This white paper examines pricing strategy and methods to determine target customers' willingness to pay (WTP). It examines the role of qualitative research and quantitative research to identify market opportunities and to determine the price point that best matches the WTP. The note uses examples of different consumer products to demonstrate the pricing decision exercise.
From modest beginnings in 2018, selling to a few enthusiasts from her apartment, Madame Berrima quickly built Layla's Delicacies, an exotic Tunisian pastries company, into a thriving mail order business. Her sweets were handmade, customers posted rave reviews, and the New York Times attested to the product line's authenticity. The company invested heavily in product design, packaging, and branding and rode a wave of popularity of artisanal foods, which were enjoying brisk growth in the US. But by 2020, Layla's had fallen short of its goals.
Cesar and Marco Esposito and Francisco Caceres, co-founders of the 14-year-old Chilean-based nutritional supplement company All Nutrition/Nutraline, are seeking to deepen their understanding of customers' behavior and buying patterns. After preliminary discussions with the sales force and in-store interviews with customers, they determined that well designed focus groups targeting sports nutrition customers would be an important first step in helping them to be "more in touch" with customers. This case describes the design, implementation, and analysis of the information gathered from these groups-and asks students to determine what kind of quantitative research would further deepen their understanding of who their customers are, how to segment them, and how to work with each of the segments.
Cesar and Marco Esposito and Francisco Caceres, co-founders of the 14-year-old Chilean-based nutritional supplement company All Nutrition/Nutraline, are seeking to deepen their understanding of customers' behavior and buying patterns. After preliminary discussions with the sales force and in-store interviews with customers, they determined that well designed focus groups targeting sports nutrition customers would be an important first step in helping them to be "more in touch" with customers. This case describes the design, implementation, and analysis of the information gathered from these groups-and asks students to determine what kind of quantitative research would further deepen their understanding of who their customers are, how to segment them, and how to work with each of the segments.
In 2011, Lebanese television station LBCI partnered with Impact BBDO to develop Cheyef Halak, a marketing and social media program that aimed to create meaningful social change in Lebanon. The first campaign, which targeted the chaos of road traffic in Lebanon, captured the imagination of the Lebanese population. But how should the impact of the campaign be measured? And what were the linkages between the traditional advertising venues and the social media that were employed? This case includes videos of the television campaign, excerpts from the social media campaign, and associated tracking data to analyze the success of the campaign from a qualitative and quantitative perspective.