...CRACKER JACK An analysis of potential brand acquisition by Diversified Products Corporation John Bry Sonja Gessling Phil Mark Sara Meinke Jordan Schulz Som Thamma Cindy Tsai Cohort C ‐ Team 4 CURRENT SITUATION ANALYSIS: Cracker Jack (CJ) is a classic American caramel-coated popcorn and peanut snack that was acquired by Frito-Lay (FL) in 1997.1,2 Sales peaked in 1998 to $100M but soon sank back to $30M per year and has remained at that level since.3 Several factors are attributed to this sales slump. FL incorporated CJ into its existing distribution model that utilizes Direct Store Delivery and packaged CJ in Mylar bags (as opposed to the classic boxes).They also shelved CJ with other Frito-Lay salty snack products such as Lays Potato Chips, despite 98% of consumers rating CJ as a sweet snack and not a salty one. 4 Although priced lower than the leading caramel corn brands, CJ still appears expensive when merchandised next to inexpensive potato chips. Consequently CJ has numerous misalignments and a comparatively low profit margin (8.2% compared to snack average of 20.5%).5,6 The low price point combined with rising commodity prices has forced FL to substantially cut the quality of the prizes found inside each box to control costs, angering long time consumers.7 CJ, having stagnant sales for the past ten years, has not received the support required for brand revitalization, instead relying on steady baseball stadium sales to survive.8 Overall...
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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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...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 potato chips in...
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...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...
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...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...
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...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 haldirams market share which has maintained its numero-uno position in the namkeen segment for years, industry sources said. Crunch time Brand Launches, TNN Jan 29, 2003, 01.57am IST Frito-Lay introduces Red Chilli Chatka, an exciting tangy and spicy variant of Kurkure. The launch has been timed to coincide with the cricket world cup since Kurkure is...
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...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...
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...Cracking the product Management Code” Hi Marne good night. I´ve been analyzing our situation and our numbers and I think that we should review some points to ensure the well being of the strategy that we´re using. I think that the results of the potential of Krispy Natural were as expected, you were right. Natural Krispy received very good critics from our customers, even though our product has less crackers than the other brands. The roll-out strategy that we established should work just fine but due to our current situation I think that we will have to re-establish it. If Frito-Lay its going to enter the market we shouldn’t start with a roll-out nationally, we should focus on states, a strategy based on piece by piece program. Once we start to gain the confidence of our customers we start to grow in different areas. This will slow our forecasted demand and expansion but it should be a lot safer for us. Frito its not going to create a low class product since they are experts in selling salty chips, they ought to do some high class crackers, so we have to be careful on this. Our product its very tasty and we are having good responses for our customers so that why we should slow things up a bit so that we can start to penetrate the market, we have to focus on the idea that maybe our product has less crackers and its more expensive, but its worth it, and that’s what matters. I hope that this could help you make your decision and I´ll be waiting for your conclusions on this to...
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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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...Case 2 Position Paper Fito Lays Frito-Lays should pursue the vegetable dip market to remain a leader in the chips in dip Industry. I believe that some of the executives are stuck in a conventional logically way of thinking while others are focused on value Innovation. The conventional thinking executives are happy with the progress they have made with the cheddar dips and newer sour cream dips and they feel that they should concentrate on developing more brands to continue to be competitive. The problem with this strategy is that the competition is doing exactly the same thing. Frito-Lays and its competitors are continually trying to introduce new dips in hopes of securing more market share. In 1985, statistics show that 620 million dollars of dip was sold through supermarkets. In the same year 207 million dollars of the total dip sales where linked to vegetable usage. This translates to 33% of all dip sales in 1985 where linked to vegetable dip. Since Frito-Lays in the shelf stable dip market and total sales in this market where 185 million. Frito-Lays shelf stable dips contribute to 73% of this market with sales of close to 135 million. This means that there is only 27% of the market left to capture if they put a strategy together to remain in the chips in dip market. Common business knowledge should tell these conventional thinking managers that they already dominate the shelf stable dips market. It would not be a good marketing decision to try to expand...
