An Unwanted Product for a Non-Existing Market
Introduction
One of the main points taught at WA is that you must target your market. That is why we dig deep for niche markets where people are looking for something that we can supply at a profit.
After we find that group of people wanting something and having money to spend, we must reach them. That can be a problem but we are taught here how to solve that problem.
An Unwanted Product for a Non-Existing Market
I was an executive for a Fortune 500 company for many years. I was in charge of research and development and certain engineering areas. I worked closely with design and marketing personal when dealing with new product introductions.
We made prototypes of product and they were submitted to focus groups in the marketplace and received high accolades. Then we introduced the product and it was a total bust–a disaster.
The precept was:
1. There was a group of upcoming individuals, young executives, who liked to entertain but were not ready to invest in fine china.
2. The lower-cost product was attractive and would be an intermediary step toward buying fine china at a later date when these young executives would be more affluent.
The fact was:
1. These folks wanted fine china, not some interim product.
The bottom line was that the product was not wanted and the market did not exist.
So what went wrong?
I don’t remember the results of the focus groups other than that they were very favorable. But what questions were asked? Maybe the question, “Would you buy this product or fine china?” was not asked. That was certainly the defining question.
I also do not know who were in the focus groups. I would think our marketing people would be focused on the market they were after, the niche, and not on the broad market of dinnerware buyers.
Mistakes Many of Us Make
If this seems far fetched to you in regard to what we do, it is not. I see too often folks here focusing on markets that are not true niche markets. Yet true niche markets are not difficult to find simply by digging down through keyword research. Simply probing down into Google Suggest, eBay, Amazon and UberSuggest can lead to good niche markets that are not difficult to reach.
Niche Marketing Areas
Good areas to look for niche markets are Health and Beauty, Make Money (very competitive), Expensive Hobbies and Relationships. There are others.
Dig!
A Final Point
One final point, you should be a member of your niche market. How else can you learn what folks are doing and want? Forums can get you in contact. Niche markets have magazines that service them. Subscribe and look at the classifieds. What adds are repeated in the classifieds month after month? People are buying those products.
John
Note: Thank you to those of you who have offered condolences to me on the life of my wife, Pat, of 64 years. Pat passed peacefully on 19 September.
Recent Comments
47
John,
Appreciate your words of advice in choosing a niche. I'm so sorry to hear about your loss - 64 years together is incredible - and I'm sure you're still working through the pain of losing someone so close. The Year of Magical Thinking by Joan Didion is a great book if you haven't already read it. It deals with her personal journey after the loss of her husband and is beautifully written.
Erica
Thank you for some well thought out advice from someone who has been 'in the trenches' for a long time.
The fact that it appears you were working in a traditional industry does not change the fact that is actually is the same thing as what we deal with, here.
Sorry to hear about your wife, John. I know we don't know each other, but I know how important my wife and I are to each other!
And thanks for the info you posted on non-existent markets! Same thing with the EDSEL, right?
Steve
I was at Ford when the Edsel was still under the tarps. I told them they had missed their market and that the Edsel would not sell. That was the end of my interview. Later, in grad school, I needed a low mileage car at low cost. I bought a "new" Edsel for 500 bucks. It was a great car. I just made sure it had a stick. Thank you! John
Thank you, Bob! My brother has been in the insurance business for many years. He sold off his insurance and estate planning businesses but still works his older insurance clients at age 82. I feel like a lazy bum being retired for over 22 years. John
See more comments
My condolences to you and your family John
Thank you, Paul!