Background

Venice Body, a renowned brand in the skincare market, sought assistance from Aybee to boost sales by optimizing the pricing strategy of their best-seller product, “Self-Tan Drops.”

The primary objective was to identify the optimal price point among three options: the current price of 35.99€, a lower price of 24.99€, and an intermediate price of 32.99€. Additionally,Venice Body aimed to enhance the perceived value and competitive edge of their product against top competitors.

Übrigens: Alles rund um Marktforschung auf einen Blick gibt es in unserem Marktforschung ABC

Business Questions

1. Should Venice Body decrease the price from 35.99€ to 24.99€ or 32.99€
2. How can Venice Body improve their product to increase sales?
3. How does Venice Body’s product compare to the main competitors?

Methodology

Aybee did a pricing test with three prices: 35.99€, 24.99€, and 32.99€. This test was done using a monadic method, meaning each person only saw one price to keep it fair. Here’s how it worked:

• 600 people took part, with 200 people seeing each price.
• Each person was shown just one price to avoid any bias.
• This helped us see how different prices affect what people decide to buy.

By using this method, we got clear results about which price people liked best.

Results

The analysis revealed that maintaining the price at 35.99€ generated the highest revenue.Lowering the price did not lead to increased sales volume sufficient to compensate for the lower price, indicating that consumers valued the product’s quality at the higher price point.

Detailed Insights and Recommendations

From the test results, it became evident that a price reduction was not the optimal strategy.Instead, the focus should be on reinforcing the product’s superiority to justify its premium pricing. Here are the detailed insights and recommendations:

1. Product Superiority - Consumers value the quality of Venice Body’s “Hyaluronic Self-Tan Drops,” noting its low margin of side effects, premium packaging, key benefits, and ease of integration with daily skincare routines. The product’s unique formulation with hyaluronic acid and its dual benefits of self-tanning and anti-aging make it stand out in the market.
2. Marketing Communication - Emphasizing the anti-aging benefits and hyaluronic acid content in marketing materials can further enhance perceived value. Highlighting these aspects in the primary and secondary images can effectively communicate the product’s superiority.
3. Visual Strategy - Venice Body has already initiated a change by updating the primary image to emphasize the anti-aging effect using a magnifying effect on the packaging. This strategy should be extended to include redesigned secondary images to showcase the ease of mixing the product with daily skincare routines and to highlight the product’s key benefits.
4. Competitive Positioning - To strengthen competitive positioning, Venice Body can draw inspiration from competitors like Asam and Garnier, who effectively communicate product benefits through visual strategies. Through our test environment, we know the drivers and barriers for each competitive product. Weal ways know why consumers buy brand A, B, or C. Using this knowledge, Venice Body can refine their messaging and marketing strategies to better compete in the market.

ROI Case for Venice Body

Background

In the first week of May, Venice Body collaborated with Aybee to conduct a pricing A/B/C test and implement recommended changes to their product’s primary and secondary images. The aim was to optimize the pricing strategy and enhance the perceived value of their best-selling “Hyaluronic Self-Tan Drops.” This case study evaluates the return on investment (ROI) resulting from these interventions.

Investment and Costs

• Total cost: 3.000€

Revenue Analysis

• Revenue in March & April (Before the test): 52,252€
• Revenue in June & July (After the test): 67,400€

The implementation of the recommended changes resulted in an increase of 15,148€ in revenue over the two months following the changes.

By investing 3.000€ in a pricing test and implementing strategic changes to their product images, Venice Body achieved a significant increase in revenue, resulting in an ROI of 405%within 2 months. This clearly demonstrates the value of the test and the effectiveness of Aybee’s recommendations in driving sales and enhancing the product’s market performance.

The success of this case study highlights the importance of continuous optimization and strategic marketing in achieving business goals. Venice Body’s collaboration with Aybee notonly optimized their pricing strategy but also provided valuable insights into consumer behavior and market positioning. This approach can serve as a blueprint for other companies looking to enhance their market performance and achieve high returns on investment.

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