Taking a profitable product into a brand new market may be daunting—particularly when it’s been designed for a particular viewers. Sakura, a Japan-based artwork and writing instruments firm, had a hunch that their merchandise, designed for the distinctive preferences of the Japanese client, would take off with U.S. customers. Nonetheless, they knew that they wanted insights to assist them perceive the market.
Gathering the appropriate information and turning it into related insights to tell this type of monumental determination may be tough. Particularly when coming into a brand new market, it’s key to discover that house and study your target market.
That’s why Sakura leaned into agile analysis to energy new product improvements for the U.S.. Within the 1980’s, the corporate launched the primary ever gel pen, the Gelly Roll, in Japan, the place it was an on the spot crowd favourite. It’s straightforward to see why— the Gelly Roll had clean ink, vivid colours, and unimaginable versatility.
Extra not too long ago, the corporate wished to increase its U.S. choices and department out past its conventional buyer base of artists and crafters. However Sakura’s merchandise are designed for the Japanese client, whose preferences may be markedly completely different from customers within the U.S. and in different international locations.
Although Sakura’s analysis and growth is one among its best strengths, they’d some vital questions. Would U.S. customers pay $100 for a pen? What sort of product would attraction to a basic client who outlets for pens for on a regular basis use?
That’s the place analysis got here to the rescue. To bridge the hole between understanding Japanese and U.S. customers, Sakura centered its analysis on 3 key areas: gauging client sentiment within the pen and writing house, validating proposed product ideas, and testing worth factors for its merchandise on this new market.
1. Gauge client sentiment
Sakura sometimes focused its merchandise in direction of artists and crafters. Nonetheless, within the U.S., Sakura of America wished to capitalize on the chance to attraction to the mainstream US client. With a research on utilization and attitudes, Sakura was capable of study extra concerning the variations between how artists would method buying writing instruments and the way an on a regular basis client would method it.
For instance, not like an artist who might have knowledgeable writing software, the mainstream U.S. client could also be in search of an on a regular basis pen that they might purchase from a Walmart or Goal. Understanding customers’ perceptions and use instances not solely helps construct higher merchandise, but in addition informs compelling advertising and marketing campaigns.
2. Validate profitable product concepts
Studying about goal customers isn’t sufficient to interrupt into a brand new market— corporations additionally must create an interesting product that prospects wish to purchase. For Sakura, the success of its merchandise was confirmed in Japan. Nonetheless, this success wasn’t assured within the U.S. So, Sakura ran an idea check that includes its Japanese pen product ideas with goal US prospects.
With the info that their authentic pen product had attraction in America, Sakura was capable of transfer ahead with a product launch. Idea assessments are, in spite of everything, a vital element of any product growth lifecycle. They save time and investments by testing ideas, product and model names, packaging, and extra with goal audiences earlier than a full scale launch.
3. Determine the appropriate worth
As soon as a product concept is validated, the way in which it’s marketed and bought can decide its success. Value is a key consider how a product is perceived and adopted. Generally, a product’s worth is simply too low, leaving cash on the desk. Different occasions, a worth may be too excessive, excluding key buyer segments that an organization is concentrating on.
In Sakura’s case, they wished to guage whether or not their target market within the U.S. can be prepared to pay for a $100 pen from Japan. Via market analysis, Sakura of America was capable of get insights that almost all U.S. customers weren’t prepared to pay this worth, which in the end helped them modify their worth factors and form future analysis and growth efforts.
Ultimately, Sakura of America was capable of create interesting merchandise for the U.S. markets whereas staying true to its model. Analysis in the end helps take the emotion out of selections, and allowed Sakura to align stakeholders all around the world to create merchandise that their customers love.
Sakura of America embodies how information powers consumer-led innovation. Understanding altering client preferences is essential to adapting to their wants, and testing new concepts with goal audiences empowers quicker and extra assured determination making.
Making a analysis course of that powers innovation and yields the most effective outcomes to your group requires conducting analysis constantly, relatively than simply when issues come up.
Having an agile analysis method can determine each points earlier than they grow to be greater and alternatives earlier than opponents make the most of them.
As your organization grows, analysis might help you create merchandise that your prospects love and wish to purchase. And as you speed up your model, you’ll want insights to assist maintain your development and discover new alternatives.
