Consumer Goods

Optimal Pricing for Oil Brand using Advanced Analytics

Determining optimal pricing strategies using Gabor-Granger and Van Westendorp analysis

The Challenge

A prominent cooking oil brand was preparing to launch a premium variant targeted at health-conscious

consumers. With growing competition in the market, they needed to:

Determine optimal pricing strategies

Validate the product's value perception

Balance profitability with market penetration

Understand consumer price sensitivity

Gauge willingness to pay across different segments

Our Solution

We implemented a comprehensive pricing analysis approach:

1. Concept Testing and Data Collection

Conducted consumer surveys for product concept appeal

Segmented target groups by demographics and behavior

Gathered detailed pricing perception data

2. Dual Pricing Analysis Methodology

Applied Gabor-Granger analysis for purchase likelihood

Conducted Van Westendorp Price Sensitivity Meter (PSM)

Identified acceptable price ranges

Determined points of marginal cheapness and expensiveness

3. Analysis and Optimization

Revealed price elasticity curves

Identified revenue-maximizing price points

Analyzed value perception across segments

Developed promotional pricing strategies

The Results

The analysis yielded powerful insights and results:

Defined optimal price range balancing consumer interest and margins

Enhanced product positioning in the premium segment

Identified sweet spot where perceived value matched affordability

Developed effective launch pricing strategy

Created promotional pricing framework for market penetration

The combination of Gabor-Granger and Van Westendorp analyses enabled the client to:

Launch confidently with market-aligned pricing

Maximize profitability while ensuring market acceptance

Establish strong value perception in the premium segment

Let's talk about your project!

Whether you're looking to understand your market, optimize your strategy, or validate new opportunities, we're here to help transform your business questions into actionable insights. Let's start with a conversation about your goals.

What you can expect:

Customized research approach based on your objectives

Expert guidance on methodology and sampling strategy

Clear timeline and deliverables roadmap