This is a post made in response to Jiaxuan Zhang’s post: “Lay’s ‘do us a flavour'”.
The fact that Lay’s is planning to go through product differentiation by expanding its product line to new flavors should be put to a test. Marketing research is essential in this case, hence what Lay’s is currently doing. Taste is one of the vital consideration that consumers take into account in deciding whether a food product is good or not. In the funnel model, this crucial for the opinion and consideration stage in the funnel model below.
http://stevensonfinancialmarketing.files.wordpress.com/2012/08/purchase-funnel.jpg
Market research is especially important for Lay’s given the unusual flavor like chocolate they are considering to offer. In order to make a repeat purchase, such product should be acceptable in the market first and that consumers perception on the product is positive. I think it is fine for a company to come up with “unusual” ideas like having a chocolate-flavored chip as long as it is accepted by their target market. What matters is the result of market research, as it determines whether Lay’s should move forward to product launch or to discard such idea. Of course, the company should weigh the probability of success in implementing the idea instead of just throwing out ideas without a solid reasoning. Who knows such idea can gain the company more profit?
Article source: http://www.usatoday.com/story/money/business/2013/10/31/lays-potato-chips-chocolate-covered/3324377/