty standards and encouraged women to embrace their natural beauty.

The campaign was a huge success, generating millions of views and sparking a conversation about beauty standards and representation in the media. Here are some reasons why the campaign was so effective:

  1. Catering to consumer values: The “Real Beauty” campaign was successful because it focused on consumer values, such as inclusivity, authenticity, and body positivity. The campaign resonated with consumers tired of seeing unrealistic beauty standards in the media and looking for brands that celebrated diversity and real beauty.
  2. Using social media to build a following: Dove leveraged social media to connect with its target audience and build a loyal following. The campaign included a website and social media channels that encouraged women to share their stories and photos, creating a community of women who were united by the campaign’s message.
  3. Differentiating from competitors: Dove differentiated itself by taking a bold stance on inclusivity and body positivity. The campaign challenged traditional beauty standards and celebrated the natural beauty of women of all ages, sizes, and skin tones. This differentiated Dove from other beauty brands focused on promoting unrealistic beauty standards.

The “Real Beauty” campaign was not without its critics, however. Some criticised the campaign for promoting Dove products as a solution to low self-esteem and body image issues. Others argued that Dove was still promoting a narrow definition of beauty, despite its message of inclusivity.

Despite these criticisms, the “Real Beauty” campaign remains an iconic example of effective marketing in the beauty industry. The campaign was successful because it resonated with consumers on a deeper level by focusing on values and emotions rather than just selling products. The campaign also had a lasting impact on the industry, sparking a conversation about beauty standards and representation that continues to this day.

Boots Case Study

Boots is a leading health and beauty retailer in the UK that offers a wide range of products, from skincare to makeup to fragrance. The brand has successfully differentiated itself by providing diverse products and catering to consumers of all ages and backgrounds. Here are some reasons why Boots has been successful in the beauty industry:

  1. Segmentation: One of the keys to Boots’ success is its segmentation strategy. The brand offers a wide range of products that cater to consumers of all ages and backgrounds, from teens to seniors and from luxury to budget. This segmentation strategy allows the brand to appeal to a broad range of consumers and meet the specific needs of each segment.
  2. Branding: Boots has built a strong brand reputation over the years by focusing on quality and affordability. The brand is known for its commitment to customer service and has won numerous awards for its loyalty program. This strong branding has helped to build a loyal following of consumers who trust the brand and continue to shop at Boots for their health and beauty needs.
  3. Product Development: Boots has also been successful in the beauty industry by focusing on product development. The brand offers diverse products, from branded products to exclusive partnerships with other brands. Boots also has a strong focus on innovation, with a dedicated team constantly researching and developing new products to meet the changing needs of consumers.
  4. Digital Strategy: Boots has also been successful in the beauty industry by leveraging its digital channels to connect with consumers. The brand has a strong online presence, a website offering a wide range of products and services, and an active social media presence. Boots also offers a range of digital tools and services, such as its “Virtual Beauty Counter,” which allows consumers to get personalised beauty advice online.

Overall, Boots’ success in the beauty industry can be attributed to its strong segmentation strategy, branding, product development, and digital strategy. By catering to a broad range of consumers and offering a diverse range of products, Boots has built a loyal following of customers who trust the brand and continue to shop at Boots for their health and beauty needs. Additionally, by leveraging digital channels to connect with consumers and offer innovative products and services, Boots has been able to stay ahead of the curve in the highly competitive beauty industry.

Lotus Herbals Case Study

Lotus Herbals is a popular Indian beauty brand specialising in using natural and herbal ingredients. The brand has successfully differentiated itself by focusing on affordable yet high-quality products accessible to a wide range of consumers. Here are some reasons why Lotus Herbals has been successful in the beauty industry:

