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 for the ailment and the client wanted to test the product appeal, marketing, and price point, with the latter proving contentious.
The research: We were invited to help our client understand key messages in the research that had been previously conducted . Initially, we identified flaws in the previous research process, as despite providing data on appeal and marketing messages, the recommendations on price point were limited in a variety of ways. The initial research proposed a launch price far lower price than desirable. The client disagreed with the initial price point recommendation, as they felt the product was an extremely effective offering, and warranted a launch at a premium value.
Our client-side experience meant we could consider the work in a wider context and identify flaws and gaps in the previous initial research process (e.g. that research had not factored in economies of scale in production).
We recommended launching the product at a higher price point (i.e. a worthy premium, for a highly effective product) and to use marketing tools if sales were not as expected. Our recommendations meant the product needed to sell far fewer units than the previous initial quantitative research reported, to make the same profit.
The client took our advice and the product launched at a premium price point within several European markets, eventually expanding more globally and providing significant additional profits over time.