As part of our commitment to delivering a global perspective on the insights driving brand growth, our Global Growth series features conversations with our senior leaders from the U.S. and EMEA. In this post, Dana Colbert and Paul Thomas share strategies for Optimization across regions to ensure a global brand has ideal in-market products and services.
Tell us about the kind of optimization work you do, including the industries you serve?
Dana: Our clients come to us for a wide range of optimization projects, from understanding market needs and positioning new products to communication strategies and pricing optimization. It covers the entire process, from early-stage development to launch. We support the technology space, financial services, healthcare, and a wide range of consumer and B2B clients.
Paul: We do a lot of optimization and portfolio work in consumer technology, from categories like cell phones and PCs through to the alcoholic beverage industry, optimizing pricing and propositions for whiskey, tequila, and rum. So, it’s a broad spectrum, and we’re optimizing at every stage, from idea to market.
What are key areas of focus when clients are entering new markets, or working on global optimization?
Paul: A key question is whether we’re dealing with a truly global product or if it needs to be tailored to local market dynamics. Most products can’t be identical across markets due to differences in regulations, pricing, and distribution channels. It’s crucial to understand both local and global constraints upfront. These are the types of questions we need to get to the bottom of early on to understand the context and limitations we’re working with.
Dana: Building on Paul’s point, we often work with clients to determine if there’s a lead market, or if certain sales data can help guide the strategy. Depending on this context, the brand might develop a full strategy for all markets at once or perhaps focus on optimization for a lead market and a simple gut check for other markets might suffice. For example, we worked with a client launching a food product in three new markets. For them, it was all about identifying the right consumers to target in those regions and ensuring the product was positioned correctly based on consumer needs in each local market.
How do you ensure you’re complying with regulations across different markets, especially for complex products like phones?
Paul: There are a few approaches. First, we can rely on our previous experience in those markets. Second, we have trusted local partners who provide deep knowledge of the local environment. And following on from Dana’s comments, we ask stakeholders the right questions. Stakeholders generally appreciate this, as it shows a genuine interest in understanding their specific issues and markets, and it ensures they feel heard.
How do you evaluate product performance across different markets, ensuring you’re optimizing for the right elements in each region?
Dana: Once we’ve reached a certain stage, we often place products with consumers to observe how they interact with the product—whether it’s sensory feedback or how well the product fits with the overall concept. This helps us identify areas where we may need to refine certain elements.
Paul: That’s right, and you can’t evaluate a product in isolation. It has to be done within a competitive context. For example, if you show a product to consumers without comparing it to other products on the market, you’ll likely get inflated feedback. The same goes for pricing—if you ask how much a consumer would pay without considering competitor prices, it won’t give you a true reading. We aim to place products in context, using tools like conjoint analysis or shelf lineup tests to understand how they perform in real-world competitive scenarios.
Are there innovative techniques you’re using to test products and services?
Dana: We work with partners to create realistic digital simulations of in-store environments, allowing us to manipulate product placement or signage quickly. We can observe how consumers interact with products in real time. Additionally, we recruit consumers in their natural setting to capture product usage through video and images, helping us observe firsthand how they engage with the product.
Paul: Yes, the goal is to replicate real-life situations as closely as possible. For example, when testing a new PC, we might mock up a website that has a familiar look and feel to simulate an online shopping experience. That way, we’re not forcing consumers to adapt to unfamiliar systems, and we get a more natural read on their decision-making process.
How do you approach pricing or SKU optimization across different markets, and how does that process feel for the client?
Paul: It comes down to really understanding the pricing dynamics in each market. You need to look beyond just setting a price range—you have to understand factors like discounted pricing or promotions that may be heavily in play in certain markets or environments. All of these factors impact perceived price levels and value, so it’s not just about testing a range of prices. You need to consider what other factors are influencing the consumer’s perception of value, and those factors can vary significantly from one market to another.
Dana: We also need to think holistically. If there are other product features that might shift along with price, we have to account for that too. Understanding the strength of the link between product features and price points is crucial for identifying sensitivities and thresholds.
Do clients return for additional testing when economic conditions shift?
Paul: COVID was a big one—many clients asked how to protect their price points or adjust their pricing to reflect changes in perceived value. Recently, with significant inflation in the UK, prices for essentials have increased sharply. Clients then ask whether they should raise prices or position themselves as a brand that maintains pre-inflation pricing. There’s a lot to consider, whether you’re adjusting prices in a prosperous market or reacting to economic changes.
Dana: It’s especially challenging in an inflationary market to raise prices. Pricing evaluations help brands gauge how much they can increase prices without losing their base and how they can strengthen their offering to maintain interest, even at a higher price point.
What does activation look like across markets in a typical project, and how do you help stakeholders implement optimization strategies?
Paul: Optimization studies can use quite complex methods, but it’s not about overwhelming the stakeholders with the details. We like to focus on scenario modeling and war-gaming with our clients. We get them in a room with simulation tools to help them ask questions like, “What if we did X, Y, or Z? What would be the impact?” Or, “The competition just slashed prices by 5%. How do we react?” Activation is about helping clients understand various scenarios and how to use that information as one input for future decisions. Once the research is done, clients want to know, “What do I do next?” That’s where these tools come in.
Dana: We look back at the hypotheses from the team. Those “what if” scenarios are essential. By the time we reach the analysis phase, we’re working with realistic, forward-thinking scenarios. These simulation tools can be used later on as well. Even if a competitor changes their pricing a few months down the road, clients can use the tool to adjust accordingly and evaluate new product offerings.
Are you seeing uneven sales across markets? Contact us to talk about an updated approach.
