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This is a self-funded case study using our Innovation Testing solution.
Logan Paul, Mr. Beast, and KSI are some of the biggest names in the YouTube content creator world—but why, you might be wondering, are we talking about them in a blog post about new product innovation in the children’s snacking category?
Well, the three recently launched Lunchly—touting it as a “new, groundbreaking, better-for you lunch option.” The product lineup includes a Mr. Beast Feastables chocolate bar and bottle of Paul and KSI’s Prime Hydration, packaged together with other snacking products. The concept was unashamedly pitted in direct competition with the giant that is Kraft Heinz’s Lunchables—a dominant, 30-year old category veteran known for its fun and convenient lunchtime snacks (who also underwent a refresh of their own recently, which we dissected in detail).
With the newcomer making bold health-based claims (specifically, that the product offers a nutritional edge over Lunchables), we were curious about how it would be received by parents given the celebrity trio’s backing—so we put it to the test against the O.G. to see how it stacked up.
While the celebrity star power behind Lunchly generated buzz and excitement around the launch, the proposition itself wasn’t found highly credible. The creators’ financial stake in the product and their perceived disconnect with its health-based claims raised doubts about the authenticity of its “better-for-you” positioning.
This consequently meant it didn’t sufficiently address the core needs of busy parents looking to juggle competing priorities around health, quality, taste, and value when feeding their children. Failing to convince parents that the product would deliver on these core category needs meant it didn’t elicit a strong emotional response, nor did it strongly encourage them to consider giving it a go.
In contrast, while Lunchables themselves aren’t renowned for being the healthiest of lunchtime snacking options for children, what they do, however, do a lot better job of is tapping into the key priorities of parents when feeding their kids. That is, a central focus on convenience and fun. With the brand having been the dominant category leader over many decades now, Lunchables naturally didn’t elicit the same level of excitement as the category newcomer. However, where Lunchables did excel is that it’s a brand that’s highly trusted by parents.
Ultimately, Lunchly lacks a clear and credible point of difference to category stalwart, Lunchables. It was subsequently considered more of a noisy imitator rather than category innovator. The lesson? For brands looking to break into categories dominated by a major player(s), it’s crucial to either (a) deliver on a key category need, want, or ‘job-to-be-done’ which isn’t currently being addressed by any competitors; or (b) meeting an existing need or want in a way that’s different and (ideally) better than existing alternatives. And in a category where a leader like Lunchables looms so large, it will take more than celebrity star power to dethrone the reigning heavyweight champion.
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