ABOUT THE CLIENT
Client is a leading manucaturer of health food drinks.
APPROACH
Quantitative research
PROBLEM STATEMENT
The client’s brand which was synonymous with the category was unable to grow the category despite launch of new variants, multiple activation efforts and communication.
The hypothesis within the client’s marketing team was that a price was a key barrier for entry into the category and lowering of prices – specially on smaller SKU’s – would lead to growing the category
OUR SOLUTIONS
Central Location Test (CLT): A pricing research involving a Discrete Choice methodology was used. Different levels of Price, Size of the SKU were the variables. The TG was Mothers with kids in the age group of 6 – 15.
KEY TAKEAWAYS
A reduction in price did not lead to current consumers buying more.
More importantly a reduction in price did not attract non-consumers into entering the category.
OUTCOME
Reduction in price not leading to revenue or volume growth. Potential loss in revenue identified and not implemented