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Post 8: Frito-Lay – Brand Details

Frito-Lays haw been pretty effective and successful in establishing all the key items of establishing the brand of its’ products such as brand names, logos and symbols, URLs, characters and slogans.

Brand Names: The Frito-Lays has successful brand names like Fritos, Lays and Cheetos to name a few.

Logos and Symbols: The company has successful logos for the company as well as for some good brands as listed in their websites such as:

                         Blog 8_Picture 1: Showing Frito Lay logo with slogan ‘Good fun!’.

 Blog 8_Picture 2: Showing ‘Lay’s logo.

   Blog 8_Picture 3: Showing ‘Fritos’ logo

   Blog 8_Picutre 4: Showing ‘Cheetos’ logo and character and picture of Chita’s.

URLs:  The company also has successful URLs for consumers to get to their website as desired:

https://www.fritolay.com/

Characters: The following two pictures show that Frito-Lay uses the characters with different brand of Cheetos it offers to satisfy its target customers/markets:

    Blog 8_Picture 5: Showing Cheeta’s different character and picture compared to its’ pictures in other brand of Cheetos flavors.

Slogan:  As it shows ‘Good fun!’ slogan with Frito-Lay logo in picture 8_1.

Frito-Lay is very successful in establishing itself and its various product lines as ‘brands’.  And most of its brands are snack related, so it fits well with its product mix.  Some of the famous brands in its product mix are Cheetos, Fritos, Lays, Doritos and Tostitos to name a few.

The company has several product lines that has brand name recognitions, e.g., Fritos, Doritos, Lays, Salsa, Dip mix etc.

From their website we can get a better understanding of its Doritos product line with the following flavors:

1.��      Cool Ranch

2.       Dinamita Chili Limon

3.       Dinamita Fiery Habanero

4.       Flamas

5.       Jacked Ranch Dipped Hot Wings

6.       Mix Cheese Explosion

7.       Mix Taco Explosion

8.       Nacho Cheese

9.       Salsa Verde

10.   Spicy Nacho

11.   Spicy Sweet Chili

12.   Taco

13.   Tapatio

14.   Toasted Corn

  References:

Frito-Lays (2017) website, and extracted from:

https://www.fritolay.com/snacks/product-page/lays

Frito-Lay (2017) website and extracted from:

https://www.fritolay.com/snacks/product-page/doritos

 Post 9: Frito-Lay – Service

Frito-Lay is mostly a manufacturing company, but it provides excellent services to other businesses and individuals through massive distribution centers it has by distributing its products to its customers.  In most of the cases it would be big grocery stores and other related businesses.  

According to Frito-Lay website it has about 15000 delivery routes, and it is pushing toward electric vehicles to reduce pollution.

Frito-Lay is also focusing on its target customers by offering various custom Micro-marketing offerings such as ‘Snack Perks’, in which fans can go on their site and sign up for different offerings and goodies as it is mentioned in their website.

References:

Frito-Lay (2017) website, extracted from ‘Frito-Lay Has One Million Reasons to Celebrate’:

https://www.fritolay.com/search-results?indexCatalogue=main-search&searchQuery=delivery+routes&wordsMode=0

Frito-Lay (2017) website, extracted from ‘The Inside Scoop on The Snacks You Love!’:

https://www.fritolay.com/snacks/full-list-of-brands

 Post 10: Frito-Lay – Trends/Pricing

Even though Frito-Lay is a very famous brand and people like to have those for special occasions, but it seems like it may be out of reach for people with limited income or who are on ‘budget’.  People on budget have more choices to buy ‘store brand’ items in substantially lower prices.

For example, Ralph’s website shows the price of ‘Kroger Potato Chips’ for $2.00 (11.5 oz. bag) and ‘Lays Potato Chips’ for $3.49 and on sale of $2.79 (10 oz. bag).  This is a huge difference in prices and probably customers on budget will be more interested to buy Kroger’s Classic Potato Chips instead.  When the economic condition is not that great and unemployment rate is high the brand names may not do that well in the market.

For tough economic condition and when there are several other less famous brands including store brands we may see Frito-Lay to offer more sales to keep staying competitive in the market.

Frito-Lays items are well priced.  I believe they practice Everyday Low Pricing (EDLP) technique as most of the products come with preprinted price tag on the products.  For big grocery stores sales prices go on where as small grocers or convenience stores the preprinted prices give the retailers substantial profit as the products most of the time sell by itself.  It doesn’t look like Frito-Lay practices other pricings like market penetration or price skimming techniques even though some retailers may choose to use Frito-Lay product to be their Loss Leaders for promotional purposes.

