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For the Bold and Daring! Frito-Lay. Group Members: Brenda Lockwood Ingrid Rein Manoj Thomas Mary Thomas Monica Bahmata Nitin Jain. Frito-Lay’s Mission Statement. To be the world’s favorite snack and always within arm’s reach. Frito-Lay’s Mission Statement.

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For the Bold andDaring!


Group Members:

Brenda Lockwood

Ingrid Rein

Manoj Thomas

Mary Thomas

Monica Bahmata

Nitin Jain


Frito-Lay’s Mission Statement

To be the world’s favorite snack

and always within arm’s reach


Frito-Lay’s Mission Statement

To be the world’sfavorite snack

and always within arm’s reach


Frito-Lay’s Mission Statement

To be the world’s favorite snack

and always within arm’s reach


Frito-Lay’s Mission Statement

To be the world’s favorite snack

and always within arm’s reach


Evolution of Frito-Lay Marketing

  • Early Days, Frito® Bandito
  • Now, Integrated Marketing Strategy….

Macro Trends For Salty Snacks

  • Emerging health conscious consumers
  • Generation Y and busy life style
  • Individual taste preferences
  • Influence of children on snack purchase
  • Increasing diversity in population
opportunity threat matrix
Opportunity/Threat Matrix

Probability of Occurrence




Level of Impact


industry competition
Industry Competition
  • Low level threat of new entrants at national level
  • Relatively easier in local market
  • Forward integration Strategy – Gaining ownership
  • Weak bargaining power of buyers - Stores

Fierce rivalry among large companies – General Mills, Nabisco, P & G

  • Weak bargaining power of Suppliers – Farmers
  • Fixed amount of potatoes at a set price
  • Continuous threat from existing and new alternative snack food
  • ‘White Label’ brand of Large grocery store chains

Competitive Analysis – Frito-Lay

  • The food industry has resurged as a result of rampant merger activity among several large food processors.
  • Global food producers and multinational companies have acquired smaller food companies to gain market share, add a product line, and solidify/strengthen their current productlines.
  • In the year 2000, many mega-mergers took place:
  • - Unilever acquired Best Food
  • - Nabisco acquired Philip Morris
  • - General Mills acquired Pillsbury
  • - Kellogg’s acquired Keebler
competitive analysis frito lay
Competitive Analysis – Frito-lay
  • Frito-Lay is the leader of chip market.
  • They have approximated $ 2.17 billion / year tortilla chips category, with Doritos and Tostitos in top. Frito-Lay sold 82 % of tortilla chips bought in the US.
  • The Frito-Lay competitors are:- Procter and Gamble - General Mills- Nabisco
competitive analysis doritos
Competitive Analysis - Doritos
  • Doritos is the market leader in it’s segment
  • There isn’t much direct competition. It’s closest competitor is Torengos, made by Procter and Gamble.
  • Other competition includes imitation chips made by local companies

Market Positioning – Frito-Lay

  • As market leader they set industry trends
  • They have a good positioning in the market because of their sustainable competitive advantage
  • Competitive advantage:
  • - Well-developed product mix
  • - Extensive management information system, the company uses a vast database updated daily (market share, displays, competitors pricing)
  • - Elaborate distribution channels
market positioning doritos
Market Positioning – Doritos
  • Competitive advantage:

- Loud image

- Bold flavor

  • Determinant Attributes:

- Endorsements (Ali Landry, Malcolm in the Middle, MTV)

- Psychographic usage (loud/outrageous image)

- Popularity usage (well known/trusted brand)


I asked my son: Why do you like Doritos chips?

His answer: Because they are yummy and orange!

perceptual map of doritos

Loud Image

Bland Flavor

Bold Flavor

Classic Image

Perceptual Map of Doritos

Positioning Statement &

Value Proposition

Positioning Statement

For the Bold and Daring, Doritos indulgence snacks offer extreme taste, high decibel crunch and bold flavor.

Value Proposition

Target Market: Generation Y

Benefits offered: Bold flavor, Extreme Image

Price: Comparable to competition, inexpensive

three market segments
Three Market Segments
  • MTV Teens

2. Pigskin Enthusiasts

3. Get-A-Life Students


Name: Kyle (in Black Shorts)Screen Name: spazzaliciousAge: 19Occupation: College FreshmanInterests: Extreme Sports, Video Games (X-box), Computers, Movies, Music (MTV), Brand Name Clothes, GirlsLifestyle: Goes to Cancun for Spring Break, Likes to Party, Likes Loud Music, Lives For The DayNeeds: Tasty, Loud, Outrageous Snacks in Cool Packages Wants:Isn't It Obvious?

