Fritolay Case Study

1. How would you characterize the raciness chip category and Frito-Lays competitive fix in the category? * The United States snack food attention recorded retail gross revenue of $37 billion in 1990, a 5 percent increase from the year before. A large source of growth results from increased per capita consumption. Consumers are profane more snack chips per person, an increase of 2 pounds everywhere quaternary years. * Frito-Lay is the worldwide leader manufacturing and marketing of snack chips. Frito-Lay is a palm fault firm that distributes convergences nationwide. Frito-Lay accounts for 13 percent of snack-food sales in the United States, with about cardinal half of retail sales in the snack chip category. Also, Frito-Lays has eight of the top 10 selling snack chips. However, the industry is extremely competitive with everywhere 650 new snack chip increases introduced each year. Less than cardinal percent of new products generate more than $25 gazillion in sales in the first year. 2. What specific challenges and risks does Frito-Lay prospect in marketing Sun Chips and what are their implications? * Previous ventures into the unit wheat chip category by Frito-Lay were only softly no-hit despite advertising and merchandising support.

It was determined that this Sun-Chip-like product generated collecting among too narrow a target market. In 1978, it was verbalise this product may have been invented and introduced before its time. The brand anticipate SunChips was also given to a puffed give product that was unsuccessful and remo ved from the market in 1985. * In 1981,! the glean project re- check up ond interest in a multigrain snack receivable to the growing baby-boomer population. They cerebrate that the market for wholesome snacks was not even so fully developed to accept these products. Frito Lay must(prenominal) thoroughly investigate if the market is ready for a multigrain snack. * Studies concluded that package purport was considered to be extremely important. Graphics contract to communicate new,...If you fate to get a full essay, show it on our website: BestEssayCheap.com

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