skimspiration 2012: menu-based-choice modeling | the curse of the curly fries
DESCRIPTION
It can be easy for brands to launch more products, but it is not as easy to decide how to prune a product portfolio. Consider this case study in the hospitality market, where a fast food brand wants to optimize its profitability by changing its menus. Philippe, a young product manager is determined to delist the famous Curly Fries and to introduce the cheaper Easy Fries instead. However, his colleague David has his reasons for wanting to keep them in. Jeroen and Paolo showed us how MBC helps these gentlemen find the optimal solution.TRANSCRIPT
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Paolo Cordella
Jeroen Hardon #SKIMspiration
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The Curse of the Curly Fries
David
Senior Product manager
...back in the 80s…
...back in the 80s…
...back in the 80s…
...back in the 80s…
...back in the 80s…
...and in the 90s…
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...and today…
Philip Junior Product manager
Easy Fries Healthy, Young, Awesome
The battle
David or Philip?
14
The solution
Jennifer Market Researcher at MIKS
15
or
The question
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or
The question
17
The method
MBC Menu Based Conjoint
1$ 3$ 1$ 1.5$
Make your choice
1$ 3$ 1$ 1.5$
Make your choice
1$ 3$ 1$ 1.5$
Make your choice
1$ 3$ 1$ 1.5$ 1.5$
Make your choice
1$ 3$ 1$ 1.5$ 1.5$
Make your choice
1$ 3$ 1$ 1.5$ 1.5$
Make your choice
1$ 3$ 1.5$ 1.5$
Make your choice
Insight #1 # People choose Tender Grill with Curly Fries.
Insight #1 # If Donald King delists Curly Fries….
Insight #1 # …people will buy less Tender grill
Insight #2
# Curly Fries Lovers …
Insight #2
# …if Donald King delists Curly Fries
Insight #2
# …they don’t come anymore to Donald King
So what?
So what?
# Keep Curly Fries at higher price
What about me?
Can we still include Easy Fries?
Insight #3
# New segment, the “Green” families
Insight #3
# New segment, the “Green” families
Insight #4
# No cannibalization effects
Insight #4
# Two different segments
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or
So what?
40
or
So what?
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and
So what?
So what?
So what?
So what?
#SKIMspiration
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Paolo Cordella | Research Consultant
31 10 282 3568
Jeroen Hardon | Senior Research Consultant
+31 10 282 3503
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Nika Jazaei