 References:

Ralph’s website (2017), and extracted from:

https://www.ralphs.com/p/kroger-classic-potato-chips/0001111083679

Ralph’s website (2017), and extracted from:

https://www.ralphs.com/p/lay-s-family-size-classic-potato-chips/0002840064549

 Post 11: Frito-Lay – Place (Distribution)

Frito-Lay is proud to announce on their website that they have 30 US manufacturing facilities and over 15,000 delivery routes.  With that many manufacturing facilities and distribution routes the company is using all various warehouses, distribution and fulfillment centers to make sure its customers’ demands are met properly.

The company is mostly using intensive distribution strategy, so it can deliver its products to its customers ASAP via as many outlets as possible - people need snacks on the run and for so many occasions.

This is another reason why Frito-Lay wouldn’t try to distribute its products via exclusive distribution system as it will not work for the company’s marketing strategies.

Frito-Lay uses all kind of distribution media to sell it products such as supermarkets (e.g., Ralphs, Stater Brothers), supercenters (e.g., Wal-Mart, Target), convenience stores (e.g., 7-11, Circle K) and warehouse clubs (Sam’s club, Costco).

Some of the company’s products are available even in extreme-value retailers such as Dollar General and Family Dollar Stores showing that company sells all its products even some close-out items.

Frito-Lay probably doesn’t own any online selling site, but its website gives references how its target customers can buy its products online from different companies like Kroger, Amazon, Albertsons, Boxed, Fresh Direct and Harris Teeter to name a few.

By using different marketing strategies Frito-Lay probably has achieved a brand name recognition at which level it can distribute all its products (almost like mass merchandising) to all the outlets but probably the limitations will depend on how the retailers or the wholesalers want to keep the items in their inventories.

References:

Frito-Lay (2017) website, and extracted from:

https://www.fritolay.com/

Frito-Lays (2017) website, and extracted from:

https://www.fritolay.com/snacks/buy-online.htm

 Post 12: Frito-Lay – Promotions

By keeping advertising objectives in mind and knowing the focus of advertisements Frito Lay has a strong presence in the social media as it shows in their website and as it conveys the messages via different advertisements to capture its target audience or customers.  The company is currently available via Facebook, Twitter, Instagram and in Pinterest.  On their website anyone can click on any one of these social media sites and get more involved with Frito Lay’s brands or anything else they may want to do.  This way Frito Lay is also going closer to their target customers who like their brands.  Here is a link that shows the presence of Frito-Lay at Facebook site:

https://www.facebook.com/FritoLay

Frito Lay’s parent company PepsiCo spends a lot of money to globalize Frito Lays products via companies like Omnicom.  A recent article on Adage, titled ‘TRYING FOR MORE GLOBAL APPROACH, FRITO-LAY SHIFTS AGENCIES ON THREE BRANDS’ shows how PepsiCo is moving within Omnicom to agencies like TBWA and Energy BDO.

The company has been successful in running different ads for its brand awareness program – as it shows in recent ad in You Tube for Doritos:

https://www.youtube.com/watch?v=ZNK1_Yop6oo

Frito-Lay’s sales promotions are available in a lot of TV commercials and these ads are kind humorous as those are targeted for customers who like to have fun and enjoys snacks. So, we can easily say that the company has been successful and effective in running these ads.

The company doesn’t do much of personal selling of its products, but it can be easily done by vendors or individuals if anyone is interested in doing so.

References:

Frito Lay website (2017) and extracted from:

https://www.facebook.com/FritoLay

AdAge website, and the article by Maureen Morrison on August 01, 2011 and extracted from:

http://adage.com/article/agency-news/frito-lay-shifts-ad-agencies-lay-s-sunchips-stacy-s/229035/

Doritos Advertisements from You Tube, and extracted from:

https://www.youtube.com/watch?v=ZNK1_Yop6oo

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Post 3:  Frito-Lay – Marketing Strategies

Frito-Lay has been successful in developing its product lines over the years.  So, the key differentiator of its various product lines will have to be its distribution depending on the demographic locations. The company website proudly says that as it has:

‘55,000 associates, 11,00 different products, 30 US manufacturing facilities and over 15,000 different distribution routes’.  

With these many advantages, the company has been able to establish a targeting strategy to market its products via mass marketing even though the company may have differentiated in different markets.  With different products and taste the company has established itself in a situation when customers ask and look for its products.  As a result, the company may not have to do much selling! This tells us that the company is performing concentrated, micro and mass marketing all together.

To me the sustainable competitive advantage of Frito-Lay has been its taste of snacks. For some reason, the taste of most of its snack is outstanding not to mention the freshness of each product. Also, with the attractive and air-tight packaging and competitive pricing the customers are bound to get these items.  Sometimes it feels like a store is not complete unless it has Frio-Lay products!

By providing ecologically suitable and keeping health issues as high priorities Frito-Lay has been producing product lines with different flavors.  This way it is also maintaining a sustainable competitive advantage over other companies. The company has product lines which are even Lightly Salted (e.g., Lays Lightly Salted potato chips) targeting consumers with certain life-styles.

References:

From the website of Frito-Lay (2017), extracted from ‘Get to Know Frito-Lay’

http://www.fritolay.com/

 Post 4: Frito Lay – SWOT analysis of the brand

Frito-Lay is a successful company in the food and snack industries.  Even with different marketing strategies in place company is recently focusing on individual customers via their website (inviting them to join ‘Frito-Lays Snack Perks’).  

The company website is currently running different promotions showing that the company is focusing on its strengths on the success of its different brands.  Some of these promotions are: ‘Lay’s Do Us A Flavor’, ‘Stacy’s Rise’, ‘Doritos Mix Call the Play’ and ‘Tostitos Lucky’.

The company may face some challenges with its sales as more store brand and other less known brands are trying to take the sales away from them which is shown by the article published in Statistica website.

 Internal:

Strengths:

·         Huge brand name success

·         Highly popular snack items

·         Different products in food and snacks

  External:

Weaknesses:

·         Focused only in food related snacks

·         High risk factors if contamination or something else happens to its product lines

·         High salt content in most of the product lines but doesn’t not give enough warnings

Internal:

Opportunities:

·         Items can be exported to Europe and other developed countries

·         A lot of room to develop organic items and other healthy snacks

·         A licensing opportunity to other countries including developing and third world countries.

External:

Threats:

·         Some competitors including store brand with less price can have negative influence on sales

·         Health conscious customers can stay away from products if company fails to address the issues

·         Less expensive imports can also be a problem to compete in the market

Based on the SWOT analysis my recommendations to Frito-Lay management would be as follows:

·         Focus on research to develop tasty snacks with less calories and salt content

·         Try to enter European, African and Asian markets with high population countries like India and China

·         How about developing snacks which are certified to be Organic?

·         Strong Quality control is needed to make sure no one is tampering with any ingredients and finished products as it can have a huge negative effect on sales – currently the company is focused on food related items and snacks only

References:

Frito-Lay (2017) website, extracted from

http://www.fritolay.com/snacks/promotions.htm

Statistica, ‘Sales of the leading potato chips brands of the United States in 2017 (in millions of dollars) in and retrieved from:

https://www.statista.com/statistics/188222/top-potato-chip-brands-in-the-united-states/

  Post 5: Frito-Lay – Target Market

Target markets for Frito-Lay has been different demographic people including teen agers, young adults who love to watch sports and thus buy It products on regular basis.

Frito-Lay is a major snack manufacturing company which has been using proper segmentation techniques to target the consumers who would love their products.  So, it focuses on the consumers who like to eat snacks – here are some of the groups of consumers who like to buy its products:

1.       Teen Agers:  This group of consumers are always looking for some snacks that will be tasty, and Frito-Lay is offering ‘Cheetos’ brand snack with different flavors.

2.       People with ‘self-value’:  These consumers have self-value about themselves, e.g., they can be health conscientious in both younger and older generations.  The company is targeting them by offering ‘reduced salt’ chips like Lays potato chips – ‘lightly salted’.

3.       People with ‘life styles’:  For example sports lover and Frito-Lay is targeting them with different Frito and Doritos family packs with the options of dips and salsa product lines.

4.       People at around mid-age or mid-income:  These people can be working class or students who needs to have chips that will complement their lunches, and the company is offering different snack or individual packs of their Doritos or Fritos chips.

5.       People at older age (50 and higher) as well as female:  These people may have different tastes for snacks and other events.  Frito-Lay has different flavors of Fritos and Doritos to target these groups. Some women like potato chips with onion dip mix, and it is considered one of company’s popular items.

Frito-Lay has ‘MUNCHIES Sandwich Crackers Peanut Butter – 8 Packs available for people who are on the go as it shows on their website:   

                               Picture 1 Post 5: Munchies Sandwich Crackers Peanut Butter – 8 Packs from Frito-Lays website.

Frito-Lay is also active in marketing by targeting its products for the party-goers and sports fans as it shows in the following article available in through their website:

Philadelphia Eagles Head Coach Chip Kelly and NFL Great LaDainian Tomlinson Set to Join Tostitos Party Blvd. – The Ultimate Party Destination of Super Bowl XLIX

References:

From Frito-Lay website (2017) on snacks to go and extracted from:

http://www.fritolay.com/snacks/product-page/fritolay2go

From Frito-Lay website (2017) and extracted from:

http://www.fritolay.com/search-results?indexCatalogue=main-search&searchQuery=What+is+for+party+goers&wordsMode=0

Post 6: Frito-Lay – Competition

According to article ‘Frito Lay dominates potato chip category, but rivals growing fast’ published in Food Online the major competitors for Frito-Lays are as follows:

Private brands (normally sold under store’s brand names e.g. Kroger, Vons’, Wise Food Potato Chips, UTZ Potato Chips Co., Inc. and Herrs Potato Chips to name a few.

