I am the type of person that when I enter a store, I search for the sales, the deals, and strictly for the bargains. There are many times that I will choose the “generic” version or store brand of foods and household items over the name brands. This is never the case with chips and snacks that Frito-Lay offers where I always find myself without hesitation grabbing their brands and putting them into my shopping basket. I have tried in the past with store and generic brands but can never find a single one that comes close to the desirable taste and satisfaction that I get from Frito-Lay products. Frito-Lay today is a subsidiary of PepsiCo. Their brands account for 59% of the U.S snack chip industry (Frito-Lay, 2014). Several snack foods and brands are produced under Frito-Lay. Many well-known brands are Lay’s potato chips, Frito corn chips, Cheetos, Ruffles, Doritos, and Tostitos tortilla chips. They have ranked on Forbes World’s Most …show more content…
For me and for many other loyal consumers, there are no other snack food products in the market that compare. While I opt for deals and store brands for most products, I can never replace Frito-Lay brands. Takis were very popular when they first came to the United States market and Frito-Lay successfully positioned itself in that market segment with Dorito Dinamitas. They offer many premium brands as well as low-priced brands. Cracker Jacks were repositioned to be aimed at value shoppers (Strom, 2012). Their contests succeed in making consumers feel that they have a voice in their brand and in turn will become more loyal. Their continued licensing agreements with other firms will help to make a name for themselves across many other markets. The Doritos Locos Tacos have been very successful for their Dorito brand. Brands protect from competition and as this paper has shown, Frito-Lay has been very successful in their branding
Takis, the perfect amount of spicy, crunchy, and flakiness. According to "Takis/ Detailed Statistics," more than 4,457 people become fans of Takis in one month. One article written by Tracie Lee from Seriousseats.com said "Holy sweet Jesus, it was everything I wanted out of a snack. It has the strong corn flavor that comes through on Fritos, but it's much more complex and satisfying with the addiction of sour lime and a big kick of spicy chile at the end." The very first time I tried Takis, I fell in love. I immediately wanted to finish the rest of the bag. I then continued to eat a bag every other day even though I knew it wasn't healthy. My friends and i used to argue about which chips were the best, either Hot Cheetos or Takis. Honestly Takis are some of the best chips I have ever had, just the way the chile rubs off as soon as you take a bite out of them or how you can hear the crunch while you chew, or even the knock of lime that appears after the first bite. Takis have almost everything someone could possibly want in a chip. They just have a certain taste and texture that makes
It is recommended that Frito-Lay’s (FLD) aggressively promote its current line of shelf-stable, “chip dip” products and should not enter the “vegetable dip” market until a future date.
Television advertising for the launch included the popular commercial “Road Trip”, which shows a true story of a group of friends traveling across the US to be one the first to get the samples. The IMC strategy enjoyed instant success; the company sold over 100 million Doritos Locos Tacos in the first 10 weeks from launching. Taco Bell next launched its Cool Ranch Doritos Locos Taco. The company, in partnership with Frito-Lay, used an IMC strategy that included radio, outdoor, retail, TV and online advertising as well as public relations and social media promotions. Paid and earned media is what they use a lot of to advertise their brand. They want to reach consumers digitally because this is how the majority communicate rather than face to face. The company was quick to realize consumers are on social media for a majority of their time and they even sleep with their phones next to them creating a huge emphasis on their digital
A key aspect of Panera Bread’s business that protects the company from direct competition in the fast food industry is their product niche, artisan fast food. Fast food chains are often criticized for offering unhealthy foods. But, Panera Bread focuses on a higher nutritional value in their products. Dine in restaurants are very susceptible to drops in consumer spending, so Panera Bread’s
Frito Lay, a division of PepsiCo Inc, has just purchased the Cracker Jack brand from Borden Inc. The company is a worldwide leader in the manufacturing and marketing of snacks, with products such as Ruffles Potato Chips, Fritos Corn Chips and Doritos found among its product mix. These well known company brands have seen it capture over 50 percent of the retail sales, and company officials envisage Cracker Jack can only but add to the richness of its product line and profits. Borden, because of its strategic decision to concentrate resources elsewhere, discontinued aggressive
With giants such as Walmart, and Kroger running the grocery store industry it’s difficult for companies such as Smuckers to bargain for shelf-space and prices. Brand name items drawn to the center of the store are what leverages these companies to succeed in the industry. After numerous acquisitions and strategic alliances, Smuckers developed a solid core of product lines which experienced success rapidly. Product lines that experienced the most success as a result of strong positioning in the industry included their Coffee labels, flour and baking products, Oils and food spreads. A 9-Cell Industry Attractiveness/Business Strength Matrix shows that the Industry attractiveness is relatively moderate. With many competitors and strong buyer power from large grocery chains such as Kroger, companies such as Smuckers have explored different strategies that have proved successful in what can be described as a saturated industry. The case insinuates that there may be opportunities in the industry in regards to special markets and perhaps Oils and Baking with sugar free products, but otherwise the recession, although it drove families to buy store bought as opposed to eating out, has had its effects on the food service industry as well.
