Fritolay Case Study

1. How would you characterize the raciness chip category and Frito-Lays competitive perform in the category? * The United States snack food labor recorded retail gross sales 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 get more snack chips per person, an increase of 2 pounds everywhere tetrad years. * Frito-Lay is the worldwide leader manufacturing and marketing of snack chips. Frito-Lay is a country 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 over 650 new snack chip crops introduced each year. Less than iodin percent of new products generate more than $25 gazillion in s ales 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 stubble chip category by Frito-Lay were only softly fortunate despite advertising and merchandising support.

It was determined that this Sun-Chip-like product generated evoke among too narrow a target market. In 1978, it was say this product may have been invented and introduced before its time. The brand divulge SunChips was also given to a puffed give product that was unsuccessful and removed from the market in 1985. * In 1981, the reaping project re- ask! d interest in a multigrain snack referable to the growing baby-boomer population. They cerebrate that the market for wholesome snacks was not insofar 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 use was considered to be extremely important. Graphics contract to communicate new,...If you exigency to get a full essay, show it on our website: BestEssayCheap.com

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