Challenge
A leading manufacturer of LED lighting systems sought the assistance of B2B International to support the successful re-launch of one of their brands. Two years prior to the project, the client had introduced a new, more affordable product line. Initially, this new range was marketed separately, but the company later decided to incorporate it into its main brand. To facilitate a successful re-launch, our client wanted to understand how installers perceive their core brand in comparison to competing brands and to identify the strengths and weaknesses of major brands. Additionally, our client wanted insights into how potentially competing brands in their product portfolio are perceived, and whether each offering is understood and considered relevant for purchase. The main concern for the client was whether the introduction of the cheaper product range would negatively impact the perception of their core brand.
Solution
We conducted 60 telephone interviews, with 20 respondents from each of the following countries: Germany, Poland, and Italy. The research was equally split between the core brand and the lower-cost brand, and both were tested in an A/B setup. The typical respondents were owners of companies with 5-9 employees and had 10+ years of experience.
Insight
We did not find any evidence that the lower-cost brand would negatively affect the credibility of the core brand. The core brand is very strong and known for high-quality products. Installers trust the brand and do not question the validity of either proposition.
The client used the results to make the following changes:
- Designed new marketing communication around the suggested positioning
- Emphasized the great value aspect and the reliability of the lower-cost brand more strongly.
