frito lay

 Essay about frito place


Lecturer: Gerry Mortimer, Marketing Circumstance

Group users:

Sean O'Connor C08667390

Cian O'Higgins C07696825

Niall Rock C09071644

David Treacy C08487871


We hereby certify that this material, which will we now post for evaluation as a continuous assessment project in the component, ‘Marketing Case, on the course DT341/4, 2012/13 is completely our own work and is actually not submitted entirely, or in part, for assessment for any academics purpose besides in fulfilment for that mentioned above. Name: Signature:

Esten O'Connor_____________________________

David Treacy_____________________________

Niall Rock_____________________________

Cian O'Higgins_____________________________

Richard – Sector Overview (2-4)

Ben – Test Market & Financial records (5-7)

Rory – Alternatives (8& 9)

Adam – Recommendations (9-12)

Market Overview


1983, Total Salty snack food industry estimated to account for revenue of $5 billion. This represents installment payments on your 5 billion pounds offered.

Growing by simply 6% each year in terms of $.

92% of households consume the product.

Within this market there are 3 types of brand organizations, National, Regional and private. Countrywide being the greatest, and made from 5 organizations, and creating 50% in the salty foodstuff sales (tonnage). Frito-Lay declines within this section.

Industry Lifestyle Cycle

We are looking at the Industry lifestyle cycle, to get an idea where the saline snack food industry is in conditions of the growth. We believe that this market is coming into market saturation, as we can see the pounds sold per year has decreased, although the genuine ($) sales is increasing 6% each year showing a few positive progress. This will indicate barriers to entry in this market will increase and already we can see who have the big players are with this industry, and threats of new entrant's reduces. As we are seen as the best choice in this sector it means all of us will have to work to maintain each of our title at the very top, as this is why we are looking at options to meet varying customer needs with the new product. All of us don't believe that this industry lifecycle will abide by the traditional pattern and through the consumption prices of this kind of product all of us predict the maturity stage to continue indefinitely.

The red X symbolizes where we believe the industry is around the life cycle.

Company Guide

Frito-Lay is actually a division of PepsiCo.

PepsiCo. Recorded revenue of more than $7 billion dollars for 1983.

Nationally identified leader in the salty market.

Frito-Lay acquired net revenue in 1983 that surpass $2 billion.

Frito-Lay has captured 46 % of the saline food attitude sold.

Just 32% market share in the poker chips market.

80% of total salty snack tonnage bought from the south-western United States. This kind of tells us that south-western U. S is definitely Frito-Lays key market. 31% in the north-eastern United States.

This leads all of us to believe our market share is usually weak with this market and desires improving.

BCG Matrix

We decided to use the BCG matrix to look at Frito-Lay's product collection in the Potato Chip sector of the Saline Food Sector. The larger green circle represents Frito-Lays already existing products with this sector (Lays & Ruffles). We consider these merchandise as the company's cash deer having little but regular market development yet holding onto a large comparable market share, although the smaller red circle represents the O'Grady's product, through the trial period we now have done we can see some accomplishment in getting market progress but when compared with its shut down rival we can see it doesn't review, hence we certainly have put it as being a Question mark. We now have a few options with this brand if we plan to invest in it based on each of our tests we could turn it into a star item, and if we all decide quality results are bad we can eliminate the product. The two are viable options but it can be our belief that additional testing is needed to make a decision upon what to do with the merchandise. Being very first movers offers us the opportunity to gain business...

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