We have two broad approaches to concept testing, selection is broadly dependent on market/category
1. Product Feature Led Markets
In markets where products are complex and financial investment is high, such as financial services, customer choice is based largely on the specification of the products on offer. Nunwood use conjoint exercises to calculate the influence of specific product features on customer choice.
This is invaluable for the evaluation of the likely performance of new products and product portfolios in a competitive context. Powerful simulation tools can be built which are based on consumer choice data allowing product features to be tweaked and the impact of design changes assessed in terms of changes in market share and corporate portfolio reach.
2. Holistic Evaluation Led Markets
Traditionally, FMCG products have been evaluated through volumetric sales estimation based on normative databases which calculate predicted sales on the basis of the number of customers saying they are likely to buy the product.
This approach however tends to disregard the fact that in mature markets increased sales are generally not incremental sales from the category viewpoint. Inevitably if a new product is purchased it is at the expense of an existing product. For this reason, launches to market rarely fulfil the potential they have shown in a volumetric concept testing exercise.
Furthermore, if a new product does “fly” it may well do so at the expense of another one of that manufacturers existing products as opposed to one of the competitions.
At Nunwood our approach to concept testing focuses on the incremental reach that any new concept will deliver both to the manufacturers own portfolio but also to the product category as a whole.
Our approach to Innovation & NPD 
Our approach to Innovation & NPD (US)
lauramorris@nunwood.com
