Price is right: introducing a new personal care product to a stocked shelf.
A manufacturer of a common skin condition treatment sought to introduce a new product for a crowded market, and find the right pricing with the help of GroupSolver®.
Investigate the interest in new product
Our client wanted to better understand customers’ interest in their new product offering. GroupSolver® found specific product attributes that were attractive to customers and why they value those attributes.
Estimate the impact on sales of existing products
By understanding customer preferences, GroupSolver® forecasted how the launch of this new product would affect the market. This allowed our client to accurately price and place their new product among the competition.
Understand the influence of shelf position
GroupSolver® gauged the interest in the product based on where the product would be placed on the shelf. Our client could then optimize its shelf position.
Revealing how the new product is likely to perform
A skin condition treatment brand worked with GroupSolver® to validate the pricing and positioning of their new product. Our client wanted to understand how their product concept, an innovative over-the-counter treatment, would perform in the market. The study addressed the following research questions:
- What is this product’s potential volume share by channel at different price points?
- What part of the market share comes from key competitive brands and how much is it likely to cannibalize sales of the brand’s existing products?
- What is the impact of shelf position on the likelihood of purchase?
- How do customers respond to different packaging options?
The study also collected reasons for why customers would purchase our client’s product compared to their competitors’ products. This allowed our client to tailor their new product to fit the specific needs and wants of their customers before launching it.
Estimating the likelihood of purchase for the product concept
To help our client increase confidence in their go-to-market strategy, GroupSolver® used a combination of multiple-choice, open-ended questions, and a conjoint pricing exercise. Specifically, the open-ended answers revealed customers’ expectations of the new concept and attributes that they look for in treating this condition. Furthermore, we tested several different shelf set-ups to understand what approach would be the most effective. Finally, our economic model quantified the likelihood of purchase and level of the price premium our client could charge for the added value this concept provided to the customers.
Robust customer feedback results in thumbs-up for launch
Throughout the tests that GroupSolver® conducted, our client’s new product concept performed well. Our data showed it could compete at a much higher price point than our client’s current product lineup, and it is likely to lead to overall revenue growth of the brand. Different packaging options concepts did not seem to affect customers’ preferences; however, customers were more likely to select our client’s product concept in a specific position on the shelf relative to existing competitors. As a result, our client selected the concept & package combination and moved forward successfully with their market launch.
About the Client
Our client is a producer and marketer of over-the-counter treatments and medicines.
| Industry CPG & Healthcare |
Region North America |
Solution Pricing Research |
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