Case Studies

Providing Guidance on Significant CapEx Decisions Through Pack / Price / Product Architecture Choice Modelling

10 April 2024

Our client, an FMCG manufacturer, was considering several decisions surrounding one of the brands in their stable. This included a change to substrate, a new larger format, new pack claims, re-thinking price strategy, and expansion into new states. Given the significant cost and risk in such a decision, research was considered.

We designed a quantitative choice-modelling engagement, including MaxDiff (or best-worst scaling) techniques. The research involved understanding both risk to current buyer base, as well as potential acquisition opportunity, through each of the decisions.

The choice-modelling component helped understand the dynamics surrounding changing substrate, launching a new size, investing in above-the-line communications, and pricing dynamics. Critically, the research was able to provide robust and sensitive guidance to how best to inform the way forward, as well as deep understanding on pricing and promotional strategies and above-the-line support to maximise the performance in market.

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