The client wanted to understand if packaging, price or product innovation could reinvigorate a major CPG brand in a stagnant category.
The client had worked with a major consultancy on a similar initiative in a different category and was frustrated with the lack of collaboration. They needed a partner that could manage an entire process while allowing the internal team to remain in control of the overall initiative.
How Dig Insights Addressed the Business Challenge
Dig Insights took a multi-phased approach to this engagement.
We started with desk research to understand global packaging trends in the target category and in the broader food and beverage market. We also hit the streets (and shelves!) to identify all of the packaging that exists in the focus category currently.
This foundational learning was used as input to a consumer co-creation session; consumers and the client team worked with current category packaging, packaging from other categories, prompts from the trends discovery and creativity challenges to develop new product and packaging ideas. In a single day, this generated more than 100 unique product and packaging ideas that the client could vet.
Dig Insights worked with a designer to mock up and write up the strongest ideas. These designs were tested in Upsiide, Dig’s innovation screening methodology.
The engagement culminated with a virtual market study. This methodology is a virtual equivalent of a test market. It allows Dig Insights to explore, with a virtual shopping interface, the effect of changes to the product mix, the packaging mix (design, size, functionality) and the pricing mix. It allows us to project the effect of each change on the client’s business, competitive businesses and the total category. The output is reported in volume, revenue and profit: research results that speak the language of business. We could also explore and plan for specific business challenges. For example, when faced with increased production costs, is it better to take price up or to take size down?
The multi-phased approach Dig Insights used in working with the client. Click for a larger image:
The client now has a fact-based plan to move forward with packaging changes, pricing changes and product changes and a clear strategic plan to deal with the inevitable challenges that will emerge in the future.
- Dig Insights can function as a research agency and as a business consultancy that can manage a complete process.
- Virtual market studies provide a fast and cost-efficient option (vs. a test market) to explore changes to the package, price and product mix and to project the effect of those changes on the client’s business, competitive businesses and the total category. This total category perspective is a key input to selling the changes to retail partners.