The Challenge
With rising inflation and rapidly shifting shopper behaviour, Nomad Foods (makers of Birds Eye, Findus and Igloo) needed a scalable and cost-effective way to understand what truly drives value at SKU level. They were looking to isolate the impact of individual attributes, from species and claims to formats and packaging, so they could pinpoint where costs could be reduced, where pricing headroom existed, and how to optimise their portfolio for long-term growth.
Our Approach
We developed a pioneering research model that adapted hedonic regression, traditionally used in the property market, into a primary research tool for FMCG. This allowed us to quantify the value contribution of each SKU component with precision and provide clear direction for pricing and portfolio strategy.
Our approach combined:
- Hedonic regression modelling tailored to FMCG SKUs
- Online surveys using hypothetical pricing tasks (control SKUs, sliders, and rich imagery)
- Iterative testing and refinement, progressing from Van Westendorp to slider-based tasks with control SKUs and product visuals
- Pricing simulators to empower market teams with scenario planning tools
This framework provided a detailed, scalable model of consumer value across products, markets, and categories.
Spark’s Impact
The findings equipped Nomad with a clear roadmap for value-driven decision-making across its portfolio.
- In Austria, the work underpinned a complete pack architecture overhaul, delivering a forecast six-digit profit impact in FY24.
- In the fish category, efficiency projects are removing non-valued specifications, generating an additional six-digit in savings.
- Value insights enabled species diversification, reducing reliance on cod and Russian sourcing while elevating cod to a premium tier.
- Innovation strategy has shifted from coatings to species as the primary value driver, ensuring stronger alignment with what shoppers truly value.
The programme has since become Nomad’s most requested study, proving its scalability and influence across markets and categories.
What the Client Said
“We were unable to find an off-the-shelf research approach to this high-profile challenge. Working with Spark, we created a solution which has delivered insight that has travelled far beyond the RGM community, ultimately reaching the Exec. It quickly became our most requested study in 2024.”
— Dave Harrison, Group Head of Commercial Analytics