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Unlocking Market Success: Price Positioning for a Multinational Consumer Goods Company

In the fast-paced world of consumer goods, understanding how to position your brands effectively against competitors is paramount. A multinational consumer goods company faced precisely this challenge and sought a solution that would not only determine the ideal price positioning for their brands but also shed light on revenue, profitability, and market share dynamics under varying price scenarios. Furthermore, they aimed to gain insights into the sources of volume from competitor brands during price changes. This case study explores how we addressed these challenges and delivered meaningful results through the implementation of a Choice-Based Conjoint Analysis (CBC) simulator.

Client’s Challenge:

Our client, a well-known multinational consumer goods company, operates in several markets worldwide. They needed to tackle the following key challenges:

  • Effective Price Positioning: Determine how to strategically position their brands against competitors in diverse markets.
  • Performance Under Different Prices: Understand how changes in price levels would impact revenue, profitability, and market share for their brands.
  • Source of Volume Analysis: Identify which competitor brands contribute to changes in market volume during price adjustments.

Our Solution:

To address these challenges comprehensively, we implemented a choice based conjoint anaylsis (CBC) survey combined with Van Westendorp Price Sensitivity Meter (PSM):

  • Choice-Based Conjoint Analysis (CBC): We leveraged CBC, a robust market research technique, to analyze consumer preferences and estimate the relative importance of various attributes, including price, brand, and features.
  • The Van Westendorp Price Sensitivity Meter (PSM) :  We used PSM to determine optimal price levels for the category and  identify the price points at which consumers perceive a product as too expensive or too cheap. The results of PSM helped us to validate conjoint results.
  • Simulator Development: Building upon CBC insights, we created a sophisticated simulator. This tool allowed us to:
    • Determine Price Premium: Quantify the price premium each brand could command, enabling strategic price positioning.
    • Run What-If Scenarios: Explore diverse pricing strategies and their potential outcomes without real-world implementation.
    • Revenue, Profitability, and Market Share Analysis: Assess how different price levels would impact these crucial performance metrics.
    • Source of Volume Analysis: Uncover which competitor brands gained or lost market share during price changes.


Our solution produced remarkable results, empowering our client to make informed decisions:

  •  Ideal Price Positioning: Armed with insights from the simulator, we helped our client to  successfully determine the ideal price positioning for their brands in various markets. They could strategically position their products against competitors, enhancing their market presence.
  • Simulation Tool: The simulator became an invaluable resource for the client. They could now:
    • Predict Share, Revenue, and Profit Impact: The tool enabled them to foresee how price adjustments would affect market dynamics and financial performance, thereby mitigating risks associated with pricing changes.
    • Gain Competitive Insights: Understanding the source of volume changes during price fluctuations provided a competitive edge, helping the client make data-driven decisions.


In the fiercely competitive consumer goods industry, data-driven decisions are the key to success. Our implementation of Choice-Based Conjoint Analysis (CBC) and the development of a powerful simulator not only allowed our client to strategically position their brands but also equipped them with the means to forecast revenue, profitability, and market share under varying price scenarios. Furthermore, the ability to pinpoint the sources of volume changes during price adjustments gave them an unparalleled edge in the market. This case study showcases how robust analytical tools can empower companies to thrive in dynamic market landscapes.

Are you facing similar challenges in your industry? Contact us today to explore how our solutions can help you achieve your strategic goals.