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Doritos – Little Gold
Student Name
MKT301-1
Professor Wendy Conley
Contents
The Assignment
Introduction
The Company
The Product
SWOT Analysis
Marketing Strategy
Global Events
Current Events
References
Other Materials
The Assignment
1. Identify a product that is purchased by consumers. The product must have yearly sales of at least $20,000,000. The product must be advertised in the mass media.
Then take a look at the manufacturer of the product. Review information on company size, major products, sales, etc. This is the type of information that can be gained from an annual report. In addition, provide as much information as you can on the marketing environment. The elements of the marketing environment are covered in Chapter 3.
Your goal is to become an expert on this product. You need to know what the product is, how is it used, where is it purchased, what are the competitive products. Provide a description in your paper. Provide sufficient detail to ensure that the reader understands the product.
For this product, you must prepare a SWOT analysis. The analysis must compare this product with at least two (2) of its major competitors. Present the analysis as a table.
Discuss each element of the marketing strategy and the marketing mix. Discuss any problems, concerns or strengths.
Discuss any global activity concerning the product or the company.
Also discuss current events. Discuss what the product is doing now.
When writing the paper, write it as if you are the marketing manager presenting the product to the president of the company. The paper is expected to be 7 - 10 pages in length. All sources must be cited. The APA format must be used in preparing this paper. Refer to the syllabus for library help.
Introduction
Doritos chips have been a staple of the American Snack Food environment since their introduction in 1966. Doritos were invented by Arch West, and were America’s first commercial corn tortilla chip when they were introduced by Frito-Lay, Inc. (Smith, 2006, Page xxxix)
Frito-Lay is a wholly owned subsidiary of PepsiCo, Inc, having been acquired in 1965. They manufacture a varied line of snacks. Frito-Lay dominates the corn chip market, with the top sellers being Doritos and Tostidos. Fritos, another popular corn chip, do not even make the top 20 in sales. (Smith, 2006, p 64)
The Company
General information on the company - products, sales, competitors, etc.
Doritos are manufactured in the US by Frito Lay Corporation. Frito-Lay is the largest snack food conglomerate in the world. (Smith, 2006, pg 113)
Frito-Lay is a wholly-owned subsidiary of PepsiCo, Inc. In addition to Frito-Lay, PepsiCo’s is a multi-product and multinational corporation, who snack manufacturing ’s principal businesses include Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. (Annual report)
More info on the company, its history, and mergers.
Micro-environmental Factors
Micro-environmental factors are internal factors directly affect the organization’s strategy. These include:
Customers
Organizations survive on the basis of meeting the needs, wants and providing benefits for their customers. Failure to do so will result in a failed business strategy.
Employees
Employing the correct staff and keeping these staff motivated is an essential part of the strategic planning process of an organization. Training and development plays an essential role particular in service sector marketing in-order to gain a competitive edge. This is clearly apparent in the airline industry.
Suppliers
Increase in raw material prices will have a knock on affect on the marketing mix strategy of an organization. Prices may be forced up as a result. Closer supplier relationships is one way of ensuring competitive and quality products for an organization.
Shareholders
As organizations require greater inward investment for growth they face increasing pressure to move from private ownership to public. However this movement unleashes the forces of shareholder pressure on the strategy of organizations. Satisfying shareholder needs may result in a change in tactics employed by an organization. Many internet companies who share prices rocketed in 1999 and early 2000 have seen the share price tumble as they face pressures from shareholders to turn in a profit. In a market which has very quickly become overcrowded many have failed.
Media
Positive or adverse media attention on an organizations product or service can in some cases make or break an organization.. Consumer programs with a wider and more direct audience can also have a very powerful and positive impact, forcing organizations to change their tactics.
Competitors
The name of the game in marketing is differentiation. What benefit can the organization offer which is better then their competitors? Can they sustain this differentiation over a period of time from their competitors? Competitor analysis and monitoring is crucial if an organization is to maintain its position within the market.
From LearnMarketing.net:
Micro Environmental Factor/Stakeholder Analysis
From LearnMarketing.net:
Macro-environmental Factors
The Product
In this section, you must provide a detailed analysis of the product. You must help the reader to know the product as well as you know the product. Remember, you are the product expert. Good sources of information include the product / manufacturer website, industry publications and your local retailer. If appropriate, provide pictures.
The name “Dorito” is Spanish in origin, and means “little bits of gold”. That description isn’t just visual – with sales of over $1.2 billion dollars, the Doritos line has been a hugly successful brand. (REFERENCE, and CONFIRM the sales#) It is also possible that the name “Dorito” was selected because it rhymes with another popular Frito-Lay snack – Cheetos. Doritos are triangular shaped corn chips, usually with a flavored coating that just seems slightly addictive. From personal experience, its hard to eat just a few –usually, once a bag is opened, it has a short lifespan. They come in a variety of flavors; in the US these include Cool Ranch, Nacho Cheese, and several combo flavors (get the combos!) In England, different flavors are produced by the xxx company (reference). In Mexico and Latin America, These are the flavors (REFERENCE). The brand was first released in 1966, the same year as the original Star Trek television series. This venerable brand has been updated to reflect changing consumer tastes and demand, with the chip itself being reformulated ot be slightly larger and thinner; and the corners reshaped to reduce chip breakage while still in the bag. The first corn chip to be released and marketed nationally, Doritos quickly became the most popular selling corn chip Hugely successful in the US, the product is also sold worldwide and is available
SWOT Analysis
Write an introduction to the SWOT analysis. The introduction will provide an overall summary. A SWOT analysis is a discussion of the strengths, weaknesses, opportunities and threats of competitive products. In marketing, we will perform a SWOT analysis as an aid to strategic planning. Generally, the analysis is presented as a table. We will discuss the SWOT analysis in more detail during the week #3 chat session. If you cannot attend the session, you must download the transcripts from the session.
