PRODUCT DEVELOPMENT WITH PRAIDICT

With the emergence of marketplaces such as Amazon and manufacturers such as Apple, the competition has never been tougher for manufacturers and retailers. The market pace has intensified, leading to a reduction in product life cycles. Manufacturers are required to ramp up their product development pace, and retailers need to identify and cater to their target audience’s requirements more rapidly than ever before. Relying only on previous sales results, expert judgments, and gut instincts is increasingly insufficient.

If you don’t respond quickly enough, the competition will move ahead of you. As the supply exceeds the demand. That’s why a lot of manufacturers and retailers decide to diversify extensively, aiming to meet all possible demands. However, this is exactly where the mistake lies! The uncertainty of meeting the target audience’s demands is heightened by soaring development budgets, production expenses, and marketing and sales direction.

Unless there ist a method to seize people’s needs, scrutinize them thoroughly and turn them into measurable data. This is where PRAIDICT comes into play.

WHAT IS THE DEMAND?

PRAIDICT identifies people’s actual demand. What questions, what wishes, what problems do they have? And specifically for product development: What kind of products are in demand? Which features are particularly relevant?

As the carpet market example on the right demonstrates: The attribute color is most significant, followed by the attribute size.

WHAT USE IS THIS KNOWLEDGE TO ME?

New products (in this case carpets) can be developed perfectly to meet demand. Instead of dealing with the question of whether fringes or not, product designers should deal with the question of the right colour and size.

This strategic decision is not based on a gut feeling or an opinion: it is the quantifiable, complete digital demand of the people on which this decision is based. Over the last twelve months, the topic colour was more than three times as popular as the topic shape!

HOW HAS THE DEMAND DEVELOPED?

Not only does PRAIDICT keep track of the current demand, but it also provides a retrospective record of the past 48 months. How has the demand developed? Has demand increased or decreased?

This example clearly illustrates that there has been a substantial rise in the demand for beige carpets since the beginning of 2021, with a positive trend continuing ever since. On the contrary, the instance of grey carpets reveals that they were most sought after in 2021, however, a steady downfall has been observed since then.

WHAT WILL THE FUTURE LOOK LIKE?

Utilizing advanced predictive statistical models, PRAIDICT can meticulously examine the past 48 months to make accurate predictions for the next 24 months.

Let’s return to the key question formulated above: What is the trend colour of the year? – More importantly, which one will it be next year? And which one the following year? PRAIDICT’s predictions indicate that beige carpets will see significant popularity around the start of 2025. Conversely, grey carpets will be far less significant by that time.

WHO IS A COMPETITOR, WHO IS A PARTNER?

Of course, the sales of a further developed product depend heavily on marketing and distribution. The latter in particular is massively dependent on marketplaces and large traders. PRAIDICT highlights which players have how large a market share on which topic. This helps to assess,

• Which sales are possible via these retailers?
• What matching products are already part of their catalogue?

In the realm of carpet trading, big names like Amazon, OTTO, Wayfair or XXXLutz quickly emerge as key players. However, seeing that OTTO and Amazon enjoy a market share twice as high as XXXLutz in terms of carpets is not immediately apparent. This makes it easy to deduce which platform promises to be the most lucrative for one’s own sales. Furthermore, this results in a list of platforms to be examined in relation to carpet product portfolios. Who offers which carpets and especially beige carpets?

HOW DO I BENEFIT FROM INTERNAL DATA?

The market observation is particularly interesting as it represents the real demand of the target group. Nevertheless, each company has its own individual characteristics that are essential for a well-founded consideration.

On our platform, PRAIDICT ANALYTICS, you can leverage elaborate statistical models to determine substantiated correlations between your product’s internal metrics and about your prodcut properties.