How to Conduct a Market Analysis for a New Product (Because We Can’t All Be Henry Ford)

Share on facebook
Share on twitter
Share on linkedin

Henry Ford Faster Horses Quote
We can’t all be Henry Ford. Market analysis is a must.

Some people have a knack for developing products that people love, regardless of what the market says. Take Henry Ford and his famous quote about faster horses.
This type of uncalculated success is still possible, but less likely. Today’s markets are flooded with new product innovations. In order to succeed, most new products will need to address a market need or void.
A brand must conduct a market analysis for a new product that uncovers gaps in the competitive landscape.
To do this, brands must listen to and engage with the market continuously. It’s the best way to avoid expensive product development mistakes that can cost a brand its reputation.

Common Methodologies

Markets shift with Political, Economic and Sociocultural and Technological changes, which is why a common format for market analysis is just that: PEST. The PEST Analysis format analyzes the external factors that are out of a brand’s control and can create opportunities or threats to a new product. It can help a brand decide whether to enter, remain in, or leave a market.
A SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) can be conducted by businesses looking to introduce a new product to the market. The first two components help them analyze their own strengths and weaknesses while the second two are external factors. From there, the business must assess whether their strengths can accommodate for opportunities in the marketplace.
Porter’s Five Forces is a simple but effective way to understand how competitive a market is and identify a winning strategy. It analyzes five forces that make up the competitive environment:

  1. Competitive rivalry | number and strength of competitors
  2. Supplier power | how much power could suppliers exert over your offering or price
  3. Buyer power | how easy is it for buyers to switch to a rival
  4. Threat of substitution | how likely is it that a customer will find a different way of doing what you do
  5. Threat of new entry | how difficult would it be for new competitors to enter the market

The Newest Data Source to Add to Your Market Analysis Mix

Whether conducting a market analysis using the PEST, SWOT or Porter’s Five Forces methodology, accurate, reliable data is needed to make informed decisions. The sources of this data can vary based on the breadth, cost and accuracy you’re seeking. They can range from census information to research firms.
None of that is new, but here’s what is: product reviews.
You may not think of product reviews as a data source for market analysis. In fact, most brands look at reviews as nothing more than a platform for shoppers to connect and make informed buying decisions. But there’s gold in the insights that are uncovered when these reviews are aggregated. And today’s most innovative brands are mining them to make consumer-centric decisions.

Market analysis product reviews
An analysis of the double walled plastic mug market using product reviews uncovers a weak product in the market. Once this trend is discovered, product reviews can then be used to reveal specifics about what consumers liked and disliked. In this case, the weak product was the only one with a flip top lid, but the lid was leaky.

Why Product Reviews are a Game Changer in Market Analysis
  1. They already exist. The first benefit of using product reviews in your market analysis is that they already exist. Even if your product or industry is nascent, you can still glean market information from the post-purchase experience of people who have used similar products. When one Channel Signal customer was looking to get into a new market segment, they did a competitive product analysis to better understand the segment. Even after they’ve entered the market, they continue to monitor the competitive landscape to make informed product decisions.
  2. They are highly targeted. Panel surveys claim to reach a targeted audience based on a number of criteria. And they do a pretty good job. But it’s difficult to get a wide swath of respondents that have purchased specific products you’re looking to measure. The right partner can help you aggregate product reviews for the exact product set you want. It can be targeted right down to the specific materials, colors or product editions you care about.
  3. They reveal your competitors’ strengths and weaknesses. As can be seen in the graph above, sometimes weak products are glaringly obvious. In order to know why purchasers of the product hated it, or which elements they hated, you can drill deeper into the review set. This can reveal competitive weaknesses that can be seized upon.
  4. They help monitor new entrants to the market. If they are up and coming brands in your space and you feel they may be encroaching on some of your market share, it’s easy to add them to your product review analysis platform set.
  5. They allow you to know what customers want, in their words. We’ve seen it time and time again. Product reviews can uncover facts about your customers and what they want. These facts are often counterintuitive to the brand. For example, one fashion brand was pushing a pump as a perfect pair with skirts, but reviewers constantly praised how well they went with pants.
  6. They allow you to do all of this quickly. The right partner can help you aggregate reviews historically. Going back 1 or 2 years is a great way to get a large data set quickly so that reliable decisions can be made.

