A fast-growing beauty brand was preparing to launch a doctor-formulated hair serum designed for Gen Z and millennial women seeking fuller, stronger, and healthier hair.

The brand faced a key challenge:

Price too low, and they risked undermining the premium positioning of their clinical formula.

Price too high, and they risked alienating budget-conscious younger shoppers.

They needed clear, data-driven insights to set a launch price that balanced perceived value with accessibility.

To answer this question, I conducted a Van Westendorp Price Sensitivity Analysis with 250 women in the target demographic.

Steps in the research process:

Survey Design: Created a targeted survey featuring professional mock-ups of the 1 fl oz serum, highlighting its unique doctor-formulated benefits.

Price Testing: Respondents answered four key pricing questions (too cheap, bargain, expensive, too expensive).

Analysis: Applied Van Westendorp methodology to identify the optimal price point, point of indifference, and acceptable price range.

The analysis revealed:

Optimal Price Point: $20.40 (the price most customers felt comfortable with).

Point of Indifference: $22.74 (where perceptions of “cheap” and “expensive” balanced).

Acceptable Price Range: $18.86 – $29.48.

These findings showed that customers were willing to pay above $20 for the product without perceiving it as overpriced, reinforcing the serum’s premium positioning.

Launch at or near $20.40 to maximize perceived value and competitive positioning.

Offer introductory promotions closer to $18.86 to attract first-time buyers.

Explore premium pricing opportunities (up to ~$29.50) for limited editions, bundles, or future product extensions.

By grounding their pricing decision in customer-driven data, the brand gained confidence in setting a launch price that:

Preserved its premium identity.

Remained accessible to Gen Z and millennials.

Provided a scalable framework for future product launches.

The results armed the marketing team with not just a number, but a pricing strategy that could flex over time, balancing growth, positioning, and profitability.