Taking a profitable product into a brand new market might 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 shopper, would take off with U.S. shoppers. Nonetheless, they knew that they wanted insights to assist them perceive the market.
Accumulating the correct information and turning it into related insights to tell this type of monumental resolution might be tough. Particularly when coming into a brand new market, it’s key to discover that house and find out about 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 immediate crowd favourite. It’s simple to see why— the Gelly Roll had easy ink, vivid colours, and unimaginable versatility.
Extra not too long ago, the corporate wished to broaden 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 shopper, whose preferences might be markedly totally different from shoppers within the U.S. and in different international locations.
Despite the fact that Sakura’s analysis and growth is considered one of its best strengths, they’d some vital questions. Would U.S. shoppers pay $100 for a pen? What sort of product would attraction to a common shopper 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. shoppers, Sakura targeted its analysis on 3 key areas: gauging shopper sentiment within the pen and writing house, validating proposed product ideas, and testing value factors for its merchandise on this new market.
1. Gauge shopper sentiment
Sakura usually focused its merchandise in the 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 shopper. With a research on utilization and attitudes, Sakura was capable of be taught extra in regards to the variations between how artists would method buying writing instruments and the way an on a regular basis shopper would method it.
For instance, not like an artist who may have an expert writing instrument, the mainstream U.S. shopper could also be in search of an on a regular basis pen that they might purchase from a Walmart or Goal. Understanding shoppers’ perceptions and use instances not solely helps construct higher merchandise, but in addition informs compelling advertising campaigns.
2. Validate successful product concepts
Studying about goal shoppers isn’t sufficient to interrupt into a brand new market— corporations additionally have to create an interesting product that clients need 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 take a look at that includes its Japanese pen product ideas with goal US clients.
With the information that their authentic pen product had attraction in America, Sakura was capable of transfer ahead with a product launch. Idea checks are, in spite of everything, a essential 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 correct value
As soon as a product thought is validated, the way in which it’s marketed and offered can decide its success. Value is a key consider how a product is perceived and adopted. Generally, a product’s value is simply too low, leaving cash on the desk. Different occasions, a value is perhaps too excessive, excluding key buyer segments that an organization is focusing on.
In Sakura’s case, they wished to guage whether or not their target market within the U.S. could be keen to pay for a $100 pen from Japan. By market analysis, Sakura of America was capable of get insights that the majority U.S. shoppers weren’t keen to pay this value, which in the end helped them modify their value 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 choices, and allowed Sakura to align stakeholders all around the world to create merchandise that their shoppers love.
Sakura of America embodies how information powers consumer-led innovation. Understanding altering shopper preferences is vital to adapting to their wants, and testing new concepts with goal audiences empowers sooner and extra assured resolution making.
Making a analysis course of that powers innovation and yields the most effective outcomes in your group requires conducting analysis constantly, slightly than simply when issues come up.
Having an agile analysis method can determine each points earlier than they change into larger and alternatives earlier than opponents reap the benefits of them.
As your organization grows, analysis will help you create merchandise that your clients love and need to purchase. And as you speed up your model, you’ll want insights to assist maintain your progress and discover new alternatives.