Doritos / COMPETITOR 1 / COMPETITOR 2StrengthsDoritos are widely accepted, and widely available. A strong, well known product.
Weaknesses Product has been ‘out’ for a long time. The market currently being targeted the hardest includes consumers that are half the age of the brand.
Often considered a snack food, not a healthy food.
Opportunities Expanding global consumer markets. Well liked, popular flavors.
Threats May not be perceived as too healthy.
Doritos / COMPETITOR 1 / COMPETITOR 2
Strengths
Weaknesses
Opportunities
Threats
Doritos / COMPETITOR 1 / COMPETITOR 2
Strengths
Weaknesses
Opportunities
Threats
Marketing Strategy
Discuss each of the six (6) elements of the marketing strategy. You must identify each element and discuss its strengths and/ or weaknesses. For example, the product is a gizmo. It is made of bricks and mortar. This is a unique product because it is the first one of its kind in the market. In addition, its unique size makes it easy to use by the consumer. Again, this must be done for each of the six (6) elements of the marketing strategy
I am not sure of the 6 elements of marketing strategy as defined in your class, but the ones I understand are:
- Product - What should or shouldn't you offer? What is your real product?
- People - Who uses your product? What do they care about?
- Price - Can people afford your product or service? How do they value it?
- Place - How do people get to your product? Where is it distributed? How is it delivered?
- Production - Can you do what you promise? Can you meet demand? Is your production flexible enough to meet changing needs?
- Promotion - How do you let people know what you have? How well does your promotion work?
IF the ones that you use in class are different, then you’ll need to go over this section and include some thoughts/comments (and maybe remove the irrelevant parts here.)
The product is a snack food – for quick, easy consumption either as between meal snack or as finger foods. The product has undergone several reformulations, including its size and shape, its flavor coatings, its packaging, and the removal of all trans-fats from its manufacturing. The materials are fairly inexpensive and easy to acquire – basically ground corn, the flavorings, and the oil that the fried version uses.
The target markets are diverse – basically any group that eats snack foods. Doritos are not targeted at any particular ethnic or socioeconomic group, although the most recent marketing campaigns have made it a point to target the current generation between the ages of 15 – 30.
Pricing is reasonable – and varies considerably based on packaging. Small 1 ounce vending sizes (and lunch sizes) cost less than a dollar. Large “family” packages of 17 ounces (1 pound, 1 ounce) might carry a suggested retail price of $4.99. This provides a number of different price points to consumers. Doritos tend to be slightly more expensive than store brands, but they do carry a premium based on their market position and acceptance.
Doritos are available in many different store types – from gas station and convenience stores, to supermarkets, to big box stores such as Wal-Mart and Target, to Consumer Warehouses such as Sam’s Club. They are also in most markets (cities and towns) in the US. A consumer can go into almost any store that sells food and snack items, and find at least one flavor of Doritos on the shelves. (When you think of how many stores, mini-markets, big boxes, gas stations, and other outlets, the sheer volume of chips that represents is almost staggering.) The product stores well, and does not require refrigeration. Doritos are also distributed as vending packages. A vending machine was featured in the last Superbowl ad, in which one character used his “crystal ball snow globe” to fulfill the prediction of free Doritos for everyone by throwing the snow globe at the flass front of the vending machine.
Production of the chips is fairly straightforward, compared to far more complicated and processed food products. Processing consists mostly of blending ground corn meal, seasonings (salt, flavorings) and water to allow processing. The mix is then formed, and then either baked or fried. For flavored varieties a flavor coating is applied. Production seems to be able to keep up with the demand, as witnessed by the easy availability of the product in stores and vending machines across the country.
Promotion of Doritos is key to keeping the product in the forefront of consumer’s minds when they are making purchasing decisions. This is accomplished via several methods. On store shelves – particularly convenience stores – the product has bright, attractive display shelvingto catch the consumer eye and try to capitalize on the impulse buy.
But marketing and promotion for Doritos doesn’t stop at the store level. Over the last several years, the Doritos brand has carefully focused on creating ads that target the young adult market…….MORE!!
made of ground corn that is either baked or fried.
Global Events
Discuss what this product or company is doing throughout the world.
Not only Global – but extra-terrestrial (An ad beamed into outer space towards a solar system near Alpha Centuri.)
Different Flavors
Various contests
Current Events
Discuss what is going on now with this product or with the company. This is the type of information that can be found in press releases or industry journals.
Current events: Just released the Super Bowl ads.
In Canada, offering a contest to see “who names the next flavor”. Introduced during the Super Bowl (this year, whatever the XXXX’s are) as aired on Canadian TV.
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References
All references must use the APA format. You must do some research for this paper. I do not want to see that you have only referenced a few websites. Refer to websites, books, industry journals, professional magazines, newspapers. Use varied sources. A minimum of five (5) references must be used.
McKay, B. (2008, February 1). Super Bowl Is Crunch Time For Doritos' Risky Youth Strategy. The Wall Street Journal. p. B1
Retrieved from
Smith, A. F. (2006). Encyclopedia of junk food and fast food. Westport, Conn: Greenwood Press.
2007. Episodes. Star Trek – The Original Series. Retrieved from
Other Materials
I don’t particularly know where these might go in this report… although they have some rather interesting / funny background for you in your journey to learn more about the product. These are not included in the References list above. (Yet).
Japanese product labels (A bit, uhm, different):
Nut-crushing packaging:
Mexican package image: