Frito Lay Case Study
Frito Lay
In 1930, two men in different parts of the United States began companies that would eventually come to control the international snack food market. One-named Doolin purchases were made from corn dough used for centuries by Mexicans to bake bread. Fascinated with the product, Doolin sold his ice cream business and purchased the corn chip producer’s business for one hundred dollars. The brand, Frito, was created in the kitchen of his mother, along with the early production of the corn chips.
As business grew, the company was moved from San Antonio to Dallas. Frito became a main chip producer in the United States. Around the same time, an entrepreneur in Tennessee named Herman W. Lay was selling potato chips produced by an Atlanta company. …show more content…
Frito-Lay had to establish its own farms in order to grow potatoes acceptable to company standards. Early version to local markets required Frito-Lay to make major changes. For example, Frito-Lay’s Cheetos sold in China do not contain any cheese due to the tendency of the Chinese to be lactose intolerant. Instead of cheese flavoring, Cheetos is offered with barbecue or seafood flavoring. In addition, the packaging was made smaller so that the price would be more acceptable. Other international versions had previously been made in other markets by Frito-Lay, including the popular Thai product, Nori Seaweed Chips. Frito-Lay found that the Chinese market was not a single entity. Regional tastes and preferences had to be considered and products improved consequently. Chinese for example, prefer sweeter foods, and others living in the different regions prefer a meaty taste. Frito-Lay also has found that having a good understanding of culture helps sell products. The Chinese belief in the Great Unity, or yin and yang, has marketing and product development effects. Yin and yang are the opposing forces in the universe and seek balance. The Chinese also seek balance, including balance in their foods. Fried food is seen as hot and not appropriate in the summer months so Frito-Lay developed a new product, cool lemon potato chips. This product consists of chips dotted with lime
In 1930, two men in different parts of the United States began companies that would eventually come to control the international snack food market. One-named Doolin purchases were made from corn dough used for centuries by Mexicans to bake bread. Fascinated with the product, Doolin sold his ice cream business and purchased the corn chip producer’s business for one hundred dollars. The brand, Frito, was created in the kitchen of his mother, along with the early production of the corn chips.
As business grew, the company was moved from San Antonio to Dallas. Frito became a main chip producer in the United States. Around the same time, an entrepreneur in Tennessee named Herman W. Lay was selling potato chips produced by an Atlanta company. …show more content…
Frito-Lay had to establish its own farms in order to grow potatoes acceptable to company standards. Early version to local markets required Frito-Lay to make major changes. For example, Frito-Lay’s Cheetos sold in China do not contain any cheese due to the tendency of the Chinese to be lactose intolerant. Instead of cheese flavoring, Cheetos is offered with barbecue or seafood flavoring. In addition, the packaging was made smaller so that the price would be more acceptable. Other international versions had previously been made in other markets by Frito-Lay, including the popular Thai product, Nori Seaweed Chips. Frito-Lay found that the Chinese market was not a single entity. Regional tastes and preferences had to be considered and products improved consequently. Chinese for example, prefer sweeter foods, and others living in the different regions prefer a meaty taste. Frito-Lay also has found that having a good understanding of culture helps sell products. The Chinese belief in the Great Unity, or yin and yang, has marketing and product development effects. Yin and yang are the opposing forces in the universe and seek balance. The Chinese also seek balance, including balance in their foods. Fried food is seen as hot and not appropriate in the summer months so Frito-Lay developed a new product, cool lemon potato chips. This product consists of chips dotted with lime