Brief
- To investigate the price point for ready-to-feed formula milk required to encourage current users of powder formula milk to switch to this format.
- To understand the drivers behind choice of formula milk format, and the importance of price as a driving factor.
Approach
A combined qualitative and quantitative approach was used, including:
- 10 depth interviews conducted with mothers of babies aged 0-12 months to understand the drivers behind choice of formula milk and the importance of price as a factor.
- Quantitative research conducted online with 200 mothers of babies aged 0-12 months.
- Brand price trade off research analysis conducted to build a model to predict the likely market share with powder and ready-to-feed milk at different price points.
- Segmentation (cluster) analysis conducted to determine sub-groups sharing similar attitudes towards milk. This was cross-referenced with the trade-off analysis to identify clusters with greater price sensitivity.
Results
Cluster analysis identified 4 groups with shared attitudes and price sensitivity. The results helped develop the pricing strategy for ready-to-feed product.