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.
Frito-Lay is a national brand and a worldwide leader in the manufacturing and marketing of snack chips. Frito-Lay accounts for 13 percent of sales in the US snack food industry. Frito-Lay’s
PepsiCo is a global food and beverage corporation based in United States. Company received its current name in 1965, through the merger of Pepsi-Cola with Frito Lay Inc. PepsiCo makes, markets, sells and distributes more than 40 brands. A range of worldwide famous brand names includes Pepsi, Mountain Dew, Lay’s, Doritos, Quaker, Tropicana, Tostitos, Walkers, Cheetos, Ruffles, Fritos and others. PepsiCo generated net revenues of more than USD 65 billion in 2013, where 35% of revenue from developing and emerging markets (PepsiCo Annual Report). Pepsi products are available in more than 200 countries. The company has its own bottling manufacture and distribution facilities. Pepsi-Cola Company division is the second largest carbonated soda business in the world and the Frito-Lay division is the world’s leader in snacks business. The Frito-Lay generates more than 65% of PepsiCo 's net sales and more than 2/3 of the PepsiCo operating
Consumers around the world bought more snacks and beverages than ever before. They have gained market share in both snacks and beverages in the United States, their biggest market. Internationally snack and beverage units both posted healthy volume growth, even amid economic turbulence.
The following marketing plan forms the basis for the introduction of an innovative new product by Snyder’s-Lance Inc. This analysis allows me to outline the best strategies to follow for the achievement of the company’s strategic goals. “Pretzel Abobodas” will be marketed as a unique flavored pretzel that targets the Hispanic consumer, while striving to reinforce the company’s focus on wanting to penetrate the Hispanic market. The marketing strategies will hopefully enable our company to
Panera Bread is considered to be one of the U.S. most successful fast-casual restaurants. The company is one of the revolution makers in the industry of fast food, which managed to transform the traditional image and perception of to-go products that are available at an acceptable price on the market. As its initial founding company was established in 1981, Panera Bread managed to gain up to 4.5 billion USD in sales by the year of 2015, whereas the average sales per one store made up to 2.5 million USD annually (Thompson). Nevertheless, the company that once managed to upgrade bread and pastry into a trend of fast and healthy eating, today is struggling with massive competition on the fast food market. Its previous strategic strengths now became a burden that stops innovation and creativity and does not
For example, in 2013, Doritos launched their first global campaign; meaning that they would distribute their product at an international level. E.J. Shultz, the author of the article on this new launch, also stated, “Doritos is the world’s largest tortilla/corn-chip brand, with 39% market share, according to Euromonitor International.” This means that the launch was a success and that expansion and differentiation is a good option for this brand. Along with global expansions, Doritos spends much of its time coming up with new ‘bold’ flavors to release to buyers. The newest flavor was released on January 4th of this year. The flavor, titled Blaze, is meant to catch the eye of buyers who enjoy spicy flavors. Doritos can trust the release of this flavor because of the extensive research that they have done. Mintel research claims that, “…spicy heat is projected to be one of the most popular food trends in the years to come, as 1 out of 4 consumers are eating spicy foods more often than they have in the
Simply, the developing an understanding of consumer taste preferences was a key to expanding into international markets. The taste preferences for salty snacks were similar from country to country, which enables PepsiCo to make moderate changes to its snacks in most countries. For example, Lay’s, Doritos, and Cheetos snacks were sold in Latin America. However, a seaweed-flavored Atesanas chips sold in Thailand and Lay’s White Mushroom potato chips are sold in Russia. In 2007, PepsiCo was eliminating trans fat from its snacks and expanding in Europe, since the demand for health and wellness products is increasing 10-13
Subway Sandwich, as presented in the Case Study presented in the Marketing Management MGT 551 class, is an undisputed market leader in a segment that is “firmly established as a nationwide food item for which there is plenty of room in all areas” (University of Phoenix, 2008). However, with a growing competition, changing consumer trends and increased product specialization, Subway’s real strategic marketing challenge is to be able to develop and maintain a differential advantage while sustaining sales growths and profitability.