...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
...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
...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...
Words: 2188 - Pages: 9
...Thompson−Strickland: Strategic Management: Concepts and Cases, 13th Edition 23. PepsiCo’s Acquisition of Quaker Oats Case © The McGraw−Hill Companies, 2002 1 case 23 PepsiCo’s Acquisition of Quaker Oats John E. Gamble University of South Alabama In 2001, PepsiCo was the world’s fifth-largest food and beverage company, with such brands as Lay’s, Tostitos, Mountain Dew, Pepsi, Doritos, Aquafina, and Lipton contributing to revenues of approximately $26 billion. PepsiCo’s revenues had reached $31 billion in 1996, but a new corporate strategy embarked upon in 1997 slimmed the company’s portfolio from a collection of fast-food restaurants, snack foods, and beverages to a sharply focused lineup of convenience foods and beverages. Between 1997 and 1999, CEO Roger Enrico spun off Kentucky Fried Chicken (KFC), Taco Bell, and Pizza Hut as one independent, publicly traded company; created a stand-alone softdrink bottling business through an initial public offering; and entered additional snack and beverage categories with the acquisitions of Cracker Jack and Tropicana. Enrico’s focus on convenience foods and beverages placed PepsiCo in food and beverage categories that grew at twice the 2 percent industry growth rate and gave it a 2-to-1 market share lead over its nearest competitor in the convenience food and beverage industry. Roger Enrico and Quaker Oats Company’s CEO, Robert Morrison, jointly announced on December 4, 2000, that PepsiCo would acquire Quaker Oats...
Words: 15973 - Pages: 64
...Chapter 11 Case Study: Pepsi Background of the Company- 1965-PepsiCo, Inc. was established through the merger of Pepsi Cola and Frito-Lay. Caleb Bradham, a New Bern, N.C. pharmacist, created Pepsi Cola in the late 1890s. The 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. LAY COMPANY, formed Frito-Lay, Inc., founded by Herman W. Lay, also in 1932. Herman Lay, former chairman and CEO of Frito-Lay, was chairman of the board of directors of the new company; Donald M. Kendall, former president and CEO of Pepsi Cola, was president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. Major products of the new companies are: Pepsi Cola Company: Pepsi Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948). Frito-Lay, Inc.: Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961). 1966- Doritos brand tortilla chips are introduced. They are destined to become the most popular snack chip in the United States. Pepsi enters Japan and Eastern Europe. 1971- PepsiCo moves from New York City to its new world headquarters in Purchase, N.Y. The new corporate headquarters features a building by one of America's foremost architects, Edward Durrell Stone (19021978), set on a 144acre...
Words: 1655 - Pages: 7
...PepsiCo Case Study Analysis Paper Michael Gillespie Organizational Policy and Strategy, OML-450, Cohort (835) Professor Vicky Sons-Eiden September 15, 2011 PepsiCo Case Study Analysis Paper A case study analysis on PepsiCo’s diversion strategy in 2008 will be addressed in this paper. The elements that will be discussed are the vision and mission of PepsiCo, the 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...
Words: 2714 - Pages: 11
...the company’s snack food and beverage business and severely impaired the corporation’s overall operating and profit margin. The fact restaurant which included Pizza Hut, KFC, and Taco Bell were eliminated from the company’s portfolio of business and the three main restaurants were spun off as an independent publicly traded company, the divestitures was completed with a creation of Tricon Global Restaurants. Focusing on related diversification and spun off business unit which were unrelated to the core business of beverage and snacks. Maintain of one Culture: PepsiCo’s new strategy was to maintain a single culture which is dominant and which was Frito-Pepsi Culture. Acquisition for Related Diversification: PepsiCo as part of its new restructuring strategy acquired Borden food’s snack mix of candy coated popcorn and peanuts Cracker Jack, Tropicana from Seagram Company (orange...
Words: 3275 - Pages: 14
...Case Analysis for Pepsi Co Acquisition - More high level analysis (by beverages and food) we are in consumer packaged beverage and snack business Identify • Vision • Mission - Market leader in every industry they compete in - Synergies (transferring, management, HR skills, distribution channels – i.e. Power of One) - Market expansion (international) - Related diversification (share some of the same channels, advertising, distribution, etc) - There was no clear cut vision ( analysts and CEO even admitted it (looked like they were taking advantages of long term and short term opportunities) - Why do you have a portfolio of businesses? Maximize shareholder value ( would be one of the main drawbacks - Would buy current companies that will help piggy bank on their current success (i.e. restaurants and distribution channels) - Portfolio management – do they sell things off at the right time Identify Strategic Objectives (Are these objectives SMART) • Financial o Growth sale by certain percentage o Stock price o Cash • Non-Financial o Efficiency o International market Identify Current Business Strategy • Does It Make Sense? Why? Evaluate 1. Industry • Five Forces – Look at the industry today (*implication to the industry) Rivalry - Big companies manage to find niche and expand it - Little guys usually get bought out from...
