...Factual Summary： Frito-Lay, Inc. is a division of PepsiCo, Inc., a New York-based diversified consumer goods and services firm. PepsiCo, Inc. includes Pizza Hut, Inc., Taco Bell Corporation, Pepsi-Cola Company, Kentucky Fried Chicken, and PepsiCo foods international. PepsiCo, Inc. recorded net income of $ 1.077 billion on net sales of $ 17.8 billion in 1990. Frito-Lay, Inc is a worldwide leader in the manufacturing and marketing of snack chips. In 1960, the Frito Company and the H.W. Lay Company merged to become Frito-Lay, Inc. The company is the leading manufacturer of snack chips in the United States, capturing about 50% of the retail sales in this category. During 1990, the company has 39 manufacturing plants, more than 1,600 distribution facilities, and a 10,000-person route-sales team that calls on more than 400,000 retail store customers in the United States. Today, Frito-Lay brands account for 59% of the U.S. snack chip industry. Sun Chips Multigrain Snacks resulted from Frito-Lay’s ongoing marketing research and product development program. In the early 1970s, corporate marketing research indicated that consumers were looking for nutritious snacks. In the early 1980s, Frito-Lay marketing R&D instituted the “Harvest” project with the multigrain snack to appeal to consumers. The “Harvest” project also emphasizes on flavor line extension and low-fat versions. In the beginning, Frito-Lay faced some problems for increasing its sales volumes. Later, Frito-Lay uses different...
Words: 267 - Pages: 2
...Susan Didriksen Friday, August 03, 2012 In this essay I will be covering the benefits of the new monopoly, and the changes which will occur in price and output of the product in this particular type of market structure; and market structure that will most benefit the Wonks potato chip industry. The potato chip industry in the northwest was running in competitive equilibrium in 2007. In 2008 two lawyers quietly bought all the firms and created a monopolistic company called “Wonks” in order for Wonks to operate efficiently, Wonk’s had to hire a management consulting firm which then estimated a different long-run competitive equilibrium. Economist divided the market conditions into four major categories: (1) monopoly, (2) pure competition, (3) monopolistic competitive, (4) oligopoly. In a monopoly, a single business or company supplies a product and or service for which buyers cannot find a substitute. A Monopoly may arise when one company can supply a given commodity more cheaply than two more companies can. Our textbook defines a monopoly as “an industry composed of only once firm that produces a product for which there are no close substitutes and in which significant barriers exist to prevent new firms from entering the industry” (Case, 2009). By purchasing all firms involved with the potato chip industry the two lawyers have created a pure monopoly. A pure monopoly is an industry with a single firm that produces a product for which there are no close substitutes...
Words: 1288 - Pages: 6
...Green Manufacturing and Sustainability at Frito-Lay Case Study 3 Questions 1. What are the sources of pressure on a firm such as Frito-Lay to reduce its environmental footprint? 2. Identify the specific techniques that Frito-Lay is using to become a green manufacturer. 3. Select another company and compare its green policies to those of Frito-Lay. Each Case Study paper is to consist of the following components: 1. Title page and two written pages with no more than 500 words. 2. Answers to individual questions (as assigned) Each assignment will have specific questions you need to address. You should create a sub headed section for each one. 3. References/Appendix (if required) These are not research papers per se, so you may not have the need to cite outside sources. If you do, however, they should be identified on a proper reference page. Similarly, if you are required to do calculations and choose to perform them on a separate page, you should include them in an appendix. Weekly Case Paper Grading Rubric | Category | Points | Weighting | Description | Content | 24 | 80% | * Required questions are answered in an accurate and appropriate manner. * Adequate support is given for recommendations. * Calculations (where required) are performed correctly | Grammar and Spelling | 3 | 10% | * Paper is well written and reflects college level writing. * Rules of grammar, usage, and punctuation are followed and spelling is correct. * Sentences...
Words: 872 - Pages: 4
...Running Header: Frito-Lay Frito-Lay Capella University MBA 6118 TO: Frito Lays Executive DATE: January 24, 2015 SUBJECT: International Marketing Multinational corporations are transforming themselves by repositioning and rethinking their goods and services to tap into and capture the new global middle-class market. This worldwide economic phenomenon encompasses a huge customer base (International Marketing, 2012). Market research and analysis show that the proposed advertising media for Frito Lays line need to be reprioritized and changed for international expansions. Findings from focus groups and surveys have made it apparent that we need to update our advertising efforts to align them with the international markets of today. Also, it is has become increasingly important to use the Internet as a tool to communicate with our target audience to show our dominance in the snack industry. In attempts to attack the market and the fight against entrance into a new market and the newly fade of health food snacks. One idea that has come up during discussions is for Frito Lay’s to changing the name before entering into newer international markets. Donald Yacktman of Yacktman Funds, has suggested that PepsiCo rename itself Frito-Lay to reflect the growing importance of that business, and others like Nelson Peltz and Relational Investors have agitated for it to uncouple the snacks business from the drag of its beverage operations, has slowed as consumer tastes migrate to...
