Question

Read Case Study that is provided below. In this case, the research firm suggested marketing Kolander’s Creamy. Think about their decision and write down your own opinions. You need to provide evidence and logics to your answer. You should add your references, if you have any.

New England Soup Company manufactured Kolander’s Clam Chouder in the Boston market in the late 1970’s which they sold to both consumers and institutions. Two new competitors entered the market which led to a gradual decline in Kolander’s sales and share of the clam chowder market. Consumers of Cape Cod and Fisherman’s Delight, the new competitors, claimed that focus group interviews showed consumers’ preference of the new brands because they were thicker and creamier. New England Soup Company, therefore, commissioned a taste test assessing the three current brands on the market plus a Kolander’s Creamy and a Kolander’s Extra-Creamy version. The taste test was conducted scientifically. 200 respondents were randomly selected from the Boston market and given multiple tastes of each of the five chowders. Each respondent ranked the chowders from most liked (rank=1) to least liked (rank=5). On the next page is a table of 20 respondents selected because they are perfectly representative of the 200 respondents in the sample. The research firm suggested marketing Kolander’s Creamy because of its higher average rank and because of a trend in taste preferences toward creamier chowders.

Do you agree or disagree based on the following assumptions, and why? i. Due to production constraint, New England Soup Company can produce only one of the two new chowders they are testing. ii. The data in the table are perfectly representative of the Boston market. iii. The Chowder will be marketed only within the Boston market.

Answer 1

Do you agree or disagree based on the following assumptions, and why?

i. Due to production constraint, New England Soup Company can produce only one of the two new chowders they are testing.

Do not agree with the statement.

The New England Soup Company has lost its market share in the Boston due to strong competition from the new entrants and thereby gradual decline in sales. The company has the ability to produce the quantities as it used to produce products when they had a big share in the market.

ii. The data in the table are perfectly representative of the Boston market.

Agree with the statement.

The taste test assessing the products were conducted scientifically with 200 respondents which were randomly selected from the Boston market .This is a much better form of research as it helps in capturing the feedback better than the focus group or survey approach.

iii. The Chowder will be marketed only within the Boston market..

Agree with the statement.

The market research was conducted only for the Boston market where they has lost the market share. The research conducted is not reflective of other markets.