Virtual Test Markets
No more 'gut-based' product launches!
For Product Strategy, Scenario Analysis and New Market Discovery we have developed a customizable environment called Virtual Test Markets. A Virtual Test Market is a computer simulation of (tens of) thousands of virtual consumers that react via purchasing decisions to new (and existing) product offerings and marketing campaigns. As a result, the Virtual Test Market yields a market share prediction for each product on the (virtual) market.
Impact
Using Virtual Test Markets will allow you to
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accurately predict the success of new products,
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understand the impact your competition has on you,
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capture the effect Word-of-Mouth in the market has on your products,
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identify the right level of marketing to support your product portfolio and
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avoid the high cost of unsuccessful test sales.
What is special about it
Accuracy of Virtual Test Markets is assured via an advanced modeling technique, called Agent-Based Modeling. This technique allows us to create specific, accurate, virtual market environments, customized to your product portfolio. For many of our clients, Virtual Test Markets have become an integral part of their product strategy evaluation. They have helped them surpass their competition with product offerings that simply target their customers better.
Project examples
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Top-five US Health Insurer: New legislation opened up an entire new market of 45 million potential members that nobody in the industry knew how to succeed in. Past experience in terms of "gut feel" as well as simple statistical approaches turned out to be poor predictors for the success of the new health insurance plans. Our Virtual Test Market enabled them to grow from third to largest health insurer in this new market.
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Top-five European Telecommunications Provider: Deregulation restrictions require this telecommunications provider to generate all growth from new market product offerings. However, non-traditional competitors are already very strong players in this space. Furthermore, entrenched organizational silo-thinking was making it difficult to view its customers as individuals with a variety of telecommunications needs, and design bundle tariffs that attract a large market share. Applying our Virtual Test Market allowed them to break the silo-mentality and design tariffs that significantly increased their share of the new market.
For more information and project examples, simply contact us!
Find out how VTMs have
optimized the new product portfolio of a large Telco
provider: