Case Study
Business objective:
Understanding the reasons for decline, the key drivers and barriers to trial and loyalty, optimize portfolio, grow sales. Decide whether to replace or reposition declining brands.
Category:
FMCG (confectionery)
Our method:
We have simulated shelves and shopping occasions, the trade-offs people make during real shopping trips (Conjoint analysis).
We offered consumers multiple alternatives in an interactive, online questionnaire.
Results:
Price has proven to be a barrier for both trial and loyalty.
The target brand was not perceived as an affordable option.
Strategy suggestion:
Considering, price elasticity we recommended a decrease in price so as to bring more customers, keeping in mind the revenue share, the profitability of a price chance. We showed the exact point of price change that would actually minimize revenues, despite attracting more customers. We have also recommended adjusting the packaging so as to improve the perceived value of target brand.