Case Analysis of Frito Lay

Case Analysis of Frito-Lay

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Case Analysis of Frito-Lay

Case Recap

Frito-Lay is a well known manufacturer of snack chips throughout the world. It is the leading selling brand of chips in United States. Their major brand includes Doritos, Raffles, Tostitos, Cheetos, Sun chips and Funyuns. Lynne Peissig being the vice president and general manager of the New Venture Division Frito Lay is responsible to outline a plan and find the factors by which Frito-Lay can take over the brand named Cracker Jack. She has to provide a formal presentation to the executives of Pepsi Co by combining the findings provided by business team and estimating the “fair market value” of Cracker Jack brand (Kerin & Peterson, 2010).

Problem Identification

The major problem that is arising at the current scenario is to evaluate a “fair market value” that would help the executives of Pepsi Co. in deciding the acquisition price to propose the bid on the Cracker Jack brand. In order to resolve this problem Lynne Peissig has been asked to identify the marketing issues and provide recommendations which would help to pursue the business opportunity of new ventures by the acquisition of Cracker Jack.

SWOT Analysis

Strengths

Cracker Jack is one of the most well known consumer food brand of original caramel popcorn in United States and is enjoying 95 percent of awareness among the consumers between the ages of 15-60. This is one of the most important strength as Frito lay wouldn’t have to spend money in introducing the brand. Cracker Jack is has an exclusive product line and has built a good position in the market by its highly appreciating advertisements and positioning statements.

Weaknesses

Cracker Jack has premium pricing strategy as compared to its competitors. But this is becoming a weakness for the company as its profit margins are reducing because its competitor “Crunch ‘n’ Munch” has downsized its packaging.

Opportunities...