...Brief Overview of Company Kettle Chips UK (2010) explains that in 1978 “Cameron Healy founded Kettle Foods in Salem, Oregan, USA with the aim of providing high quality, naturally sourced products.” They then go on to tell how in 1987 Cameron discovered that the British loved crisps, encouraging him to establish Kettle Foods in the UK, one year later Kettle Foods in the UK was launched in Norfolk – in order to be as close as possible to potato growers. They also state how in 2008 they were not only “…the 6th fastest growing grocery brand in the UK but …also identified as one of the country’s Top 100 Grocery Brands (source: The Grocer).” In 2010 Kettle Chips were acquired by Diamond Foods; whose food brands include Emerald snack nuts, Pop Secret popcorn and Diamond of California nuts. (The Oregonian, 2010) Introduction Kettle Chips managed to maintain their top position in the premium crisps segment, with an estimated 4% market share in 2010 of the total crisp market – giving them a total of 23.8% rise in value shares in crisps and snacks from 2008 to 2010. (Mintel Oxygen, 2011) Mintel (2011) explains that although Kettle Chips maintained its lead as the only brand of size in the premium segment, competition is rapidly increasing from other companies such as Tyrrells and Walkers’ Red Sky, causing their sales growth to slow down in 2010. Although Kettle Chips are an international brand this report will mainly be focusing on their UK business. Approach This report...
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...Final Marketing Plan Simply Real Foods Company Final Marketing Plan The Simply Real Foods Company is branching into selling potato chips. This company is dedicated to producing foods that have high quality, simple, real ingredients that taste great. Effective marketing of these potato chips is key. The product tactical plan and the placement tactical plan are very important, as well. The chips must look and taste just right to get the target group to purchase them. The pricing and promotion of these chips will determine just how much Simply Real Foods will sell of the chips. Product Tactical Plan * A crunchy, salty potato chip full of flavor * Made with only potatoes, sunflower/ cannoli oil, and salt * Simply Real Food Company, To-Go Perfect Potato Chips * Great tasting, healthy, on-the-go snack that keeps up with you * Clean and healthy, something that not only tastes good but that is good for you * The packaging will be bright greens and yellows, natural greens and yellows, with white and brown accents and wording * On the front: Simply Real Foods logo, To-Go Perfect Potato Chips, 1oz or 6.5oz or 7.5oz, in a bright yellow bag, with green handle and green seal * Starting with original potato chip, then add unsalted, different flavored potato chips, BBQ, salt and vinegar, spicy jalapeño, garlic, and/ or herb, then introduce sweet potato chips, beet chips, and vegetable chips * The highest quality ingredients bought at the best...
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...http://www.unievydavatelu.cz/gallery/files/kettle_brochure_web.pdf Linking to the CSF’s mentioned, Kettle Chips should invest in a new newspaper advert in order to connect with consumers and create awareness of the new healthy product but also the increase in their sustainability. The Company could also invest in giving out samples in stores. This would allow a PR of the company to inform the consumer about the product (Knowledge), the consumers would be able to try it (Feelings), and the PR would be able to see the reaction of the customer to the advertising and the actual product ( Behaviour) (Page 286 graph). This could even act as a marketing research for the future. Place Place is the ’company activities that make the product available to customers’ (Kotler and Armstrong, 2010, p76). (Baines et al, 2013) provide a channel structure model which identifies Kettle Chips as having a ‘’hybrid’’ channel structure where They sell directly to retailers, particularly large national grocery store and drug store chains, and indirectly through wholesale distributors to independent and small regional retail grocery store chains and convenience stores. They also sell Kettle Chips to mass merchandisers, club stores, convenience stores and through other retail channels (page 336). In reference to the identified CSF, where the company is to develop a dried Fruit/Nut snack, Kettle Chips could maintain the channel of distribution but start selling to different places such as gyms or...
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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)...
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...Wonks Potato Chip Industry Misti Hubbard ECO204: Principles of Microeconomics Instructor: 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...
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...the potato chip market. Begin by finding six to twelve potato chip brands. Based on consumer preferred benefits, you will position the product on a grid. Please review the rubrics for grading criteria for this discussion. To create your map, ask yourself these questions: Who is the competition? The completion is from the major Chip manufactures lead by Frito-lay with 62% market share, followed by Ruffles, Pringles, UTZ, Kettle Brand and Cape Cod. In the late 2000,s there were 452 chip manufactures, some with a global reach and many with a regional footprint. What are the features, benefits, and attributes of each competitor? All of the majors have an international footprint, Brand recognition, and multiple packaging and flavor options. They all have massive distribution and marketing divisions. The Lays and ruffles brands are available in almost every supermarket, convenience store, restaurant/bar, food cart and snack machine in the U.S. Lays recently released several new flavors and marketed them by giving away 4 free snack bag samples to every consumer who entered a supermarket, the new flavors still have a prominent place at the front of many supermarkets. That type of marketing power is tough for even the other majors to follow. What does the consumer think about each competitor? Consumers have maintained a brand loyalty as evidenced by little change in market share over the last few years. What product attributes are most important to the potato chip consumer (for...
