Situation: A leading building products company desired to increase its category share and build barriers to entry.
Approach: To quantify product attributes under different pricing scenarios, a partial profile conjoint analysis was conducted via a large-scale web survey with homeowners and decking contractors. A series of robust and projectable demand curves were developed for the likely penetration and ramp-up of demand by considering segmentation options within the critical homeowner and installer audiences.
Outcome: The client repositioned its product and price strategy to provide a range of products aimed at higher income property owners to better reflect the price-performance value received. The new product line grew at over 50% per year in the first two years and accounted for over 40% of the company’s net profits.