Views from the Hills by R. E. Stevens, GENESIS II (The Second Beginning) E-Mail views@aol.com

Price/Value

When introducing a new brand or a repositioning of an existing brand, did you ever ask, "What is the best price?," "Should I use a coupon?," or "What is the value of a free-standing display?"

A friend recently asked if I could design an In-Store study to answer these questions. Naturally the answer was, "yes." Then she asked, for less than $50,000? Again, the answer was, "yes, considerably less than $50,000, if we could keep the research in one city." And we did.

While the results will vary by both the product category and the consumers' level of interest, I'm including the data highlights so that you can get a better feel for the kind of results obtained in a study of this nature.

Basic Sales Data:
New brand with flyer and coupon
vs. the market leader= 

New Brand -- base price/flyer/no coupon/no display 

New Brand -- base price/flyer/no coupon/display= 

New Brand -- base price/flyer/coupon/no display= 

New Brand -- base price + 10%/
flyer/no coupon/no display=

600% sales over market leader 

base 

+270% 

+775% 

-30%

My experience has shown that these numbers can vary greatly, depending upon the new brand's "reason for being" and the product category, making historical databases less than ideal.

The "In-Store Research" techniques or the "Assessment in Context" psychology has been proving very useful in assessing value, packaging, promotions, and pricing. If you have questions in these areas, let's see if we can design the right study at the right price.
 
 
 

Enjoying retirement in the hills,

Bob


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