What is the ideal price for Grolsch Herfstbier 0.0%?
Character is the essence of the Grolsch beer brand. Choosing your own path and doing what you believe in, with attitude. Grolsch follows its own convictions, and is launching as first brewer a alcohol-free autumn beer to mark that fact. But it faced two key questions: what should the price be? And what name should it choose for its new beer? Grolsch called in SPRINT to carry out pricing research and set up a standard questionnaire to find an appealing name.
The market for alcohol-free beer has taken flight in recent years. Grolsch is on a mission to launch the first-ever 0.0% alcohol craft beer onto the market. The beer brand asked SPRINT to carry out a pricing research on their behalf. And also to help it find a great name for its 0.0% seasonal beer.
Study methods: pricing research + concept test
Using quantitative pricing research and a standard concept test, the two questions posed by Grolsch were put to 200 respondents. These respondents were carefully selected to match the target group.
Based onthe Van Westendorp method, the respondents were asked the following questions:
- What price would you consider expensive for this product?
- You indicated that you consider ... expensive; what price would you consider too expensive for this product?
- What price would you consider cheap for the product?
- You indicated that you consider ... cheap; what price would you consider too cheap for the product?
As well as answering the above questions, the respondents were asked why they considered the craft beer to be too cheap or too expensive above or below a certain price. Some consumers, for example, said that the beer would probably not be of good quality if it was below a certain price.
Standard concept test per product
The same respondents were then presented with a standard questionnaire to identify Grolsch’s highest-scoring KPIs and the KPIs which still offered room for improvement. Using our draft questionnaire, we examined the scores for the following product KPIs:
- Personal relevance
- Credibility of the background story
- Identifying characteristics
- Willingness to buy the product
- To what extent the product matches the Grolsch brand
After answering all these questions, the respondents awarded the new craft beer a score. Grolsch received the results. Based on the respondents’ feedback, Grolsch decided whether or not to improve certain aspects of the product and also managed to agree on a good name.
Results of the pricing research
As a result of the price survey, Grolsch received a Van Westendorp graph with the typical four lines showing the price range consumers consider acceptable. By selecting the price at the point where 'too expensive' intersects with 'too cheap', Grolsch was able to identify the optimum pricing point for its new craft beer: the price at which most people would still purchase the craft beer. Using the graph, Grolsch could also easily identify the price that consumers consider too cheap or too expensive.
Based on the pricing research and the questionnaire, Grolsch not only gained a greater insight into the price preferences of its target group, but was also able to determine the optimum price for its new craft beer and select the name for the new product.