Views from the Hills by R. E. Stevens, GENESIS II (The Second Beginning) E-Mail views@aol.com

Disposable Test Market (DTM)

I have been reminded by a reader that I have written about the DTM, but I have never explained the method in detail.  While the DTM is about 25 years old, there is a new version coming on the scene.  Sorensen Associates has just completed testing, with great success, a similar method.

The DTM was developed as a result of the high failure rate of new products introduced into the market.  Instead of having an effective method aimed at identifying successful new ventures, we probably needed one that would identify the failures that conventional methods said were going to be successful.  While that was not the intent, it certainly fit the description.

Conventional methods utilized TESTERS recruited from the mall.  They were shown a product description and asked what they thought of it.  If they were positively disposed to the description, they were given the product to take home and TEST.  Some methods called for the non-likers to receive the product as a gift (later to be interviewed).  The objective of the DTM method was to bring reality to the evaluation of the product through the use of SHOPPERS, in real stores, using real money, making real purchases, from among real competitive brands.  The focus is not on "Do they think they might purchase the brand, but DID they purchase the brand?"  It is reality vs. hypothetical.

The DTM method is dynamic and should follow the protocol intended for the actual market introduction.  The method requires market ready containers.  Pilot plant production is acceptable.

Method Outline:

    Identify the test city or cities.
    Identify the stores to be utilized.
    Identify the benchmark brands.

    Recruit the test stores.
    Obtain pre test sales data of the benchmark brands.
    Identify the shoppers.
    Select the test panel (at least 2,000 shoppers).

    Place the test product on the store shelves.
    Mail the FSI to the panelists.
    If a coupon is to be used in the brand's introduction, a coupon will be in the FSI.

    Obtain weekly sales data of the test brand and the benchmarks for the duration of the study.
    After a predetermined time, the panel is called and interviewed about the brand.  The length of time is product category relevant.
    After a second time period, the panel is again called.

Basic Results:

    Absolute sales by week.
    Sales relative to the Benchmark Brands.
    Repeat purchase rate.
    Rate of coupon redemption.

    Purchaser assessment of the brand.
    Degree to which the Brand lived up to expectations.
    How or in what way it did or did not live up to expectations.
    Reasons for not purchasing.

    And much more.

It sounds complicated; it isn't.
It sounds expensive; it isn't.  The cost in many cases is about the same as the simulated methods.  Simulated methods usually utilize panels of 300 as opposed to the DTM which uses a minimum of 2,000.  The base size of any projective technique should be a function of the expected brand share.

Web Site

On a number of occasions I have mentioned the "MR-Online.org" as a web site containing all the Views I have written.  It also contains a great deal of good linkages to other sources of news and information.  Two such linkages are to "CeoExpress" for information and "Market Research Roundtable" for discussions pertaining to market research.
 


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