Growth Strategy Of Frito-Lay

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It is the most appropriate growth strategy to meet Frito-Lay’s objective. Frito-Lay has the financial resources to introduce a new product as an extension to one of their brands. A new product not only has potential to increase sales among existing customers but it can target a new market by adding the extra potential of bringing in new money from an untapped market. Tweens can be their major snack customers because they have an enormous spending power and unique spending habits for the snacks and things like it. Their specific behavior makes them an ideal potential market. So, organization can hit this market for their fast growth by diversifying their products. Sub-division can be created under the cracker jack brand that is specifically…show more content…
Like, the packaging shape & design, the sailor mascot, the flavor, the name and the overall product association can be redesigned in order to appeal the today’s hip tween. Because today’s children are entirely different market so the changes must now be made to achieve and re-establish the Cracker Jack’s appeal. By reviving the brand and adding a fresh and hip extension can prolong its entrance into maturity. Extending this brand by advertising properly can address today’s tweens and can modernize Cracker Jacks and its dated façade. If the extension is done correctly, tremendous success will…show more content…
To make sure resources are focused on re-establishing Cracker Jack prestige to contemporary consumer base. This would enable sales & distribution department of Frito-Lay to use existing infrastructure to distribute Cracker Jack to almost all market segments. Frito-Lay should not purchase manufacturing facility of Cracker Jack brand, rather utilize its own manufacturing facility and extend it to package Cracker Jack brand. This would ensure consistency of machinery, maintain good business relationship with current machine supplier and enable utilization of existing trained workforce. Potential Profitability: Price product to be featured at a retail price just above the standard popcorn snack. Price will reflect additional ingredients, but more accurately will reflect additional social value of product. Wholesale price the line to retailers to allow marginally greater profit vs. competitive products in order to encouraged heightened retailers promotional support and create a presence as the 'cool to eat' snack. A price value which indicates superiority yet is still affordable for these tweens should be
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