Tag Archives: Brand extension

Mayo + Ketchup = Mayochup!

Who likes mayonnaise? Who likes ketchup? Who combines the two? If you are like millions of other consumers in the U.S., then you like combining the two products into a single sauce. And, now, Heinz wants to bring the combined taste to you in one convenient bottle!

Yes, a new condiment that combines the two sauces is being developed for the U.S. market. Heinz recently taunted consumers, asking people to vote using Twitter if they want to see a new product – ‘mayochup’ – in grocery stores. Millions of people voted yes for the mash-up, and Heinz has said it will produce a new sauce.

There is a controversy about mayochup though. Claims that Heinz has invented a new condiment has been disputed. Other countries have long used the combined condiment in their cultures and foods. A combination of mayo-ketchup is popular across Latin America and in the Caribbean. However, there is no similar product available in the wider U.S. market. (A close cousin might be Fry Sauce, very popular in parts of the U.S. and around the world, where it is considered a staple condiment on the table.)

If you don’t like the mayochup name, Heinz is taking suggestions for alternative names. Maybe ‘ketchannaise’ will catch on instead!

Group Activities and Discussion Questions:

  1. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  2. Show information about mayochup:
    1. Twitter: https://twitter.com/HeinzKetchup_US/status/984133260216332302
    2. Mayochup news video: https://youtu.be/C-ZYv-TDh3Y
  3. Which strategy is Heinz using for this product? Why?
  4. Divide students into teams. Have each team select one of the four different strategies and explain why that strategy could be used to market mayochup.
  5. Have each team determine the marketing mix (4Ps) to support their strategy choice.
  6. Debrief the exercise.

Source: Schmidt, S. (13 April, 2018). Heinz promotes its new ‘mayochup’ and sparks an international controversy. Washington Post.

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Uber in the Air

Urban mobility. What is it, and how can we achieve it? Consider what would happen by taking transportation off the road – and moving it into the air. Several companies, including Uber, are working on new initiatives for flight-based transportation. Using electric vertical take-off and landing vehicles (VTOL), Uber’s goal is to develop transportation that makes lives easier, commutes shorter, and cities cleaner.

Working with a number of different companies and governments, Uber is developing a long-term strategy and infrastructure for drone-based air transportation. In a partnership with Brazilian aerospace conglomerate Embraer, Uber announced a joint venture called Uber Elevate to develop small VTOLs. On-demand aviation would change commuting considerably. A network of VTOLs could provide rapid transportation between, and within, cities.

Instead of driving hours on the ground, a commute becomes only minutes in the air. For example, the average San Francisco resident spends roughly 230 hours/year commuting between work and home! In Sydney, Australia, and Los Angeles, California, residents spend an entire seven working works each year commuting! In other countries, the estimated commute time is even longer – Mumbai has an average commute time of 90 minutes. Long commutes raise stress levels, absorb valuable resources, and cut short our free time.

Want a ride?

Group Activities and Discussion Questions:

  1. Poll students: How much time do they spend commuting each work to work and school?
  2. Show the Uber Elevate concept video: https://youtu.be/JuWOUEFB_IQ
  3. A longer video explanation can be found at: https://youtu.be/nuFSh7N0Nhw
  4. What are the students’ opinions of this new service? Would they use it?
  5. Discuss the importance of clearly defining a target market.
  6. For Uber Elevate, who is the target market?
  7. Divide students into teams and have each team develop a profile of a target market. Include demographics, psychographics, behaviors, values, attitudes, etc.
  8. Based on the target market profile, what makes this product unique for these customers?

Source:  Brandchannel.com, Reuters News Service

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Brand Extension – PetComfort

 

Brand and product line extensions can be tricky things to successfully pull off. If the extension is too far out of the organization’s capabilities, or if the extension brings the organization into contact with a new target market, then the extension might be too costly or risky. However, when the extension helps expand the offerings and meet needs of the current market, it can be a beautiful thing.

WeatherTech is a company well-known for its American-made floor mats and trunk liners. It has gained greater market awareness through advertising in the Super Bowl for each of the last five years. However, WeatherTech recently announced an interesting brand and product line extension that takes it into a new market – pet care. The new brand is called PetComfort and is a line of pet food bowls and mats that are made to human-safety standards.

The PetComfort products are ergonomically designed stainless steel bowls on an elevated state with integrated floor mat. Materials are NSF-certified safe for humans and uses anti-microbial and anti-fungal additives and resins that are meet FDA requirements. The products come in different sizes and colors and range in price from $89.95 – $149.95.

Does this new product line fit into the WeatherTech brand?

Group Activities and Discussion Questions:

  1. Discuss product and brand extensions. What makes for successful extensions? Unsuccessful extensions?
  2. Show WeatherTech Web site: http://www.weathertech.com/

Show PetComfort Web site: https://www.petcomfort.com/

  1. Which marketing strategy is WeatherTech using for PetComfort? (Ex: market penetration, product development, market development, or diversification)
  2. Divide students into teams. Have teams develop a target market profile for WeatherTech products and PetComfort products.
  3. What are the similarities? Differences?

Source:  Buss, D. (27, Feb., 2018). For Pet’s Sake. Brandchannel.com

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