5.9.2 Consumer evaluation of the launch

Whenever the product is launched, the consumer's buying behaviour is studied, who is first-buying and who is re-buying; how much are they buying at each purchase and what is the time between purchases? Buyer diaries can be used, where the consumers record their purchases, not only of new foods but also of other foods, especially in the product category. The company can determine who is buying, the re-buying pattern, the timing and the amounts for each purchase. They can also determine from what particular brands it is gaining customers, to what other brands the product is losing customers.

When a new product enters a market, there will be a gradual shift in consumer perceptions of the product category and the competing products. The factors on which consumers make their decisions may change and the positioning of the product in the market may change. Therefore after the launch, the marketers need to test at regular intervals the whole category and whether the positions of the competing products are changing. This is particularly necessary where the new product is a major improvement or a new product.

There is also a need for information on the consumer's perceptions of the new product and the product values and attributes. It is necessary to ask them how they found it at all stages of the food behaviour sequence from buying to consumption and disposal. It is important to test the product attributes on which the product was designed, and also to see if consumers identify new product attributes that are influencing their acceptance of the product. The consumers can be contacted outside the supermarket, just after they have bought the product, and then interviewed, when they have eaten the food product, either by telephone or by face-to-face interview. This survey will indicate not only how the product can be improved but also how the marketing mix is performing. Two important attributes to discuss with the consumers are nutrition and safety, as well as any environmental reactions to the product.

The product quality is also followed with the consumers to see if they are noticing any variations or defects. Any products returned to the company by consumers need to be examined carefully. Raw materials/ingredients may change after the launch and the product may need to be reformulated; also there may be processing changes to make the process more efficient. The products from these changes need to be consumer tested to confirm that the changes have not lowered the acceptability of the product. Difference testing, in the form of triangle, duo-, trio or paired comparison tests, can be used to see if the product change is significantly different. If there is a noticeable difference the product needs to be tested by consumers in an acceptance test. For example in launching an instant drink mix, the full-scale production had temperature control problems so that the solubility of the final powder varied, sometimes taking some time to dissolve. This made the product unacceptable for the market and caused a product failure. Quality audits need to be done after the product launch at various points in the distribution chain. These are usually done by trained panellists using descriptive techniques; but the consumers again need to set the standards for the trained panellists, or consumer acceptance tests need to be done on the retail product. Trained sensory panellists will probably do trouble shooting in the distribution chain, for example for a distinct off-flavour and will be backed up by instrumental analysis to identify the compounds. This may be the basis for an insurance claim or a legal case and therefore has to be a quantitative test.

Despite all the brainstorming, technology, streamlining of operations and large amounts of money spent on promotion that go to make up a new product, and the best efforts of management to predict what the market should want, what really matters is what the customer wants. The gap between hopes and reality reduces as the customer is better understood. Consumer research has made great advances in recent years, and many of the results of the research can be applied directly in the food industry. The progressive and successful food business should look very carefully at them. The potential losses on unsuccessful new foods create a very substantial pool from which even quite major investments in time and effort in consumer research can be profitably funded if they lead to real improvement in predictability. The evidence suggests they do. This chapter has introduced the very active literature, and set out avenues that lead towards increased precision in understanding the needs of the customer who actually buys the food and eats it.

Think Break 1. Review the consumer research methods available and discuss their use in product development if your company is:     (a) a specialised ingredient supplier to the baking industry,     (b) a manufacturer of dried soups in small consumer packs for           convenience stores,     (c) a large-scale sugar refiner marketing individual packs of sugar to           coffee shops,     (d) a manufacturer of consumer margarine products for supermarkets. 2. Consider your company's consumer research budget in relation to that for     advertising and promotion, and set out your view of their relative     significance on overall profitability.