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A beverage brand had recently acquired a brand that had only been around for a few years – one they previously had a strategic partnership with. Being a newly acquired brand, there was a strong desire within the organization to innovate with this brand – in particular, to extend the flavor/variety profile. However, before doing any innovation work against the brand, they knew they needed to talk to consumers first – to identify if/where there were opportunities.

The research team developed an online survey with a discrete choice exercise and TURF analysis to determine if/where there were opportunities.
 

Problem

A beverage brand wanted to determine where there may be an opportunity to grow a newly acquired brand even further; however, little was known regarding what consumers thought of the current offerings. Research needed to tell them not only which flavors they might be able to pursue, but also if they should change/alter the specific product variety in their offerings – this resulted in many combinations of new flavors/varieties to test – all in the context of the existing product line.

On top of wanting to know which combinations of flavors/varieties would draw the most interest, there was also a desire to understand the incrementality of new options to the existing line – in particular, how much extending the line might grow consumer reach.

Result

The research showed that the existing line was very strong – and that there wasn’t much incremental reach beyond what the brand was currently offering, validating that the brand they acquired was very strong.  The research also validated that the label strategy on pack was sound, in terms of which variables were most important to highlight. However, the research went beyond that…

  • While the existing offerings were strong, it showed a need to increase awareness of the brand to grow the customer base. Once they became aware, most of the brand’s target was interested in purchasing at least one of the existing products in the line.
  • Given the desire to innovate and expand, the results also identified which combinations of flavors/varieties showed the most potential – even if they wouldn’t increase reach, they could still have the potential to increase volume/breadth. On the flip side, the research also detected an existing product that could be eliminated if desired, given low-interest levels overall, as well as consumers’ propensity to choose another product in the line if that one was not an option.

While our report summarized these findings, our client was able to take that analysis and dig into various scenarios further within an Excel-based simulator. And, detailed TURF results enabled them to see how consumer reach might change with various combinations of products offered.
 

Solution

An online survey with a discrete choice exercise was employed to determine which variables were most important in product selection, as well as which combinations of products were optimal for the line.
 
The sample was comprised of target consumers – including both those who were more engaged with the category, as well as those who were not engaged with the category but were still interested in/open to the product proposition. Respondents each evaluated several screens that included different combinations of flavors/varieties for this product, and on each screen, they either selected one of the beverage options, or they could say they weren’t interested in any.

Analysis of the data included:

  • Determining which variables most impact interest in a beverage option
  • Identifying the optimal combinations of flavors/varieties to offer – including how many to offer – to optimize reach (including whether the line could/should be reduced)
  • Identifying which options beyond the existing line showed the most potential
  • Assessing how altering a flavor or variety will impact interest in a beverage option

Our client was also provided with a robust Excel-based simulator tool that allowed them to assess interest in any number of flavors/varieties that they could potentially offer. This was instrumental for our client as they worked further to innovate the product line.
 

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