Friday, February 22, 2019

Using Crowdfunding for Market Research

In a recent article on MarketingWeek, they talked about how big companies like Coca-Cola, Lego and Gillette were using crowdfunding platforms such as Kickstarter to better predict consumer demand for innovative products and to gain valuable feedback on consumer needs. Using Gillette as an example, the company recently used IndieGoGo to supposedly raise funds for a new razor with a warming bar. While the razor had been in development for over two years, the company used the platform as a barometer for consumer demand, as well as an advertising vehicle to drive awareness and excitement.

While this method is unconventional, I personally think that using crowdsourcing platforms for product innovation is actually a brilliant mechanism for companies to test the waters before going into full production of new goods or services. I think it is a cheap and innovative way for companies to gain the gut check they need to proceed, and it allows consumers a chance to participate in the process as potential stakeholders in the product.

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