It’s happened again – one minute consumers are buying in a predictable way, at the usual times, and in the usual patterns. Then, boom! Everything changes.
But this time, instead of earlier toilet paper shortages, the product causing big problems is ketchup! Especially those small packets that are loved by fast-food customers everywhere.
The culprit, once again, causing this supply chain saga is Covid-19. Yes, the pandemic appears to have influenced every facet of consumer behavior. The main shift was caused by closed restaurants that drove consumers to the fast-food drive-in restaurants and home cooking, rather than dine-in restaurant options. It also turned many former dine-in restaurants into takeout places, making ketchup a commodity included in more food orders.
Ketchup packet prices have risen 13% since last January and the market share of packets (sachets) has eclipsed that of tabletop bottles. Ketchup is the most consumed sauce at U.S. restaurants, and even more is eaten at home. The pandemic has increased overall retail ketchup sales in the U.S. by 15% to more than $1 billion. Kraft Heinz leads the market with nearly 70% of the total U.S. market.
Kraft is responding to the shortage and plans to open two new manufacturing lines and increase production by about 25%. It has also innovated a no-touch ketchup dispenser to use at restaurants to help meet safety concerns caused by Covid.
Pass the ketchup please.
Group Activities and Discussion Questions:
Discuss the elements in the supply chain and marketing channel.
Diagram the supply chain and marketing channel for toilet paper.
We love robots. They are endlessly fascinating to us as we contemplate the technological advances that make robots useful to humans. They can carry gear, map territories, and enter spaces unsafe to humans. But of all their uses, we particularly like how robots can bust a move and dance (remember Spot the robot dancing to Uptown Funk?)!
Thanks to its incredibly animated robots and technology, Boston Dynamics may be the world’s most well-known robotics company. Boston Dynamics was originally an offshoot of Massachusetts Institute of Technology and is now owned by Hyundai Motor Group. Its robots include Atlas, Spot, Big Dog, and Handle.
Programming the robots to dance was a daunting task, requiring hundreds of hours of work. The programming had to let robots balance, bounce, and (seemingly) even carry a rhythm. Atlas the robot uses a vast array of sensors, actuators, and a gyroscope to help it balance. It also contains three quad-core onboard computers. The result is an imaginative display of robotic versatility and possibility.
Dancing to the 1962 hit song “Do you love me?” by The Contours, Atlas and friends seem determined to get humans to love them indeed.
Spot, the robotic dog from Boston Dynamics, is now prowling manufacturing plants for Ford Motor Co. Ford calls the dog “Fluffy” and it doesn’t act as barking security guard, but rather is helping to map and update engineering plans at several manufacturing facilities. Fluffy wanders the 2-million-squar-foot transmission plan floor with its digital engineering handler, using laser scanning and imaging to produce detailed and accurate maps that Ford engineers can use to revamp the facility.
You may have heard of Spot previously as one of Boston Dynamics intriguing robotic lines. Boston Dynamics now sells Spot for $74,500 (for commercial purposes only). Since September, Boston Dynamics has sold or leased more than 250 Spot robots. Spot is typically used in construction or the electric utility industry, but was also recently used at a hospital’s emergency department to help assess patients with Covid-19.
Spot weighs 70 pounds and is equipped with five cameras that give it 360-degree vision to avoid obstacles and travels at 3 mph for several hours, constantly gathering data (without needing dog treats or a place to pee). The nimble robot is able to navigate tight spaces that the average-sized person can’t reach. It can climb stairs, cross metal grates, and keep its balance on slippery surfaces.
At Ford, Fluffy scans the plant in half of the time as needed by humans, and significantly reduces costs while maintaining accuracy.
But can it fetch the newspaper?
Group Activities and Discussion Questions:
Discuss the concepts of products, product line, and product mix.