Logistics Frito-Lay was the largest manufacturer of salty snacks in the United States. Before the Motor Carrier Act ofcompanies with private trucking fleets are generally prohibited from selling transportation services to other companies.
Marketing Frito-Lay, Inc has been developing multigrain chips since the early s. It is a worldwide leader in the manufacturing and marketing of snack chips. It is capturing nearly one-half of the retail sales in the United States snack chips market. Frito-Lay knew that a healthier option was appealing to consumers and that this healthier option had proper time to be introduced, but the market was not ready for it yet.
Product research and development is carried out in s and it was found that consumers are expecting multi grain rectangular chips with ridges.
So, sun chip is introduced in late Frito lay has invested a huge capital in sun chip products and so they did pre market test before introducing the product into market.
This test has shown positive result as more consumers got attracted. Sun chips had been in test market for 10 months in the Minneapolis-St. Paul, Minnesota, and metropolitan area. The senior Frito-Lay executives need to Frito lay essay it they would launch this new product to market officially after the test period.
The snack chip category is highly competitive and the new-product failure rate is high. This is the main cause of the problem. In order to expand the market, the brand awareness is a key issue.
So, the budget of advertising and merchandising will increase. The new product will cannibalize volume from its previous products. Give up the new product: Giving up the new product is a safe strategy.
But if it gives up the new product, the spending in the premarket test becomes meaningless. The market test result appeared consumer response was favorable which means it likely gain profit from the new brand. Its quit just leaves the opportunity to its competitors. Putting the new product on the market following the same strategies of premarket test: This solution gives the company a simple way when it expands its product sales from a single area to nationwide.
In the premarket test, its pricing strategy, advertising and merchandising strategy, distribution and sales strategy were all determined. But applying the experience that comes from a single area into whole national market is very dangerous.
Simply coping with the strategies from the test may lead to a terrible result. Putting the new product on the market after strategies adjustment: This solution is adjusted from the former solution.
This alternative will increase its operation cost, but it will bring a better result. The reason why Minnesota metropolitan area was chosen as the test site is because Frito-Lay executive were confident it had a social and economic profile representative of the United States.
It is more convinced that these strategies can achieve success in other metropolitan areas.
How about non- metro areas? This is not a good solution. This new product had been tested for 10 months, if Frito-Lay, Inc. Selected Solution Putting the new product on the market after strategies adjustment: Its premarket test was made in a metropolitan area and got a satisfied result.
Its manufacturing capacity was limited which means the product quantities were hard to meet the requirement of nationwide market in a short time. Base on these two factors, Frito-Lay, Inc. In this period, the market test information is more useful because the marketplaces are similar.
After its new production line completed, it can gradually expand its market to other areas. Based on these responses, Frito-Lay, Inc. For instance, because population distribution is different from metropolitan areas, Frito-Lay, Inc. It would do a premarket test before it wants to launch a new product.
It is a success indicator for the sun chips.The aim of this report is to perform a knowledge audit of Frito Lay, by gathering data, analyzing the findings and making suggestions for the best possibility of knowledge to be utilized in an organization. Nearly 57, Frito-Lay associates across the country work hard to bring you the snacks you love.
Whether in research and development, manufacturing, sales, transportation, marketing or beyond, our Frito-Lay family is dedicated to ensuring your snacking experiences are the very best they can be.
Frito-Lay, Inc has been developing multigrain chips since the early s. It is a worldwide leader in the manufacturing and marketing of snack chips. It is capturing nearly one-half of the retail sales in the United States snack chips market. Case Analysis of Frito-Lay Company Purpose and Overview The purpose of this analysis is to determine the most viable show more content Sales for our new dip are forecasted to be $10 million in the next year alone (Kerin, Peterson, pg.
). Essay on Cracker Jack/Frito Lay Case Analysis. Frito Lay Company – Cracker Jack Case Analysis Carl James MBA:Marketing Strategy September 19, Frito Lay Company- Cracker Jack Case Analysis Case Recap Frito Lay, a division of PepsiCo Inc, has just purchased the .
Frito-Lay's distribution system is organized around four geographical zones that distribute its products through , outlets nationwide. The sales force is composed of 10, individuals that make , sales and delivery calls each day.4/4(1).