Topics: Frito-Lay, PepsiCo, Snack food Pages: 1 (297 words) Published: May 1, 2013
Frito Lay
Frito Lay is a division of Pepsi Co and is based in New York. It is known as a world leader in the manufacturing and marketing of snack chips, capturing nearing 50% of retail sales in the category. It offers we renown brands like Lay’s, Ruffles, Fritos, Doritos, Cheetos, Sanitas , etc. Snack Food Industry

Frito Lay holds 13% of sales of the US snack food industry which includes candy, crackers, sun chips, nuts and other assorted items. The company is working on introducing a new product that will cater for the decline in baby boomer consumption and shift in demand towards healthier snacks. The company has however faced the following challenges: * Previous product failure due to premature market

* Strong competition and competitors too quick to respond to new product, while more testing is giving competitors an opportunity to retaliate * Cannibalization
Frito Lay is trying to launch a new product, Sun Chips Multigrain Snack; a healthier alternative. The products pricing would be the same as that of Doritos and distributed in the existing channels. The product would be promoted through coupons for trials of 2.25 oz. Televisions ads and in-store free standing displays Frito Lay’s STP

The company is targeting a domestic market and targeting primary consumers between the ages of 18-34, secondary consumers between the ages 34-49 and below 18 through in-house consumption. The company decided to position its product mainly through convenience stores and supermarkets. SWOT

Frito Lay has a first mover advantage and is able to design around consumer preferences by meeting their demand for healthier snack options. However the company has failed before in this endeavor. It has the opportunity to explore new concepts and lead with the product but also faces the threat of cannibalism.
Continue Reading

Please join StudyMode to read the full document

Become a StudyMode Member

Sign Up - It's Free