Client Success Stories

We love to see our work put into action, and our proudest moments are when our clients succeed. We recognize that there's a new urgency to demonstrate the ROI on market research, and we produce results that are measurable in this way. Here are examples of studies we've recently conducted and their ROI results:


A Breakthrough Method for Developing a Market Structure for a Leading CPG Food Company

Client Issue/Needs

  • Dynamic changes in the category have led to tremendous growth but increased customer confusion at shelf.
  • Our client needed to gain an understanding of category dynamics to:
    • Win consumers with existing and new products
    • Be a better partner to retail customers, ultimately gaining more captaincies

Our Solution: An innovative, integrated panel and survey-based solution

  • Combine powerful historical information from household panel data with the predictive information gained through a survey to yield the most accurate predictions for the future:
    • How are consumers making decisions today? What motivates the purchase? What about tomorrow?
    • What new products will hit the mark?
    • How do we grow our share and also grow the category at the same time (win-win for retail partners and manufacturer)?
    • Delivered maps and simulation tool, well beyond "standard CDTs"

Activation

  • Results were shared with retail partners and received with great enthusiasm. The sales force now has a ground breaking new way for retailers to sell the category.
  • A large retailer has agreed to a 200 store controlled test based on our recommendations. Results are forthcoming.

Early Results from this Market Structure Study...

  • New planograms were implemented by a number of retail food chains
  • Total category dollar volume was down 6% prior to the new planogram implementation
  • At the retailers where the new planogram was put in place (driven by our consumer decision tree), category dollar volume is up 4%

Pricing and Package Configuration Choice Study for Snack Company

Client Issue / Needs

  • Client was planning a repositioning of Brand A that involved changes to product ingredients and nutrition profile.
  • Some in management wanted to take advantage of the improved benefit proposition by reducing the count per package at the same price point.
  • Goal of this study was to determine the optimal price point and package configuration as well as the new optimal promotion deal.

Our Solution: Discrete Quantities Model

  • We presented consumers with a choice task that enabled us to model the price dynamics of several brand-pack combinations, including Brand A and its competitors, accounting for potential switching across sizes and brands. We used our discrete quantities model to do this.
  • Modeling revealed that the weight-out would result in a significant loss in share as well as a loss of $50 MM in retail revenue. In addition, we identified the optimal price point and promotion deal for the current pack size.

Activation

  • Despite the negative prediction, the client decided to implement the price/pack change anyway. In-market results matched our predictions, much to the dismay of many.

Our pricing recommendation, if executed, would have saved the company $30MM.

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Pricing Study for Global Alcohol Beverage Company

Client Issue / Needs

  • Client wanted to develop a price elasticity curve for a brand that would be used to set a market-wide pricing strategy.

Our Solution: In-Market Test & Discrete Quantities Model

  • We conducted a 10 week in-market price test consisting of price changes and promotions and modeled the sales results using a discrete quantities model. The test took place in 45 stores, with another 20 stores serving as the control.
  • We accurately predicted market changes when price was changed. Moreover, using distributor retail sales information, we were able to forecast fiscal year volume at different price points.
  • With the cooperation of client's finance department, we were able to examine and analyze profit effects in all areas of the supply chain.

Activation

  • We ultimately delivered a forecasting tool that allowed the client to make changes in price points yielding a $5MM annual increase in contribution margin.

In-Market Test: Reduction of Price by 3 Pesos Resulted in a Sustainable $5MM Annual Increase in Contribution Margin.

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Corrected ROI Research

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