Optimal container sizes

01.

Background

In order to expand its product line, a manufacturer wants to introduce different bottle sizes for a certain brand in addition to the standard size.

02.

Questions

What effect does the introduction of different bottle sizes (0.5l, 0.7l and 2.5l) on the shelf have on sales of the standard 1l size?

03.

Approach

Controlled introduction of different container sizes over 6 months in a real-life store test.

04.

Results

 

  • The inclusion of new container sizes leads to higher turnover for the entire brand.
  • Regression analysis shows that none of the test sizes cannibalised the standard 1l size.
  • The 0.5l bottle size had the highest average activation rate (over 20%) for the standard 1l size, which is due to the decoy effect (the introduction of a less attractive alternative - 0.5l/€22.99 - increases the desire for the existing alternative - 1l /€28.99).

In der Ausgabe 04/2019 der planung&analyse erläutern Andreas Luppold, Managing Partner Yagora, und Sebastian Oetzel, wissenschaftlicher Beirat Yagora, den Decoy Effekt ausführlich.

 

 

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