Frito Lays Essay

426 Words2 Pages
Frito Lay The issue in this case is that Frito Lay is trying to keep up with the competition. To enhance its sales it decided instead of recreating an old product with a new flavor the staff collaborated and decided to expand to a whole new product line. This was a better choice because instead of placing out an old product that people are aware of, the company made a decision to go out on a limb and try a whole new product. This worked out very beneficial for the company because in today’s time Sunchips are a very popular brand of chip and are looked at as a slightly healthier alternative to regular potato chips. Today, a lot of customers are starting to become more health conscious and now Frito Lays may be lacking in their ‘power sellers’ such as Doritos however they are continuing to enhance Frito Lays sales by buying Sunchips instead. The alternative to the issue would be to create a new flavor to existing products. This could have been done by making Doritos a whole new line instead of creating a different chip with a different title. This would not be as effective because customers already have a sense of what the original product should taste like, and if the new chip wasn’t similar in taste by making it multi-grain the new product flavor would not get the sales it would prefer to see. The case states that they only placed this new product in a small town for a test market. In order to get a more precise reading for the test market the company could have promoted it to a larger scale. Also, promoting it to a larger segment would allow for the product to have a diverse sample size instead of a few customers who could possibly all have the same taste preferences. The case also mentioned about providing the Sunchips in four different bag sizes. This would be convenient for the customer to choose their preferred bag size. It would allow the customer to
Open Document