Market Research for Product (Chips) Introduction

Introduction

The potato chips market is one of the largest among different snacks worldwide. It has reached USD 32.76 billion in 2021 and is expected to reach a value of USD 38,89 billion by 2027 (Expert Market Research, 2022). 284.37 million Americans consumed potato chips in 2020 (Statista Research Department, 2020). The potato chips market is segmented into plain and flavored varieties and divided between distribution channels from hypermarkets to online stores.

Discussion

A combination of qualitative and quantitative research methods would be optimal to establish the preferred flavor for the new line of potato chips. For the primary research, assembling a test group for live flavor sampling and evaluating using a liking scale is recommended to collect preference data from specific target groups, primarily adolescents and young adults. The secondary research aims to establish correlations between demographics and specific flavor choices and to generalize the data using computer modeling software to a broader consumer category.

Establishing the target demographic is the first step in marketing research. Parents with children aged 12-17 are the primary buyers of potato chips (Roy Morgan, 2020, para. 3). Qualitative research involving personal questioning is preferred to determine the optimal choice of flavor. Buechler and Lee (2019, p. 3763) suggest a qualitative research strategy applicable to this case. The four flavor samples (Wasabi and Beef, Bolognese and Parmesan, Indian Tandoori, and Mexican Chilli) will be evaluated for overall acceptance on a 9-point hedonic scale, anchored with 1 = “dislike extremely,” 5 = “neither like nor dislike,” and 9 = “like extremely.”

The research was carried out, including 30 participants of the target age group, with 17 male and 13 female participants. The results have shown that Bolognese and Parmesan have an overall acceptance rating of 74.8%, the highest among the four flavors (Appendix A). The distribution by sex is almost equal, indicating that the target consumer group includes men and women. According to the U.S. Bureau of Labor Statistics, the average price of potato chips is USD 6.4 per 16 Ounces (2022). It is recommended to adhere to the same optimal package size and prize.

Healthy life trends are prevalent among young people, and utilizing them for promotion would be practical to attract students. Multiple technological solutions have emerged to reduce the amount of fat in potato chips, including microwave multiflash drying (Barreto et al., 2019), ultrasound pretreatment (Zhang, Xie, and Fan, 2021), and vacuum impregnation and microwave vacuum drying (Duarte-Correa et al., 2020). Additionally, significantly reducing the NaCl content of potato chips has been demonstrated to not affect consumers’ sensorial perception and quality of potato chips, at the same time reducing the health risks associated with high salt consumption rates (Buechler and Lee, 2019, p. 3772–3773). Social media marketing is especially relevant and effective for the younger target audience of 12-17 years old (Duffet, 2017, p. 26). It includes online advertisement, promotion through interactivity, and partnership with prominent influencers. Introducing these techniques into the manufacturing process and including the “healthier snack” trope in marketing strategies can potentially attract more buyers. These strategies will help in attracting customers in supermarkets and local markets where the new product can be displayed for a large audience.

Conclusion

Qualitative research effectively determines consumer preferences for potato chip flavors because it allows for quick and efficient analysis of a specific target demographic and provides detailed personal feedback. A more extensive and comprehensive quantitative study based on the preliminary research results is necessary to include a broader population sample. Social media marketing presents a range of practical research and promotion approaches and should be utilized primarily.

References

Barreto, I. M. A., Tribuzi, G., Marsaioli Junior, A., Carciofi, B. A. M., & Laurindo, J. B. (2019). Oil–free potato chips produced by microwave multiflash drying. Journal of Food Engineering, 261, 133–139.

Buechler, A. E., & Lee, S. (2019). Consumer Acceptance of Reduced Sodium Potato Chips and Puffed Rice: How Does Ingredient Information and Education Influence Liking? Journal of Food Science, 84(12), 3763–3773.

Duffet, R. G. (2017). Influence of social media marketing communications on young consumers’ attitudes. Young Consumers, 18(1), 19–39.

Duarte-Correa, Y. Et al. (2020). Development of fortified low-fat potato chips through vacuum impregnation and microwave vacuum drying. Innovative Food Science & Emerging Technologies, 64.

Expert Market Research. (2022). Global potato chips market outlook. Web.

Roy Morgan. (2020). Potato chips and corn chips the snack foods of choice for parents during lockdown. Web.

Statista Research Department (2020). Consumption of potato chips in the U.S. 2020. Web.

U.S. Bureau of Labor Statistics (2022). Average price: Potato chips (cost per 16 Ounces) in U.S. City average. Web.

Zhang, J., Xie, T., & Fan, L. (2021). Improving the quality and reducing oil absorption of fried potato chips by ultrasound pretreatment. LWT, 148, 1–8.

Appendix

Results of the Test Group Survey on Potato Chips Flavour Liking

Results of the Test Group Survey on Potato Chips Flavour Liking

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