Salty Snacks
“Salty Snacks”
An exercise in understanding market structure John Dawes, Ehrenberg-Bass Institute for Marketing Science, University of South Australia
V5 Jan 2006. Feedback to: John.Dawes@marketingsciencecentre.com This is the ‘students’ version. Use of this exercise is absolutely free and without restriction. Feel free to contact me to give feedback.
The purpose of this exercise is to: (a) Provide some skill development in utilising aggregated consumer purchase data using Excel (b) Better understand the broader concept of competitive structure, the “Duplication of Purchase law” and the idea of market partitions – that is, pockets of the market comprising certain brands that compete more intensely with each other and less intensely with the rest of the market. (c) Use this understanding to consider a marketing issue. The brand manager for the Burger Rings brand is considering a line extension. Into which sub-market should it be launched ?
This exercise takes you through the process of analysing a purchase duplication table of real consumer goods data. It uses data on what are called ‘salty snacks’ for New Zealand, from the ACNielsen consumer panel in 2001. What is special about this data set is that it comprises three particular ‘salty snack’ product types – potato crisps or chips; corn chips; and extruded snacks that take the form of rings or shapes. Therefore the data provides the opportunity to apply the Duplication of Purchase law to brand-level competition but also to examine the broader competitive level of product type. With three different product types it is more likely there will be some sub-markets or what are called ‘partitions’ that we can identify and confirm using the data. Your task is to work through the exercise and re-create the Excel worksheets shown in the ‘screen shots’ (you don’t have to re-create the written notes on them). Answer the numbered questions that appear through the exercise.
Thanks to Mr Henry Coates, and also
An exercise in understanding market structure John Dawes, Ehrenberg-Bass Institute for Marketing Science, University of South Australia
V5 Jan 2006. Feedback to: John.Dawes@marketingsciencecentre.com This is the ‘students’ version. Use of this exercise is absolutely free and without restriction. Feel free to contact me to give feedback.
The purpose of this exercise is to: (a) Provide some skill development in utilising aggregated consumer purchase data using Excel (b) Better understand the broader concept of competitive structure, the “Duplication of Purchase law” and the idea of market partitions – that is, pockets of the market comprising certain brands that compete more intensely with each other and less intensely with the rest of the market. (c) Use this understanding to consider a marketing issue. The brand manager for the Burger Rings brand is considering a line extension. Into which sub-market should it be launched ?
This exercise takes you through the process of analysing a purchase duplication table of real consumer goods data. It uses data on what are called ‘salty snacks’ for New Zealand, from the ACNielsen consumer panel in 2001. What is special about this data set is that it comprises three particular ‘salty snack’ product types – potato crisps or chips; corn chips; and extruded snacks that take the form of rings or shapes. Therefore the data provides the opportunity to apply the Duplication of Purchase law to brand-level competition but also to examine the broader competitive level of product type. With three different product types it is more likely there will be some sub-markets or what are called ‘partitions’ that we can identify and confirm using the data. Your task is to work through the exercise and re-create the Excel worksheets shown in the ‘screen shots’ (you don’t have to re-create the written notes on them). Answer the numbered questions that appear through the exercise.
Thanks to Mr Henry Coates, and also