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...According to the data gathered in Part A, Smith’s is the largest chip brand in its category as shown by its brand performance measures. By being the biggest of all the brands listed, it also indicates your level of success in comparison to the other brands due to it being a repertoire market structure. This type of structure indicates that the customers of each of the brands, are usually not loyal to just one brand, and tend to shift from brand to brand in the category. What we do know however, is that little brands tend to share a larger number of their customers with bigger brands, whereas bigger brands share fewer of their customers with other brands in there category. This is known to happen through the Duplication of Purchase Law, which emphasizes how brands will share customers with other brands, shown through penetration results. From what we found, Kettle and Doritos are Smith’s major brand competitors, with considerably high market share numbers. Nevertheless, every brand in the category, in many ways, is a competitor to Smith’s as they are all competing against one another to increase their ‘brand size’. When it comes to brand salience, Smith’s is well above average in comparison to the rest of the market, as shown through its size and loyalty measures. Through continuing to build brand salience, Smith’s customer base continues to increase, and remain a superior brand for its category through an even larger rise in new customer purchases due to salience. These future...
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...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...
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...Stephan Orgiazzi 1 PepsiCo - The Company Pepsi (formerly known as Pepsi-Cola) is a cola carbonated soft drink that is produced and manufactured by PepsiCo. Created and developed in 1893 by Caleb Bradham, it was named Pepsi-Cola because of the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy. As the cola developed in popularity, he created the Pepsi-Cola Company in 1902 and registered a patent for his recipe in 1903. During over a century, the company product line expanded with the creation of alternative cola recipes such as Diet Pepsi and the purchase of popular soda companies like Mountain Dew. In 1965, the Pepsi-Cola Company merged with snack company Frito-Lay, Inc. to become PepsiCo, Inc. Interesting fact: PepsiCo was the first company to stamp expiration dates, starting in March 1994. (1), (2) Vision of the company The mission of the PepsiCo focuses on products and performance primarily, with a few values thrown in for good measure. The mission statement of the PepsiCo Company is: "Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity." (3) ...
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...Introduction According to snack food folklore, legends, myths and/or old wives tales, (maybe even truth), the potato chip was invented out of anger in 1853 by a chef named George Crum at a restaurant called Moon’s Lake House in Saratoga Spring, New York when a patron returned his french fried potatoes to the kitchen complaining that they were too thick. So Mr. Crum did the exact opposite by cutting and frying thinly sliced potatoes. The customer was ecstatic over the wafer sized and crisp fries. Instead of failure, this bold reaction by Mr. Crum backfired and the potato chip was born. Piecing together how the popularity of the potato chip spread from humble beginnings (being prepared in someone’s kitchen, sold from the back of a dilapidated truck or delivered immediately to stores and restaurants (shelf life was nil) to modern day 20th century industrialized, mass-producing, computerized “potato chip manufacturing” is difficult (your guess is as good as mine). However, one thing for certain is…as the Frito Lay commercial says…”betcha just can’t eat one”. Product Profile: Let’s examine this product (potato chips). Today’s product is made from farm-fresh potatoes delivered daily to manufacturing plants. The sources vary from season to season. Keeping this in mind, during winter, potato chip manufacturers depend on their stored supplies. Stored potatoes are kept at a constant temperature between 40-45 degrees Farenheit and moved to a reconditioning room that is heated...
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...FRANCH BAJAMUNDI, Edgar L. November 19, 2014 BBM0608 Dr. Edita S. Bunuan ____________________________________________________________________________ Assignment No. 1 1. TOP 10 INTERNATIONAL FRANCHISES FOR 2014 |Rank |Franchise Name |Startup Costs | |1 |Anytime Fitness |$78.69K − 371.17K | |2 |Hampton Hotels |$3.69M – 13.53M | |3 |Subway |$116.59K − 263.14K | |4 |Supercuts |$113.75K − 233.6K | |5 |Jimmy John’s Gourmet Sandwiches |$330.5K − 519.5K | |6 |7-Eleven Inc. |$37.2K − 1.63M | |7 |Servpro |$138.55K − 187.19K | |8 |Denny’s Inc. |$1.32M − 2.61M | |9 |Pizza Hut Inc. |$297K − 2.1M | |10 |Dunkin’ Donuts |$216.1K − 1.52M | ...
