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Enter Sunchips

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Enter Sun Chips
Jolene Stracuzzi
Columbia Southern University

Enter Sun Chips
Frito Co. was founded in 1932 by C.E. Doolin in Dallas, Texas. This same year Herman W. Lays begins his path down the snack chip path in Nashville, Tennessee (“Frito-Lay Corporation,” n.d.). In 1945, their paths merge into a business agreement to sell each other’s chips in their respective areas. These two companies merged in 1961 to become Frito-Lay, Inc. Only four years later, in 1965, Frito-Lay, Inc. became a division of Pepsi Co. (“Our vision,” n.d.a).
Frito-Lay has become one of the world’s prominent producers and venders of snack chips. Some of their snack brands include: Baken-Ets, Cheester’s Fries, Cheetos, Cracker Jack, Cracker Jack’d, Doritos, Fritos, Funyuns, Grandma’s, Islen, Lay’s, Matador, Maui Style, Mrs. Vickie’s, Munchos, OvenBaked, Ready to go Snacks, Rold Gold, Ruffles, Sabritones, Santitas, Simply, Smartfood Popcorn, Stacy’s, SunChips, and Tostitos (“Full brand list,” n.d.b.). Frito-Lay also produces nuts, dips, and peanut butter crackers (Kerin & Peterson, 2013).
Frito-Lay not only manufactures the snack foods, but has a hand in every stage of the process. The corporation has a potato breeding operation located in Rhinelander, Wisconsin. Their goal is to produce a superior potato variety for chipping (“Frito Lay Agricultural Research,” n.d.). They receive potatoes from roughly 80 different potato farms. They have 29 plants in 15 states (“Frito-Lay Plant locations,” 2013). The company also is involved in the distribution of their products (Kerin & Peterson, 2013).
Consumers spent roughly $374 billion dollars on snack foods between 2013 and 2014; North America makes up a third of those sales with approximately $124 billion in sales (“Global Snack Food Sales Reach $374 Billion Annually,” 2014). Of this market, Frito-Lay accounts for approximately 13 percent in the United States. Break the snack food category down to snack chips and Frito-Lay accounts for almost 50 percent of the market (Kerin & Peterson, 2013).
Competitors and Competition Within the snack chip category there are three major types of competitors; (a) national brands, (b) regional brands, and (c) private brands. National brands dispense their products nationwide. Regional brands regulate their distribution to a specific region. Private brands are factory-made by regional or local producers for major supermarkets based on contract (Kerin & Peterson, 2013).
Some of the national brand competitors that Frito-Lay has are Proctor & Gamble (Pringles), Hostess, Borden, Nabisco, Keebler Company, Old Dutch, and Frito-Lay itself. Proctor & Gamble’s Pringles line offers Multigrain Crisps. Restaurante Multigrain Bites are offered by Old Dutch. Examples of regional brands that Frito-Lay compete with are Herr’s, Snyder’s, and Charles Chips. Snyder’s has Natural Sunflower Chips which competes with SunChips. The Frito-Lay aspect of competition is the fact that they have such a vast selection of chip options that cannibalism is part of the business.
Product Line Addition The introduction of SunChips was not the first attempt to add a healthier chip to Frito-Lays product line. The first attempt, perhaps marketed before its time, was Pronto. Another corn chip product produced by Frito-Lay was also known as SunChips. Both the original line of SunChips and Pronto were introduced in the 1970s and were unsuccessful (as cited in Lee, Lim, Pradeep, & Yahaya, 2004).
In 1981, Frito-Lay began to reinvest in the research and development of multigrain chips. They looked for a product that would be attractive to consumers; yet at that time the market was not ready as product testing would reveal (Kerin & Peterson, 2013). The research was tested again in 1983 with the O’Grady’s potato chip. This market sky rocked and earn the projected $100 million in sales over 1984 and 1985 (Kerin & Peterson, 2013). During the mid to late 1980s, the research and development slowed down. The reasons varied from staff changes and changes in staff responsibilities.
In the late 1980s and early 1990s, Frito-Lay, reintroduced the SunChips name. The concept of multigrain products was shown by consumer research to be perceived as a healthier alternative (Kerin & Peterson, 2013). Premarket test (PMT) revealed that the product had potential to make over $113 million in sales, with a $22 million dollar advertising budget (Kerin & Peterson, 2013).
Enter SunChips… According to Frito-Lay (n.d.d.), SunChips are 100% whole grain. Fresh ingredients inspire natural flavors and do not require artificial flavors or preservatives to enhance the taste. They also boast that SunChips contain 30% less fat than potato chips (“SunChips,” n.d.d.). Originally, SunChips came in two flavors. Now they are available in four flavors. SunChips are an alternative option to regular potato chips, corn chips, and pretzels.
Healthy Living Trend Consumers are becoming more conscious about their eating habits. They are looking for options that are healthier. They want pesticide and GMO free foods. This is reflecting on the snack food industry as well. The demand by consumers for healthy snack products increased with a 6.4 percent sales growth annually (“Health and wellness lead snacks categories,” 2013).
