Predictive Research for Online Market and Product Testing
When to use PROMPT
Predictive Test Marketing (PTM) with Prediki PROMPT only requires participants’ current knowledge and market observation rather than a big database of historic market data, prior questionnaire results and fully detailed marketing plans. This now allows concept and product testing where such data is scarce or - due to higher innovation content or regional differences - not comparable enough for Simulated Test Marketing (STM).
New product subcategories regularly show the limitations of STM in the area of product innovation. Let us take Procter & Gamble’s cleaning mop "Swiffer" and General Mills’ "Greek Yoghurt" for the U.S market. Swiffer’s Brand Manager, Laura King, said that BASES testing predicted first year sales from $20 to $40 million, well below P&G’s $100 million hurdle. Luckily P&G’s Chief Operating Officer Durk Jager was sceptical of BASES’s results and approved the launch. Already in 2013, Swiffer was a national household brand with $700 million in sales in the U.S. alone (Neff, 2013).
STM tools require an extensive and firmed-up marketing plan as input to the model, which adds to setup time, whereas with Prediki PROMPT the marketing plan can change at a later time if required. Only at the last stage, which combines price elasticity testing and volumetric forecasting, does Prediki PROMPT need a high level summary of marketing support and distribution coverage to optimize the accuracy of the forecasts and qualitative insights. Should things change - which is increasingly likely as businesses are becoming more agile and economies more volatile - Prediki PROMPT can update its quantitative results in a matter of two or three days to reflect the new situation
Next: Sampling for PROMPT