Baby Bottle Manufacturer

"Working with Affinnova, we gained tremendous category, brand, consumer and pricing insights to help us shape our overall strategy with confidence. We learned how moms segment the category by brands and how they view products in terms of alternatives such as single count vs. multi-pack. We also learned where there were some sources of confusion overall at the shelf. Using Affinnova’s desktop simulator we have been able to do our own ongoing analysis on behalf of our retailer partners as well, and this has helped us to further refine our product."
- Senior Category Development Manager
Baby Bottle Manufacturer

Headquarters: Western Europe
Target Market: USA
Pricing Sensitivity: BPA-Free Baby Bottle Line

Understanding Pricing Trade-Offs

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In response to the BPA-free movement, one of the top-six global manufacturers of baby bottles relaunched and segmented a line of bottles that included a BPA-free offering, as well as an offering with a newer, more expensive material. The marketing team was interested in understanding moms’ price sensitivity and trade off decisions across their line at the retail shelf.

CHALLENGE

In 2009, the top six manufacturers of baby bottles went BPA-free in the US and set a new standard for baby bottles worldwide. The following year, one of these market leaders was exploring a relaunch of its bottle line, with not only a new BPA-free standard bottle but also a higher-end bottle, to give moms more of a choice in feeding options. This higher-quality, longer-lasting bottle is also more expensive to produce. The marketing team sought to optimize its pricing strategy and regain market share by understanding price sensitivity and how consumers make trade-off decisions in this category. Additionally, the team wondered if moms understood the differences between the two bottles and thus, the reason for the price difference.

SOLUTION

Affinnova designed a custom solution using its Price Advantage tool, which enabled the team to test a range of prices across 22 SKUs from both the client and competitors. A variety of realistic pricing scenarios with price increases and price reductions were applied across products in the test, and new moms were asked to select the product they would most likely purchase as a first and second choice.

SUCCESS

As a result of Affinnova’s research, the marketing team was able to better understand the tradeoffs that moms were making at the retail shelf. It enabled them to view the line as a whole, identify points of strength and weakness in the brand’s offerings and develop a more optimized portfolio and pricing strategy.