FRITO LAYS CHIPS.
BACKGROUND AND ENVIRONMENT
The Frito-Lay company is a $13 billion subsidiary of PepsiCo that employs 48,000 people. They are a nationally recognized leader in the manufacture and marketing of salty snack foods. Brands include Lay’s, Ruffles, Frito’s, Doritos, Tostitos, Cheetos, pretzels and Funyuns. They produce nuts, peanut butter crackers, beef sticks, cookies, snack bars and more.They sell and deliver through a “front-door store delivery system” in which one person performs the sales and delivery functions. This system allows the products to be closely monitored and restocked, as well as creates a relationship between the sales/delivery person and the supermarket staff.
* To provide good Quality,
* Convenient Fun Foods Within Arm's Reach
* Make it Favorite snack
Frito Lay indulgence itself to offer extreme taste, crunch and flavours are the value proposition.
1. Continuous availability of Raw Material in the form of fresh Potatoes. 2. Good Advertising is one of their major strengths which lead to their success. 3. Sold @ many retailers making it available and Popular so that it is visible to the customers. 4. Cost advantage as it is effective and as per the competitors keeping in mind the affordability of the target group. 5. Effective communication that is imparting the Promotions in an efficient manner. 6. Another Plus point for them is that if a person or customer gets attached to it becomes Loyal towards the Brand as they hit the “Taste Buds”. 7. Healthier than any other chips available in the market. 8. Attractive brand name and Good Will.
1. Low supply in remote areas investing so much on supply chain to make it reach the remote areas is not feasible. 2. Unhealthy as it has fats and calories in it.
3. Changes in the current eating habits of the People make them avoid market made edible products.
1. Product and services expansion: A large number of people who are not Brand Loyal can be attracted by heavy Marketing Campaign. 2. Changes in the current eating habits of the People that is if they not into fatty market snacks so introducing “baked chips” for them(which Lay’s already did) and many more new innovations as per changing scenario. 3. Has room for improvement as demands of customer are changing now and then, so being the 1st one to enter the market as per their requirements. 4. Can supply to remote areas by effective marketing for them and making it more popular so that demand increases the estimation their by allowing investments on supply chain for these areas.
2. Availability of healthier products.
1. Make Lay's a brand Hostess buyers want.
2. Make Lay's highly visible and appealing, to draw in new users. 3. Create the conditions for long-term brand loyalty to Lay's. 4. Fulfil the global strategy, while giving Lay's a Canadian personality.
TODAY’S MARKETING STRATEGY
1. Taking consumers through the sequence: esteem > trial > attitude shift. 2. Social Media: Instead of the “LIKE” button they have “I’d Eat That Button” on Facebook. 3. Do Us A Flavor: Asking customers to input new flavors and selected flavors will be awarded. 4. $1million or 1% of flavors net sale.
5. 2 runner ups $50,000.
6. Lays Machine: Put the secret of the recipe in front of people, showing the cooking and process. 7. It’s a way to get customers into your RADAR as they will build a trust by seeing the process of cooking. 8. Advertising must be entertaining, involving and memorable. 9.
10. They still pay a lot of emphasis on Quality maintenance. 11. The advertisements are very innovative and according to the target group they plan each move. Every other promotion of theirs focuses on different target group making an impact on...
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