Choice Based Conjoint

The client

A global engine oil client, in particular their three brands across Europe.

Objectives

An engine oil client wanted to know whether there was a possibility to harmonise pack sizes across their three brands in Europe. Some countries had 4 litre packs, some had 5 litre and for the ‘top-up’ size some had 1 litre, and some had 2 litre packs. Value perception especially for the larger SKUs was key as the 4 litre and 5 litre packs can look similar in size.

The research solution

A bespoke questionnaire incorporating two choice based conjoint exercises, depending on whether consumers bought oil for topping up and/or replacement. Conducted in both western and eastern Europe, the questionnaire also covered key considerations such as volume of oil required by their car, which can differ in less affluent markets where smaller cars are more common. A Market Share forecast simulator was used to model the impact on share of changing the client’s pack size whilst keeping the price per litre consistent.

Outcome

The research demonstrated that there were certain significant price thresholds, particularly for the client’s premium brand, that would be highly detrimental to exceed. It would have been possible to harmonise pack sizes across some of their brands, but this did not go far enough to warrant the investment required to proceed with the initiative. Although not the desired commercial outcome, the client was delighted with the clear direction the research gave in informing their business decision.