Teaching Tip: Old Ketchup Packets Heading for the Trash?

If you want to enhance your lecture on product development and enhancement (Chapter 5), just stop by your McDonald’s or Burger King and grab some of the old and new packages of ketchup and bring them to class. The Wall Street Journal (Sept.19,2011) describes how Heinz spent 3 years developing its new “Dip and Squeeze” packet to replace the traditional packet used since 1968. As the name promises, Dip and Squeeze can be squeezed out through one end of the lid or the lid can be peeled back for dipping.

Ask your students what they think. Did they like ripping off the corners of the old style with their teeth  while driving? Did they squirt the ketchup right into their mouths and then add fries?

For decades, Heinz has been searching for a better solution for single-serve packets. And some research showed that traditional packets were so annoying (and drippy) that people don’t order fries as often at drive-thrus ( a problem, since 2/3 of all revenue at these restaurants comes from the drive-thru). To develop the new packet, Heinz staffers sat behind a one-way mirror, watching customers in 20 fake minivan interiors putting ketchup on burgers and fries. ( We all know how messy the process can be).

Although the new packets are 3 times as expensive as the old ones, they signal to users: “This is a serving. This is a bottle of ketchup. You actually don’t need 16 bags”. Cost is king in fast food,  but customers have strongly preferred the new packaging—to the point that some consumers started hoarding the new packages, a trend that will likely wear off as the novelty fades.

This is a great example of building a better mousetrap.