InContext's virtual research uncovered valuable insights that the client's product would perform better at a steeper price discount when on a messy, out-of-stock shelf.

 

Background

POGOutofStock-Thumbnail.png One of our CPG food clients was evaluating a new product, to understand how it would perform in-store at different price points. They planned to launch it in the grocery channel, but needed to understand better how it would perform beforehand to mitigate risk; they wanted to maximize sales for the brand and category, but were unsure which price point to use, and did not want to cannibalize their own share. They also wanted to see how shopped/messy shelves would impact shopability and purchasing. Working with the client’s Brand team, InContext Solutions developed a customized virtual store research study designed to evaluateprice point in addition to the impact of the shopped-down shelf.   

Objectives

  •       Measure perceptions and sales of the new product with Premium/Non-Premium food shoppers.

  •       Quantify the time taken for shoppers to locate the new product on the shelf.

  •       Determine if messiness of the shelf significantly impacts shopability and purchase behavior.

  •       See how overall category and brand sales are affected by the introduction of the new product.

Key Findings

This study helped our client to determine how their product would perform in-store on both clean and messy shelves, and at which price point to proceed. InContext discovered that the new product would perform better when on a messy shelf with the deeper discount . We also learned this price would increase unit sales vs. the alternatives tested, whether the shelf had been shopped or was completely stocked. However, shoppers were much more likely to purchase the new product if the shelf was shopped compared than if it was fully stocked.