Assumptions Made on Target Market in Launching a New Product
Deciding on the target group when launching a new product and winning the customers the first impression is the goal of every entrepreneur. Getting this motive right makes a big difference between success and failure. Thus, Ellen has to assume that;
- The sampled audience is a full representative of the whole target market of the product (Greener & Martelli, 2018). In attempts to create an excellent first impression to the potential customers worldwide, Ellen has to have it in mind that the sampled population’s reaction towards the ice creams highly reflects the acceptance or denial of the product in a significantly large market.
- Profile of the customers. The first assumption made while choosing Colorado was that the profile of the audience was relevant to be enlightened about the product. Certainly, ice creams can be consumed by people of all genders and ages. The demographics here are not specified for the sampled target.
- The reach and access for the product. It is an assumption that acts as a motivating factor in introducing a new or existing product in the market. Ellen needs to assume the best and most convenient ways to make the product available to consumers upon market launch (Venture for All, 2019). The distribution channels for the product can be established after the feedback on customer preferences.
- Competitive advantage. It is necessary to assume that the new product has unique elements that make it win against its close competitors.
Why would the company want to limit a new campaign to three flavors? Do you believe this is a good approach? Why or Why not?
Announcing the full intention in business may make the company lose market so soon. Starting with three products leaves room for “improvement” in meeting the market demand in a short while. It means that the remaining nine flavors will be a surprise for the customers hence more cravings and consequently massive purchases. It is an excellent strategy to approach potential buyers.
Is a state-wide sample possible? How should the company choose a proper population sample (representation and size) to test their ice cream flavors such that they can reasonably rely on the results for their decision-making?
A large sample, even in research and data collection, helps yield more reliable results. A large sample reduces the chances of bias and making invalid conclusions. Therefore, aiming at reaching a large sample as possible can be achieved. Creatively, through roadshows, public gatherings, and online awareness through bloggers, celebrities, trendsetters, and online polls.
How would you design this research effort to get that test population to sample the ice cream?
The sampling design here involves a one-on-one random sampling technique aimed at having a large number of people taste the ice creams. Webb suggests that it is impossible to control who gets the sample (Gannon, 2019). Therefore, creativity in packaging the samples and the agents approaching the audience matters a lot in reaching the sampling objectives.
What are the limitations that need to be considered in your research methodology?
One of the challenges in this applicable research methodology is acquiring a team that can handle the design effectively, reach a maximum sample, be cost-effective, and be objective-oriented (Markgraf, 2019). There might be a need for a pre-campaign market survey and analysis to ensure the formulated assumptions are fairly the expected outcomes.
How will you minimize errors so that the decision-makers can plan their nation-wide launch with reasonable forecasts and expectations?
One sure way to minimize errors before launching a national wide campaign is by creating a platform for customer feedback. The reaction from the sampled audience is essential to decide on the way forward for the commodity. Product launching is a costly activity, and it is crucial to strategize and evaluate the effectiveness of the methodology applied in Colorado before launching the national wide campaign, as Gannon (2019) suggests. For instance, the use of promotion codes alongside each sample given could be an effective way to track the effectiveness. The codes can be attached to “attractive” merit, such as free delivery for the first orders.
Gannon, D. (2019). How to Use Samples to Promote Your Product. https://www.inc.com/guides/201105/how-to-use-samples-to-promote-your-product.html
Greener, S., & Martelli, J. (2018). An Introduction To Business Research Methods (3rd ed.). United Kingdom: Sheffield Hallam University
Markgraf, B. (2019). What Are Some of the Unique Challenges That a New Product Development Company Would Face? https://smallbusiness.chron.com/unique-challenges-new-product-development-company-would-face-73327.html
Venture For All (2019) Five Assumptions We Make about Target Customers. Retrieved 23 November 2019, from https://ventureforall.wordpress.com/2015/03/16/five-assumptions-we-make-about-target-customers/
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Market Research Essay
Sampling and Inferential Statistics, Central Tendencies, Standard Deviations/Variances, and Limiting Error
Case – You are the Research Consultant:
Ellen is the chief market researcher for a well-known ice cream manufacturer in the United States, Tasty Frozen Treats, Inc. The company is planning a nation-wide launch of three new ice cream flavors, but the decision-makers need to know which three of 12 possible new flavors would be best to include in the rollout. Ellen has recommended that they do a preliminary taste preferences test in Colorado since they believe it is a reasonable proxy for its customers in the U.S. as a whole. The company will use the top three chosen flavors and design a nation-wide marketing and sales campaign for the product launch. Ellen has hired you, as an expert research consultant, to oversee the marketing research team in this effort. As you are evaluating and designing the project, please answer the following questions (be brief and to the point – Ellen does not have a lot of patience, but does want to get it right):
- What assumptions does Ellen make regarding Colorado?
- Why would the company want to limit a new campaign to three flavors? Do you believe this is a good approach? Why or Why not?
- Is a state-wide sample possible? How should the company choose a proper population sample (representation and size) to test their ice cream flavors such that they can reasonably rely on the results for their decision-making?
- How would you design this research effort to get that test population to sample the ice cream?
- What are the limitations that need to be considered in your research methodology?
- How will you minimize errors so that the decision-makers can plan their nation-wide launch with reasonable forecasts and expectations?
Your paper should be 2-3 pages long, not including cover and reference pages, and be formatted according to APA guidelines
Greener, S., & Martelli, J. (2018). An introduction to business research methods (3rd ed.).
- 2 (pp. 26-43) – Putting the problem into context: Identifying and critically reviewing relevant literature
- 3 (pp. 44-56) – Choosing research approaches and strategies
- 4 (pp. 58-67) – Ethics in business research
- 5 (pp. 68-77) – Choosing samples from populations
Research Methods Knowledge Base: Inferential Statistics www.socialresearchmethods.net/kb/statinf.php
Additional Resource as Statistics Refresher: Rice U – Statistics Simulations http://onlinestatbook.com/stat_sim/index.html
For the reading assignment, Greener, S., & Martelli, J. (2018). An introduction to business research methods (3rd ed.). (eBook available at https://bookboon.com/en/an-introduction-to-business-research-methods-ebook).
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