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Concept Testing
Category: Automotive Aftermarket
Methods: Concept Testing, Purchase Motivation, Brand
Positioning
Summary
A leading producer and distributor of aftermarket fluids and additives was
considering a reformulation of its top-selling, trademarked product. This was
prompted by a national retailer that was refusing to carry an existing, derivative
product because it did not feel the product fit in well in the retailers’
existing product categories.
Strategic Issues
The target market was a fast-growing one and the client did not want to miss
the significant potential it represented for incremental sales growth. Competitive
brands were already beginning to occupy space on retailers’ shelves and
each day of delay meant missed sales opportunities. The decision the client
needed to make was whether to relabel and slightly reformulate its current product,
or keep the original formulation as is and create an all-new sister product
to meet the specific needs of the new market segment and the client’s
retail partners. Either solution was deemed acceptable to the retailer. It was
important, though, to choose the solution that resulted in the largest net sales
increase, as well as the best opportunity for enhancing the client’s overall
brand appeal. It was even more critical to avoid damaging brand heritage in
an attempt to enlarge the buyer base. In other words, the client did not want
to make a move that would result in alienating its traditional customers.
Research Objectives
The primary objective was to measure consumer acceptance and purchase consideration
for the two product concept alternatives. In addition, the client needed to:
- Understand what the original brand represented in the minds of consumers
and their reasons for buying it, as well as the needs of the new segment of
buyers.
- Quantify the various applications of the product concepts by all likely
buyers and the volume of additive used per application.
- Determine the appeal of each, and head-to-head preference among, current
and potential new customers, and estimate the volume of units sold for each
of the two alternatives tested.
Research Design and Methods
Two concepts were tested in the survey: a reformulated, relabeled version of
the original product and an all-new product formulated to specifically address
the needs of the target market. The research was conducted online among a national
sample of American Consumer Opinion® Online
panel members.
A total of 600 respondents participated in the survey, including analyzable
samples of current customers, as well as targeted new customers. The participants
were divided into three cells of 200 respondents each.
- Cell 1 consisted of current customers. They saw both the reformulated,
relabeled version of the product concept and the all-new product concept.
The order in which the concepts were presented to each respondent was randomized
to reduce the effects of order bias.
- Cell 2 consisted of current customers. They saw only the all-new product
concept.
- Cell 3 consisted of category users. They saw both the reformulated, relabeled
version of the product concept and the all-new product concept. The order
in which the concepts were presented to each respondent was randomized.
The concept testing questionnaire included purchase motivation, brand positioning,
and current product usage.
Results
The findings indicated that both concepts had the potential for increasing
sales. It was also clear that the new claim made on the label was inconsistent
with the original brand promise and served to confuse some existing buyers.
Going with the brand extension strategy of the all-new product concept avoided
the danger of diluting the existing brand and resulted in the greatest likelihood
of generating incremental business. The client ultimately chose to go with the
brand extension, despite the increased manufacturing costs involved, as this
was proved by the research to be in the best interests of the brand and its
customers.
Copyright © 2011 by Decision Analyst, Inc.
This case study may not be copied, published, or used in any way without written
permission of Decision Analyst.
Automotive Marketing Research
If you would like more information on Automotive Research, please contact
Allan Vivian (avivian@decisionanalyst.com),
Vice President and Director of Automotive Research or Bonnie Kenoly
(bkenoly@decisionanalyst.com),
Executive Vice President, Client Services at 1-800-ANALYSIS (262-5974)
or 1-817-640-6166.
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