The Effect of Promotional Marketing on Diversification
Jairaj B. Jatar, Director, India, Member
: Joanna, I still feel you need primary research in the form of experimental design.
I have assumed there is a market already in existence for products like the one you wish to introduce. You will need a "simulated test market" (or STM) study to be conducted. The target group for the study will be regular consumers of the product.
Maybe, you could also include those who lapsed out of the category (these could be a secondary target group). The questionnaire will have to first establish existing consumption and brand preference. You will then have to introduce a Concept Card that describes your product, and obtain reactions to it.
If your product is a consumable product then you should have consumers try it out, and then collect reactions again.
Your analysis will revolve around the proportion that reacted positively to your concept and product experience. If the proportion is large then you could say your diversification is likely to be successful. Regards.