Frito-Lays Potato Chips
Frito-Lays is currently facing declining sales from one of their main brand of potato chips, Lay’s potato chips. The main reason for the decline in sales is that customers prefer a healthier lifestyle since their products are considered excess fats. It was also seen that customers are shifting their preferences to other products such as popcorns and pretzels. For the company to improve sales, they need to come with a product that will attract their customers and ensure that they need to live a healthy lifestyle. One of the main ways in achieving this is through customer interaction, to identify their preferences and choice in what they would consider a perfect product.
One of Frito-Lay’s management’s main objectives is developing and marketing a new product that will retain its already-existing clientele and attract new ones. It will entail extensive marketing research and the development of this new product, which will be aimed at ensuring a healthy lifestyle for their customers, which will be done through interactive development and analysis with customers.
Since the management has already produced prototype products that are to be tested with customers through sampling and surveying, there is the need for a marketing strategy development that will ensure the referred products will reach the intended target market. It will utilize the marketing dynamics and demographics such as age or gender, among others. It will also ensure that the value proportion that is intended, sales, market shares, and profit are projected and achieved. It will also ensure that the product’s price, marketing, and distribution are ensured for the long-term profit goal and marketing mix strategy implementation.
Next, doing a business analysis will consider if the product will be attractive business-wise and attract increased sales and profits through projections. It will also consider if the customers’ needs and wants will be met through a historical comparison of their previous products to the new one. Once this is done, then final product development and test marketing will be done, which will lead to the commercialization of the new Frito-Lays product.
Frito-Lay’s management could incorporate various methods to help them understand the consumer attitude and behavior on their newly launched products. One of the main ways is to conduct consumer-focus groups. It entails the provision of consumer insights by customers by utilizing open-ended responses. It allows the management to understand the consumer’s dynamics and the market in which their products are being introduced. Consumer behavior surveys are also another major way the management will ensure that they understand the market dynamics. It could be done through online surveys, where the consumer’s thoughts and feelings will be considered.
The management could also utilize additional data such as consumer dynamics, including age and taste preferences, to understand the overall market wants in their products. It would also utilize the overall sales from the company’s previous quarters and its competitors. It will provide a comprehensive outlook on how various aspects influence consumer behavior, thus making the needed market research and understanding how they can improve the sales of their newly developed product.