...™ 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...
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...Frito- Lay Case 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. Frito-Lay, Inc has been developing multigrain chips since the early 1970s after marketing research found that consumers wanted nutritious snacks, consequently in 1974 the company launched to the market Prontos, a multigrain chip that was not really a great success, hence withdrawn from the national market in 1978. People concluded the product was not introduced in the right time. The Sun Chips was introduced in the early 1970s, and the name was assigned to a line of corn chips, potato chips, and puffed corn snacks. Six years later, the name was given to a line of corn chips, but unfortunately in 1985, this line was also withdrawn from distribution due to poor sales performance. However, in the early 1980 Frito-Lay executives started worrying about the health of the baby boomers. They were getting older and healthier conscious, so snack companies had to develop newer, healthier snacks for people trying to stay away from the salty, fried chips. Product research and development continued during the 1980s with The Harvest but in the early 1980s several market tests failed. Nevertheless, in 1988 with the idea still of multigrain products, marketing research studies...
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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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...Case Analysis：Frito-Lay, Inc. Problem Definition In mid-1990, Frito-Lay, Inc. makes a new chips brand called Sun Chips Multigrain Snacks. The product had been in test market for 10 months in the Mineapolis-St. Paul, Minnesota, and metropolitan area. The senior Frito-Lay executives need to decide it they would launch this new product to market officially after the test period. Objectives: (1) Extend its product to attract the customers who always look for new and variety product. (2) Update healthier recipe to meet the current trend of healthy eating. (3) Pioneer a new snack chip category to maximize profit in the new market. Concerns: (1) Whether the premarket test results can correctly reflect the market performance when it introduced to nationwide market. (2) There are many competitors in national market or local market. It's easy for them to make similar products. (3) The advertising and merchandising budget will rise. (4) The new product will cannibalize volume from its previous products. The Situation of the Company Frito-Lay, Inc. is a division of PepsiCo, Inc. It is a worldwide leader in the manufacturing and marketing of snack chips. It is capturing nearly one-half of the retail sales in the United States snack chips market. Well-known brands include Lay's brand Lay's brand and Ruffles brand potato chips, Fritos brand corn chips, diorites brand, Tostitos brand, and Santitas brand tortilla chips, Cheetos brand cheese-flavored snacks, and Rold...
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...healthy or greasy, chips, wedges, or fruit leather — you can make all kinds of snacks using just about any heat source available. It might not be possible to get tired of this flavor, but just in case there are instructions for adding sweet or savory spices as well. Ingredients *Bananas (ideally just ripe, with a few brown speckles but no large spots or bruises) *Lemon juice or another acidic juice (optional) *Salt, nutmeg, or cinnamon (optional) Sun-Drying Chips 1. Check your area's weather forecast. To successfully sun dry fruit, you'll need at least 2 days of hot, dry weather and a clear sky (at least 90º F/32ºC with low humidity). Ideally you should allow for a full 7 days of drying, especially if the temperature is below 100ºF/38ºC. 2. Make or purchase an outdoor drying screen. All you need is a rectangular wooden frame with a food-safe mesh stretched across it. .Stainless steel or plastic are the best options for meshes. Do NOT use aluminum, hardware cloth, or fiberglass meshes (unless the fiberglass mesh is clearly labeled food-grade). 3. Prepare the bananas. Since you're using a much lower temperature than other methods, you may wish to slice them extra thin. Peel the bananas and slice them into 1/8 inch rounds (0.3 cm), or at least no larger than 1/4 inch (0.6 cm). If you want to prevent browning, dip the pieces in lemon juice 4. Add additional flavor if desired. Powdered cinnamon adds a strong flavor for sweet snacking. 5. Place the chips on the mesh of the...
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...Running head: SUN MICROSYSTEMS CASE STUDY PROJECT SUN Microsystems Case Study Project Jeffery M. Anderson, 105225 BBA 3391-06B, Information Systems Cost Analysis Brief History of SUN Technology and Text Summery Sun Microsystems was born after Stanford University, Palo Alto graduate student Andy Betchtolsheim, conceived a UNIX based workstation he deemed the “68000 Unix System” for a networking project named Stanford University Network. Early February 1982 colleagues Vinod Khosla, Scott McNealy, and Bill Joy instituted the company SUN Microsystems resulting from the initials of Stanford University Network. (Wikipedia, 2006) Sun made its mark in the workstation market as the leader in the desktop performance competition by introducing the SPARCstation 10 system, the world’s first multiprocessing desktop computer in 1992. That same year they shipped more multiprocessing UNIX servers than any other vendor in their entire history of operation. Other major products contributed by Sun include the Solaris Operating System, Sparc Microprocessor, instant networking with Jini technology; which enables all kinds of devices to connect to the network—plug and play, and of course the famous Java technology. SUN Microsystems enjoyed 1.3 billion in revenues 1996 with server sales and topping out at 16 billion in quarterly sales in 1998 with the technology frenzied internet boom (Afuah & Tucci, 2003, p. 393). Java Technology Revolution: Java is by far the most widely used...
