Essay Sunchips

2932 Words Nov 25th, 2011 12 Pages
Table of Contents

Problem Statement 3
Situational Analysis 3
External Analysis - Market Analysis 3
External Analysis - Customer Analysis 4
External Analysis - Competitor Analysis 4
External Analysis - Environment Analysis 4
Internal Analysis - Performance Analysis 5
Internal Analysis - Determinants of Strategic Options 7
Alternative Analysis 8
Recommendation 9
Citations 10

Problem Statement

Frito-Lay, Inc. executives are contemplating the launch of Sun Chips Multigrain Snacks. Though there are currently few, if any, other nationally- marketed multigrain snack chips, the snack chip industry is known to be highly competitive and it is likely that competitors will be quick to introduce a competing product.
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Because of their superior nutritional attributes, these chips may be more appealing to “baby boomers” and other health-conscious buyers than traditional snacks. Sun Chips will meet a need that is currently unmet as there are few, if any, other healthy snack chips on the market. Adults ages 18-34 are the main purchasers and users of snack chips and as such are the primary target of advertising for Sun Chips. A secondary target market is made up of adults ages 34-49 as these individuals are likely to find a healthier snack appealing. Those under age 18 will gain exposure to the product through household usage.

External Analysis - Competitor Analysis

There is no shortage of competition in the snack chip market. Competition is fierce not only with other national brands like Borden, Proctor & Gamble, RJR Nabisco, and Eagle Snacks but also with regional brands like Snyder’s. Additionally, there are the supermarkets brands to compete using a low-price strategy. The competitive playing field is not stagnant. The choices available to the consumer consist of chips that have been around for decades like Proctor & Gamble’s original Pringles brand, along with a multitude of new products that saturate the market annually. Consumers in the snack chip market can be quite fickle and may quickly abandon an old favorite for a new taste. Although as many as
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