Private labels have transformed the retail and grocery industry, giving consumers high-quality alternatives at competitive prices. For retailers, this presents a major opportunity to strengthen brand loyalty and drive higher profit margins.
But without the right research, changes to your packaging can be a costly gamble (Cough, Tropicana, cough).
Custom market research takes the guesswork out of private label product testing, helping you uncover potential issues before launch, refine your product to meet consumer expectations, and make data-driven decisions that lead to success.
Private label product testing is the process of evaluating a store’s or brand’s own product packaging design to see if it meets customer expectations for quality, performance, and value. It’s not just about ticking boxes; it’s a strategic tool for crafting products that truly resonate with your customers, optimize your pricing strategies, and build lasting customer loyalty.
If you are considering a custom-tailored market research study for your private label launch, here are some of the core benefits of what will be returned with the investment.
Understanding your customers is key to building successful private-label brands. Market research empowers you to create products that meet consumer demands and outshine competitors. Discover how to apply it for actionable insights and effective new product development.
At a high level, market research allows brands to understand how consumers perceive a current label or concept. This insight can help uncover gaps in the market and highlight emerging trends within your target audience. You can also track competitor activity, analyze their market share, and explore their strengths and weaknesses to identify where your product fits in. Additionally, assessing consumer price sensitivity and evaluating the impact of potential changes on your brand perception will help you make informed decisions on pricing and positioning.
Additionally, package testing evaluates everything from the functionality and usability of the packaging to its visual appeal on the shelf. It’s essential to assess the clarity and effectiveness of labeling to ensure customers can easily identify your product’s key features. You should also consider the environmental impact of packaging, as sustainable practices are becoming more important to consumers. Of course, testing the packaging for durability and product protection ensures that your product arrives safely and in top condition.
Finally, product testing market research and taste testing are crucial for evaluating your private-label product’s sensory attributes—taste, texture, aroma, and appearance. This kind of testing provides insights into the product’s overall performance and functionality, helping you identify areas for improvement. By comparing your private-label product with national brands and competitors, you can better understand your product’s standing in the market. This ensures that you’re making a product that customers will love and be willing to buy.
In market research, there is no shortage of methodologies to test private label products. Choosing the right approach depends on your goals, budget, and the type of feedback you need. Below are some of the most valuable methodologies for private-label product testing in our experience.
In-home usage tests (IHUTs) allow consumers to test products in their natural environment, making them one of the most realistic and insightful methodologies available. Rather than evaluating a product in an artificial setting, such as a focus group facility or conference room, participants incorporate the product into their daily routines. This approach provides rich, authentic feedback on usability, satisfaction, and potential product improvements.
George Kuhn, Founder & President of Drive Research, emphasizes the value of IHUTs:
“IHUTs provide for a much more realistic use of the product, and allow for the user to use the product within their normal routine, rather than an artificial environment like a focus group facility or conference area.”
Drive Research is an industry leader in IHUTs, having conducted extensive studies on products ranging from vacuums and pain patches to food, beverages, household devices, and personal care items.
Surveys are a cost-effective and efficient way to gather quantitative data from a large sample of consumers. They can be conducted online or offline and allow researchers to collect feedback on a wide range of product attributes, from packaging to taste, usability, and purchase intent. Specifically, label testing surveys often incorporate images, videos, or concept descriptions to provide context, making them a practical alternative to more resource-intensive methodologies like IHUTs.
Focus groups bring a small group of participants together to discuss their opinions, perceptions, and experiences with a product. These sessions can be conducted in-person at a focus group facility with a one-way mirror for observation or virtually through a video conferencing platform.
While focus groups offer valuable qualitative insights, their findings are not statistically representative of a broader audience. For this reason, they are best paired with quantitative research methodologies like surveys.
At Drive Research, we conduct focus groups both nationally and globally by leveraging partnerships with research facilities and virtual platforms.
Lastly, sensory testing, also known as a tasting panel, is used to evaluate a product’s sensory attributes, such as taste, texture, smell, and appearance. These tests help brands refine their products to ensure consistency, quality, and consumer appeal. They are commonly used for food and beverage products but can also be applied to personal care and household products.
