Godiva Market Research Case Study

Background

The travel retail market for premium chocolate brands like Godiva is a lucrative and growing one. However, at the time this study was carried out, the Godiva brand was being crowded by many other brands selling at lower prices.

The purpose of the study was to develop successful new products for the segments of the market that Godiva did not serve well.

Our Approach

We conceptualized the problem as a problem of product development based on a solid understanding of the market structure. First, we needed to develop an understanding of market structure.  Then, within that structure we needed to identify the product ideas that fit best for the Godiva brand.

The RIGHT Answer

The structure of the market for chocolates in travel retail is one where a product does not serve just one purpose, but rather the same product can serve multiple purposes from enabling buyers to bring back memories of their trips to give to other people to showing appreciation for the people who assisted the traveller in their absence. Yet, in this market, Godiva’s product portfolio contains many products that have very narrow purposes – defined by the situations where you would not buy them more so than by the situations where you would.

Within this structure our recommendations were for products carrying the premium imagery of Godiva but with greater versatility – appropriate and appealing for a variety of different giving and consumption situations.

Belkin Market Research Case Study

 

Background

Belkin had developed new packaging for its line of wireless routers. This packaging was intended to distinguish Belkin from its key competitors by demystifying the purchase of a wireless router.  It was based on the notion that consumers do not understand most of features and benefits of a router and would respond positively to a brand that explained things in ways they could understand.

Our goal was to assess the likely impact of this packaging redesign on consumers’ choices at retail.

Our Approach

We initially approached this problem as a product development problem – to estimate purchase intent for the new packaging relative to the existing packaging and competitive options.

After the results of the first study indicated that the new packaging would actually perform worse than the existing packaging and far worse than competitive packaging, the task then became one of understanding why, which led us back to the basic positioning assumption on which the new packaging was based.

The RIGHT Answer

Unfortunately, while true, this notion about demystifying packaging ignored what consumers were looking for in a router, signal strength and reliability, as well as how they judged they were getting those benefits – from how inscrutable the packaging was!

So, by simplifying the packaging and using language that regular consumers could understand, Belkin would be losing ground in its positioning relative to competitors – being seen as less reliable with a weaker signal than competitors.

Our recommendation was that, if simplifying the packaging was a worthwhile goal it could not come at the expense of the key price of entry elements that all wireless routers must demonstrate.

The moral of this story is to ignore positioning at your own peril.

DFS Rebranding & Brand Architecture Case Study

Background

DFS is the world’s largest retailer of duty free goods, headquartered in Hong Kong.

It is the key member of the specialty retailing division of LVMH

We have been working with DFS for more than 25 years.

DFS has two distinct arms to the business, that until recently, were branded in the same way:

• Downtown retail stores focused on luxury goods
• Airport duty free stores, selling liquor, beauty products, etc.

Operating both of these types of stores under the same brand name means that consumers don’t differentiate the two. So, even though the downtown retail stores are much more focused on luxury goods, they don’t get credit for it.

A secondary problem is a lack of differentiation between DFS and other duty free stores. Consumers think they are all the same and run by the government, so there is no benefit to trying to promote the DFS brand.

Our Approach

These issues can be resolved without the aid of research but there are some critical inputs from consumers that can help produce a better result:

• Knowing what value there is the current brand. What does it stand for and with whom?
• Understanding the appeal of that the downtown luxury stores and their relation to the airport stores.

The RIGHT ANSWER

The right answer involved the creation of a new brand architecture with sub-brands underneath – one for the airport duty free retail stores and a separate brand for the downtown luxury goods stores.  Both under the recognizable brand name of DFS to capture the 50 year history of the brand

Ralph Lauren Market Research Case Study

 

Background

Ralph Lauren was in the process of changing the focus of their operations in Asia and expanding:

• Going from a wholesale model to a retail one
• And expanding company owned stores
• China was a high priority, but not the only one

Having come from a wholesale model, the company was deficient in its understanding of consumers in China.

Our responsibility was to help them determine how to position the brand in China:

• Who to target?
• What should they say about the brand?

Our Approach

We employ a process for determining positioning that guarantees that it is optimal. We quantitatively evaluate many, many different ways of positioning a brand against explicit, profit-related criteria arrived at in conjunction with the brand owner.

The RIGHT Answer

Unlike consumers in other countries who have previous generations to look to as role models, Chinese consumers do not have this when it comes to luxury goods. It is the younger generations in China who are buying luxury goods for the first time, and they are making it up as they go.  Having iconic individuals like Ralph Lauren himself to show how to live a luxury lifestyle is a powerful way to connect with the brand.