With strong financial support from parent company PepsiCo, Inc. Frito-Lay has been on top of its competition by keeping cost down to offer acceptable pricings to its target customers.  This has been possible by staying focused with its company objectives in place.

The price and brand name recognition have been also the key factors for success for Frito-Lay as it shows in the recent article published on Food Online:

‘As per ‘Sales of the leading potato chip brands of the United States in 2017 (in million U.S. dollars)’ the article published in ‘Statistica’ - Frito-Lay is leading the current potato chips market and its current market share is about 29.6 percent of the US chips market as per the article’.

Overall it shows that Frito-Lay has been effective with its channel members.

 References:

Taken from Food Online, Food processing and Packaging and retrieved from:

https://www.foodonline.com/doc/frito-lay-dominates-potato-chip-category-but-0003

Taken from Statistica, and retrieved from:

https://www.statista.com/statistics/188222/top-potato-chip-brands-in-the-united-states/

Post 7: Frito Lay – Packaging

Frito-Lay has also been great in coming up with excellent primary and secondary packaging as shown in the following pictures:

Picture 1 of Post 7:  Different brands of Frito-Lays chips for display from web search showing primary packaging of Frito-Lays products.

Picture 2 of Post 7: Frito-Lays ‘Fritos Chili Cheese’ Flavored Corn Chips from web search.

Picture 1 and 2 of post 7 shows primary packaging of Frito’s Chili Cheese corn flavor chips which have been very successful brand for the company.

Picture 3 of Post 7:  Secondary Packaging of Frito-Lays 50 Pack of 1 Oz bags from web search.

Most of Frito-Lays products have attractive, air-tight packaging which helps to keep the products fresh and crispy.  Eye-catching packaging with proper labeling is also good for sales.

By making the packages air tight and eye-catching Frito-Lay is also providing the sustainable packaging to the customers it serves or targets.  

Most of the packages have been done pretty good and I think company has a team of professionals to make these packages as well as keeping up with any update they need to do on these products.  It’s logo available in all products, and slogan (God Fun!) are also available in some of its product lines depending on the target customers.

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Post 1: Frito Lay – as a company

I like Frito-Lay brand as it seems like most of their items are well-designed and well-planned.  Some of their snacks and chips are considered best in the market – not to mention I am a regular buyer of some of the snacks on weekly basis! The company must have a successful marketing and marketing plan in place to be this successful, and have their products so available everywhere!

The company seems to be effective in delivering its products to consumers by keeping the items to all the places using effective pricings, and offering various promotions that we see occasionally when we go to our favorite grocery or local convenience stores.  

Blog name: Frito Lay – From Marketing Aspects

Web address: https://fritolaylover01.tumblr.com/

  Post 2: Frito Lay – as a brand

According to Frito Lays website ‘Frito Lay’ was formed in 1961 by combining two small companies Frito corn company and Lays company.  After a successful marketing strategy, later in 1965 it was merged with Pepsi-Cola to form PepsiCo.   PepsiCo, Inc. is a publicly traded company with sustainable competitive advantages.  Frito Lay is mostly a snack manufacturing company – so snacks and food related items are its products.

As per Frito Lay’s website the sales of the company passed $1 billion in 2009.   By maintaining customer excellence, operation excellence and product excellence, as per Yahoo finance, the PepsiCo’s sales for year ending 2016 was $627,999,000 (x1000), which means it’s total sales was about $628 billion!

The corporate head quarter of Frito Lay is in Plano, TX.

The company is proud to announce that it has about 55,000 employees, over 11,00 different products, more than 30 US manufacturing locations and about 1500 routes of delivering Frito Lay products.

To give an idea of the company’s mission statement, Frito Lay website highlights the following statement:

“Performing with Purpose represents our fundamental belief that in the 21st century a good company must also be good citizen”

- Indrea K. Nooyi, Chairman and CEO

Frito Lay’s website on Environment explains the significance of this comment from its CEO as it follows:

“We are constantly exploring new ways to achieve positive water impact, significantly lower carbon emissions across our entire value chain, promote sustainable sourcing practices and further reduce waste.”

  References:

Frito Lay (2017), ‘Get to Know Frito Lay’ retrieved from

http://www.fritolay.com/

Yahoo Finance (2017) Summary of PepsiCo, Inc. (PEP), Retrieved from

https://finance.yahoo.com/quote/PEP/financials?p=PEP

Frito Lay (2017), ‘making a positive impact’ retrieved from

http://www.fritolay.com/making-a-positive-impact/environment