Cracker Jack/Frito Lay Case Analysis

Since 1928, the H. B. Reese company's been making the irresistible combination of chocolate and peanut butter known as the Reese’s Peanut Butter Cup. The significance of this artifact in the american culture and history is, without a doubt, vastly significant. As a confection, both peanut butter and chocolate pack a strong punch in their own right. They are often main ingredients in cookies, cakes, ice creams, and other desserts and treats.They're familiar… there’s something instinctively American and close to home about them both. It is no wonder they need very little persuasion of the American people to become the number one most popular candy in the United States by a wide margin.

Howard Moskowitz, a food industry consultant, detailed how to increase the flavor appeal of Dr. Pepper by its consumers, with large amounts sugar. In Prego spaghetti sauce, after tomatoes, sugar was made the next greatest ingredient in amount. The classic Lay’s potato chip brand included many different flavors such as chips with salt & vinegar, salt & pepper, cheddar, and sour cream flavoring. Mr. Moss goes on to describe how Frito-Lay executives hope to develop “designer sodium,” which may decrease the sodium content of their products by a considerable

So here, was the marketing research that Hungry Jack’s conducts to analyse its strength, weaknesses, opportunities and threats.

The ready-to-eat (RTE) sector has increased sales and therefore have given the Breakfast cereals market an advantage to have a higher market share of 4.2% in 2013. The emphasis is more to the value and the convenience of cereals rather than the quality. However people are starting to be more heath conscious and are going to the higher nutritional brands which tend to be the well-known ones such as Kellogg 's, Weetabix and Nestle.

Casseroles, baked mac and cheese, fried fish, meatloaf and pies—what do all of these have in common? For starters, crackers can be found as an ingredient in each. While there are a variety of crackers to choose from, the most commonly used are Premium Saltines and Ritz crackers. Although both are versatile in uses, each have their own list of pros and cons. To assist in the decision-making process, based on points of contrast such as: flavor, nutrition, and price, consumers are better off purchasing Premium Saltines for their cracker needs.

This results from the fact that it is a mature segment with many well established companies vying for market share. The industry is highly consolidated and very fragmented. To grow their businesses, companies rely heavily on mergers and acquisitions to capture additional market share. Historically, the grocery industry has been characterized by slow growth which results in strong price competition and the development of aggressive marketing campaigns between existing firms. Perceived product quality and strong brand recognition by consumers are the basis of competition among firms in the industry. The source of General Mills’ competitive advantage lies in its ability to develop innovative products and highly reputable brands. As a result, they hold cost leadership positions across a number of grocery categories. Exhibit 1 shows the top US companies according to their sale of packaged foods globally. Market leaders include Kraft Foods, PepsiCo, Nestle, Mars, Kellogg, and General Mills, however, neither company possess an overwhelming share of global sales. This is in part due to the large degree of product diversity throughout the industry and the strong brand rivalry of each competitor’s labels.

Popchips is a chip brand who claim their chip is a healthy snack. Popchips claimed that they do not use any flavor enhancer, no added preservatives, no fake flavors, and no synthetic colors. Their product use all-natural ingredients from non-GMO sources (Faq). This particular ad created by Popchips used a bright red color that brings the audience’s eyes to attention. The ad is divided into three sections. The top section writes “less guilty, more pleasure.” Three stacks of potato chips at different height are in the middle of the page. An enormous “100 calories” laid behind the three potato chip stacks. Below each stack is the names of chip types including: fried chips, kettle style chips, and Popchips. Underneath the names are short nutrition facts of the chips. The bottom section depicts a short description of Popchips.

“They (Food Production Corporations) may have salt, sugar, and fat on their side, but we, ultimately, have the power to make choices. After all, we decide what to buy. We decide how much to eat.” (Moss 346). In today’s society, junk food needs no introduction as everyone enjoys the taste of junk food because it is fast, tasty, and affordable but not everyone knows what all goes into their food. Over the years the food industries have drastically changed how food is produced and manufactured. Moss reflects upon the motivations and practices by the food industries which have transformed the American food supply by the use of the three key ingredients, salt, sugar, and fat. Through Michael Moss’s use of rhetorical appeals in his book Salt, Sugar, Fat: How the Food Giants Hooked Us, he discusses the extraordinary science behind what is considered tasty food, how multinational food companies use the key ingredients, salt sugar, and fat to increase sales and how other literary elements can help create trust between the author and audience thus increasing the effect of his arguments.

