How to Mix 100+ Product Lines of House Paint
Business Challenge
Streamline paint portfolio with features important to contractors
A paint manufacturer wanted to reduce the number of SKUs while ensuring offerings that would appeal to all segments of the paint contractor market. A conjoint approach was proposed, but there were a lot of features to test, some of which were irrelevant for certain climates or surfaces.
TRC’s Solution
Constructed List Conjoint and Cluster Analysis
Contractors selected features they deemed critical from a master list of paint features. They then reviewed product profiles consisting of their critical features and several others and selected the products that they would consider using. The subsequent conjoint exercise was based on the feature selections they had made.
The conjoint scores were used in a cluster analysis to identify the features of importance that were most likely to be selected together by various segments. These feature groupings were then translated into products and simulated to determine share of preference to size the potential market for each type of paint.
Successful Results Implementation
- Feature-rich products could be offered at premium pricing without sacrificing share
- Excel-based simulator allowed client to construct potential products to see how well they fared against each other, whether offered by them or a key competitor
- Groups of product features identified as having appeal were used to optimize the product lines
