Identify the most appealing product concept
From the list of potential product ideas, we found the most attractive product concept and identified which of its attributes are likely to lead to the most purchases.
Quantify our client's brand value
We estimated the value of our client’s brand equity relative to competitors in key retail channels.
Understand impact on market dynamics
Our client used our interactive market share impact simulator to play out various launch scenarios and observe their expected impact on sales and overall market.
Updating the product line
Our client, a snack food company, wanted to understand whether a new flavor variant would be attractive to customers and how successful it would be across different retail channels. They also cared to explore implications of a new product launch on pricing, shifts in sales volume, and how such moves would impact their brand equity versus competitors. Key questions we answered were:
- How appealing is the new flavor concept?
- What is the probability of purchasing the new concepts over existing products?
- What amount of sales of the new product would come from competitors and how much cannibalization would existing products face?
- How much price premium does the client’s brand hold over competitors?
To manage the scope of this research, we deployed a two-phase approach. Starting with exploring the relative importance of product attributes such as flavors, preparation process, and sizes, we narrowed down candidates for launch to a small set of high-potential ideas. Then, we modeled the effects on the market, including the impact of discounts and promotions.
Forward-looking insights for a successful launch
The GroupSolver® team collected insights from over 3,000 consumers across key purchase channels to identify top concepts and validate viability of the client’s new flavors. In addition, we conducted pricing analysis and built market share models to estimate potential product sales and impact in the marketplace. These models gave our client an opportunity to explore “what if” scenarios and provided them with “always-on” tools for strategic exploration as they fine-tuned the market launch plan.
Among key findings, we discovered that the client’s brand frequently generated a meaningful higher probability of purchase in comparison to private label and competitive brands. Further, we identified the product attributes consumers value the most. Our data showed that while one of the client’s new flavor options drove an increase in the probability of purchase, the existing assortment was likely to continue to dominate sales volume. Additionally, we identified several significant effects of promotions and package deals that are likely to further impact customer adoption.
Making confident decisions from smarter insights
Using GroupSolver® research, our client was able to find that while respondents found the new flavor concepts appealing, they were still more likely to purchase existing flavors. While introducing the new flavors would lead to some cannibalization of the client’s other products, the brand would likely attract incremental volume from store brand products. The client’s brand name was a positive driver and led to a significant price premium. The insights gleaned from this project helped the client to better understand their product line growth options and make informed decisions on the development of new flavors.
About the Client
Our client is a major snack food company focusing on healthy snacks.