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Business Danmark needed a research partner with extensive business understanding in order to explore scenarios for optimal price and product combinations.
Business Danmark is a Danish trade union and unemployment insurance fund for employees and self-employed people working with sales, marketing and consultancy. The union has 29,000 members and employs 80 people. As part of a strategy project, they decided to carry out research that could give them a better insight into the mechanisms and relationship between product and price. Communication manager at Business Denmark Søren Hanager describes the challenge:
“As a trade union we operate in a market that has so far not been particularly commercial but this is changing. We are experiencing increasing competition in terms of image, product and price. Seen in a wider persepctive, we have a relatively low interest product and there was some uncertainty around the importance of price for membership. We wanted the research to clarify our ‘beliefs’ and ‘thoughts’ among our staff and our political management.”
PROCESS: Survey transformed into a business case
“When we started looking for a research partner, we knew we had to find a team who were skilled in qualitative, business-oriented research. I used LinkedIn and someone in my network recommended that I try ag analytics. We met them and three other potential suppliers and then chose Analysgruppen as we thought they understood our business best. They were also used to producing conjoint analyses, which are more complicated than other types of research,” says Søren Hanager.
The conjoint analysis covered a panel of 1000 people who were presented with a range of cards showing different combinations of price and product as well as the name of the provider. The respondents were asked to make a number of choices and the responses were transformed into scores for the different attributes. The results of the survey were processed by ag analytics and then turned into a business case.
“The good thing about ag analytics’ approach is that they don’t just look at what the different price and product combinations would mean for membership levels. They took it a step further and calcualated how the scenarios would impact our contribution margins. They were excellent at transforming the results into relevant input for our business,” he continues.
SOLUTION: Dialogue and input for the strategy
ag analytics presented the results of the research to the management group, board and committee of representatives.
“We received a wonderfully clear report in PowerPoint. We also had a great dialogue and discussion of our business based on the research. You never know what happens in a fast-changing market but the research has made us more knowledgeable about our price and product strategy.”
“There are many different attitudes within the organization and up until now these have always been prefixed by the words “believe” and “think”. The research has qualified our internal discussions and given us a better basis for making decisions. The results have not surprised us greatly but confirmed our strategy and given us input for alternative strategic steps we might want to consider in the long term,” concludes Søren Hanager.