Balancing Taste & Cost

Balancing Taste & Cost

Situation

Faced with evolving consumer needs, a beverage manufacturer formulated a new product that delivered great taste but contained a key ingredient which was extremely expensive. Striving to balance production costs and consumer satisfaction, they needed additional input to determine a way to maintain the product’s great taste but reduce its dependency on the new ingredient.

 

Approach

Consumers reacted to an array of variations on the product formulation. Systematic variation of the product ingredients coupled with a model linking consumer reactions to product ingredients provided the basis for assessing and optimizing consumer satisfaction. By incorporating ingredient costs into the product analysis, we were able to recommend a formula that optimized the taste profile for consumers and met the company’s cost constraints.

 

Outcome

This product was successfully launched in Canada, the US and Europe and has continuously grown to become one of the leading global beverage brands in today’s market.