Developing a pricing strategy for a premium adhesive

Our client, a leading manufacturer of adhesives, needed to understand customers’ product selection process and their appetite for a premium solution that offered cost efficiencies.

The challenge

A leading global manufacturer of adhesives needed to understand the purchasing behaviour of end-of-line packaging manufacturers.  In particular, the client team wanted to understand selection drivers, and customer price tolerance for premium products.

Our solution

We interviewed current and prospective customers across Europe to discuss the purchase process in-depth, with the structured discussion building in a number of statistical techniques to determine the optimum pricing level. We provided a clear understanding of the factors that customers take into consideration selecting adhesives for end-of-line production, and their willingness to pay for a premium product that would offer better cost in use.

The outcome

Our results enabled the client to identify the optimum price to sell its premium product, and the organization types that are most open to paying for products linked to manufacturing efficiency. As a result of our work, the client has developed a clear pricing strategy for its premium end-of-line adhesive, as well as marketing material that addresses customers’ primary interests in supplier selection.

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