  1. Natural and Herbal Ingredients: Lotus Herbals has differentiated itself from its competitors by focusing on natural and herbal ingredients. The brand strongly focuses on sustainability and uses environmentally-friendly practices in its production processes. This focus on natural and sustainable ingredients has helped the brand build a loyal following of consumers looking for safe and eco-friendly beauty products.
  2. Accessibility and Affordability: Another key to Lotus Herbals’ success has been its focus on accessibility and affordability. The brand offers a wide range of products at an affordable price point, making it accessible to a wide range of consumers. This has helped the brand to build a large customer base and compete with larger, more established brands in the Indian beauty market.
  3. Innovative Products: Lotus Herbals has also been successful in the beauty industry by focusing on innovation. The brand has a dedicated research and development team that is constantly researching and developing new products to meet the changing needs of consumers. This focus on innovation has helped the brand to stay ahead of the curve and differentiate itself from its competitors.
  4. Marketing Strategy: Lotus Herbals has also been successful in the beauty industry by leveraging its marketing channels to connect with consumers. The brand has a strong online presence, with a website that offers a wide range of products and services, as well as an active social media presence. The brand also partners with influencers and celebrities to promote its products and build brand awareness.

Overall, Lotus Herbals’ success in the beauty industry can be attributed to its focus on natural and sustainable ingredients, accessibility and affordability, innovative products, and marketing strategy. By catering to a wide range of consumers and offering affordable yet high-quality products, Lotus Herbals has built a loyal following of customers who trust the brand and continue to purchase its products. Additionally, by leveraging its marketing channels to connect with consumers and promote its products, Lotus Herbals has been able to stay ahead of the curve in the highly competitive Indian beauty market.

SK-II Case Study

SK-II is a luxury skincare brand known for its innovative and high-quality products. The brand has successfully differentiated itself by using natural ingredients, such as Pitera, in its products. Here are some reasons why SK-II has been successful in the beauty industry:

  1. Product Innovation: One of the keys to SK-II’s success has been its focus on product innovation. The brand is known for using Pitera, a natural ingredient derived from yeast fermentation, in its products. This innovative ingredient has become synonymous with the brand and has helped to differentiate SK-II from its competitors.
  2. Luxury Branding: SK-II has also been successful in the beauty industry by leveraging its luxury branding to connect with consumers. The brand has a strong focus on quality and premium products. It has successfully marketed itself as a high-end brand offering its customers a luxurious and exclusive experience.
  3. Digital Marketing: SK-II has also been successful in the beauty industry by leveraging digital marketing channels to connect with consumers. The brand has a strong online presence, a website offering a wide range of products and services, and an active social media presence. SK-II also partners with influencers and celebrities to promote its products and build brand awareness.
  4. Emotional Connection: SK-II has also been successful in the beauty industry by building an emotional connection with its customers. The brand strongly focuses on empowering women and has launched several campaigns that focus on issues related to women’s empowerment, such as its #ChangeDestiny campaign. This emotional connection has helped to build a loyal following of consumers who feel strongly connected to the brand.

Overall, SK-II’s success in the beauty industry can be attributed to its focus on product innovation, luxury branding, digital marketing, and emotional connection. By leveraging its unique ingredient, Pitera, and focusing on luxury branding and premium products, SK-II has been able to differentiate itself from its competitors and build a loyal following of consumers. Additionally, by leveraging digital marketing channels and building an emotional connection with its customers, SK-II has stayed ahead of the curve in the highly competitive beauty industry.

In conclusion, understanding consumer behaviour is essential for product marketing managers in the beauty industry. By understanding the demographics and psychographics of their target audience, brands can create more effective marketing strategies and better tailor their products to meet the needs of their customers.

Additionally, by understanding consumer behaviour models, purchase decision factors, and consumer segmentation, companies can better target their audience and create more effective marketing campaigns.

Lastly, by staying up-to-date on current trends in the beauty industry and analyzing successful case studies, brands can adapt their strategies to meet the changing needs and preferences of the market.

Key Takeaways:

  • Understand the demographics and psychographics of your target audience
  • Use consumer behaviour models to understand your audience better
  • Identify key purchase decision factors that influence consumer behaviour in the beauty industry
  • Use consumer segmentation to target your audience better
  • Stay up-to-date on current trends in the beauty industry
  • Analyze successful case studies to adapt your marketing strategies and product offerings.

Want to learn more about the latest beauty, cosmetics, and personal care trends? Download our report About Face here

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