Price research provides insights not only into the optimal price but also into other aspects such as:
Understanding consumer behavior: Price research provides insights into consumer behavior, such as their preference for a specific price level, their willingness to purchase, and their sensitivity to price changes.
Competitive advantage: Price research allows you to gain insights to achieve a competitive advantage. A price change can make consumers choose your product over the competition.
Exploring new markets: Price research also offers the opportunity to explore new markets for your product and identify new target audiences. This helps determine whether you can develop or adapt your products for a new target group.
Increasing market share: Price research allows you to validate a new pricing strategy, which can contribute to increasing your market share
In a Price Validation Assessment, we place your product with price adjustments on the desired store shelves at a certain number of retailers. This research typically lasts for 7 weeks. Our market researchers visit the test stores on a weekly basis to collect sales figures, including those of competing products. After 7 weeks, we validate the hypotheses and provide additional advice.
A great practical example of this is the research conducted for Van Delft Chocolates & Bakery. We had the opportunity to test different price points for 4 concepts. Read here about the experience of Mark de Vos (International Sales Manager at Van Delft).
We got useful insights into the pricing and base rotation of our innovations.
What makes it even more valuable, is that we also got insight into our performance versus the competitors’ performance.
Best of all, one of our innovations will soon appear on the shelf!
FrieslandCampina | The Netherlands