Frito Lay Case

Topics: Frito-Lay, Popcorn, Retailing Pages: 4 (947 words) Published: August 29, 2012
Executive Summary:

The Frito Lay Company has been one of the leading snack company’s in the United States for many years with record breaking sales. They have nine of the ten best rated snacks in America. Frito Lay has Ruffles and Lays potato chips that are the only snacks with sales exceeding $1 billion. They are leading in manufacturing and distribution. That being said the new ventures team is looking into purchasing Cracker Jacks from Bordens Foods. They have been focused on learning whether or not Cracker Jacks would be a valuable addition to the Frito Lay family. In order to assess whether or not this would be a good venture to pursue they must look into the background of why Cracker Jacks is not excelling with Borden’s Food to find out what the underlying problems if any are and whether or not they could be fixed.

Offering a new way of delivery, “direct store delivery” and placement of Cracker Jacks in the preferred aisles will generate sales and offer Cracker Jack much future growth within Frito Lay.

Problem Definition:

The Frito Lay Company is a leading manufacturer and distributor in snacks in America. They have 50 distribution centers in 26 states. They offer direct store delivery sales that are directly from the manufacturer instead of a warehouse. Frito Lays New Venture team is looking into new possible ventures for future growth of the company and when Borden decided they would devest in Cracker Jacks Frito Lay found it as a possible fit to all three criteria in their new marketing strategies.

Ready to eat caramel popcorn recorded a sales of $192 million in 1996 and $205 million in 1995 in retail sales. Acquiring Cracker Jacks from Borden requires the new venture team to research the underlying problems whether it is marketing, positioning, etc. of the failure in sales for Borden. They need to analyze ways to make the RTE popcorn a success at Frito Lay....
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