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...rP os t W11083 HEALTHY LIFE GROUP op yo Ian Dunn wrote this case under the supervision of Elizabeth M.A. Grasby solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2011, Richard Ivey School of Business Foundation Version: 2015-04-28 NUTRIFUSION tC It was early June 2010, and two months had passed since Heather Larson had been granted exclusive Canadian distribution rights to the Nutrifusion product. She had been very busy trying to develop the best strategy for this exciting new product. Nutrifusion had been sold successfully in the United States, and Larson believed it had the potential to earn strong profits and to provide her with a new career; however, as with any new venture, inherent risks were involved. Larson, in partnership with her father, Jeff Larson, was contemplating...
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...ISSUES IN ACCOUNTING EDUCATION Vol. 30, No. 1 2015 pp. 47–69 American Accounting Association DOI: 10.2308/iace-50948 Diamond Foods, Inc.: Anatomy and Motivations of Earnings Manipulation Mahendra R. Gujarathi ABSTRACT: Diamond Foods is America’s largest walnut processor specializing in processing, marketing, and distributing nuts and snack products. This real-world case presents financial reporting issues around the commodities cost shifting strategy used by Diamond’s management to falsify earnings. By delaying the recognition of a portion of the cost of walnuts acquired into later accounting periods, Diamond Foods materially underreported the cost of sales and overstated earnings in fiscal 2010 and 2011. The primary learning goal of the case is to help students understand the anatomy and motivations of earnings manipulation. Specifically, students will have the opportunity to (1) apply the FASB’s Conceptual Framework to a real-world context, (2) determine the nature of errors and compute their numerical effects on financial statements, (3) understand motivations for earnings management and actions needed for managing earnings of future years, (4) explain the anatomy of financial reporting fraud by reconstructing journal entries, (5) prepare comparative financial statements for retroactive restatements, (6) explain the rationale for clawback provisions in compensation contracts, and (7) understand the difference between the real and accrual-based earnings management. Keywords:...
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...Diamond Foods, Inc.: Anatomy and Motivations of Earnings Manipulation Mahendra R. Gujarathi ABSTRACT: Diamond Foods is America’s largest walnut processor specializing in processing, marketing, and distributing nuts and snack products. This real-world case presents financial reporting issues around the commodities cost shifting strategy used by Diamond’s management to falsify earnings. By delaying the recognition of a portion of the cost of walnuts acquired into later accounting periods, Diamond Foods materially underreported the cost of sales and overstated earnings in fiscal 2010 and 2011. The primary learning goal of the case is to help students understand the anatomy and motivations of earnings manipulation. Specifically, students will have the opportunity to (1) apply the FASB’s Conceptual Framework to a real-world context, (2) determine the nature of errors and compute their numerical effects on financial statements, (3) understand motivations for earnings management and actions needed for managing earnings of future years, (4) explain the anatomy of financial reporting fraud by reconstructing journal entries, (5) prepare comparative financial statements for retroactive restatements, (6) explain the rationale for clawback provisions in compensation contracts, and (7) understand the difference between the real and accrual-based earnings management. Keywords: earnings management; financial statement fraud; restatements; error correction; clawback provision; Conceptual Framework...
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...grown into the world’s largest manufacturer of consumer packaged goods with operations in 80 countries and markets 300 brands in 180 countries around the world. In 1837 William Procter and James Gamble formed Procter & Gamble (P&G) to manufacture and sell candles and soap. Being that Cincinnati was booming from its hog butchering trade the suggestion for the partnership apparently came from their mutual father-in-law, Alexander Norris, who pointed out that Gamble's trade, soap making, and Procter's trade, candle making, both required use of lye, which was made from animal fat and wood ashes. P&G began operations out of a small storeroom with Procter running the store and Gamble ran the manufacturing which consisted of a wooden kettle with a cast iron bottom that was set up behind the shop. In the early years candles where their most important product, but the enterprising partners soon expanded their operations through innovation and acquisitions of other small companies. The first fifty years laid the foundation for the longevity of the company. With their forward looking approach to the business, during a time of financial panic in the U.S. the company continued to prosper as shipments were moving up and down the river and across the country by rail. During the 1850’s the company grew rapidly and moved operations to a bigger factory. During this time the company created its first trademark logo, the moon and stars, which became a symbol of quality to Procter...
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