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THE PENNSYLVANIA STATE UNIVERSITY SCHREYER HONORS COLLEGE DEPARTMENT OF MARKETING Utilizing Logical Creative Thinking Methods to Innovate within the Consumer Goods Sector SHANNON HARNEY SPRING 2021 A thesis submitted in partial fulfillment of the requirements for a baccalaureate degree in Marketing with honors in Marketing Reviewed and approved* by the following: Min Ding Smeal Professor of Marketing and Innovation Thesis Supervisor Jennifer Chang Coupland Paiste Fellow in Teaching and Learning Clinical Professor of Marketing Honors Adviser * Electronic approvals are on file. i ABSTRACT Innovation is vital to the salty snack industry. However, it is usually associated with unstructured methods of brainstorming, leading to wasted time and resources. Logical Creative Thinking Methods use logical processes to develop creative and useful innovations. While Frito-Lay is the industry leader in the salty snack category, innovation is essential to continued growth, especially new product innovations. Additionally, consumer trends are calling for healthier snack options with bold flavors. This utilization of Logical Creative Thinking Methods pitches an innovative new product to satisfy the need for healthier snack foods in the salty snack category. ii TABLE OF CONTENTS LIST OF FIGURES ..................................................................................................... iii ACKNOWLEDGEMENTS ......................................................................................... iv Chapter 1 ...................................................................................................................... 1 Overview of Logical Creative Thinking Methods ....................................................... 1 Doctrines of Prolific Explorers and Intelligent Search .................................................... 1 Application Guidelines .................................................................................................... 3 Overview of Relevant Methods ....................................................................................... 5 T1M.Replacement ............................................................................................................ 6 T2M.Abstraction .............................................................................................................. 7 T3M.HorizontalExtension ............................................................................................... 7 Chapter 2 ...................................................................................................................... 11 Frito-Lay Competitive Analysis .................................................................................. 11 Frito-Lay Overview ......................................................................................................... 11 Kellogg Company Overview ........................................................................................... 13 Campbell Snacks Company Overview ............................................................................ 15 Utz Overview ................................................................................................................... 17 Chapter 3 ...................................................................................................................... 19 Salty Snack Category Forecast and Trend Analysis .................................................... 19 COVID-19 Market Impact ............................................................................................... 19 Innovation Drivers ........................................................................................................... 22 Health and Wellness Trends ............................................................................................ 22 Low-Calorie Offerings ..................................................................................................... 23 Low-Carbohydrate Product Trends.................................................................................. 26 Cheese Products Gain Popularity..................................................................................... 29 Chapter 4 ...................................................................................................................... 30 Application of Logical Creative Thinking Methods .................................................... 30 Innovation through Replacement ..................................................................................... 30 Applying Abstraction Methods ........................................................................................ 32 Horizontal Extension ....................................................................................................... 34 Chapter 5 ...................................................................................................................... 36 iii Product Innovation Recommendation.......................................................................... 36 Working Title ................................................................................................................... 37 Rationale .......................................................................................................................... 38 Chapter 6 ...................................................................................................................... 40 Product Analysis .......................................................................................................... 40 Proposed Price Point and Product Size ............................................................................ 40 Overview of New Ingredients .......................................................................................... 41 Overview of Production Processes .................................................................................. 45 Vegetable Dehydration .................................................................................................... 45 46 Vegetable Lyophilization ................................................................................................. 46 Chapter 7 ...................................................................................................................... 49 Conclusion ................................................................................................................... 49 iv LIST OF FIGURES Figure 1: A Single Replacement Chemical Reaction .............................................................. 6 Figure 2: CheezIt Flavor Varieties .......................................................................................... 8 Figure 3: Oreo Cookie Varieties .............................................................................................. 10 Figure 4 Consumer Reasons for Eating More Salty Snacks .................................................... 21 Figure 5: Hilo Life Packaging ................................................................................................. 27 Figure 6: Hilo Life Nutrition Facts .......................................................................................... 28 Figure 7: Garden Salsa Sun Chips Packaging ......................................................................... 31 Figure 8: Fresh Gourmet Crispy Jalapenos Nutrition Facts .................................................... 42 Figure 9: Karen's Naturals Just Tomatoes Packaging and Nutrition Facts .............................. 43 Figure 10: Fresh Gourmet Romano Cheese Crisps Packaging and Nutrition Facts ................ 44 Figure 11: Dehydrated Jalapenos ............................................................................................. 46 Figure 12: Lyophilized Tomato Slices .................................................................................... 47 v ACKNOWLEDGEMENTS First and foremost, I would like to thank Professor Min Ding for his continued support during this process. He has greatly impacted the way I view innovation and his book is a great guide for anyone seeking novel and valuable innovations in any field. Also, his radiant personality and positive energy served as motivators throughout the research, writing, and editing processes. Professor Jennifer Chang Coupland has also been an immense pleasure to work with. By always assisting in any way possible, she ensured that the thesis process was enjoyable for all of the students under her supervision. Thank you to Penn State University, as a whole. Attending such a remarkable university has been one of the greatest decisions I have made thus far and it has had a major impact on who I have become in the last four years. I would also like to extend my gratitude to the Schreyer Honors College. I am immensely grateful for my experience and the connections I have made throughout my time in Schreyer. With the support of Schreyer’s faculty, my questions never went unanswered. Furthermore, I would like to thank my parents and sister for their unwavering faith throughout my college experience. With their love and support, all things are possible. Greatest appreciation to the rest of my family and friends for their encouragement. I am especially grateful for my roommates for keeping me company throughout this process. My overwhelming support system helped me along every step of the way. 1 Chapter 1 Overview of Logical Creative Thinking Methods Logical Creative Thinking Methods use innovation as a search process to identify novel, non-obvious, and valuable concepts.