Situation: A company was challenged by a client to design a product to demonstrate the capabilities of the client’s processor. The result was a wonderful success, and has received very positive press. The client does not care about the product, only about their processor. How does the company test the appeal and potential marketability of the new product?
Advice from the CEOs:
- Go to a local arcade, for example one operated by Golfland USA or a multiplex theater. Show them your product and ask whether you can test it for appeal with their customers. This will enable you to measure coin-drop numbers and generate demand and market appeal data. With these data you can assess the value of either selling or licensing the product. The objective is to see whether the product generates sustainable demand, or whether it is just a short-lived curiosity.
- The big issue with a product like this is very simple – is it addictive?
- If your initial tests show that the product generates sustained interest and revenue it is similar to a console game. There are a number of avenues to pursue, including:
- Early exclusives use agreements with casino or theater chains – it will have value if it helps them to drive traffic to their venues.
- Novelty markets – corporate events, etc.
- Other options:
- Evaluate a lease model for target venues.
- Consider selling the product to air table companies as a demo unit.