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...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...
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...the semiconductor company had 2005 revenues of $5.8 billion, a 17% increase over 2004. The 2003 launch of Opteron and the company’s AMD64 technology ushered in a new chapter in AMD’s history. Traditionally, AMD had been a distant follower to Intel, which had a dominant position in microprocessors for the server and personal computer (PC) markets. However, Intel’s dominance was eroding as Opteron gained acceptance and AMD focused on “customer-centric innovation” under Ruiz, who was appointed CEO in 2002. Driven by Opteron’s success, AMD’s unit share in servers for the second quarter of 2006 rose to 26%, up from 11% in Q2 of 2005.1 The top four computer-makers that sold the vast majority of servers—Hewlett-Packard (HP), Sun Microsystems (Sun), IBM, and Dell—now offered at least one Opteron-based server. Furthermore, AMD’s presence in the lucrative corporate segment was growing: 90% of the top 100 Forbes Global 2000 were using AMD64 technology by the end of 2005.2 And, AMD reported higher margins than Intel in the first quarter of 2006. AMD also felt...
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...Competition Policy Newsletter Standard‑setting from a competition law perspective by Ruben Schellingerhout (1) FeAtured ArtICle Competition rules to ensure that the benefits of standards materialise Competition regulators pay attention to standard setting because legally a standard constitutes an agreement between companies. However, the Com‑ mission has always taken the view that there are also clear benefits associated with standard‑setting. As early as 1992 the Commission outlined this gen‑ eral point. (2) In its 2001 Horizontal Guidelines it therefore provided guidance on when it considered standard setting to be unproblematic. Since the adoption of the 2001 standardisation Guidelines, a number of issues have come to the fore. It became increasingly clear that malpractic‑ es were occurring in the standard setting process which could lead to serious distortions of com‑ petition. (3) In response, the Commission revised the Guidelines in 2010 to provide more guid‑ ance to standards bodies on how they could de‑ sign their rules so as to avoid restrictive effects on competition. (4) This purpose of this article is to provide the full picture on standard‑setting. It starts by outlining why competition law is concerned at all by stand‑ ards. It then covers in more detail some of the is‑ sues that have arisen. The extended guidance in the revised Guidelines is then fleshed out in more de‑ tail. Finally, some thought is given to the future of standardisation. Standards have a positive...
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...Case Analysis for Corona Beer (Modelo) BUS599 Identify and discuss the trends in the global beer markets There is a common item found at sporting events, entertainment venues, restaurants, bars, and mainly in the refrigerators of Americans. This item is beer. Of the 67% of Americans who consume alcohol 42% prefer beer (Frank Newport, 2010). Beer consumption is continuously increasing not only in the United States but also globally. There are several trends within the global beer market which accounts for the potentials seen throughout the industry. One of the main trends of the global beer industry is the growth rate. The growth rate globally over the past five years is reported at 3.5%. “The largest contributors to this growth have been China (now the world's largest beer market), Africa and Eastern Europe” (SABMiller Investors, 2011). Another trend seen in the industry is consolidation. At the beginning of the twenty first century there were ten major brewers accounting for one third of the beer sales. Today there are four top brewers which include “Anheuser-Busch InBev, SABMiller, Heineken and Carlsberg – accounting for almost 50% of beer sales volumes and up to 75% of the global profit pool” (SABMiller Investors, 2011). This is due to the increase in consolidation. Another trend in the beer industry is premiumisation. This term refers to the sales of premium beer brands. “As economies improve, the trend towards premium will resume as consumers become...
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...A device that gets scorching hot as it captures and traps much of the sun's energy using a greenhouse-like approach could usher in an era of inexpensive electricity from the sun. The breakthrough comes from a sunlight-absorbing material made of photonic crystals that are arranged to prevent the escape of most of the energy it captures from direct sunlight. In this case, infrared radiation from the sun enters the device through holes in the surface, but the reflected rays are blocked when they try to escape, explains Peter Bermel, an electronics researcher working on the device at the Massachusetts Institute of Technology. This blockage is achieved by a geometry that limits re-radiation of the sun's rays to a narrow range of angles — the solar disk and region right around the sun. The rest of the rays stay in the device and heat it up. All this concentrated heat is focused on the production of high-energy photons, which are used to generate electricity via a thermophotovoltaic device. Conventional photovoltaic cells are limited in their ability to convert sunlight into electricity due to the inefficient conversion of the broad spectrum of sunlight that hits the cells. That's because heat is absorbed across a broad range of wavelengths and then tailored to generate the high-energy photons needed to generate electricity. The approach, Bermel said, could reach efficiencies of 35 to 36 percent, which is higher than the Shockley-Queisser limit. Thermophotovoltaic devices have...