At the end of 2007, Panera Bread Company was in an unfamiliar position where taking out debt was a necessary action to gain funding. Raising prices would be an option to help with the deteriorating margins, but there is fear that this move will slow the growth of the company. Other options, such as lowering the quality of food, would go against Panera’s fundamental goal of serving high quality food. At this time, Panera is in a position where it needs to repurchase stock. The $75 million buy-back should help give confidence to their shareholders. However, to accomplish their growth goals and stock repurchase, Panera will require external funding for the first time.

The second force that I will use to analyze the Trader Joe’s company is the “the rivalry among established competitors”. Factors to consider when looking at the rivalries in the industry are industry demand, cost conditions, and exit barriers. Trader Joe’s competitors include The Kroger Co., Whole Foods Market, and Safewat Inc., and all super markets in general (Llopis, 2011). With that said, there seems to be a high demand for what Trader Joe’s offers, private labels. This means that the intensity in the industry is less compared to an industry with a flat demand. Trader Joe’s does not have to fight hard to sell their products because of the service they have created. Trader Joe’s brand can be considered “diversity on steroids” which has somewhat of a cult following among consumers (Llopis, 2011). Consumers that want unique experiences with their food are able to do exactly that at

Cracker Jacks sales will represent a tiny part of the Frito-Lay’s business currently, however the chances are high to get the numbers high from this division if proper decisions are made. Frito-Lay is the leader in the US market concerning market share and sales volume. So they can use their advertising and marketing experience to uplift CJ. CJ should be marketed as a stackable treat which is healthy as of natural ingredients like popcorn. Marketing researchers should focus on the small children as the target market as well. By launching the different sizes and convenient packages to the customers so that they can grab it and go rather than having a box. The CJ should be made available to as many stores as possible by utilizing the same direct store delivery channels. A careful analysis has to be done to change any features like gifts in each bag and the flavor of the CJ, because that is the major point of CJ and most of the customers are attracted because of that particular features.

In the past, many students have selected popular products that McDonald’s does not offer, but other restaurants successfully provide. This is an opportunity to use your creativity, so think critically on what products may positively impact the McDonald’s menu of products to increase revenues and profitability. The secondary research used in this assignment should support your new product idea. Remember you are in the process of finding data that will convince a hardened senior executive that your addition to the menu will be good for McDonald’s and their bottom line.

According to Exhibit 5, from 1985-1989, Orange crushes’ market share decreased from 22% (1985) to 8% (1989), this data shows that prior to the entrance of Coca Cola’s Slice and Pepsi’s Minute Maid, Orange Crush had more of the market share which at the time, they were positioned toward groups between the ages of 13-40. Since 1985, Crush repositioned itself to target individuals between the ages of 12-17.

Frito-Lay first toyed with multigrain snack chips in the 1970s, when research indicated a need for a snack in this category. Prontos, released in 1974 and distributed for four years, weren’t incredibly well received. While a lack of success is attributed to a confusing name, poor manufacturing and too narrow a market, Dwight Riskey, VP of Marketing Research and New Business, admits that he is “not sure there were dramatic things wrong with the product design [...]. It may have been invented and introduced before its time.” This sentiment was reflected in the Harvest Project in the early 1980s, when Frito-Lay developed several multigrain products to attempt and have a possible healthy alternative to saltier snack foods for the baby-boomer generation. Lackluster response caused the project to stall into the mid 80s as focus was put on developing new flavors and healthier alternatives in other brands.

End users are those individuals walking in the company stores, ordering a smoothie and a cookie, paying the cashier and then telling her friend how wonderful the ambiance is. This buyer segment does not purchase large amounts of product at one time and likely chooses Jamba because of the quality of the ingredients. With no switching costs and a growing industry offering many options, patrons of smoothie cafés can freely purchase their delightful cool beverage anywhere. According to the U.S. Census Bureau the number of stores within the “snack and nonalcoholic beverage bars” industry grew from 36,036 in 2002 to 49,463 in 2007 [ (U.S. Census Bureau) ]. This trend means that Jamba Juice will have to increase customer loyalty to battle the increased competition.