Words: 970 - Pages: 4
...Savor Restaurant and Catering Heshan Abeywickrema Bellevue University MBA 652: Marketing Strategy Prof. Adrianne Agulla 04/20/2014 1. Case recap In 1997 the Frito-Lay Company, part of the PepsiCo, Inc. was looking at a possible acquisition of Cracker Jack from the Borden Foods Corporation. Cracker Jack is one of the oldest and one of the most well known trademarks in the United States, and the company has been under the Borden name since 1964. Frito-Lays interest to buy Cracker Jack came around when its parent company Borden announced the possible sale of the Cracker Jack brand. The executives at Frito-Lay wanted to know the potential of Cracker Jack and designated a team to consolidate the findings, create a plan of action on how to market Cracker Jack as a subsidiary of Frito-Lay, and finally to estimate fair market value of Cracker Jack as a entity. 2. Problem Identification The ready to eat caramel popcorn product category had decreased sales from the year 1995 to 1996. In 1995 there were sales totaling $205 million, and in 1996 it dropped down to $192 million. Besides the drop in sales there is also severe completion in the ready to eat caramel popcorn category that include national brand firms, seasonal/specialty firms, regional firms, and private label firms. Another alarming fact about the ready to eat caramel is that only about 12% of the total U.S. households consume the product. Only 2% of typical U.S. households would consume the ready to eat...
Words: 856 - Pages: 4
...background and history of the company, the external and internal forces of PepsiCo’s business environment, PepsiCo’s strategic marketing plan, and a conclusion and recommendations on how the PepsiCo company can improve their business strategy to stay competitive in years to come. Vision and Mission The vision of PepsiCo is to be a responsible company that supports continuous improvement of all areas across the globe in which they operate. These areas include the environment, social, and economic conditions creating a better future then the present. The mission of PepsiCo is to be the best company in the industry that provides convenient foods and beverages to the consumer. The company has a goal to provide financial benefits and growth for its shareholders as the company provides growth for its employees, its business partners, and the communities in which they are established. In all aspect of the business, PepsiCo strives to be the leader in honesty, fairness, and integrity. (PepsiCo, 2011). Company History PepsiCo Inc. was formed in 1965 when Pepsi-Cola Bottling merged with salty snack icon Frito Lay North America. The history of PepsiCo can be traced back to 1898 when a pharmacist Caleb Bradham from North Carolina invented the formula of the soft drink Pepsi-Cola. Elmer Doolin founded the salty snack business in 1932 in San Antonio, Texas where he started to produce and market the Fritos corn chips brand. Also in 1932, Herman Lay started to produce and distribute...
Words: 2714 - Pages: 11
...Chaitali Chakravarty, ET TEAM Nov 21, 2001, 10.02pm IST enthused by the profits that fritolay has generated, parent pepsi, is adding more to its snackfood subsidiary. the company is set to roll out a new nut-based snack, nutyumz, nationally. also, plans are afoot to eventually drop lehar from the lehar kurkure brand. sources said that lehar kurkure has been earning a substantial amount for fritolay (it accounts for more than one-third of its total turnover) and it is about time to market it under the kurkure brand alone. sources said that nutyumz will be launched in different flavours. the brand has been innovated for the indian market alone. besides india, mexico is the only other market where pepsi is selling nut-based snacks under a different brand name. in india, nutyumz will be manufactured in the company-owned plant in pune. the fritolay spokesperson confirmed the launch of new brand. sources said pepsi is gung-ho about fritolay as the subsidiary has been making some money, it ended the year 2000 with a rs 4 crore profit, up from rs 3.04 crore earned in the year ending 1999. pepsi's idea is to create new categories to suit indian tastes and pump up the profit figures by at least rs 2 crore by the end of 2002. sources said that after pepsi acquired uncle chipps, it got within its fold an entire constituency. lays and uncle chipps together earn the maximum (around 50 per cent) for fritolay, while cheetos and lehar namkeen are still on the fringes. pepsi is yet to measure up to...
Words: 18723 - Pages: 75
...Write a 4-6 page paper in which you: 1. Describe the company and the major initiative(s) they have planned for the next 5 years. PepsiCo is a world leader in convenient snacks, foods and beverages. PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the new company; Donald M. Kendall is president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. Today, PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of more than $60 billion and over 285,000 employees In 2010, PepsiCo launched the Dream Machine recycling initiative with Waste Management, Greenopolis and Keep America Beautiful, to promote increasing the U.S. beverage container recycling rate from 38 percent in 2009 to 50 percent by 2018. The Dream Machine recycling initiative, created by PepsiCo in collaboration with Waste Management and Keep America Beautiful, is introducing thousands of recycling kiosks and bins at popular public locations across North America. The kiosks are computerized...