Ongoing Market Analysis is Key

Markets are ever-changing. And while product reviews make it easy to gather historical information, ongoing analysis is key to successfully utilizing this data source for the betterment of a business. New product editions, releases that disrupt the market and seasonality have an effect on the consumers’ opinion in your competitive space.

Industries Which Use Product Reviews in Market Analysis

Any consumer-focused product company will want to aggregate product reviews as a business data source. Channel Signal partners with brands in many industries to help them understand global buyer experience for their entire competitive landscape.

  • Footwear
  • Apparel
  • Health & Wellness
  • Beauty & Makeup
  • Housewares & Appliances
  • Computers & Electronics
  • Automotive & Industrial
  • Sports & Outdoors
  • Tools & Hardware
  • Baby & Kid
  • Pet
  • Agencies who work with the above

73 thoughts on “How to Conduct a Market Analysis for a New Product (Because We Can’t All Be Henry Ford)”

  1. I’d like to thank you for the efforts you have put in penning this blog.

    I really hope to see the same high-grade blog posts by you in the
    future as well. In truth, your creative
    writing abilities has motivated me to get my very own site now 😉 0mniartist asmr

  2. Greetings from Florida! I’m bored at work so I decided to browse your website on my iphone during lunch break.

    I really like the information you present here and can’t wait to
    take a look when I get home. I’m shocked at how quick
    your blog loaded on my phone .. I’m not even using WIFI, just 3G ..
    Anyhow, good blog! 0mniartist asmr

  3. whoah this blog is great i really like reading your posts.
    Stay up the great work! You recognize, lots of people are looking round for
    this information, you could aid them greatly. asmr 0mniartist

  4. certainly like your website however you have to check the spelling on quite
    a few of your posts. A number of them are rife with
    spelling issues and I find it very bothersome to inform the reality
    on the other hand I will certainly come back again.

  5. Saya akan segera kopling rss Anda karena saya tidak bisa
    Sangat keren! Beberapa poin yang
    Wow! Saya sangat menikmati template / tema dari website ini.
    Sederhana, namun efektif. Seringkali sulit untuk mendapatkan “keseimbangan sempurna” antara kegunaan luar biasa
    dan daya tarik visual . Saya harus mengatakan Anda telah melakukan pekerjaan yang
    sangat bagus dengan ini. Selain itu , blog memuat super cepat untuk
    saya di Opera . Blog Luar Biasa!

    Stop by my web blog; Daftar game slot pulsa

  6. Wonderful post. I learn something totally new on different blogs everyday. It is stimulating to see content from other writers and practice a little something there. I want to use some on this content on my blog you will be mind. Natually Ill make a link returning to site. Appreciate sharing.

  7. Hello! This is my first visit to your blog! We are a group
    of volunteers and starting a new project in a community in the same niche.

    Your blog provided us valuable information to work on. You have done a wonderful
    job!

    Also visit my web page – mega888 online

  8. Awsome post and straight to the point. I dont know if this is actually the best place to ask but do you folks have any thoughts on where to employ some professional writers? Thank you 🙂

  9. Somebody necessarily lend a hand to make critically articles I might state.
    This is the very first time I frequented your web page
    and so far? I amazed with the research you made to create this actual post amazing.
    Great activity!

  10. Greetings, There’s no doubt that your blog could possibly
    be having internet browser compatibility issues. When I look at
    your website in Safari, it looks fine however, when opening in IE, it has
    some overlapping issues. I merely wanted to provide you with a quick heads
    up! Besides that, wonderful blog!