The best methodology for private-label product testing depends on your specific research goals. If you need real-world insights, IHUTs are ideal. If you’re looking for quick, large-scale feedback, surveys may be the best choice. For in-depth qualitative exploration, focus groups are invaluable, while sensory testing is crucial for evaluating taste and texture. Often, a combination of these methodologies provides the most comprehensive understanding of consumer perceptions and product performance.
| Methodology | Best For |
|---|---|
| In-Home Usage Tests (IHUTs) | Real-world insights on product performance, usability, and long-term satisfaction. |
| Surveys | Quick, large-scale feedback on product attributes, purchase intent, and customer satisfaction. |
| Focus Groups | In-depth qualitative exploration of consumer perceptions, motivations, and messaging. |
| Sensory Testing (Tasting Panels) | Evaluating sensory attributes like taste, texture, and aroma to ensure quality and consistency. |
We conducted a study for a brand that wanted to launch a new version of their trail mix. They needed help deciding on the best packaging, so our market research company used online surveys to get customer feedback. We tested four different package designs, in two different formats: a clear plastic tub and a stand-up resealable pouch across trail mix and dried fruit.
What made this launch different was where they planned to sell the products. Instead of putting them on regular shelves, they wanted to place them near the fresh produce section. This area doesn’t have fixed shelves like the rest of the store. Products there are displayed on temporary racks or shelves. Because of this, they wanted to see how the clear tubs and resealable pouches would look together in that kind of display.
The market research study addressed the following objectives for the private label.
The methodology for the quantitative survey was:
Sample screening criteria included:
| Key Takeaway | Details |
|---|---|
| The best-performing client SUP (Stand-Up Pouch) package was SUP 4, followed by SUP 1. | SUP 4 tied for first in the MaxDiff analysis among the 4 client packages and was the best-performing tested package in the competitive shelf-set comparison using MaxDiff. |
| Although the stand-up-pouch was predominantly preferred by buyers over tubs, the best-performing client tub was Tub 4. | Client Tub 4 performed the best in the MaxDiff analysis among the 4 client tub packages. It performed second best to Mariani in the competitive shelf-set MaxDiff analysis. |
| Four factors emerged in the TUR acquiring near 100% reach with the buying audience. | Taste/flavor, high quality, value for the money, and the ability to see the product appealed to 99% of respondents. This means at least one of those factors resonated with nearly all buyers. Featuring only taste/flavor and high quality resonates with 93% of the buyers. |
| More likely to purchase if it supports environmental causes. | Supporting environmental causes was not a top factor in the consideration set among buyers when compared to taste/flavor, high quality, etc. However, when probed, it is a secondary influencer and presents an opportunity to differentiate from the competition. |
| The most common tagline chosen by buyers was “From Plants. For the Planet.” | One in three (35%) selected this tagline when asked which most closely represented a plant-based snack brand that offers healthy, natural products that are sustainably sourced and packaged and support environmental causes. |
| Logo C was chosen 5X more than any other logo presented. | Two in three selected this logo when asked which most closely represents a plant-based snack brand that offers healthy, natural products that are sustainably sourced and packaged and support environmental causes (64%). No other logo was chosen by more than 14%. |
Drive Research follows a systematic approach to all of our research studies which create streamlined and predictable steps to eliminate any hiccups or surprises. All of our full-service market research projects typically follow the same structure.
We work with clients in 3 phases to start.
Once you move forward with our team, you can expect the following:
All of our scopes are custom-tailored to your needs. Pricing varies based on how quickly results are needed, size of the project, target audience, number of participants, logistics and costs associated with any travel or shipping, and other variables. The good news is our team can walk you through pricing options after gathering more information on your needs through a quick discovery meeting or exchange of emails.
Similar to price, the timeline for a product testing project can vary based on many factors including the methodology. However, most product testing projects take an average of 4-10 weeks to complete. If you have a deadline or a specific need by a date, let us know and we will do our best to scope a project around that outcome without sacrificing quality.
Investing in private label market research, package testing, and product testing is not an expense, but an investment in the long-term success of your brand. By understanding consumer preferences and needs, you can make informed decisions that drive sales, enhance brand loyalty, and give you a powerful competitive advantage. Don’t leave your private label’s future to chance – test, analyze, and optimize for success.
Drive Research can help. We work with all types of organizations and brands, from startups to Fortune 50 companies, to develop research programs to fuel success and growth. A full-service market research project with our team includes a complete design, data collection, and impactful report that details the next steps to take with your private label initiatives.
Clients who work with our team explain the process as thorough, informative, easy, and insightful.
Use our contact form, email us, or call if you would like to explore working with our team.
