Target group testing for private label concepts decreases error costs!

zaterdag 12 augustus, 2023

By testing intelligently, the lead time can be kept manageable and error costs can be significantly reduced. With proper guidance from retail researchers, customers can effectively express their preferences, preventing tunnel vision among designers and private label managers.

Even while the new private label line is still in its planning stages, testing can commence. Many retailers nowadays have their own online customer panels, making this test highly suitable for this tool. The aim of the test is to establish private label products representing different category roles:

  1. Does the customer prefer the current or the new preferred design?
  2. Does the customer prefer the new preferred design or the alternative design?
  3. What motivates their choices? By analyzing open-ended responses using text mining, the retailer and design agency can identify initial trends?

Qualitative shelf research on the store floor will then provide answers to the remaining dilemmas. A good qualitative private label concept test starts with selecting appropriate participants. It’s crucial to work with “fresh” customers rather than respondents who primarily engage in research for extra income.

It’s possible to engage approximately 12 customers over three sessions, either in pairs or single interviews, spread across six product categories. The strength of this research lies in the presence of the retailer and design agency on the shop floor. At this stage, dummy concepts are necessary for the concept test. These dummies will help to replicate future shelf presence as realistically as possible. To save time, experienced researchers from Retail market research companies for example. can deliver the report with all consumerinsights to the client’s desk the following day.

Outcome: Within 2 months, insight will be gained into which private label concepts have been approved by the customer, which ones need adjustments (and how), and possibly which concepts the customer sends back to the drawing board. These swift tests are not costs but rather an investment in a successful private label rollout, leading to greater customer loyalty, increased revenue, and higher margins!

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drs. Inge Oeseburg SMP
adviseur en interim manager
06 30 46 77 20

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