Lessons from Psy on how to follow up a success with success. By Amber Hudson...
Strategy for a New Product Launch
Using discrete choice and TURF to maximize a product launch
Situation: Our CPG client was bringing an innovative food product line into the Canadian market and needed help to understand nuances of the Canadian market and how their product would best fit into it.
Tactics: Given the complexity and need to make long-term predictions about the state of the marketplace, large-scale quantitative techniques were required. A market assessment questionnaire was designed to gain a better understanding of the market landscape including key competitors, consumption levels, drivers of consumption, and the target segment.
Using a discrete choice technique, we identified the ideal product line-up and the entry price point to maximize market share within the Canadian market. We also investigated potential levels of cannibalization among the new and existing products, and the degree of marketing support that would be required to maximize trial.
Finally, TURF analysis was used to optimize the flavour line up for maximum consumer reach.
Impact: As a result of the research, the client gained a better understanding of the Canadian market landscape, including how to position their product within that marketplace in terms of pricing, and how to optimize the flavour options to gain maximum consumer reach.