The challenge: FMCG/global pharma brand: OTC product wanted to provide a one stop solution for Athletes foot, the new product was a premium solution, and they wanted to test the product appeal, marketing, and price point, the latter prove contentious.
The research: We were invited to help our client understand key messages in research that had previously been conducted . Initially, we identified flaws in the research process. The research had provided data on appeal and marketing messages but the price point research was limited in a variety of ways, and the research said launch at a far lower price than desirable. The product was extremely effective offering, and wanted to be launched at a premium.
Our clientside experience meant we also considered the work in a wider context and we could see that which was not evaluated within the research process – that the research had not factored in economies of scale in production.
We recommended launching the product at a higher price point (a worthy premium for a highly effective product) and to use marketing tools if sales were not as expected. This meant the product had to sell far fewer units to make the same profit as the initial quantitative research reported.
The client took our advice and the product launched at a premium within several European markets and eventually more globally, providing significant additional profits over time.
