Situation: A major roofing product company sought to identify the likely conversion rate for a new product offering among roofing contractors and homeowners and determine whether this would translate into desired sales levels over a two-year period before making a significant capital investment for this new product family.
Approach: Principia developed a program to determine the demand curves for the new roofing product. In a large-scale quantitative study, a MaxDiff scaling methodology was utilized to generate importance or preference scores for multiple attributes among each audience. In addition, supplier and channel checks were conducted to identify how to best gain traction through distribution partners to support the new products.
Outcome: Program results provided the client with a better understanding of the value offered by the new products and likelihood to meet the target plan, as well as who are the target customers and their likeliness to convert. The new product platform improved overall margins by 3% through a lower cost structure and resulted in a 2% market share gain as well.