Frito Lay Case Study
Running head: FRITO-LAY, INC: SUN CHIPSTM MULTIGRAIN SNACKS
Frito-Lay, Inc: Sun ChipsTM Multigrain Snacks
Grand Canyon University
Marketing Management
MKT-450
Instructor: Eric Freeman
September 25, 2010
Frito-Lay, Inc: Sun ChipsTM Multigrain Snacks Executive Summary Frito-Lay, Inc has been developing multigrain chips since the early 1970s after marketing research found that consumers wanted nutritious snacks, consequently in 1974 the company launched to the market Prontos, a multigrain chip that was not really a great success, hence withdrawn from the national market in 1978 (Kerin & Peterson, 2009). However, Frito-Lay knew that a healthier option was appealing to consumers and that this healthier option had proper time to be introduced, but the market was not ready for it yet (Kerin, Hartley, & Rudelius, 2009). Product research and development continued during the 1980s with The Harvest but in the early 1980s several market tests failed leading for marketing to introduce in the mid 1980s different flavors, flavor line extensions, on their traditional snacks like Cool Ranch Doritos and low-fat versions of potato, corn, and tortilla chips (Kerin & Peterson, 2009). In 1988 and with the idea still of multigrain products, marketing research studies conducted consumers’ testing for about 10 months, revealing that consumers wanted a multigrain rectangular chip with ridges and incomparable taste (Kerin & Peterson, 2009). Moreover, further research established that multigrain products were perceived by consumers as healthier option and considered for everyday snack, the conclusion was (Kerin & Peterson, 2009). The main idea is to introduce assorted flavors of multigrain chips that are appealing to consumers and would create an opportunity to develop a new product lines with line extensions in order to increase revenues, profits, and maintain the lead in the snacking industry (Kerin et al, 2009).
Frito-Lay is a worldwide leader in the food
Frito-Lay, Inc: Sun ChipsTM Multigrain Snacks
Grand Canyon University
Marketing Management
MKT-450
Instructor: Eric Freeman
September 25, 2010
Frito-Lay, Inc: Sun ChipsTM Multigrain Snacks Executive Summary Frito-Lay, Inc has been developing multigrain chips since the early 1970s after marketing research found that consumers wanted nutritious snacks, consequently in 1974 the company launched to the market Prontos, a multigrain chip that was not really a great success, hence withdrawn from the national market in 1978 (Kerin & Peterson, 2009). However, Frito-Lay knew that a healthier option was appealing to consumers and that this healthier option had proper time to be introduced, but the market was not ready for it yet (Kerin, Hartley, & Rudelius, 2009). Product research and development continued during the 1980s with The Harvest but in the early 1980s several market tests failed leading for marketing to introduce in the mid 1980s different flavors, flavor line extensions, on their traditional snacks like Cool Ranch Doritos and low-fat versions of potato, corn, and tortilla chips (Kerin & Peterson, 2009). In 1988 and with the idea still of multigrain products, marketing research studies conducted consumers’ testing for about 10 months, revealing that consumers wanted a multigrain rectangular chip with ridges and incomparable taste (Kerin & Peterson, 2009). Moreover, further research established that multigrain products were perceived by consumers as healthier option and considered for everyday snack, the conclusion was (Kerin & Peterson, 2009). The main idea is to introduce assorted flavors of multigrain chips that are appealing to consumers and would create an opportunity to develop a new product lines with line extensions in order to increase revenues, profits, and maintain the lead in the snacking industry (Kerin et al, 2009).
Frito-Lay is a worldwide leader in the food
References: Heller, A. (n.d.). Frito-Lay Optimizes Assortments by Applying Shopper Insights. CPG Matters. Retrieved September 25, 2010 from http://www.cpgmatters.com/CategoryManagement0810.html Kerin, R. A., & Peterson, R. A. (2009). Strategic Marketing Problems: Cases and Comments (11th ed.). Upper Saddle River, NJ: Prentice Hall. Kerin, R. A., Hartley, S. W., & Rudelius, W. (2009). Marketing: The Core (3rd ed.). New York, NY: McGraw-Hill/Irwin.