Words: 639 - Pages: 3
...SUCCESSFUL MARKETING AND PRODUCTION STRATEGIES OF FRITO-LAY PURPOSE Frito-Lay Inc. has remained the dominant leader in its industry through the success of consumer-focused business strategies: Effective marketing strategies to promote products during times of economic downfall. Product innovations, and adjustments to accommodate consumer preferences resulting from dietary trends. Creative, and inventive promotional techniques used to remain superior to competitors. This report discusses these strategies as a model for other businesses within the snack-food industry. Data for this report was gathered through current books, articles, journals, reports, and business research databases, including: Datamonitor, Factiva, Business & Company Resource Center, Business Source Complete, and IBISWorld located through Newton- Gresham Library, on Sam Houston State University’s campus, in Huntsville, Texas. BACKGROUND Frito-Lay is currently one of the leading and most recognizable company names in the snack-food industry. The company’s 17 leading brand names generate billions of dollars in annual sales. As one of the four company divisions of PepsiCo, Frito-Lay North America is the most profitable, contributing 39% of the company’s operating profit, and one-third of PepsiCo’s entire revenue. (Entire paragraph paraphrased (Frito-Lay North America, 2006). Frito-Lay was originally formed in the 1930’s during the Great Depression as an entrepreneurial venture...
Words: 1486 - Pages: 6
...Initially Namkeen in India was usually made at home but with the increasing number of companies coming up with cheap and good quality salted snacks the home made namkeens were replaced by packaged ones available in markets and shops. Since Namkeens form an integral part of the evening snacks of Indians they are constitute an important part of the Indian packaged food market. India is home to numerous top namkeen brands like Kurkure, cheese balls and Bhujia. Namkeen or salted snacks are a part of the snacks consumed by Indians. Since Indians are known worldwide for their tasty tangy and spicy food habits the snacks industry in India is huge is no surprise. The Namkeen market in India is magnanimous which consists of both the organized and the unorganized sectors. The unorganized Namkeen market consists of home made and loose salty snacks generally sold in small Kiranas. The branded or the organized Namkeen segment in India is increasing virtually by the day. Some of the major players in the Indian Namkeen market consist of Haldiram Foods Frito-Lay India Mc Fills. The top namkeen brands in India are generally products offered by Haldirams and Frito Lays. Synonymous with the salted snacks industry in India is Haldiram Food. Haldirams is known for its large variety of to brands that have been ruling the Indian snacks industry for over decades now. Consumers in India in a way have become accustomed to the products of this particular brand. Products of Top Namkeen Brands...
Words: 330 - Pages: 2
...Total Quality Management I. Company Background The success of Frito Lay is a tribute to two entrepreneur’s dreams. In 1932, C.E. Doolin purchased a bag of corn chips in a café in San Antonio, Texas. He learned that the chips manufacturer was selling his business so he purchased the recipe and began selling Fritos Corn Chip. Meanwhile, that same year, Herman W. Lay began his potato chip business in Nashville by delivering snack foods. He then purchased the manufacturer, and the H.W. Lay & Company was formed. It soon became one of the largest snack food companies in the Southeast, and LAY'S brand Potato Chips is still America's favorite potato chip. In 1961, the Frito Company and the H.W. Lay Company merged to become Frito-Lay, Inc. Today, Frito-Lay brands account for 59% of the U.S. snack chip industry. In 1965, Frito-Lay, Inc. merged with the Pepsi-Cola Company and formed PepsiCo, Inc. Since that time, Frito-Lay has operated as a wholly owned subsidiary of PepsiCo. Through Frito-Lay, PepsiCo is the largest globally distributed snack food company in the world. The primary snack food brands produced under the Frito-Lay name include Fritos corn chips, Cheetos cheese-flavored snacks, Doritos and Tostitos tortilla chips, Lay's potato chips. Something wonderful—a company that’s all about good fun—doing good things when it comes to making snacks and caring for the environment. This is the company vision of Frito Lay. For more than 75 years, they have been making snacks, starting...