A Neilson study reflects that consumers worry more about the lack of ingredients, not the adding of them (“Global Snack Food Sales Reach $374 Billion Annually,” 2014). They continue to state that 45 percent of those surveyed reflected that all natural ingredients are very important. In addition, 32 percent of those surveyed, stated that natural ingredients are moderately important. Whole grain ingredients rate high with 29 percent of those asked. Of those surveyed one-fourth of them are concerned with low or no carbohydrates in their snacks (“Global Snack Food Sales Reach $374 Billion Annually,” 2014). Frito-Lay marketed SunChips for those who cared what they were eating. Promoting the knowledge of what one was eating and how the eating habits affect ones health and fitness. They tied in great flavor with the natural goodness (Kerin & Peterson, 2013).
Target Market SunChips aim at a more health conscious audience. The primary age for the targeted audience is 18-35 years of age. They chose this age bracket because it has been shown that they are the primary purchasers and consumers of snack chips (Kerin & Peterson, 2013).
As a secondary targeted audience, Frito-Lay looked to the age bracket of 35 to 49 years of age. This was brought about with the perception that this age range seemed to be more receptive to healthier snacks (Kerin & Peterson, 2013).
Youth under 17 years old and under are an indirect target market. Frito-Lay believed that those under the age of 18 would be influenced by what was purchased and brought into the house (Kerin & Peterson, 2013).
Branding
Branding the new product is a must. Frito-Lay needed to bring awareness and brand identity to its consumers. They needed to provide the quality product so that consumers respond to it; thus receiving buyer satisfaction as a result. Pricing needed to be taken into consideration while developing the brand name. In order for SunChips to successfully be branded, Frito-Lay needed to implement multiple tactics.
Frito-Lay utilizes multibranding in its snack chips. Each product line carries a different name (such as, Doritos, Fritos, SunChips, Cheetos, etc.). SunChips is the wholegrain brand, marketed for healthier snacks.
They also utilize emotional reactions from consumers to help brand their product. They target the desire for healthy snack chips and overall fitness of their consumers. They promote the 30% less fat than traditional chips.
SunChips may have been the brand name of a former chip; however, Frito-Lay brought it back in a brand extension strategy. They continued the research and development from the early years and tapped into the developing market with their offering of SunChips.
Frito-Lay needed to develop a brand equity with SunChips. To do so they utilized the advertising and marketing for SunChips in the test market. Frito-Lay used commercials, in-store displays, free-standing inserts, and coupons (Kerin & Peterson, 2013).
Afterthought
Frito Lay introduced Sun Chips to the market in 1991. According to Borden (2009), SunChips grosses roughly $11 billion in sales annually.
Frito-Lay has implemented the appropriate target audience for their SunChips. The younger generations need to be targeted since the older generation will fade away. Recognizing that the youth will be influenced by the household purchases was wise by Frito-Lay. By gearing the advertisement towards the main target audience allows for the brand name to become a household name; which it has.
By successfully branding the product, Frito-Lay has maintained a marketable product in SunChips for over 20 years. Even though the competition is fierce in the snack chip market, they have continued to make profit on their version of healthier. In today’s market, other healthy snacks may begin to challenge Frito-Lay in the healthier treats aspect. However, for consumers who want the taste of a salty treat, the slightly healthier version of chip is available.
The current trends of healthy living are growing. Awareness of what is in foods, how they are prepared, and the nutritional values are becoming more and more predominant in today’s society. Frito-Lay is making strives to stay with the trending levels. They have marketed a healthier version of chips that is available on a mass level. They utilize sunflower oil in the production of SunChips. SunChips has zero percent trans-fat. They also provide 18g of whole grains (Consequential Analysis of SunChips,” 2014). After comparing nutritional values, SunChips, are only marginally healthier than potato chips. They have some values that are better than other competitors and others that fall short of the competitors. (See Table 1) Nutritional values were gathered from caloriecount.com. That is not all Frito-Lay is doing to help boost the healthy lifestyle trend. They have asked their farmers not to use genetically engineered corn. They have embraced the green movement. (Borden, 2009). They are constantly looking for ways to save water and energy. They have invested in solar panels on one of the SunChip plants. Frito-Lay has placed the healthy trend not only into the chip but the factory as well. Over all, SunChips was a good addition to the Frito-Lay product line. They branded the item to incorporate healthy trends not only in the manufacturing of the product but the environmental health trends into their company.