  11. Can I simply just say what a comfort to discover
    somebody who really knows what they’re discussing over the
    internet. You actually know how to bring a problem to light and make it important.
    More and more people really need to read this and understand this side of your story.

    I was surprised you’re not more popular since you definitely possess the gift.

  12.  Instead of making a promise, I’ll wish them well. “Hope you are having a great Wednesday” or “Hope your week has been an awesome one” are a couple examples. Occasionally, I’ll mention that I plan on visiting their blogs, Facebook pages, etc.
    I’ll provide value by thoroughly responding the thoughts/questions in the comment. If the comment talked about ten different things, obviously I won’t be able to touch on all of them. But if a question is asked, I’ll answer it. If a few points are shared, I’ll talk about them a little.
    카지노사이트

  13.  Instead of complimenting (like I would if writing a comment on someone’s blog), I will thank the person for commenting. Though, if it’s a really good comment I’m responding to, I’ll make a point to say so. “That’s a great question” or “What an original comment” are a couple examples I might use.
    I’ll greet the commenter by name. Notice how I greeted you at the beginning of my comment?
    카지노사이트

  14. I believe in responding to comments using the same (or close to the same) format I talked about in this post.
    Thanks! I’m really glad you enjoyed the post. I’m especially honored that — out of all the great posts written here at BBT — this is the one that prompted you to comment for the first time! 
    카지노사이트

  15. Link exchange is nothing else however it is only placing the other
    person’s webpage link on your page at suitable place and other person will also
    do similar for you.

    Check out my blog :: situs judi online (Shana)

  16. I just like the valuable info you provide on your
    articles. I’ll bookmark your weblog and check once more right here regularly.
    I’m quite sure I’ll be informed plenty of new stuff right right here!
    Good luck for the next!

    Here is my web site; Slot Depo Pulsa

  17. Excellent goods from you, man. I have bear in mind your stuff previous to
    and you are just too fantastic. I really like what
    you have obtained here, certainly like what you are saying and the best way in which you say it.
    You make it enjoyable and you continue to care for to keep it smart.

    I cant wait to learn far more from you. That is actually a great site.

  18. Thanks for ones marvelous posting! I seriously enjoyed
    reading it, you can be a great author. I will be sure to bookmark
    your blog and will come back sometime soon. I want to encourage continue
    your great posts, have a nice afternoon!

  19. Yesterdaу, while I was at work, my sister stole my iphone and ttested too ssee if it caan suгvіve
    a 40 foot dгop, juet so she can be a youtube sensation.
    My iPaԀ is now destroyed and sһe hаs 83 views.
    I know this iss totaloy off topic Ƅut Ι hаd to share it
    with someone!

    My bog post; lihat situs ini

  20. Aw, tһos was a really nice post. Finding the time and actual effоrt to
    generate a really ggood article… but what can I say… I put things off a lot
    and don’t managе to get anything done.

    my website agen slot

  21. Have yօu ever considered publishing an ebook or guest authoring on other blogs?
    I aѵe a blog centered on the same topics you dusϲuss and would really
    like to have you share somke stories/information. I know mʏ viewers would value your work.
    If you are even remotely interested, feel free to send me an e-mɑil.

    My blog post situs slot online

  22. Woah! I’m really enjoying the template/theme of this site.
    It’s simple, yet effective. A lot of times it’s difficult to get that “perfect balance” between usability and visual
    appeal. I must say you’ve done a very good job with this.
    In addition, the blog loads extremely fast for me on Opera.
    Superb Blog!

  23. Hey would you mind stating which blog platform you’re
    using? I’m looking to start my own blog soon but I’m having a tough time selecting between BlogEngine/Wordpress/B2evolution and Drupal.

    The reason I ask is because your design seems different
    then most blogs and I’m looking for something unique.

    P.S My apologies for getting off-topic but I had to ask!

