Case Study: Agency
Technology Industry Product Research Case Study
The Client
A global electronics company, one of the world’s largest manufacturers of computer and information related equipment.
The Agency Partner
[Partnership with SDC]
A management consulting company offering strategic marketing services that specializes in providing high-quality and cost-effective solutions for planning and research problems.
The Business Issue
The client’s objective was to determine the optimal product suite that maximized product revenue summed over suite and point products.
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What optimal combination of ingredients should be included from a maximum number of ingredients?
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How to maximize revenue on the optimal suite price?
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To also assess the impact of the optimal suite on the given point products
All aspects of the product research study was managed by SDC, initiating with the project outline and objectives, and followed by design, vendor selection, questionnaire development and programming, testing, fielding, and model inputs. All the key ingredients for the product line up were carefully selected with extensive research and teamwork with the client team. The specified customization of the study required significant oversight with the vendors for programming and delivery. SDC engaged fully with the analysis which included a detailed custom-built Excel simulator, a presentation on demand curve analysis, and a report on significance tests with crosstabs.
The Result
By adapting the 'simultaneous multi-attribute level trade-off method' as the key surveying tool and designing respondent specific ingredient prices, the study was able to ascertain the willingness to pay by the consumer for a given product. The results of the survey drove the inputs for the demand curves, to map those who are willing to pay versus cost. The product price values were plugged into an aggregate market model simulator to build the best case scenarios for the optimal suite. The customized excel-based simulator helped the client evaluate the recommended optimized scenarios as well as build out new scenarios using the flexibility provided by the simulation. The outcome of the study informed the client's product build team for the release of their new peripheral in North and South America.
How Did SDC Consulting Support This Research Study?