George Crum then decided to make fries that were really thin and would be hard to eat with a fork in a way of irritating the customer. He would also add more salt than usual. However, his plan didn’t succeed and instead the customer really enjoyed the potato chip and more customers started ordering the thin fries. In the 1900's, instead of just eating chips at restaurants, they began to be mass marketed for home consumption. The Mike-sell's Potato Chip Company was founded in 1910 and became known as the "oldest potato chip company in the U.S." Today the top three best selling brands of potato chips are Pringles, Ruffles, and Lay's.
The one thing that the agents complained about was the fact that the product was very difficult to find in their favorite supermarkets. Overall, 65% of BzzAgents said they were likely to purchase Al Fresco again. The sales of Al Fresco chicken sausage increased significantly throughout the year and the market share went up one percent as well. The market share increase was not as significant as the sales increase which is most likely due to the fact that they already have such a high percentage of the market share. The one downfall to the Buzz Marketing efforts are its difficulty in measuring the success as prior to the campaign, Al Fresco had began using some traditional advertising which created some
CRACKER JACK An analysis of potential brand acquisition by Diversified Products Corporation John Bry Sonja Gessling Phil Mark Sara Meinke Jordan Schulz Som Thamma Cindy Tsai Cohort C ‐ Team 4 CURRENT SITUATION ANALYSIS: Cracker Jack (CJ) is a classic American caramel-coated popcorn and peanut snack that was acquired by Frito-Lay (FL) in 1997.1,2 Sales peaked in 1998 to $100M but soon sank back to $30M per year and has remained at that level since.3 Several factors are attributed to this sales slump. FL incorporated CJ into its existing distribution model that utilizes Direct Store Delivery and packaged CJ in Mylar bags (as opposed to the classic boxes).They also shelved CJ with other Frito-Lay salty snack products such as Lays Potato Chips, despite 98% of consumers rating CJ as a sweet snack and not a salty one. 4 Although priced lower than the leading caramel corn brands, CJ still appears expensive when merchandised next to inexpensive potato chips. Consequently CJ has numerous misalignments and a comparatively low profit margin (8.2% compared to snack average of 20.5%).5,6 The low price point combined with rising commodity prices has forced FL to substantially cut the quality of the prizes found inside each box to control costs, angering long time consumers.7 CJ, having stagnant sales for the past ten years, has not received the support required for brand revitalization, instead relying on steady baseball stadium sales to survive.8 Overall CJ has become a neglected brand and is ripe for acquisition. MARKETING RECOMMENDATIONS: First, DPC will merchandise CJ with other caramel popcorns, which will permit a price increase of $0.29 (19.5%).
Because of customer demand the chain began to open stand alone restaurants in 1986, it now has 938 stand alone restaurants around the country. To be true to their mission “Be America's Best Quick-Service Restaurant” the company has drive through only restaurants for fast service and added convenience to their customer. Chick-Fil-A has also licensed, non-traditional outlets; this program allows licensees to serve delicious Chick-Fil-A food in settings such as college campuses, hospitals, airports, and business and industry locations. One creative approach that the company used was their advertising; this approach set them apart from other restaurants. The use of cows to put their restaurant out on the market was a success.
Originally made in a kitchen in Leroy, New York, Jell-O is now made in plants around the United States. Despite its humble beginnings, Jell-O became a massive success and took roots in American Culture. How has Jell-O changed over the years? For many years food manufacturers had experimented with gelatin, which is made from animal bones, but no one had been able to come up with a gelatin that was appealing. When Wait experimented with the gelatin, he realized that adding food
The Potato Chip Industry as a Monopolistic Competitive Industry Prof. Harvey Criswell ECO 204 October 17, 2011 The Potato Chip Industry as a Monopolistic Competitive Industry The potato chip industry in the Northwest in 2007 was competitively structured and in long-run competitive equilibrium; firms were earning a normal rate of return and were competing in a monopolistically competitive market structure. In 2008, two smart lawyers quietly bought up all the firms and began operations as a monopoly called “Wonks.” To operate efficiently, Wonks hired a management consulting firm, which estimated a different long-run competitive equilibrium. This paper will cover the benefits of this new monopoly, the changes which will occur in price and output of the product in this particular type of market structure; and market structure that will most benefit the Wonks potato chip monopoly. [Economists divide market conditions into four major categories: (1) monopoly, (2) pure competition, (3) monopolistic competition, and (4) oligopoly. In a monopoly, a single company supplies a product or service for which buyers cannot find a close substitute.
After sugar prices fell, he was left with a large inventory of overprices sugar, bankrupting the company in 1923. The assets of the company were then sold to Craven Holding Corporation for just$30,000. Frito-Lay Inc. merged with the company in 1961("PepsiCo", 2012). The company also owns many other brands including Sierra Mist, Slice, Tropicana, Ocean Spray, Mountain Dew, Mug Root Beer, No Fear, Seattle’s Best Coffee, Tazo, SoBe, Aquafina, and has a partnership with Starbucks and Lipton. In 1970 PepsiCo had sales exceeding one billion dollars and passed the two billion mark by 1974.
While PepsiCo have diversified into healthier products and snack food business, Coca Cola have fell in marketing investments (advertising and marketing research) to maintain short term profit. As PepsiCo initiated the acquisition of Tropicana for $3.3Billion in 1998 (New York Times,1998)3, it have set itself up as the largest producer of branded juices for the health conscious in the USA. Subsequent acquisitions of Quaker Oats, Gatorade, Lay’s and Aquafina have also contributed positioned PepsiCo as the world’s 4th largest Food & Beverage (F&B) company with sales of US$22,000Million. The reluctance to diversify was evident when Coca-Cola decided against acquiring South Beach Beverage Company after negotiating for two years while Pepsi made an offer and in weeks acquired the SoBe brand New Age juice company, which gave Pepsi access to a market completely bypassed by soda
In 1940 the first jingle “Nickel Nickel” which referred to the price of the drink was released for advertisement. Coca Cola was invented in 1886 by a pharmacist in Atlanta, Georgia named Dr. John Pemberton. Coca Cola was released to the public for sale in Jacob’s pharmacy on May 8, 1886. The first year of sales weren’t profitable. After spending $70.00 to produce, John Pemberton only sold a total amount of $50.00 worth of the soft drink.
In 1886, Dr John Pemberton took a three-legged brass kettle in his backyard to create the formula for Coca-Cola. Coca-Cola was first said to cure diseases, including headache, impotence and morphine addiction. The world first got the true taste of Coca-Cola in a fountain form at Jacob’s Pharmacy in Atlanta on May 8, 1886. For a simple price of 5 cents per glass and selling an average of nine glasses a day in 1886. A century later, The Coca-Cola Company has produced more than 10 billion gallons of syrup.