Words: 2743 - Pages: 11
...Frito Lay Company Cracker Jack Case Analysis Marketing Essay Frito-Lay is worldwide leader in snack manufacturing and marketing. It represented 54 percent of retail sales of snack chips in United States, making it leader in that category. Frito-Lay is division of PepsiCo. Inc and in 1996 represented 31 percent of PepsiCo's net sales and 60 percent of PepsiCo's operating profit (Kerin & Peterson, 2010). Some of popular brands of Frio-Lay are Lay's and Ruffles, Doritos, Tostitos, Potato chips, Cheetos, Sun Chips and Funyuns onion-flavored snacks. During 1990's majority of Frito-Lay's growth was attributed to its low-fat and no-fat snacks such as Baked Lay's potato crisps, Baked Tostitos tortilla chips, and Rold Gold pretzels. Frito-Lay has extensive manufacturing infrastructure with 45 manufacturing plants in 26 states, including world's largest snack food plan in Frankfort, Indiana. It has extensive warehouses and distribution facilities as well with more than 1,800 in number and 17,500 salespeople who make 750,000 sales and delivery calls on approx 350,000 retail store customers each week (Kerin & Peterson, 2010). It also is one of leading national advertisers in the United States. Borden Foods' Cracker Jack is one of leading brand in Ready-To-Eat (RTE) caramel popcorn category. Because of Borden's strategic decision to focus its resources on pasta business and grain-meals, which needs significant resource investment, it has decided to divest Cracker Jack and related assets....
Words: 1390 - Pages: 6
...SUSTAINABILITY AT FRITO-LAY 1. Using resources, regulation and reputation as a basis, what are the sources of pressure on firms such as Frito-lay to reduce their environmental footprint? The effect of industrialization and the increasing population of humanity are the reasons why natural resources are being overly consumed, outstripping the resource base on an unprecedented scale. The use of resources and subsequently a reduction in operational costs is the primary reason why several companies are going into environmental footprint reduction. Companies like frito-lay, Walmart, Sabaru, Pepsi and Ritz-Carlton would have an increase in OPEX parallel to expansion. Sustainable business spending would also increase rapidly because it is seen as a catalyst for more productive improvements Thus, it is a win-win solution for both humanity, the company and mother earth to reduce resources and lower cost and at the same time, be sustainable. Government agencies are also becoming stricter as more and more studies show that the consumption of men is at an alarming stage. As science advances, there are now several ways to tell how humanity as whole affects the environment. With this, more progressive economies are setting stricter laws that regulate transportation, waste and noise. Lastly, company reputation is also a big factor why companies wanted to reduce environmental footprint as more investors are becoming increasingly interested in the environmental performance of a company where they...
Words: 857 - Pages: 4
...™ Strategic Marketing, BA-MI20 Frito Lay, Inc. Sun Chips Multigrain Snacks Frito Lay, Inc. Sun Chips Multigrain Snacks Strategic Marketing BA-MI (20) Tutor: Mikael Rasmussen Student: Tina Wichmann Strategic Marketing BA-MI (20) Tutor: Mikael Rasmussen Student: Tina Wichmann Contents Abstract 3 Introduction Frito Lay, Inc. 3 The product Sun-Chips™ Multigrain snack 3 Product Lifecycle 4 Competition 4 Segmentation - How might the chip category be segmented? 5 Product & Branding Considerations 6 Product strategy 7 Pricing strategy 7 Advertising and Merchandising strategy 7 Distribution and sales strategy 7 Recommendations 8 Abstract In this report the objective is to evaluate the feasibility of Frito-Lay, Inc. launching a new product, Sun Chips™ Multigrain Snacks. Dr. Dwight R. Riskey, Vice President of Marketing Research and New Business at Frito-Lay, Inc. had to decide and present, together with the product management, the future for Sun Chips™ Multigrain Snacks. The chip had been in test-market for 10 months in the Minneapolis-St. Paul, Minnesota, metropolitan area and appeared to be extremely favorable according to consumer response. The presentation to the Frito Lay, Inc. seniors had to be persuasive, and besides the thorough assessment of the test-market data, Riskey added: “Sun Chips™ Multigrain Snacks required a new manufacturing process, carried a new brand name, and pioneered a new snack category...
Words: 3285 - Pages: 14
...Frito Lay Frito Lay is a division of Pepsi Co and is based in New York. It is known as a world leader in the manufacturing and marketing of snack chips, capturing nearing 50% of retail sales in the category. It offers we renown brands like Lay’s, Ruffles, Fritos, Doritos, Cheetos, Sanitas , etc. Snack Food Industry Frito Lay holds 13% of sales of the US snack food industry which includes candy, crackers, sun chips, nuts and other assorted items. The company is working on introducing a new product that will cater for the decline in baby boomer consumption and shift in demand towards healthier snacks. The company has however faced the following challenges: • Previous product failure due to premature market • Strong competition and competitors too quick to respond to new product, while more testing is giving competitors an opportunity to retaliate • Cannibalization Frito Lay is trying to launch a new product, Sun Chips Multigrain Snack; a healthier alternative. The products pricing would be the same as that of Doritos and distributed in the existing channels. The product would be promoted through coupons for trials of 2.25 oz. Televisions ads and in-store free standing displays Frito Lay’s STP The company is targeting a domestic market and targeting primary consumers between the ages of 18-34, secondary consumers between the ages 34-49 and below 18 through in-house consumption. The company decided to position its product mainly through convenience stores and supermarkets...
Words: 297 - Pages: 2
