Frito-Lay's Dips Analysis 1. SWOT Analysis Strengths: § Frito-Lays were a highly profitable product line and had show phenomenal sales growth in the past five years. § Shelf-stable' dips can be displayed virtually anywhere in a supermarket. § Frito-Lay is a nationally recognized leader in the manufacture and marketing of salty snack foods. § In addition to salty snack products, the company also markets a line of nuts, peanut butter crackers, processed beef sticks, Grandma's brand cookies and snack bars, and assorted other snacks. § In 1985, Frito-lay captured about 33 percent of the salty snack food tonnage sold in the United States. § For Frito-Lay's cheese dips, Frito-Lay chose to stay with the Frito-Lays name to trade off the company's equity in salty snacks and capitalize on the company's strengths in marketing and distribution. § The phenomenal success of Frito-Lays Dips was due to two factors: cheese dips were novel and Frito-Lays flavors were innovative, and they had the right merchandising location next to salty snacks. § Consumer household penetration increased from 12 percent in 1983 to 20 percent in 1984, driven largely by placing cheese dips near salty snacks. The association between chips and dips was conveyed in promotions and in shelf placement. Weaknesses: § Frito-Lay's enchilada bean dip was dropped from the Mexican dip line in mid-1985 as a result of falling sales. § The discontinuance of the enchilada bean dip had had an unexpected effect. It had been expected that consumers would switch to Frito-Lay's other Mexican dips; but they didn't and went to competitors. § Total dollar sales of dips for Frito-Lays declined in 1985 and the forecasted sales of cheese dips would be unchanged from the previous year. § In 1985, consumer household penetration flattened, indicating a need for consumer-pull marketing. § It is unlikely that funds for advertising and merchandising would be increased in 1987 beyond the $4.73 million budgeted for 1986. Opportunities: § Dip popularity has risen in recent years as a result of the convenience of use, multiple users, and grazing' trends in the United States. § Sour cream-based dips are the most popular in flavor and account for 50 percent of total dip sales so Frito-Lay has an opportunity to gain market share with sour cream-based dips. § Sales trends indicate that Mexican dips would show a 4 percent increase in sales in 1986. So Frito-lay may want to get into this market again since they discontinued the enchilada bean dip.
Overall, it seems as though Chick-fil-A there are several main reasons that Chick-fil-A seems to continue to thrive and be successful. One reason has to do with how much the company makes their brand known and supports their brand. Another reason is that the company solely focuses on the product of chicken related products. Lastly, it seems as though Chick-fil-A’s community involvement keeps people coming back to eat and support Chick-fil-A overall. It will be interesting to see what journey
The fast food restaurant industry, which includes quick-service and fast-casual restaurants, is highly segmented with the top 50 companies accounting for only 25% of the industry’s sales. The $120 billion industry includes over 200,000 restaurants with 50% of those specializing in hamburger entrees. (hoovers.com 2008) The major competitors in the industry include McDonald’s, Burger King, Taco Bell, Subway, and KFC – Chick-fil-A’s major competitor in chicken sales. Chick-fil-A’s unique position in the market, specializing in chicken-based entrées, has lead to a competitive advantage which the company has been able to capitalize on. Recently, many competitors have added chicken entrees in order to compete in the market segment. Through marketing strategies and company initiatives, Chick-fil-A has tried to stay distant from competitors, offering a fresh alternative to the ordinary fast food restaurant.
Pepsi needed a strong regional partner. Pepsi had been falling behind to Coke in Mexican market. However, changes in the regulatory environment had cut Coke’...
Subway, one of the present leaders in the fast food industry was set up in 1965 in Bridgeport, Connecticut by Fred DeLuca. A family friend of him suggested this idea to help him pay for his education to fulfill his dream of becoming a doctor. Dr. Peter Buck, one of Fred’s friends agreed to be his partner with a loan of $1,000. There was a huge growth in the business relationship that changed the landscape of the fast food industry.
