Objective
A major packaged foods company’s efforts to evaluate pricing strategies for its frozen breakfast products at a large national retailer.
Method
The research team utilized a monadic virtual shelf test to evaluate the impact of various pricing strategies on the brand’s frozen breakfast products. The study involved a sample of 2,400 primary grocery shoppers, who were exposed to 1 of 6 different pricing cells that included both everyday and promotional pricing formats.
Results
Our research suggested the frozen breakfast brand can adopt a slightly higher everyday price of $2.59 without negatively impacting sales or brand perception. The brand should also leverage a 3/$7 promotional strategy to effectively increase unit sales while protecting revenue.
KEY TAKEAWAYS
- In the 12 months following implementation our clients’ frozen breakfast brand grew 8.16%. The investment in research was less than $75,000.
- Key findings and recommendations suggests avoiding overly aggressive discounts is crucial to maintain brand value and category dollar sales.
Thought leadership, whitepapers and case studies for your reference