MTV Teen


Name: Eddie (in Orange Sweater)Age: 27Occupation: Public Relations Rep.Income: $45,000Interests: Sports (on TV), Happy Hour, Trading Stocks OnlineLifestyle: Single, Has Girlfriend, Hosts Football-Sunday Parties for the GuysNeeds: Quick/easy (no cooking required) Snacks, Food that tastes good with BeerWants: A Dog That Fetches Beer

Pigskin Enthusiast


Name: Brenda (me)Age: 31Occupation: Web Producer, Grad. StudentInterests: Movies, Water Skiing, TravelingLifestyle: Work by Day – School by Night, Very BusyNeeds: Convenient, Small Packaged Snacks to Eat During Class, “Food On the Move”, Crunchy Fix for Late Night StudyingWants: A Vacation

Get-A-Life Student

three market segments23
Three Market Segments
  • MTV Teens
  • Pigskin Enthusiasts

3. Get-A-Life Students

Targeted segment

online marketing
Online Marketing
  • Digital investment up to 9% overall budget
  • Revamping
  • Viral-marketing – underground site

Online Marketing

" The teen target has a lot of skepticism toward

marketing activities online, but if we align with the

content they're interested in – entertainment, music,

games – it allows us to engage them in a more

meaningful way." – Jonathan Glicksberg, Atmosphere

market attractiveness factors
Market Attractiveness Factors
  • Need for snacks are strong among all segments
  • Teen segment is growing through online efforts
  • Macro tends are favorable: high influence on kids making snack purchase decisions, emerging Y generation has purchase power, busy lifestyles demand food on the go, growing Hispanic population likes bold, spicy flavor
competitive position factors
Competitive Position Factors
  • Doritos has most Extreme flavor of any competitor, trend is in that favor
  • Frito-Lay is strong company with other complementary products to Doritos
  • Favorable forces: low threat of entrants due to forward integration, excellent distribution channels, economies of scale, product differentiation
  • Unfavorable forces: threat of substitutes
market attractiveness competitive position matrix
Market Attractiveness/Competitive Position Matrix

Market Attractiveness

Pigskin Enthusiasts

MTV Teens


Get-A-Life Students



Competitive Position





Frito-Lay Business Strategy

  • Analyzer Strategy
  • Global Strategy

Convenience Foods

  • Maximum Distribution
  • Consumer Advertising
  • Merchandising

Frito-Lay Product Line

Full line designed to meet all needs of consumer segments


Product Decisions

  • Size of Bag
  • Shape of Chip
  • Packaging
  • Flavor


  • 3Ds ®
  • Tostitos ® and Fritos ® Scoops


  • Bags
  • Snack Packs
  • To Go ® Packs


  • U.S. Flavoring Choices
  • Global Flavors

Brands and Chip Flavors

  • Hidden Valley Ranch®
  • Cracker Barrel® Cheddar
  • KC Masterpiece® Barbecue

Healthy Chips

  • With aging population, increasing market segment, i.e. snack like a kid again
  • Need similar flavors and textures


  • Convenience Product - Low Price
  • Variety-Seeking Behavior
  • “Good Quality Snack at Fair Price”
  • Wide Range of Chips to Meet Every Budget


  • New Products - Market Penetration
  • Some Time Pricing
  • Promotional Pricing


Where are Frito-Lay Products Sold?



A. Sales people input store info into handheld

B. Handheld loaded into national database

Product Planning


C. Database generates vital market info


D. Market info gives up-to-the-minute sales info to...




  • Core Competency
  • Advantages of Frito-Lay System
  • Global Distribution

Promotional Mix

  • Aims at target groups
  • Integrated message

Promotional Mix

Sporting Events



Ali Landry - 2001 Super Bowl

Frankie Muniz - 3 Ds Commercials


Promotional Mix

Contests, Tie-in with other companies,

Movie tie-ins


Promotional Mix

Use of Humor


Promotional Mix

In-Store Promotions


Promotional Mix

  • Sponsorship - Frito-Lay does research to determine best Sponsorships
      • i.e Operation Bass
  • Global Approaches - Indulgence


  • Frito-Lay Balancing Act
  • Plus Potential Minus
  • • Good segmentation • Large company could
  • Market-oriented loose touch with Public
  • Diverse product mix needs
  • • Good distribution system • Needs to pay attention
  • • Good partnerships all its products

Innovative Recommendations

  • Advertising at Blockbuster on video tapes or DVD
  • Different packaging ideas sphere
  • Cartoon shaped chips in safe package
  • Contests at school for new products, flavor, package
  • Contest at school awarded with company’s products
  • School sales of chips -like candy bars
  • Fluorescent packages- glow in the dark chips
  • Package tie with Pepsi -small can of Pepsi with small plastic can of chips wrapped together

Innovative Recommendations

  • Musical package- hear a funny music or a distinctive sound while opening the package
  • Packaging chips bag with wet- napkins to clean hands
  • Popup advertisement on Internet, especially on sites visited by teenagers
  • Zip package
  • Two different chips in same packaging
  • Package tie - two different kind of chips in different small plastic can wrapped together