When Results Surprise You

Recently, one of our clients was surprised- in a good way- as we shared the results of their in-market test.

They wanted to evaluate the impact of moving their current brand from a highly penetrated category where it was a small fish in a big pond, to a different category and aisle where it could be a big fish in a small pond.

Same product, same flavors, new category, and they upsized and raised the retail price.

The question was, how far could they take pricing?

In one cell we tested the “low price” and the other cell, the “high price” products which were priced significantly higher than the closest competitor (honestly, there were no true competitors who were just like them- remember big fish, small pond)

The early results showed the higher priced product was leading. Then, we took another price increase in one of the cells to see what would happen. Guess what? The higher, higher price outperformed the original high price point. Both price points were now above a retail price threshold they never thought could be crossed, and sure enough, our test proved it was not only possible but plausible.

Our client had thought a higher price might work but were skeptical. In their former category, the promotions were frequent, and discounts were deep. By moving into a less volatile category they were able to benefit from their unique positioning while bringing incremental dollars into the category, which was a happy surprise for the retailer too.

The client was so excited to see their results (finance was ecstatic) and now had the confidence that the results would be hold true if they launched nationally.

When clients are surprised by the results it is typically for two reason 1) The results varied greatly from what they heard in focus groups 2) and it challenged their original hypothesis.

Bottom line, testing before you launch and being surprised by the results can be a good thing. It allows you to be daring, take risks and discover a brand-new way of looking at your innovation without all the cost of launching and missing the hidden opportunities.

If you are interested in being surprised and learning more about your product innovation in a fast but predictive way, contact julieb@mission-field.com