References
Borden, J. (2009). “SunChips let the sun in: How Frito-Lay embraced green and grounded its brand identity”. BestinClass. Retrieved from https://www.prophet.com/downloads/articles/SunChips.pdf
Calorie Count. (n.d.). Calories in kettle cooked chips. Retrieved from http://www.caloriecount.com/calories-lays-kettle-cooked-chips-i83694
Calorie Count. (n.d.). Calories in restaurante multigrain bite size. Retrieved from http://www.caloriecount.com/calories-old-dutch-restaurante-multigrain-bite-i123667
Calorie Count. (n.d.). Calories in original flavor multigrain snacks. Retrieved from http://www.caloriecount.com/calories-sunchips-original-flavor-multigrain-snacks-i83751
Calorie Count. (n.d.). Calories in multigrain pita chips. Retrieved from http://www.caloriecount.com/calories-stacys-pita-multigrain-chips-i124519
Calorie Count. (n.d.). Calories in super stack multigrain crisps. Retrieved from http://www.caloriecount.com/calories-pringles-super-stack-multigrain-crisps-i230650
Calorie Count. (n.d.). Calories in sunflower chips. Retrieved from http://www.caloriecount.com/calories-snyders-hanover-sunflower-chips-i228931
Calorie Count. (n.d.). Calories in original potato crisps. Retrieved from http://www.caloriecount.com/calories-baked-original-potato-crisps-i83634
Calorie Count. (n.d.) Calories in classic potato chips. Retrieved from http://www.caloriecount.com/calories-lays-classic-potato-chips-i83687
Calorie Count. (n.d.) Calories in nacho cheese. Retrieved from http://www.caloriecount.com/calories-doritos-nacho-cheese-i247627
Calorie Count. (n.d.). Calories in kettle cooked original potato chips. Retrieved from http://www.caloriecount.com/calories-herrs-kettle-cooked-original-potato-i87209
Frito-Lay. (n.d.a). Our vision. Retrieved from http://www.fritolay.com/company
Frito-Lay. (n.d.b). Full list of brands. Retrieved from http://www.fritolay.com/snacks
Frito-Lay. (n.d.c.) Frito-Lay agricultural research. Retrieved from http://www.uwsp.edu/cnr/StudentSuccessCenter/Documents/CNR%20Reporter/2013-2014/FarmOperationsTechFritoLayRhinelanderWI_13-14.pdf
Frito-Lay. (n.d.d.) SunChips. Retrieved from http://sunchips.com/ ikiMap. (2013). Frito-Lay plant locations. Retrieved from http://www.ikimap.com/map/frito-lay-plant-locations
Kerin, R., & Peterson, R. (2013). Strategic marketing problems: Cases and comments (13th ed.). Upper Saddle River, NJ: Prentice Hall.
Lee, K., Lim, C., Pradeep, & Yahaya, F. (2004). Frito-Lay: SunChips multigrain snacks case study. Retrieved from http://www.slideshare.net/tigerwhitecat/case-study-frito-lay
Nielsen Holdings N.V. (2014). Global snack food sales reach $374 billion annually. Retrieved from http://www.caloriecount.com/calories-sun-chips-multigrain-snacks-i174931
Organic & Wellness News. (2013). Health and wellness lead snacks category. Retrieved from http://organicwellnessnews.com/en/health-and-wellness-lead-snacks-category/
Stakeholders: Uncensored. (2014). Consequential analysis of SunChips. Retrieved from https://stakeholderdoce.wordpress.com/2014/11/26/consequentialist-analysis-of-sunchips/
Texas State Historical Association. (n.d.). Frito-Lay Corporation. Retrieved from https://tshaonline.org/handbook/online/articles/diffs

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...CSA Production Open up the CSA Production database located in the ACCSupprt folder – CSA Monthly Production Folder * You will receive the below message, Press Open To update your production numbers for the day from the main page. 1. Click the next to Add Production #’s 2. Enter the Date, Handler (Your name), Job Duty and the numbers you worked for that Job duty 3. Click Add New 4. Press OK when you receive Record Added Successfully! 5. The date and your name will still appear, however Job Duty and Completed # will be clear. 6. Repeat steps 2 thru 4 until all Job duties for that day have been entered. 7. When finished Click on Close Form 8. Click the next to Exit to close the database. (You may have to click the red X in the upper right corner, if it doesn’t close all the way). Reports 1. Click the next to Reports 2. The following reports are available a. All Data – Pulls all data entered b. Data Search – Allows you to pull all handlers data within a time frame c. Handler & Data Search – Allows you to pull a report for an handler within a time frame 3. On the “Data Search” and “Handler & Data Search” report you will see two reports that are available. d. Detail Report – The Detail report will show all items worked for each day within the search criteria e. Summary Report – The summary report will list total items within the search criteria 4. On each report...

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