Names: Kirandeep Kaur (#300964055)

Video Activity Worksheet: Ritz Chips

Video Link: (Must be copied and pasted into Internet explorer, does not work in Chrome!)

http://bevideos.mhhe.com/business/video_library/0077272951/mp4/Clip_09.mp4

1. What was the main problem that Kraft was trying to address? How did that problem ultimately influence the

outcome? Explain in detail.

Ritz was very popular in its own category as a cracker. It was doing good in the market but it had not added more

consumers. Ritz was mostly being bought by existing users. Therefore, Kraft wanted to launch a new product category for

Ritz to expand its market share and he decided to launch Ritz Chips. Then the main problem with this launch was that Kraft

didn’t know the difference between a chip and a cracker. Therefore, he started to investigate this difference and this

research gave a new edge to the launch of the new product. After considering consumers’ preferences, perceptions, tastes,

and maintaining Ritz’ previous image, Kraft introduced Ritz Roasted Chips.

2. What sources of information did Kraft use to get insights to solve their problem? Give at least two sources of

information they used and why these sources were useful.

Kraft used its internal and external sources of information to get insight about the consumers’ preferences, perceptions, and

tastes towards chips. They used their extensive consumer insights and worked with marketing specialist to get the

information about the consumer preferences, and tastes. Through all these research, Kraft and team got to know about the

statistics of the food market. They got to know that Chip market is going to grow as twice as the Cracker market. Therefore,

they developed Ritz Roasted Chips to grab more market share. These Sources provided a detailed information and stats

about the consumer preferences. Thus, these sources proved to be helpful for them.

3. List 3 insights or things that Kraft learned from the research that they conducted that helped them develop and

launch the Ritz Chips successfully. Be specific and provide a detailed explanation.

Kraft learned that Chi market is going to grow as twice as cracker market. Therefore, they have to introduce their new

product in Chips category. Moreover, he learned that if he wanted to grab market share he have to introduce a Ritz Cracker

which would have chips’ characteristics. Furthermore, they also knew that if they wanted to sell their new product to their

existing customers it would have some Ritz’ qualities and market research helped them.

4. To what extent do you believe that the success of the new Kraft Chip was due to the market research undertaken

before the product’s launch? Explain with an example.

I think that market research is helpful for launch of a new product because it would be helpful to know about the

customers’ preferences, tastes, and their expectations from the new product. In the case of Ritz Roasted Chips market

research was the primary force behind the huge success of the product because it provided a detailed insight of the

consumers’ behavior and helped Kraft to arrive at the idea of launching Ritz Chips. For example, by this research Kraft

learned that Chip has greater growing market compared to Cracker and he decided to launch Ritz Chips.

ICA Ritz Chip Video Activity Marketing Research Answers

Stratergic Management Accounting (‎2844)