Market testing: Offering the best prediction of your brand innovation's future performance

The most suitable place to carry out the development of a business producing profit, and the best way success can be built, is usually when you are involved in the operation of a business. This is mainly because a lot can be learned from the market and your clients for you to have a good understanding and a prior knowledge of what is working and what is not working.

_{Image source: Pixabay, Creative Commons}

I will like us to quickly have a brief idea about this particular topic we are dealing with. In 1986, The fast rising Pret A Manger chain of sandwich shops was brought into existence by Julian Metcalfe and Sinclair Beecham. This particular business firm in question has profited a significantly great amount of gain, been attributed to them due to "reinventing the sandwich," and become intimate or friendly with New York, Britain, and Hong Kong. Despite that the business of Julian Metcalfe and Sinclair Beecham did not begin as a sandwichshop; it was originally an off-licence (liquor store) called "Hair of the Dog" and was stationed in Fulham, London. In spite of that, they soon became aware of the fact that this formula is doomed to fail. They kept experiencing a low profit margin, even though takings were on the high side.

Sinclair Beecham stated, “We decided there was more scope in low-priced, high-margin foods like sandwiches.”

Their business became successful through the action they took in heeding to advice from their customers and their readiness to change the form or structure of customer offering when required. This was a lesson they learned directly, without intermediate stages while doing business in a active manner in the market. Since there are always unpredictable levels of uncertainty in every market, the best way to learn highly profitable business formulas is to learn as you go deeper in the market ( which is "learning as you go" approach). This is a lesson that always linger in the memory of Sinclair Beecham. He did made a comment when he wanted to launch Hoxton, an innovative luxury hotel in central London at the end of 2006 that:

“The Hoxton is an experiment. We’ll see if it works. There’ll be things that we need to
change, and we’ll listen to our customers if we need to do so.”

There are some certains things that should be put into practice when carrying out market testing for a successful and flourishing business. Let's go on to discuss them in our next paragraphs:

• Do not be expecting to successfully get a perfect formula that is without flaws immediately when a new business is about to be put to start. No matter how much knowledge you've acquired about the business beforehand, there will always be lessons that can only be taught actively in the store.

• When problems arises, you need not be discouraged. Make sure to not view those problems as an obstacle or failure but as an opportunity to acquire more knowledge and experience. Make an analysis to know what causes the problems, the extent to which they matters and their impact.

• Do not be reluctant to make drastic changes to your business when such is required. You may be tempted to adhere to certain formulas, but in extreme cases, you may need to change or abandon them to get more potential alternatives which will be more profitable.

• Abstract learning should be combined with direct experience. It is not necessary for these two concepts to be mutually exclusive.

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_{Kindly let me know your view in the comment box below.}

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_REFERENCE

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• _{Great business ideas from leading companies around the world by Jeremi Kourdi.}

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_{Also published on my whaleshares blog.}

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_{Thanks to @beherenow for creating this image for me..I love this!}

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