Consumer Behavior Ritz
DISCUSSION QUESTIONS
1) Was extending the brand into chips a logical step for Ritz? Explain using the concepts related to brand extension.
• Yes it was a logical step for Ritz to expand into the chips market; they mention sales were not growing for crackers as fast as chips, which were growing twice as fast. They wanted to add a incremental growth and increase value to the already popular Ritz business. They had introduced different line extensions and flavors before but they didn’t increase volume, the already existing market segment purchased their different products.
2) What perceptual factors guided Ritz's decision to use the term toasted versus baked to describe the new Ritz Chip?
• The perceptual factors that guided Ritz’s decision to use the term toasted versus baked had to do with descriptive language. The word “baked” did not muster ideas of flavor, more like flavorless. The term toasted sounded more flavorful to the test group and as well as more “chip-like”
3) What is Ritz Chip's product positioning strategy? How well is this being communicated to the consumer?
• Ritz already had a major presence in the cracker aisle, but to sell this new product being sold as a chip, they had to decide if they should move their product amongst other direct chip competitors. The salty snack part of the store contains mainly all the chips products, nuts etc. But as mentioned in the video, it is difficult to put just a single product in a section of a store where Ritz did not already have a presence. So keeping it next to the crackers ensured they would bring a strong presence in supporting their new product, as well as making it packaged in a bag rather than a box to represent a different product.
4) How did language affect the marketing of the new Ritz Chip?
• The new Ritz Chip language affected marketing because they had to make sure the characteristics of the new product would attain the qualities of a chip and the flavor of Ritz. Therefore, the
1) Was extending the brand into chips a logical step for Ritz? Explain using the concepts related to brand extension.
• Yes it was a logical step for Ritz to expand into the chips market; they mention sales were not growing for crackers as fast as chips, which were growing twice as fast. They wanted to add a incremental growth and increase value to the already popular Ritz business. They had introduced different line extensions and flavors before but they didn’t increase volume, the already existing market segment purchased their different products.
2) What perceptual factors guided Ritz's decision to use the term toasted versus baked to describe the new Ritz Chip?
• The perceptual factors that guided Ritz’s decision to use the term toasted versus baked had to do with descriptive language. The word “baked” did not muster ideas of flavor, more like flavorless. The term toasted sounded more flavorful to the test group and as well as more “chip-like”
3) What is Ritz Chip's product positioning strategy? How well is this being communicated to the consumer?
• Ritz already had a major presence in the cracker aisle, but to sell this new product being sold as a chip, they had to decide if they should move their product amongst other direct chip competitors. The salty snack part of the store contains mainly all the chips products, nuts etc. But as mentioned in the video, it is difficult to put just a single product in a section of a store where Ritz did not already have a presence. So keeping it next to the crackers ensured they would bring a strong presence in supporting their new product, as well as making it packaged in a bag rather than a box to represent a different product.
4) How did language affect the marketing of the new Ritz Chip?
• The new Ritz Chip language affected marketing because they had to make sure the characteristics of the new product would attain the qualities of a chip and the flavor of Ritz. Therefore, the