Essay on Sunchips

Words: 2936
Pages: 12
Open Document
Table of Contents

Problem Statement 3
Situational Analysis 3
External Analysis - Market Analysis 3
External Analysis - Customer Analysis 4
External Analysis - Competitor Analysis 4
External Analysis - Environment Analysis 4
Internal Analysis - Performance Analysis 5
Internal Analysis - Determinants of Strategic Options 7
Alternative Analysis 8
Recommendation 9
Citations 10

Problem Statement

Frito-Lay, Inc. executives are contemplating the launch of Sun Chips Multigrain Snacks. Though there are currently few, if any, other nationally- marketed multigrain snack chips, the snack chip industry is known to be highly competitive and it is likely that competitors will be quick to introduce a competing product. …show more content…
The strategies for success in this competitive environment include extensive marketing, competitive pricing, and research and development teams that can crank out new flavors swiftly. With the abundance of new products, Frito-Lay, Inc. competes by gaining recognition of its brand and products through promotions, obtaining optimal shelf space, offering customer discounts, and quickly developing and placing the right snack chip products in the best locations as a pioneer in the healthy snack chip market.

External Analysis - Environment Analysis

The snack chip market, with its relatively low price for products, is easily influenced by the latest trends. For instance, interest in healthy eating and maintaining a healthy weight is quickly gaining momentum and influencing the products and the amount of a product that consumers are willing to buy. A great tasting chip that is perceived as healthy can gain the competitive edge. As the baby boomers, people born from 1946 to 1964, age and become more health conscious, the market for nutritious snack chips has increased. The environment in which a new snack chip is judged on taste and price alone is quickly disappearing. In today’s market, a chip must taste good, be inexpensive, and perceived as healthy. To remain competitive, Frito-Lay, Inc. attempted to market a multigrain product in the 1970s and again in the early 1980s with little success. The challenge in providing a product that
Show More

Related Documents: Essay on Sunchips

Frito Lay Sun Chips Case Study Essay

Paul test market? The results from the premarket test were not at all what Frito-Lay’s executives had initially expected. Consumers preferred the SunChip name,while the most popular flavors were Natural and French Onion. After the trial, Sunchips had the potential to be an “everyday snack.” The results from the premarket test indicated that the Sun Chips Multigrain Snacks would sell a total sales volume of $113 million during it’s first year on…

Words 1406 - Pages 6

Essay on Pepsico

CASE 21 PepsiCo’s Diversification Strategy in 2014 John E. Gamble Texas A&M University–Corpus Christi P epsiCo was the world’s largest snack and beverage company, with 2013 net revenues of approximately $66.4 billion. The company’s portfolio of businesses in 2014 included Frito-Lay salty snacks, Quaker Chewy granola bars, Pepsi soft-drink products, Tropicana orange juice, Lipton Brisk tea, Gatorade, Propel, SoBe, Quaker Oatmeal, Cap’n Crunch, Aquafina, Rice-A-Roni, Aunt Jemima…

Words 6089 - Pages 25