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Launched new product at an attractive price point
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Increase in sales
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Improved customer perception
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Data to guide launch of new products
CLIENT CHALLENGES
- A Dutch beer company wanted to predict the market share of a proposed new product in the market place given competitors’ current offerings
- The marketing team wanted to gain insight on the tradeoffs customers were willing to make on the various attributes or features being considered in the new product design
OUR APPROACH
- Acuity Knowledge Partners conducted a three-step process to predict the market share of the new product
- Step 1: Designing the study:
- Accessed respondents’ data from the survey and identified data elements for various beer brands in the market
- Defined quantifiable product attributes and their levels for a beer bottle
- Created various combinations based on the level of each attribute
- Step 2: Obtaining customer data and separating preferences:
- Analyzed respondents’ ratings of designed product options
- Separated customer preferences for products into “part-worth” utilities associated with each option of each attribute of a product category
- Step 3: Simulating to determine a good product design:
- Predicted customer preferences for a combination of attribute options
- Determined the optimal product concept
- Determined the most important attributes
- Identified market segments that value a particular product concept highly
- Created new product profiles for product offerings to predict their market shares
- Calculated the company’s market share with and without the proposed new product
IMPACT DELIVERED
- The following strategic insights and recommendations were provided as part of the study:
- Identified “flavor and aftertaste” as the most important attribute determining consumer preference
- Recommended a change in flavor and packaging type of the proposed new product
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