At the end of 1991, PepsiCo had EBITDA of $2.1 billion or operating profit margin of 10.8% - down from profit margins of 12.2% and 11.7% in 1990 and 1989, respectively. In addition, net sales only grew by 10.1% in 1991 – considerably low versus growth of 16.8% and 21.6% in 1990 and 1989, respectively. Recent acquisitions of Taco Bell franchises in 1988, bottling operations in 1989, Smiths Crisps Ltd. and Walkers Crisps Holding Ltd. in 1989, and Sabritas S.A. de C.V. in 1990 aided sales in growth in 1989 and 1990. Additionally, a joint venture with the Thomas J. Lipton Co. in 1991 to develop and market new tea-based beverages may lead to greater sales in the future. However, there is some need for an immediate return on its investments in order to sustain historical revenue growth and increase the current profit margins.
Trevor Wallace has led the company away from the "We are chicken" campaign into other areas that may not reflect the image of what Buckmeister intended. Even though the "chick-pizza" is successful, this could also be the reason why sales are declining in many of the outlets. They could be diluting the brand image
Ben & Jerry’s Homemade, Inc. is a leading manufacturer of super premium ice cream, frozen yogurt and sorbet in unique and regular flavors. The Ice Cream Company embraces a philosophy of being real and “down to earth”, being humorous and having fun, being non-traditional and alternative and, at times, being activists around progressive values. Co-founders, Ben Cohen and Jerry Greenfield, have been seen as role models for running a business that is both profitable and socially responsible and committed to using only natural ingredients in its products. With flavors like Cherry Garcia, Chubby Hubby, Chunky Monkey, Phish Food, and Rainforest Crunch its no wonder that they are known as the “Woodstock of ice cream”.
Developed by Proctor & Gamble, olestra will be used in potato chips, in corn chips, in crackers, and in other snack foods under the name Olean. Consumers who are interested in purchasing olestra products should try Frito-Lay’s MAX line of snack foods (only sold in limited test markets in the United States). Frito-Lay MAX products will eventually be offered nationwide if test market consumers place these snacks in ...
Unfortunately, after the events of World War I occurred Caleb Bradham after 17 years of success experienced financial difficulties forcing him into bankruptcy on May 31, 1923. He then sold his Pepsi Cola trademark and formula to Craven Holding Corp. Further into it’s history the Pepsi-Cola corporation was formed by merging with the Dominion Beverage Company. However, in 1931 the company was bought by the Loft Candy Company, whose president at the time was Charles G. Guth who moved headquarters to Long Island City,
Just like online shopping has started to take huge chunks into the actual physical-retail stores and going to the malls is starting to decline, the same has begun to happen to these casual dining chains. Of course these issues could be hand in hand. The fewer customers that go out to the mall or to Walmart means fewer potential customers for the restaurant. Although, places like Chipotle and Panera have seen sale growth of 15 to 20 percent over the last 5 years, while the casual diners have flat-lined or even decreased. Known as fast-dining, these places are popular for their speed that...
This bar graph is showing that the trend is sporadic from year to year. This ratio shows the company’s total sales that are available for financing and supporting the company’s ongoing operations. Large ratios are needed to show that the company is in a better place to develop than its rivals. Kraft Food Group has room to grow in this
Advertising Spend: The advertising and marketing spend (Case Exhibit 5 & 6) in the industry is in 2000 was around $ 2.6 billion (0.40 per case * 6.6 billion cases) mainly by Coke, Pepsi and their bottler’s. The average advertisement spending per point of market share in 2000 was 8.3 million (Exhibit 2). This makes it extremely difficult for an entrant to compete with the incumbents and gain any visibility.
One thing that they did change, back in 1990, was labeling on the variety pack foods. Before this law got passed, some food companies would present one nutrition chart, for multiple types of foods present in the variety pack, which left other foods unlabeled. Nathan Anderson
c.) Some iconic brands include; Beverage: Pepsi, Mountain Dew, Gatorade, Sierra Mist, Tropicana, Brisk, Lipton; Food: Quaker Oats, WBD, Rold Gold pretzels; Snack: Lay’s, Doritos, Cheetos, Tostitos. The mission statement is “to provide consumers around the world with delicious, affordable, convenient and complementary foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening treats”. We are committed to investing in our people, our company and the communities where we operate to help position the company for long-term, sustainable growth.” II.
After looking at trends in the market and seeing that consumers are becoming more health conscious and the need for food that is easy to prepare it was decide that this product would do well in a consumer market made up of mid and upper mid income families and individuals.