frito lay

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Lecturer: Gerry Mortimer, Marketing Case
Group members:
Sean O’Connor C08667390
Cian O’Higgins C07696825
Niall Rock C09071644
David Treacy C08487871

Declaration;

We hereby certify that this material, which we now submit for assessment as a continuous assessment assignment in the module, ‘Marketing Case, on the course DT341/4, 2012/13 is entirely our own work and has not been submitted in whole, or in part, for assessment for any academic purpose other than in fulfilment for that stated above.
Name: Signature:
Sean O’Connor _____________________________
David Treacy _____________________________
Niall Rock _____________________________
Cian O’Higgins _____________________________

Richard – Industry Overview
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Typical consumer environment.
1.6 million Households that consume salty snacks, 2% of the 78.8 million households who consume these product nationwide.
$500,000 budget, 70% to be spent in 1st 6 months.

Results and implications of trial data
1. Couponing program had a major impact on the sales.
a. ¾ of purchases in 1st month bought with coupons
b. Subsequent up deal purchases were repeat

This tells that couponing seems to be a good way to entice shoppers into making 1st time purchases of the new product, and one method of promotion we should pursue in future trials and sales. 25%-40% of potato chips were purchased on some deal. This trend tells us that although this product may be a low involvement purchase, at the same time it seems that a vast majority will take the time to get a good deal, tactically, this must be noted with future promotions of our product.

As an implication this may take away from our profit margin, but as we’ll talk about later we see slight room for a price increase, but still using these type of promotions making the customer still feel like they’re getting a good deal, if it helps increase sales this should overall increase profits as your better off selling more of something at a low margin then few at a high margin.

2. We can see that in the initial trial that the 1 1/8 ounce “trial size” bag wasn’t that
3. popular in the 1st month with 8% of
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