Case Study
Rapid Brand Positioning & Diligence Study
The Strop team was able to effectively and efficiently support our PE Client under the tightest of timelines to validate key aspects of a pending bid.
Case Study: Rapid Brand Positioning & Diligence Study
Context:
A private equity client was under a Letter of Intent (LOI) with a cosmetics brand that had recently implemented a price increase on its primary product line. The client sought to determine whether this price increase was sustainable in a competitive market and to understand the potential impact on consumer perceptions and purchasing behaviors.
Engagement:
Strop was tasked with answering two key questions through a rapid due diligence study: (i) how does the target company’s primary product line compare to competitors in terms of brand positioning, and (ii) how do consumers perceive its premium pricing? The goal was to quantify the differentiation of the target’s products and assess whether the price increase could be sustained.
Methodology:
The Strop team designed and executed a quantitative brand positioning survey, which included Van Westendorp pricing analysis to assess price sensitivity. The survey targeted the brand’s consumers as well as those of key competitors to provide a comprehensive view of how the target’s products were positioned in the market and how its pricing compared to the competition.
Result:
The findings confirmed that the target brand exhibited lower price elasticity compared to its key competitors, indicating that its consumers were less sensitive to the price increase. Additionally, the study revealed sufficient product differentiation to support the premium pricing strategy, validating the brand’s ability to maintain its market position with the higher price point.
Conclusion
With a tight three-week timeline leading up to the LOI bid deadline, Strop provided critical data that helped the private equity client confirm the brand’s pricing resilience and product differentiation. These insights played a key role in the client’s successful LOI bid, ensuring confidence in the sustainability of the brand’s premium pricing strategy.
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