Innovation: Concept Testing.

Concept Testing

RedRoute Concept Testing

Concept testing should not only inform you which concept has the most potential from an attitudinal perspective, it should also tell you what the financial implications are for your business.

So in order to understand whether any of the Concepts (current or new) will increase the return on investment we will need to predict:

  • Sales Increase: Will any of the new concepts result in extra sales volume and how much?
  • Category Growth: Will the new concept introduction result in steal from other related categories (e.g. would a new tea concept steal from the coffee category)?
  • Share Steal: Where will it come from (which brands or SKU’s)?
  • ROI: Calculating costs of redesign, research and implementation into the equation

We will use sales data to predict the changes to sales given the adoption of a particular concept. We can also calibrate the share back to data known about other brands in the market. The output is a market share forecast taking into account the relative price, expected advertising weight behind the newly launched products and their relative distribution.

Given that we have financial data for previously launched products / concepts we will be able to tell you how the new concepts are likely to perform when benchmarked against previous launches.

If this sounds interesting why not simply give us a call and have a chat? Tel: +44 (0) 20 7917 6042