Bohemia potato chips case study: How to introduce a new product
How to find new opportunities?
Before you invest time, energy and (last but not least) money into development of a new product, you should give some thought to the following questions:
- Are there customers for this particular product?
- How important is the need for this product for the target group?
- Is the need satisfied already or is there a deficit?
- How big is the target market?
- What defines the target group?
You can also start your research with the question: when and where do Czechs want to eat potato chips? Clearly, you need to understand their habits to come up with a new relevant idea. But this time we will follow a different approach. Our first question is: what do Czechs want from their potato chips that nobody is offering?
The best opportunity to introduce a new product is when a lot of people want something, but they are not getting it. And we hope to find such a case.
Make chips taste great again!
Kinder is spontaneously recalled by only 5% of potential customers. However, during the previous months it was bought by 43% of them, which is the same percentage tha
A great taste is a must when it comes to potato chips. Good seasoning is the most important need for 71% of Czechs. Every brand and every single product should focus on that to stand a chance. Although promising a great taste is necessary, it is not enough on its own.
Which customer needs are important and in deficit?
What else do people desire when it comes to this salty snack? The selection of flavours is quite important – 49% of potential customers want to have a choice. But you can not really win the competition by offering variety since most people feel satisfied with the options they have already.
Finally, the research revealed two needs that are not fully satisfied – customers also want low-fat versions and potato chips made of locally sourced ingredients. This is the opportunity we are looking for.
Low-fat and locally sourced potato chips
One fifth of the Czech population feels guilty when snacking on potato chips and would appreciate a lighter product. Also, 68% of the customers didn’t recall any brand that offers a low-fat version of potato chips. This suggests you don’t need to worry too much about the competition on the market.
Locally sourced ingredients are an important factor for 37% of the Czechs. And half of those people feel like the option is not currently available to them. When asked where they would look for such a product, one third intuitively mentioned Bohemia, even though the product didn’t exist yet.
Which customer needs are important and in deficit?
What about the target group?
The target group is defined by their deficit need for lighter and locally sourced potato chips. Surprisingly, healthier and more ethical snack options aren’t wanted by millennials, but their mothers – females in their fifties with grown up children – who are the main demographic group. If you are interested in more details about the target group, you can explore this link to Atlas Čechů, where you will find information about them: lifestyle, values, media consumption and much more.
Is the idea a good idea?
In an ideal scenario with unlimited time and budget, the company would start the process of introducing a new product with extensive research. However, there are also other ways to proceed in real life.
In another scenario, the company creates a concept based on the information already available and then starts testing how profitable it could turn out to be. Let’s imagine Bohemia already came up with the idea of a potato chips line called Zlehka (light in Czech) and needs to know the following: Is the product seen by the target group as a solution to their needs? Is the product a good fit for the brand itself? Is it well liked? That’s exactly what we are going to test now.
Testing of the potato chips line Zlehka
Is the product connected to people’s needs? Yes! 43% of Czechs immediately understand that the product contains less oil and almost one third of them can recognize that it’s made exclusively of locally grown potatoes. Both needs (lighter and locally sourced) are more present in the target group than in the general population.
Which needs are connected with this product?
Is the product a good fit for the brand? Yes! Out of all the options presented, the respondents chose the concept belonging to Bohemia the most often. The competition almost doesn’t stand a chance!
Which brand makes it?
Is the product likable? Yes, and the target group likes the new potato chips line even more than the average person. The difference between the groups is significant – 11%.
Is the product easily identified? For the fourth time – yes. 41% of the target group think the product is specifically meant for them compared with 24% of the population.
What connection do you have with the product?
Is the product going to be a success?
Unfortunately, we don’t have access to the exact sales numbers since Bohemia was not involved in the research. Behavio conducted this research for the purpose of publishing a case study about how data can help navigate the process of introducing a new product.
Typically, in the commercial situation there would be follow up testing of the new product in the context of other products of the same company on the market to establish if the new product increased the overall profit or merely substituted one of the already existing products. In this case we were not able to do that.
To summarise, our informed guess about the future of the potato chips line Zlehka would be: there is a solid chance the product will be successful because it meets the needs of the target market and has a very fortunate starting position.