Instead of using focal groups, research and trend analysis, Frito-Lay
is turning to Facebook to develop a new potato chip flavour. An ‘I’d Eat That’
button is added to the new Lay’s Facebook app to collect preferences. Currently,
the results show that a beer-battered onion-ring flavor is popular in
California and Ohio, while a churros flavor is a hit in New York. Because of
this geographical divide in preferences, it can tailor its products to specific
areas of the country.
Another example is Wal-Mart acquiring the social media
company Kosmix last year for an estimated $300 million, chiefly because of
Kosmix’s ability to extract trends from social media conversations. The department
now, called @WalmartLabs, has a wealth of data which allows for the company to
decide what merchandise to carry and where.
These are examples of companies turning social media sites
into an extension of market research departments since companies can receive real
feedback as opposed to speculating. The use of social media has turned online
communities into the largest focal groups than has ever before been created. However,
the participants of these communities are often much younger – not attracting
all demographics. Will this lead to products being created for only a specific
demographic?
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