Will a lower selling price lead to higher sales?

Small drinks with big dreams. innocent drinks hopes to make the world a better and healthier place. The brand wants to sell more smoothies and juices to make more of an impact. But how does it make this happen? Is it a smart idea to lower the price of the drinks? The brand doesn't want to make a decision based on a gut feeling, so Blauw did a price study. This allowed innocent drinks to make an informed decision.

Challenge

How does innocent drinks aim to make the world a better and healthier place? Among other things, it makes its smoothies and juices from natural ingredients from farmers who treat people and the planet well. In addition, the brand gives 10 percent of its profits to charity. And the more profit it makes, the more innocent drinks it can give away, thus contributing to a better world. Reason enough to increase its sales!

Vision

Price survey

To give innocent drinks the right insights, we investigated how much profit the current selling price yields, and of course how much profit a lower price yields. We did this through an online questionnaire in which we presented different shelves of products to a group of Dutch consumers.

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Solution

During the questionnaire, participants were shown a shelf of products on screen each time, including prices. Each shelf included not only various flavors of innocent drinks, but also various smoothies and fruit juices from its competitors. Participants were asked at each shelf which product they would choose. Participants always saw the same products, only the product positions on the shelf and the product prices varied.

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Result

Which market price will lead to the most sales?

All results were compared. How many participants chose innocent drinks compared to its competitors? And how many consumers chose innocent drinks' current prices compared to lower prices? This is how we discovered where the trade-off points lie for the brand. We were then able to calculate profits for both scenarios. With this, the brand quickly discovered which market price is most likely to lead to the most sales.

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"The study provided a lot of guidance, and provided the basis for further calculations and making a good business case."