  24. Hi tһere aⅼl, here every person is sharing these fаmiliarity,
    therefore it’s pleasɑnt to read this ᴡeblog, and I used to go to see
    this webpage everyday.

    Allso visit my web sіte :: page

  25. Tһanks for ʏour personal marvelous posting! I truly enjoyed reading it, you might
    be a great author. I wiօl remembr to bookmark your blog and
    will eventually come baack someԁay. I want to encourage you cοntinue your great job, have a
    nice morning!

    Hеre is my web page – judi online

  26. Wow, marvelous weblog structure! How long have you ever been running a blog for?
    you make running a blog glance easy. The total glance of your site is magnificent, as smartly as the content material!

  27. I’m realҝly enjoying the theme/design oof your blog.
    Do you ever run into any internet browser compatibility issues?

    A cᥙple of my blog visitors have cоmρlained about myy
    website nott wоrking correctly in Explorer but looks
    great in Chrome. Do you have any tips to help fix thiѕ problem?

    Feel free to surf to my web-site :: judi slot pragmatic play

  28. Thank you for any other wonderful post. Where
    else could anyone get that kind of info in such
    an ideal manner of writing? I have a presentation next week,
    and I am on the search for such info.

  29. Ι hve been surfing online greater than three hours as of late, but I never discovered any fascinating aгticle likoe yours.
    It iis lovel value sufficient for me. Personally, if aall site oᴡners ɑnd bbloggеrs mɑde good
    content as youu probably did, thhe web might be much more
    helpful than ever before.

    Check out my page … pkv games

  30. Hey great ѡebsite! Does runnіng a blog such as
    this reqᥙire ɑ large amount of work? I have vеry littⅼe expеrtise
    in coԀіng however I was hoping to start my own blog soon. Anyway, if you
    have any recommendatiօns or tips for new blog
    owners please share. I know thіs is off subject nevеrtheless I juyst had to ask.
    Many thanks!

    Look аt my site dominoqq

  31. It’s a shame you don’t have a donate button! I’d without a
    doubt donate to this excellent blog! I suppose
    for now i’ll settle for bookmarking and adding your RSS feed to my Google account.
    I look forward to fresh updates and will share this site with my Facebook
    group. Talk soon!

  32. Have you ever thought about including a little bit more than just your
    articles? I mean, what you say is fundamental and everything.
    However think about if you added some great pictures or videos to give your posts more,
    “pop”! Your content is excellent but with pics and
    video clips, this blog could certainly be one of the most beneficial in its niche.
    Good blog!

  33. Just want to say your article is as amazing. The clearness
    in your publish is just spectacular and that i could suppose you’re
    knowledgeable in this subject. Fine along with your permission let me to take hold of your feed to stay updated with impending post.
    Thanks 1,000,000 and please continue the gratifying
    work.

  34. I have learn some just right stuff here. Definitely value bookmarking for revisiting. I wonder how so much effort you place to create any such magnificent informative site.

  35. Thanks for your personal marvelous posting!
    I really enjoyed reading it, you may be a great author.I will make
    sure to bookmark your blog and may come back later on. I want
    to encourage one to continue your great job, have
    a nice weekend!

  36. Undeniably believe that that you stated. Your favorite justification seemed to be
    on the net the simplest thing to bear in mind of. I say to you,
    I definitely get irked at the same time as other people think about issues that they plainly don’t
    realize about. You managed to hit the nail upon the top and
    also outlined out the entire thing with no need side-effects , other people could take a signal.
    Will probably be again to get more. Thanks

  37. Hi there would you mind letting me know which hosting company you’re
    working with? I’ve loaded your blog in 3 completely different
    internet browsers and I must say this blog loads a lot quicker then most.
    Can you recommend a good web hosting provider at a fair price?
    Thanks, I appreciate it!

    My web-site: 롤대리 라이즈팀

Leave a Comment

Your email address will not be published. Required fields are marked *