A dental care CPG company in a hyper-competitive category needed to increase its profit margins. The brand team wanted to increase prices by improving the perceived product premiumness. They needed to identify a new package design that increased consumers’ willingness to pay and present objective data to retail buyers to prove that the price increase would be accepted by consumers.
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 just 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.
Once complete, the team enjoyed the following results:
- Price Increase Sell-In: The research results armed our client with the data they needed to convince mass merchant and drug store buyers to accept at least a 10% price increase.
- Optimal Package: Our findings pointed to one package design’s ability to increase product willingness to pay by over 20% the existing retail price point.
- 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.