Van Westendorp pricing analysis for a Canadian health and wellness brand

  • Identified the optimal price range for a new organic supplement

  • Balanced affordability perception with premium brand positioning

  • Helped define a pricing strategy ahead of product launch

CLIENT CHALLENGES

  • A Canadian health and wellness company wanted to launch a new line of premium organic supplements
  • They needed to determine the optimal price range that maximises consumer acceptance while maintaining a premium brand image
  • The client also aimed to avoid setting a price that would either limit demand or compromise perceived quality

OUR APPROACH

  • Step 1: Survey design

    • Designed and deployed an online pricing survey with 1,200 Canadian consumers (target: health-conscious adults aged 25-55)

    • The survey included Van Westendorp’s four key price perception questions:

      • At what price would the product be too cheap?

      • At what price would the product be a bargain?

      • At what price would the product be getting expensive?

      • At what price would the product be too expensive?

  • Step 2: Data processing
    • Cleaned data to remove speeders and incomplete responses (final N = 1,080)
    • Standardised all currency responses to Canadian dollars (CAD)
    • Segmented responses by demographics (age group, gender and province)
  • Step 3: Van Westendorp analysis

    • Plotted frequency distributions for each pricing question

    • Identified two critical price points:

      • Point of marginal cheapness (PMC)

      • Point of marginal expensiveness (PME)

    • Calculated the optimal price range and indifference price point (where equal percentages find the price cheap and expensive)

IMPACT DELIVERED

  • Helped the client set an initial launch price at CAD22, closely aligned with the indifference price point
  • Pricing strategy positioned the supplement as “accessible premium”, boosting consumer acceptance
  • Projected market penetration increased by 17% compared to the initially assumed price point
  • Regional pricing adjustment recommendations helped tailor promotional offers in Quebec
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