Frito Lay down Sun Chips Case Study

1 . How would you characterize the snack chip category and Frito-Lay's competitive position in this category? The snack food chip category is growing, mainly because of the elevated per household consumption, which rose via about 12 pounds in year 1986 to nearly 14 pounds in 1990. The munch chip category consists of 3 types of competitors: national, regional and brand businesses. The market is incredibly competitive and hard; as many as 600 new products are introduced yearly, but less than 1% of those generate a lot more than $25 mil in first-year sales. Frito-Lay is a national brand and a worldwide innovator in the developing and promoting of snack food chips. Frito-Lay accounts for 13 percent of sales in america snack food market. Frito-Lay's market share is 50 percent of the snack chips category, and and eight of its snack food chips are among the top-10 best-selling processor chip items in US supermarkets. Furthermore, Doritos and Ruffles are the just snack snacks with $1 billion in selling sales in the world.

2 . What specific issues and dangers does Frito-Lay face in marketing SunChips and what are the ramifications of each? The following are many of the particular challenges and risks that Frito-Lay faces in advertising SunChips and the implications of every: * A large relatively large numbers of rivals > a lot of competition. 5. There is a numerous substitute brands/chips > a whole lot of competition. * Individuals are very cost sensitive so brands are competing on price > detrimental. * There are a few limitations to entrance, and existing entrants have got better usage of distribution programs than new ones. 2. Tried healthy snacks and failed > risky approach.

* New brand name can be described as departure from known term.

* Cannibalization is a matter.

* Frito Lay approach: differentiator, collection extensions, new products to address needs.

3. What insights may be drawn from Frito-Lay's prior experience of multigrain appetizers? As mentioned just before, the munch chip industry...

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