Words: 1542 - Pages: 7
...Financial Analysis Christina Scheier Axia College of University of Phoenix Coca Cola and PepsiCo have been making and distributing soft drinks for over a century. Both companies have survived many hardships, but which one is the strongest? The following report will demonstrate financial information about both companies. I will identify and analyze both companies and determine which company would be the better choice for an investor. Coca Cola and PepsiCo have been competing for a long time in a global market. This report will show what each company has done to build their company and improve their business as individuals and as similar industries. Coca Cola is the largest manufacturer and distributor of non-alcoholic beverage concentrates and syrups in the world. The company has ownerships interests in numerous bottling and canning operations. Finished beverage products are sold in more than 200 countries worldwide. Coca Cola’s major products are: Coca Cola, Sprite, Fanta, Diet Coke, POWERade, Fruitopia, Minute Maid juices, Dasani water and various coffees and teas. Coca Cola was invented by a pharmacist in the year 1886 when he was experimenting for a recipe for headache and an energizer. Nowadays Coke serves as one of the number one recognized brands of the world with a unit sales close to 3200 servings. Coke followed a path of being known as a tonic and a healer with caffeine’s in late 1890’s to being number one beverage in 1900 till present. Subsequently...
Words: 1822 - Pages: 8
...The Coca-Cola Company vs. PepsiCo, Inc The Coca-Cola Company versus PepsiCo, Inc In this paper I will discuss the case of the pension plan between Coca-Cola and PepsiCo Inc. I will be comparing the pension plans of both companies of what they offer as well as the funded status at the end of 2007. You will also see that I have calculated the different rates used by both companies while they are trying to compute their portion of the pension amount. I will also explain through my justification which company myself would want to invest with as a shareholder. And lastly I will justify which company I would like to work with as an employee. 1. Compare the pension plans of Coca-Cola and PepsiCo, including type of plan and funded status at 2007 year-end. Each organization offers and sponsors 401K pension plans as well as medical and life insurance benefit plans for their employees or associates. Not all employees are eligible for participation in all plans. Coca Cola has a defined contribution plan that includes all U.S. employees and some international employees. This is a contributory plan; both the employer and the employee make contributions. This plan offers substantial tax benefits for the contributions made by the employer. In addition, Coca Cola also has a defined benefit pension plan. This plan is considered a nonqualified, unfunded plan primarily for the organizations officers, most U.S. employees, and some international employees. This plan offers no tax benefits...
Words: 1233 - Pages: 5
...Daniels Fund Ethics Initiative University of New Mexico http://danielsethics.mgt.unm.edu PepsiCo’s Journey Toward an Ethical and Socially Responsible Culture COMPANY OVERVIEW PepsiCo is one of the largest food and beverage companies in the world. It manufactures and sells eighteen brands of beverages and snack foods and generates over $98 billion in retail sales. PepsiCo encompasses the Pepsi Cola, Frito-Lay, Tropicana, Quaker, and Gatorade brands and offers products in over 200 countries. It currently holds 36 percent of the total snack food market share in the U.S. and 25 percent of the market share of the refreshment beverage industry. The company’s headquarters are in New York and employs over 200,000 people. In 2006, Michael D. White became the CEO of PepsiCo International, and in 2007 Indra K. Nooyi became the CEO of PepsiCo. PepsiCo has received many awards and recognitions over the years, including being ranked in the top 25 of the best global brands, ranking number four overall by Diversity Inc, and earning the Green Award by the Environmental Protection Agency. COMPANY AND MARKETING HISTORY The Pepsi recipe was developed by pharmacist Caleb Bradham in the 1890s. Originally marketed under the unassuming name “Brad’s Drink,” Bradham’s creation was renamed Pepsi-Cola in 1898 due to the pepsin and kola nut ingredients used. Awareness of Bradham’s new creation spread quickly, and in 1902 he decided to create the Pepsi-Cola Company so people everywhere...
