When Frito-Lay first got into the dip industry they introduced two dips, the Jalapeno Bean Dip and Enchilada Bean Dip. This alternative may not provide any knowledge that was unknown. This alternative increases the chances of the success rate of this product since you are realigning the placement of the product and will not get lost amongst a highly volatile, competitive and high failure rate market+decreases cannibalism. S households used dips in 1985. Parity Conditions and Cross-Border Valuation Hints to case study questions: 1.
They are leading in manufacturing and distribution. 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. Coke and Pepsi are not only in the beverage business they…. These three dips were the only Frito-Lay dips sold until 1983. So, sun chip is introduced in late 1990.
During the busy season, more people would like to come. We are going to develop a brand line called Fiesta Dips. High rate of failure due to restricted selection. One of the biggest problems when trying to enter a new market is reducing cost in order to gain the competitive advantage. The production line expansion is financially affordable C. So, the budget of advertising and merchandising will increase. The major issue with waiting to fully launch this product is other companies will catch onto the test-marketing and want to create similar products in order to be in the running for the healthier chip alternative category.
Cracker Jack has heritage and brand awareness that is very high. Whereas, the opportunities and threats are generally related from external environment of organization. Another notable feature that shows alignment with the current trend is the quantity of fat in the product. Discuss the context and the issues in the case from the point of view of Thomas, Donahoe, and Ford. Executives who had concerns about focusing on the chip-dip category also raised a number of points in support of the vegetable dip opportunity.
Yet, if the test market results are accurate then Frito-Lay should definitely introduce Sunchips nationally. They have thirty-nine manufacturing plants, over 1,600 distribution centers, and a 10,000 person route-sales team which sells to over 400,000 retail stores per week. However, resources should also be perfectly non sustainable. The company has been debating on whether to purchase the rights to Cracker Jack from Borden Foods Corporation. Introduce Sunchips with some strategy modification more advertising, larger package sizes, another flavor Pros More advertising would lead to more brand awareness and possibly more sales. Diuretics decrease blood flow to the placenta by decreasing blood volume. It is said that case should be read two times.
Roger Cahill, the new vice president of the Mobile Division, is faced with the challenge of…. The change of location and shelving format within the retailer stores, and convenience stores will be a great strategy. As a result, he can direct the market. Recommendations and Rationale My recommendation for Sun Chips would be to pursue the option of fully launching the product line. Market segmentation would increase customer feedback 6. This will increase brand awareness and provide more opportunity for product trial through increase promotions. The additional revenue generated from increased sales will assist in maintaining profitability and sales margins.
The snack chip category is growing, mainly because of the increased per capita consumption, which rose from about 12 pounds in 1986 to nearly 14 pounds in 1990. The case study reveals that the product is 50% lower in saturated fats. Case Study 1 Incredible Shrinking Potato Chip Package Topic: Cost vs. Consumers preferred the SunChip name,while the most popular flavors were Natural and French Onion. In addition to its extensive range of products, the company also offers extensions and limited time available products that provide variety for current consumers and appeal to new consumers.
Changes in these situation and its effects. This is the main cause of the problem. Along with the production, they need to fully start pushing out their campaign for print, television, along with coupons in newspapers to intrigue customers to try the new product. These factors are extremely important to the success of the product line because figuring out what the customers are demanding for is what will produce revenue. This test has shown positive result as more consumers got attracted. More than eight different kinds of Frito-lay snacks chips brands are found among the top 10 best-selling snacks in the U.
Strategy Map and Balanced Score Card 7. Its long tradition can be revived through Strength, Weakness, Opportunity and threats analysis. Frito-Lay is a national brand and a worldwide leader in the manufacturing and marketing of snack chips. In this process, maximum using the test information is important and meaningful. Rare and valuable resources grant much competitive advantages to the firm. As such, - Control of expenses can charge lower price to customer - Low price strategy serves as a barrier of entry to competitors Differentiation Strategy It is pursued when the product can be differentiated Sun Chips Multigrain Snack is a crispy consisting of blend whole wheat, rice, corn and oat flours with lightly salty multigrain taste and slightly sweet aftertaste.