SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products,...

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expect great answers The Curse of the Curly Fries! Carlo Borghi & Sander Noorman #SKIMspirati on Share your thoughts online:

Transcript of SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products,...

Page 1: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

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The Curse of the Curly Fries!

Carlo Borghi & Sander Noorman #SKIMspiration

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Page 2: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

Menu Based Choice (MBC)

Page 3: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

Basic Digital TV - €25

Comfort Digital TV & Record - €32.50

Comfort ++ Digitale TV & Record &

Tablet - €37.50

HD TV - €4

Extra media box - €4

Led light media box - €1

95 Extra channels - €5

Movie Package - €8

Sport package €17

Your total price €32,50

Extra options: Extra channels

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2 3

MBC - TV options

Page 4: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

Basic Digital TV - €25

Comfort Digital TV & Record - €32.50

Comfort ++ Digitale TV & Record &

Tablet - €37.50

HD TV - €4

Extra media box - €4

Led light media box - €1

95 Extra channels - €5

Movie Package - €8

Sport package €17

Your total price €53,50

Extra options: Extra channels

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2 3

MBC - TV options

Page 5: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

The Curse of the Curly Fries

Page 6: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

DavidSenior Product manager

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...back in the 80s…

Page 8: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

...back in the 80s…

Page 9: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

...back in the 80s…

Page 10: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

...back in the 80s…

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...and today…

Page 12: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

PhilipJunior Product manager

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Easy FriesHealthy, Young and Cheap

Page 14: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

David or Philip?

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The solution

JenniferMarket Researcher at MIKS

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or

The question

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The method

MBCMenu Based Conjoint

Page 18: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

1$ 3$ 1$ 1.5$

Make your choice

Page 19: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

1$ 3$ 1$ 1.5$

Make your choice

Page 20: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

1$ 3$ 1$ 1.5$

Make your choice

Page 21: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

1$ 3$ 1$ 1.5$1.5$

Make your choice

Page 22: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

1$ 3$ 1$ 1.5$1.5$

Make your choice

Page 23: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

1$ 3$ 1$ 1.5$1.5$

Make your choice

Page 24: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

1$ 3$ 1.5$1.5$

Make your choice

Page 25: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

Insight #1# People choose Tender Grill with Curly Fries.

Page 26: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

Insight #1# If Donald King delists Curly Fries….

Page 27: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

Insight #1# …people will buy less Tender grill

Page 28: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

Insight #2# Curly Fries Lovers …

Page 29: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

Insight #2# …if Donald King delists Curly Fries

Page 30: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

Insight #2# …they don’t come to Donald King anymore

Page 31: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

So what?

Page 32: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

So what?# Keep Curly Fries at higher price

Page 33: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

Can we still include Easy Fries?

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Insight #3# New segment, the “Green” families

Page 35: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

Insight #4# No cannibalization effects

Page 36: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

Insight #4# Two different segments

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or

So what?

Page 38: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

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or

So what?

Page 39: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

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and

So what?

Page 40: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

So what?

Page 41: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

So what?

Page 42: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

So what?

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MBC in various industries

Page 44: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

MBC - Car options

Page 45: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

Base price: €10,000

MBC - Car options

Total price €11,355

Comfort Seat € 90

Parking sensors € 195

Rain sensor € 265

Driver comfort€ 440

Sport package€ 760

Cabin Comfort Plus€ 265

Metallic paint € 450

Heated mirrors € 150

Alloy Wheels € 350

GPS navigator €150

GPS alarm € 320

Air conditioning € 90

Audio system € 75

Heating seats € 165 Navigation Pack

€ 375

Page 46: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

€500€400

MBC - Car options - So what?

Driver comfort%

Price€450

Price Sensitivity SimulationDriver comfort

Comfort Seat

Parking sensors

Rain sensor

€ 500

€ 90

€ 195

€ 265

18.5%

7.2%

11.3%

9.9%

Page 47: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

MBC: where else?

Page 48: SKIMspiration London presentation: The curse of the curly fries: Determine your pricing, products, and options with Menu-Based Choice modeling

#SKIMspiration

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contact us or follow us online!

Carlo Borghi | Project [email protected]+44 203 586 7241

Sander Noorman | Director Telecom, Services & [email protected]+31 10 282 3535