A major flooring manufacturer sought to validate the likely acceptance for a new product among flooring installers and property owners. The conversion rate to achieve target sales levels over a three-year period was critical before making a significant capital investment for this new product family.
Developed elasticity of demand for multiple product attributes for each customer group. Results informed likely demand take rates and pricing bands for the new flooring product. Conducted supplier and channel checks to identify how to best gain traction with current distribution that supported these new products.
The client added assurance of the value offered from these new products and likelihood to meet the target revenue/ margin plan, as well as how to position with distribution for market support. The newly introduced product family resulted in nearly $250 million in added revenue within the company’s time horizon.