Price vs. Quantity
Ice Cream Perceptual Map
Interpretation
The chart above represents five of the top ice cream brands in the United States, rated on the attributes of price (the horizontal axis) and quantity (the vertical axis). As brands land higher on the chart, they deliver more ice cream per dollar amount than the ones below. The same can be said for the migration of left to right: the further right a brand lands on the chart, the more the consumer will pay per pint/quart of ice cream. Additionally, the size of each brand's bubble is in coordination with their respectful market share within the industry.
Blue Bell (represented by the orange bubble) would appear to be the best option for the consumer, having the lowest price and the highest quantity. This, however, is dependent upon the fact that quantity and price are the two main drivers of the consumer's buying behavior when it comes to ice cream. If instead the consumer's internal motivator were taste or nutrition, the map would have a very different layout and meaning. For the purpose of interpreting this chart, we will assume these are the two main characteristics considered by the consumer.
As stated, Blue Bell has what would appear to be the most appetizing position on the chart for the consumer (high quantity and low price). Breyers and Dreyers offer similar quantity, but Dreyers charges slightly more for their products. Ben and Jerry's and Haagen-Dazs both deliver less in quantity to the consumer while charging a higher price (Haagen-Dazs even more-so than B&J's). As for market share, Breyers has the second largest bubble while Dreyers is slightly larger, exemplifying their leadership in the industry. It would-so happen that these two brands also fall somewhat within the center of the graph, concluding that consumers do not prefer one extreme over the other in terms of price and quantity. Rather, they land with middle-ground brands that deliver a decent quantity for a fair price, perhaps under the inclination that they will be purchasing a slightly superior ice cream than that of the cheapest selection at the grocery store.
Strategical Implication
The results of this chart can be utilized when considering how to enter the ice cream industry, the right price, and the right amount per dollar. The extremes of the industry are represented by Blue Bell and Haagen-Dazs; the former has the highest amount for the lowest dollar, while the latter has the smallest amount for the highest dollar. Paralleled with these strategies are the lowest percentages of market share among the five in this example.
For this reason, it would be wise for a new entrant to veer away from either extreme. Instead, starting in a position similar to that of Breyers and Dreyers and offering both price and quantity appeals would most likely develop the highest percentage chance of being successful. Additionally, the upper-right quadrant of the perceptual map is left untapped by most of the competitors; launching an ice cream product that lands highly in this section (high in quantity and high in price) could possibly create another avenue for the consumer to consider when making their buying decision.
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