A fresh look at pricing.
In 2008, Procter & Gamble implemented
price increases across its range of
US laundry detergents (including Tide,
Cheer, Gain and Era). Unfortunately,
the sluggish economy meant that
consumers started experimenting with
lower-cost competitors.
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Although P&G's brand equity remained high, things didn't look quite so bright for the bottom line. A comprehensive pricing strategy was needed.
This painstaking process required an experimental research design, covering 115 product variants over several retail channels. More than 8,000 respondents were presented with a series of virtual shelf images, depicting various combinations of brands, price tags, bottle sizes, and so on.
Their feedback allowed for the development of pricing strategies, and offered clues as to how to battle the budget brands head on. The simulated model not only provided immediate market solutions, it also continues to be used on an ad-hoc basis.
And from Procter & Gamble came the sentence every agency longs to hear: 'We have everything we need to answer our business questions'.
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