A global CPG manufacturer was considering launching a new line of either chilled or non-chilled fruit and vegetable spreads. It commissioned Veylinx to determine which concept had the greatest in-market potential and the optimal retail price. Veylinx used its auction-based methodology to measure demand for both concepts versus a benchmark and a key competitor.
Using the Veylinx platform, study participants were screened for demographics and shopping behavior. Next, they viewed one of four products (chilled, non-chilled, benchmark, or competitor) and placed a bid with their own money to purchase it if they were interested. Finally, they completed a short survey to measure their motivations and attitudes.
The study found that the non-chilled version drove the most demand, performing favorably against the benchmark and competitor. Veylinx recommended launching the product with a suggested retail price of €2.59 and a promotional price of €1.99. (The research revealed demand at €2.59 to be 4.3% and demand at the €1.99 promo price to be 7.7%.)
The manufacturer subsequently launched the non-chilled version of the spread at the price Veylinx recommended. After nine months in the market, an analysis conducted by the manufacturer in collaboration with a major retailer found that a mix of regular and promo pricing yielded a purchase rate of 5.1% among targeted category shoppers. This exceeded the manufacturer’s action standards and validated Veylinx’s pricing recommendation.
Six years later, the spread remains on the shelves and continues to be one of this client’s most successful product launches during the time period. The client designated Veylinx as an approved pricing and concept testing vendor for its global operations and has since commissioned dozens of tests across its entire brand portfolio.
Veylinx does not use a typical survey where consumers tell about their hypothetical choices. Instead, Veylinx predicts how much someone will pay for a product or concept through a proprietary bidding platform using real money. Consumers reveal their true willingness to pay by placing sealed bids on products and then answering follow-up questions about their reasons to buy or not to buy. This approach avoids hypothetical bias inherent in traditional methods and delivers insights that reflect reality with much higher confidence.
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