The Problem
A dental care CPG company in a hyper-competitive category needed to increase its profit margins. The brand team wanted to increase prices, and needed a new package design that increased consumers’ willingness to pay while mitigating price increase concerns among retail category managers and buyers.
The Approach
Using survey-based research methods, we provided our client with clear reads on package design preferences while measuring how different packaging influenced price sensitivity.
Package Design Perceptions
One of the key package re-design goals was to increase perceptions of product quality and premiumness. As a result, we first showed each respondent just one design and asked them to rate it across key dimensions. By showing one isolated design to each respondent, we collected unbiased package perception data.
Package Design Impact on Willingness to Pay
Since our client also wanted a design that reduced price sensitivity, we performed a conjoint analysis. This research method let us gauge how each package design impacted higher price point acceptance.
The Results
Once complete, the team enjoyed the following results…
Optimal Package
Our findings pointed to one package design’s ability to increase the willingness to pay for the product by over 20% of the current retail price point.
Price Increase Sell-In
The research results showing how the new packaging minimized price sensitivity helped convince mass merchant and drug store buyers to accept a 10% price increase.
Messaging Optimization
As an added bonus, the conjoint analysis also let us test the resonance of different product claims. This let our client confidently select the most compelling benefit to place on their packaging.
Did you know
Market research results aren’t just for internal audiences. Leveraging a third party to perform research gives outside audiences the confidence that research results are truly objective. It’s a great way to add persuasiveness to your overriding message.
