Dairy Spreads - Pricing Research

The Brief

The client was seeking to measure the impact of launching 2 new spread concepts in the Australian dairy spreads market. The research was undertaken to inform the client as to (a) the volume each concept would attract if launched, and (b) the extent to which these new concepts would cannibalise sales from the client’s current portfolio.

The Approach

Online survey of n=1,000 spreads category consumers, using volumetric choice modelling to predict the impact on demand in the spreads category if the concepts were launched. Other features also included were price, discount pricing and the level of marketing information provided to consumers.

The Result

The research showed that the concepts resonated with consumers and would attract significant sales if they were launched. It also showed that one concept had a high level of cannibalization of a specific brand currently in the client’s portfolio. This showed that this specific concept would work best as a replacement product, rather than working in harmony with the current portfolio. The client is launching one product but not the other.