Activate: Snacks
To investigate the price elasticity of a snack product, an online survey was conducted, which incorporated the use of an adaptive Brand Price Trade Off exercise.
Approach
Survey participants are presented with a salient competitive set and asked to select which they'd buy at a number of different price points. This provides valuable information with regards to switching points for different brands and, combined with direct priced purchase interest questions, enabled a full understanding of the risks associated with a price point deemed to be too high in a very price sensitive category.
Recommendation
Our research indicated a lack of brand loyalty within the category overall, and a over sensitivity to price changes as a result. It would therefore be vital for our client to price their products in line with competitors to avoid losing sales.
Client action
This information was used by our client to inform optimal pack sizes and price points across a range of brands.
Outcome
Our client has been able to change the pack size of their major brands, using price points that are motivating to shoppers within this price sensitive category.