Optimizing staged product line offerings to increase profitability

Business Issue

A manufacturer of infant nutritional products was looking to optimize its staged product line to increase penetration and profitable sales. In order to drive informed business decisions, it needed to understand the impact of changing price points and SKUs on profitability and purchase volume across its entire line of products.

What We Did

We developed a Discrete Choice Model (DCM) exercise with competitive shelf-set scenarios that evaluated current and potential products based on size, stage and price points across the product line and competitive brands. We conducted 1,100 interviews with first-time moms who had a child within the target age range. Our world-class Marketing & Data Sciences team developed an interactive simulator tool to estimate total revenue and unit sales based on tested price points.

Result

Escalent’s DCM simulator enabled our client to evaluate potential product line changes as the internal iterations and revisions required. Our Consumer & Retail experts translated the output of this research into a clear, concise strategic plan for the product line as well as the brand moving forward.

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