Words: 8703 - Pages: 35
...IDENTIFYING COMPETITIVE ADVANTAGES Video: Panera Bread Cohesion Case: Competitive Advantage:Business Dilemma To survive and thrive, an organization must create a competitive advantage. A competitive advantage is a product or service that an organization's customers place a greater value on than similar offerings from a competitor. Unfortunately, competitive advantages are typically temporary because competitors often seek ways to duplicate the competitive advantage. In turn, organizations must develop a strategy based on a new competitive advantage. When an organization is the first to market with a competitive advantage, it gains a first-mover advantage. The first-mover advantage occurs when an organization can significantly impact its market share by being first to market with a competitive advantage. FedEx created a first-mover advantage by creating its customer self-service software, which allows people and organizations to request parcel pickups, print mailing slips, and track parcels online. Other parcel delivery companies quickly began creating their own online services. Today, customer self-service on the Internet is a standard for doing business in the parcel delivery business. Page 14 As organizations develop their competitive advantages, they must pay close attention to their competition through environmental scanning. Environmental scanning is the acquisition and analysis of events and trends in the environment external to an organization. Information technology...
Words: 3191 - Pages: 13
...Note to the user: This Word document provides a structured template for preparing your responses to the questions in the annual report project. If you did not purchase the workbook you are not permitted to use this template. Selected Company: PepsiCo | | 2. Print your completed electronic template. 3. Attach the following: * This page completed with all required information. * Completed Word template. Template boxes expand as you input responses. Adjust page breaks as necessary to submit a professional representation of your work. Chapter 1 - Introduction Select a Company and Gather Documents Chapter 1: Select a Company and Gather Documents – Question 1 Identify with an “X” the primary source of data for this project. | | Annual report to shareholders | x | Annual report to shareholders with a letter from Chief Executive Officer and SEC Form 10-K as part of the annual report to shareholders. The annual report may include additional general company information. | | SEC Form 10-K and the company website. | Fill in the page numbers from the annual report where the following are located. | Required information for this workbook project. | Page No. | Required information for this workbook project. | Page No. | Financial Highlights * Not absolutely necessary, but very common in annual report to shareholders. * Not in SEC Form 10-K. May be posted on company website. If so put WEB in Page No. box. * If not...
Words: 12583 - Pages: 51
...www.it-ebooks.info www.it-ebooks.info E L E V E N T H E D I T I O N MARKETING MISTAKES AND SUCCESSES 3 0 T H A N N I V E R S A RY Robert F. Hartley Cleveland State University JOHN WILEY & SONS, INC. www.it-ebooks.info VICE PRESIDENT & PUBLISHER EXECUTIVE EDITOR ASSISTANT EDITOR PRODUCTION MANAGER PRODUCTION ASSISTANT EXECUTIVE MARKETING MANAGER ASSISTANT MARKETING MANAGER MARKETING ASSISTANT DESIGN DIRECTOR SENIOR DESIGNER SENIOR MEDIA EDITOR George Hoffman Lise Johnson Carissa Doshi Dorothy Sinclair Matt Winslow Amy Scholz Carly DeCandia Alana Filipovich Jeof Vita Arthur Medina Allison Morris This book was set in 10/12 New Caledonia by Aptara®, Inc. and printed and bound by Courier/Westford. The cover was printed by Courier/Westford. This book is printed on acid-free paper. Copyright © 2009, 2006, 2004, 2001, 1998, 1995, 1992, 1989, 1986, 1981, 1976 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com. Requests to the Publisher for permission should...
Words: 177260 - Pages: 710
...ROBERT F. HARTLEY • Cindy Claycomb 12th Edition T W E L F T H E D I T I O N MARKETING MISTAKES AND SUCCESSES Robert F. Hartley Late of Cleveland State University Cindy Claycomb Wichita State University VICE PRESIDENT & EXECUTIVE PUBLISHER SENIOR EDITOR PROJECT EDITOR EDITORIAL ASSISTANT ASSOCIATE DIRECTOR OF MARKETING MARKETING MANAGER MARKETING ASSISTANT DESIGN DIRECTOR PRODUCT DESIGNER SENIOR PRODUCTION MANAGER ASSOCIATE PRODUCTION MANAGER PRODUCTION EDITOR COVER DESIGNER George Hoffman Franny Kelly Brian Baker Jacqueline Hughes Amy Scholz Kelly Simmons Marissa Carroll Harry Nolan Allison Morris Janis Soo Joel Balbin Eugenia Lee Kenji Ngieng This book was set in 10/12 New Caledonia by Aptara®, Inc. and printed and bound by Courier/Westford. The cover was printed by Courier/Westford. This book is printed on acid-free paper. Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work. In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic, and ethical challenges we face in our business. Among the issues we are addressing are carbon impact, paper specifications and procurement, ethical...
Words: 180086 - Pages: 721