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...* Data Data are raw facts that describe the characteristics of an event or object. Before the information age, managers manually collected and analyzed data, a time-consuming and complicated task without which they would have little insight into how to run their business. Lacking data, managers often found themselves making business decisions about how many products to make, how much material to order, or how many employ- ees to hire based on intuition or gut feelings. In the information age, successful manag- ers compile, analyze, and comprehend massive amounts of data daily, which helps them make more successful business decisions. Figure 1.2 shows sales data for Tony’s Wholesale Company, a fictitious business that supplies snacks to stores. The data highlight characteristics such as order date, cus- tomer, sales representative, product, quantity, and profit. The second line in Figure 1.2, for instance, shows that Roberta Cross sold 90 boxes of Ruffles to Walmart for $1,350, resulting in a profit of $450 (note that Profit = Sales − Costs). These data are useful for understanding individual sales; however, they do not provide us much insight into how Tony’s business is performing as a whole. Tony needs to answer questions that will help him manage his day-to-day operations such as: * Who are my best customers? * Who are my least-profitable customers? * What is my best-selling product? * What is my slowest-selling product? *...
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...Canadian Advertising Success Stories 1999 Lay’s Potato Chips Agency: Authors: BBDO Canada D. McGillivray, R. J. Carscadden, K. Matheson; M. McLaughlin, S. Creet, L. Grossman, K. Callahan, E. Clark, J. Sitrin, D. Remlinger EXECUTIVE SUMMARY 'In revitalising the brand, the goal is not only to generate added sales levels but to have them based upon enhanced equity, a move which involves improved recognition, enhanced perceived quality, changed associations, an expanded customer base and increased loyalty.' David A. Aaker – Professor of Marketing Strategy at University of California at Berkeley. This is a story of risk and reward. About having the guts to effectively withdraw the Hostess Brand from the market, even though it was Canada’s largest snack food trademark and the company's flagship brand – in favour of replacing it with an old, weak brand – and then making that old brand the national leader, in its first year. The salty snacks market is notorious for its myriad brands, line extensions, flavours, and snacking variants, each striving to hook consumers with something new. It is fiercely competitive, and in 1996 (the base year for this case) Hostess, the market leader, had just over a 10% share. How do you relaunch an old weak brand into this snacking frenzy, when it has no product news, and is merely a good, old-fashioned potato chip? This paper describes how. The Lay's relaunch exceeded all objectives, and catapulted the brand to market leader in only 12 weeks. The relaunch...
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...September 2004. Armstrong, Gary and Philip Kotler. Marketing: An Introduction. Pearson & Prentice Hall, 2005. p. 8-32. Beam, Jay. Interview by class. Athens, Ohio, 10 September 2004. Burrows, Peter and Jim Kerstetter, "SUN: A CEO's Last Stand." Business Week. 26 September 2004. “Business Quotes," Woopidoo Quotations. Cited 19 September 2004. Available from World Wide Web: (http://www.woopidoo.com) “Computer Hardware,” Hoover’s Industry Snapshots. 14 September 2004. Hoovers, Inc. Concerning Alleged Java Incompatibilities [online]. Cited 15 September 2004. Available from World Wide Web: (http://www.microsoft.com) Djurdjevic, Bob. “Analysis of Fujitsu FY04 Business Results: Back in the Black Again, But…Shrunk by the Marketplace and More Japan-centric Than 10, 20 Years Ago.” Cited 13 September 2003. Available from World Wide Web: (http://www.djurdjevic.com/Bulletins2004/B16_Fujitsu.html) Ellis, John. “What’s the Matter with Sun?” Fast Company Issue 59, June 2002, p.124. “Fujitsu and Sun Expand Partnership to Grow Solaris Market & Unleash New Generation of Innovations in the Data Center.” Cited 8 September 2004. Available from the World Wide Web: (http://www.sun.com/smi/Press/sunflash/2004-06/sunflash.20040601.14.html) “Fujitsu Chooses Sun Solaris Operating Environment to Enter Unix on Intel Server Market.” Cited 8 September 2004. Available from World Wide Web: (http://www.sun.com/smi/Press/sunflash/9804/sunflash.980409.1.html) Graham-Hackett, Megan. “Industry...
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...1 Define solar system ? Ans The region of the universe near the sun that includes the sun, the nine known major planets and their moons or satellites, and objects such as asteroids and comets that travel in independent orbits. The major planets, in order of their average distance from the sun, are Mercury, Venus, the Earth, Mars, Jupiter, Saturn, Uranus, Neptune, and Pluto. 2 What are epidemics? Ans An epidemic is the rapid spread of infectious disease to a large number of people in a given population within a short period of time, usually two weeks or less. For example, in meningococcal infections, an attack rate in excess of 15 cases per 100,000 people for two consecutive weeks is considered an epidemic. Epidemics of infectious disease are generally caused by several factors including a change in the ecology of the host population (e.g. increased stress or increase in the density of a vector species), a genetic change in the pathogen reservoir or the introduction of an emerging pathogen to a host population (by movement of pathogen or host). Generally, an epidemic occurs when host immunity to either an established pathogen or newly emerging novel pathogen is suddenly reduced below that found in the endemic equilibrium and the transmission threshold is exceeded. 3 what are geo science? The earth is in continuous change. Scientists from many branches of science are required in order to understand the large range of variations occurring in the planet. The different disciplines...
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