Product Mapping Product Development Recall the Marketing Concept

Product Mapping Product Development

Recall: the Marketing Concept n No product development decisions should ever be made without considering the consumer and the competition n Product Mapping involves using the consumer to evaluate the competition

Product Mapping Definition: organizing or sorting products/services into groupings with similarities n Used to: find gaps in what is currently being offered to consumers so that new products can be developed n Example: n Snack Foods: Potato chips, tortilla chips, rice chips, rice cakes, corn chips, pretzels, etc n

Product Mapping “Salty” Pretzels Rice Chips “Crispy” “Greasy” Potato Chips Rice Cakes “Healthy” “Crunchy” “Light” Tortilla Chips Corn Chips • Place the following products in any “group(s)” that applies • Where do gaps exist?

Product Mapping n Set up a 6 x 5 grid with the following group categories: Messy ¨ Boring ¨ Expensive ¨ Inexpensive ¨ Healthy ¨ Easy to Eat ¨

Product Mapping n Fill in the grid by placing the following products where you feel they fit Ice Cream Sandwich n Ice Cream Bar n Popsicle n Frozen Yogurt Cone n Packaged Ice Cream Cone (“Drumstick”) n Freeze n

Product Mapping n Spectrum Mapping: place products or services along a spectrum of 2 criteria Expensive Popsicle In-Expensive Ice Cream Bar Ice Cream Sandwich Frozen Yogurt Frozen juice bar DQ Ice Cream Cake

Product Mapping n Map the following products on the spectrum Shreddies Rice Crispies Frosted Flakes n Raisin Bran Fruit Loops Corn Pops n Whole Grain Cheerios Frosted Mini Wheats n Healthy Un. Healthy

Marketing Opportunity Analysis n n MOA : Defines the various opportunities or market situations for a specific brand is composed of 3 distinct parts Overall Market – includes all products belonging to a specific category Indirect Competition – includes all products that compete indirectly with a specific product Direct Competition – includes all brands that compete for a share of the same market

Market Potential MP = N x P x Q n N – number of possible buyers n P – average selling price n Q – average number of the item purchased in a year n

Quick Question: n Determine the MP for the category “Movies seen in theatres” if 19 million Canadians see an average of 5 movies a year in theatres. The average price of a ticket is $10. n You must calculate an MP for your final project and show/explain calculations!