Ambient Juice - Pricing Evaluation
Our client was developing a business case to support changing a key feature of their product’s packaging; a change that was hypothesised to deliver greater value to the consumer and hence justify a price increase. Nature’s brief was to determine the impact of the proposed pack functionality on volume and revenue at both current regular and promotional pricing levels, as well as new price points both above and below current. We were also asked to predict the impact on volume of a pack size reduction.
We used an online survey of n=2000 regular category consumers, using volumetric choice modelling to predict the impact of proposed changes on demand.
The research showed that the proposed pack changes were not valued by consumers and that volume and revenue returns did not justify the cost of the change. The research also highlighted the fact that price elasticity of demand would change significantly given the onset of unit pricing.