Frito Lay, Inc.
Sun Chips Multigrain Snacks
Major Issue or Decision
In the 1980s Frito Lay had difficulty perfecting the healthier alternative to a snack chip. After releasing their product Prontos in 1947, which was a multigrain product, which did not last on the market for long, Frito Lay was on a hunt to create the perfect multigrain chip that consumers considered an everyday chip. There were many reasons why Prontos failed and those were factors that Frito Lay made sure to steer away from the second time around. The biggest problem facing Frito Lay in the late 1980s was how they can perfect the multigrain chip in every aspect, along with testing the market properly, along with nailing every aspect of the marketing plan. This included product strategy, pricing strategy, advertising and merchandising strategy, distribution and sales strategy, along with other considerations to be taken into account. Following off of this, deciding whether to launch the Sun Chips product line, or let the line continue to say in the test-market stage to gain more insight on the product and the market is another factor the company is faced with. Significant Factors
One of the most prominent factors influencing Frito Lay’s push to figure out the perfect combination of a multigrain chip was that no one had pursued this side of the chip industry yet. To be able to be the first in market with an everyday multigrain chip would be a great step for the company. Being able to capture all sides of the chip market by adding a healthier alternative to a regular potato chip is significant for Frito Lay’s growth and ability to continuing grasping the market. Reasonable Alternatives
The first option Frito Lay can pursue is the full production and launch of Sun Chips. Here they will need to start producing the two flavors of Sun Chips, Original and French Onion, in all three sized bags. Along with the production, they need to fully...
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