How market research secured business model diagnostic and revitalized the brand
By Danone Sensory & Behavior Science experts and PRS INVIVO (a BVA Company).
Renovating brand experience
When brand growth is at a standstill or declining, when markets are in turmoil and a price war puts pressure on profitability, every function is required to find solutions. Danone came to PRS INVIVO with this business challenge: to check with market research what were value risk and opportunities from a consumer perspective to improve business.
Behavioural economics methrics and qualitative research
This research consisted of four key steps, each separated by workshop sessions involving the brand team and all other Danone functional experts associated with the project. The first step was a desk and academic review. In this phase the agency presented to the team relevant variables to define value and how this could be improved using behavioural economics.
Then, a qualitative exploration followed, during which the research explored all value dimensions of mix (functional and emotional attributes) to see how they could be measured from simple observations (visibility, purchase), or questions.
In the third phase, a quantitative measure, after a pilot, the agency designed a collection method in a lifelike context across touchpoints with the brand at critical moments of truth. Each tested brand had a 300–400 people sample of users observed and questioned.
To identify the contribution of each functional block to overall value an explicative model was designed, calculating individual value on one side (variable to explain), and each block value on the other (latent variable).
Increased volume growth, costs saving and new brand
The first research results (2 local brands audited, n=400 x 2 ) delivered beyond expectations. The very first leading brand audited proved to build value experienced around one specific product characteristic: distinctively pleasurable texture. Unexpectedly, the health dimensions formerly claimed as important for consumer’s appeared to build low value (perceived as generic). Implementation resulted in a +10% volume growth.
Value analysis revealed that this brand also shared very close value drivers with a sister-brand. Aligning products on one single yoghourt formula base, later differentiated via fruit preparation for the sister brand, generated recurring cost savings for both brands. Part of these savings could be re-invested to regain uniqueness vs. private label via structural packaging change. The new packaging supported with advertising generated a new period of double-digit growth for the brand.