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Cracker Jack/Frito Lay Case Analysis

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Frito Lay Company – Cracker Jack Case Analysis
Carl James

MBA:Marketing Strategy
September 19, 2014

Frito Lay Company- Cracker Jack Case Analysis

Case Recap
Frito Lay, a division of PepsiCo Inc, has just purchased the Cracker Jack brand from Borden Inc. The company is a worldwide leader in the manufacturing and marketing of snacks, with products such as Ruffles Potato Chips, Fritos Corn Chips and Doritos found among its product mix. These well known company brands have seen it capture over 50 percent of the retail sales, and company officials envisage Cracker Jack can only but add to the richness of its product line and profits. Borden, because of its strategic decision to concentrate resources elsewhere, discontinued aggressive marketing of the Cracker Jack brand of products and thus sales had plateaued and were declining with competitors snapping at the heels. Data showed Cracker Jack was holding steady at 26% percent market share, but given its brand name recognition, this was not as positive a metric as it should have been.
With its current market position of leader in the salty snack food, and holding nine of the top ten positions in U.S. supermarkets (Kerin &Petersen, 2010), Frito Lay is confident that the right marketing strategy for its newly acquired brand would see it continue to maintain its overall dominance in the provision of snack foods. In addition, it is confident that such a plan would regain the trademark’s past glory and recapture market share. A team has therefore been assembled to determine the best strategy for this goal attainment.
Problem Identification

The product synonymous with the Cracker Jack trademark is caramel covered popcorn. This falls within the Ready to Eat (RTE) category as designated by the industry. Retail sales for this category reached a high of $205M in 2005, but have been declining since then (Kerin…...

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