High School

Lay's potato chips hold a contest called "Do Us a Flavor," in which customers pitch new flavor combinations of the popular Lay's potato chip for the chance to win $1 million. Contestants submit flavor ideas on the "Do Us a Flavor" website. They choose a catchy title, select up to three ingredients, create a quick pitch, and design the bag.

What stage of the new-product development process is described by this stage of the Lay's contest?

Answer :

Final answer:

The Lay's "Do Us a Flavor" contest represents the 'idea generation' stage in the new-product development process, where customers submit potential flavour ideas that could lead to a new flavour or brand name in a monopolistic competition.

Explanation:

The stage of the new-product development process described by Lay's "Do Us a Flavor" contest is idea generation. In this contest, customers are essentially part of a crowdsourcing effort that allows Lay's to gather a wide array of potential product concepts. This is an innovative approach that combines marketing with product development, fostering customer engagement and generating a diverse set of ideas that could potentially turn into a successful new product.

While this could lead to the development of a new flavour or brand name, it is also an interesting case study in monopolistic competition, where products compete on style, flavour, and brand, despite being in a crowded and competitive market.

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