Maximizing profits with strategic pricing for an animal health product launch
Case Study
Situation
Our animal health client had developed a new product and was unsure how to price it.
Overarching Challenge
Current competitors in the market were priced at $1 per dose, and the client had an ongoing internal discussion if the new product should be launched at a price of $2 per dose, or if $3 would be achievable.
Cost of not finding a solution
Half of the internal team voted for $2 and the other half for $3 per dose. They were unable to find a compromise. Of course, a 50% higher price would have had a huge impact on the profit of the product. On the other hand, too high a price could result in lower sales.
Solution
The client decided to run a customized market research project, and both groups agreed they would go with the recommended price based on the findings. Kynetec ran a two-stage survey, starting with in-depth qualitative interviews followed by a quantitative survey including choice-based conjoint where veterinarians were presented with different scenarios.
Conclusion
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