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...I am bored. How are you doing? What is your favorite color? PepsiCo's Frito-Lay has an unlikely alternative: Cracker Jacks. ... Age — which will add up to an estimated 70 mg of caffeine in each 2 oz. ... The extension of the Cracker Jack'd line comes as part of Frito-Lay's efforts to expand its “value .... but the wide availability and marketing for some of these things is ... In 1912, Cracker Jack popcorn became the mass marketing legend of the twentieth ... their caramel coated popcorn to the world in 1893 at the Chicago World's Fair. ... in 1914 & 1915 are now collectors' items and are worth quite a bit of money. ... WhenFrito-Lay purchased Cracker Jack from Borden in 1998, one hundred ... PepsiCo Americas Foods (PAF), which includes Frito-Lay North America (FLNA), .... Chipsy, Cracker Jack, Diet Pepsi, Doritos, Duyvis, Emperador, Frito-Lay, Fritos, ..... The fair value of our derivatives fluctuates based on market rates and prices. ... At the end of 2010, we estimate that an unfavorable 10% change in the ... Strategic Marketing Management: Student Guide. Vanguard ...... What is the “fair market value” for Cracker Jack as a Frito-Lay brand? 7. .... Estimate the market size of Dexit in Canada and the potential revenues that this would imply. 2. PepsiCo Americas Foods (PAF), which includes Frito-Lay North America (FLNA), .... Chipsy, Cracker Jack, Diet Pepsi, Doritos, Duyvis, Emperador, Frito-Lay, Fritos, ..... The fair value of our derivatives fluctuates based on market rates...
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...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 in India Leher Namkeens Cheetos (snack balls) Leher Kurkure Potato Rackets Nutyumz Cheese Balls Corn Puffs Hi Protein Crispies The Indian snack market offers around 1,000 snack items. The branded namkeen segment consists of 40% market share of the total salted snacks market in India. The market leaders that own all the to namkeen brands in India is Haldirams...
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...Executive Summary Having created a brilliant product, Bingo, which successfully brought about innovation in the snack market, Ram and Satya at ITC now are now facing problems in maintaining Bingo’s market share. Increased competition, Low quality cheap copies of the product, and low reach are the major drivers of the loss in market share. The task at hand is to improve Bingo’s performance, regain and increase its market share, communicate the brand proposition effectively and increase its reach in various parts of the country especially south. Getting trials with larger masses and maintaining the loyalty of existing franchise are a few potential ways of establishing connect with the customers. Clearly Bingo’s triangle shape is easily imitable, but the customer’s reasons for buying the snack are mainly its taste. The actual value proposition that the consumer seeks in bingo is the taste. In such a scenario, strategies for defense against copycats and discounted players need to be chalked out by communicating the actual brand proposition effectively. In addition, Bingo’s market penetration in Southern India is low as compared with the Northern India We see it as a huge opportunity for research regarding the consumer behavior specific to southern India, cater to their needs, increase reach and establish a solid base. In this analysis, we present our ideas, thoughts and recommendations on how to achieve the task at hand. Bingo’s war for...
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...stock or reorganize storage. Performed a variety of warehouse duties such as pull/assemble customer orders, check outbound orders for accuracy/completeness, inventory stock checks restock, and conduct daily cycle counts. Unloaded trucks and open up to 100 or more boxes a day (removing required documentation and material from inside of box) checking product. Check Bill of Material for problems that was caused by missed parts Lithonia Lighting Inventory Control/Assembler, 2000- 2005 Maintained Inventory Records Managed material shortage, line inventory locations, and trouble - shoot inventory problems. Assisting in counting of physical inventory Multiple tasks to support Production Line/Warehouse Assembled light fixtures using power tools. Frito Lay Caser/Machine Operator, 1998-2000 Packed product off a moving line into boxes. Maintained a report of the total amount of goods manufactured in a day from the machine Adjusted the operating speed and controlled the load of the machines Operated a machine that packed and boxed product had to meet production. Education: GEORGIA WORK READY CERTIFICATE 2011 SILVER Diploma Hawkinsville High School 1997 References: Martina Witcher 478-308-3002 Cashier at American Jacks...
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...PEPSICO BUSINESS ANALYSIS SWOT ANALYSIS¬¬ Strengths Diverse product range 22 product lines each contributing over 1 billion in revenue (soda, juice, water, to snack foods)(Lambert, 2012, Hoovers) One of the most acknowledgeable brands in the world (PepsiCo.com) Available in more than 200 nations (PepsiCo.com) Weaknesses (Lambert, 2012, Hoovers) Lower productivity compared to Coca-Cola Over dependence of big retail Decline in soda taste Core Competencies (Lambert, 2012, Hoovers) Working towards appealing to consumers changing taste Leading the way into health conscious drinks and health conscious snacks Mass production Effective manufacturing and distribution system Competitive Advantage (PepsiCo.com) Customer Acceptance Wide product range Their Logo/Brand has been around for over 100 years and is considered a household name. Acquisition of bottlers Opportunities (PepsiCo.com) Brand management (Starbucks, Lipton)(PepsiCo.com) Healthier products for both snack lines and drink lines (PepsiCo.com) PepsiCo is taking advantage of growth in other countries such as China, Latin America, and other underdeveloped nations which are virtually untouched by rivals and have huge potential. In China PepsiCo is catering to the local tastes in snacks. Threats (Yahoo Finanace) Coco-Cola being the number one brand of North America is PepsiCo’s largest competitor. Drop of sales in soda Private-label products Government regulations Imitators Non-Carbonated...
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