client challenge
- Our client had a premium and desirable brand in the toy industry, but a low-priced competitor was stealing market share.
- Knowing they did not want to compete on price, our client realized they needed to better understand which attributes drove purchase interest and what warranted a higher price point in consumer’s minds.
- They had a strong consumer research department but wanted an external partner that had deep experience with product optimization and advanced data analytics.
decision point approach
- We started with stakeholder interviews to uncover internal beliefs, biases, and capabilities. We followed this with an in-depth review of existing research, a thorough assessment of existing and proposed product features and associated costs, and a competitive analysis.
- Quantitative research using conjoint analysis was executed in order to determine the value consumers placed on product attributes.
- The final step was to model survey results with actual product costs to analyze the financial implications of potential product component scenarios.
impactful solutions
- Results of the conjoint study provided a clear picture of which product features were of most value to consumers and which features were less important.
- Using the data, we created an easy-to-use model which enabled the client to explore different product configurations to see the impact on sales and costs.
client success
- Through informed changes that prioritized the features that were most meaningful to consumers, our client was able to minimize share losses to the lower cost competitor.
- Our client also identified ways to increase profitability by eliminating attributes that were not important to consumers.
- The model continued to be a useful tool when exploring changes to the product line.
“For this project, decision point’s extensive experience with using advanced statistical techniques to uncover and model consumer behavior was exactly what we needed. The results helped our organization rally around a set of product features that added value and were a “must have” for our consumer.”
Senior Manager, Consumer Insights
