Product innovation can be risky, but market research helps companies think holistically for greater success.

Tired of seeing mountains of plastic cutlery polluting India's landfills, Narayana Peesapaty had an idea: What if you could eat your disposable spoon rather than toss it? Peesapaty, a researcher and agriculture consultant from Hyderabad, India, developed an edible spoon made of millet, rice and wheat flours, in 2010. Now, after selling 1.5 million spoons for his company Bakeys, he wants to reach even more eaters. Peesapaty knows that means he has to cut the cost...