Understanding what justifies a premium in a staple food

In an everyday food, a premium has to justify itself every time someone shops. A food company wanted to understand premium in buyers’ own terms, so we paired a survey of category buyers with a digital ethnography.

Client
Food company
Industry
Food
Market
North America
Kind of work
Product and pricing
Our role
Survey and digital ethnography with category buyers on what justifies a premium

The question

Shoppers in a staple category know what the everyday version costs, so a premium one has to give them a reason.

The executive team wanted to understand premium in buyers’ own terms: what separates a premium product from an everyday one in their eyes, which claims would make the difference, and where the buying happens.

Our approach

We surveyed recent category buyers, in a sample built to represent the market.

We asked about specific attributes one by one, so the team could see which qualities buyers say set a premium product apart. We were clear about the limits of that. What buyers say they value is one part of the case for a premium, and does not by itself show what they would pay.

Purchase context got equal weight, because a premium only matters where people meet it. Alongside the survey, a digital ethnography went deeper with a group of category buyers over time.

What the team came away with

The executive team had evidence from both sides of the work on what buyers associate with a premium, and where the buying happens.

The survey gave the breadth of the market and the ethnography the detail of real buying, so a premium could be argued from both.

Who we heard from

Category buyers, in a survey built to represent the market and a digital ethnography

What we do
Pricing research

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