Frito-Lay uses a variety of marketing techniques to achieve its business goals.
The Frito-Lay company is a $13 billion subsidiary of PepsiCo that employs 48,000 people. This brand, filled with well-recognized products including Cheetos, Doritos, Rold Gold Pretzels and Sun Chips, is found on the store shelves of most major chains and convenience stores. The 75-year-old business owes much of its success to the achievements of its marketing division.
Consumer Targeting
A prime of Frito-Lay is attracting consumers through extensive targeting. The company gains this recognition through advertising its snack foods to parents with kids, offering products in vending machines and using brand mascots such as Chester Cheeto to appeal to its youthful demographic. Charles Larson, author of the book, "Persuasion: Reception and Responsibility," states Frito-Lay taps into the child and teen market by allocating 9 percent of its advertising resources on website advertisements. The company also engages in partnerships with other businesses known to attract kids and teens.
Product Adaptation
Companies must be willing to alter their products to suit the changing tastes of their consumers. Frito-Lay introduced its "Baked" line of potato chips to accommodate consumers desiring healthier snack options. The focus on the environment in the late 2000s compelled the company to introduce the biodegradable snack bag for its line of Sun Chips. Elizabeth Royte cites another instance in her book, "Garbage Land: Secrets of the Trash Trail," how Frito-Lay was one of several companies to offer an organic line of products in hopes of tapping into the $226 billion spent by consumers in 2000 on eco-conscious products.
Market Penetration
Another marketing goal is gaining market share from different ethnic groups or by going overseas. The company meets this goal by introducing products with flavors and a packaging design that appeals to a specific region. Ken Black, in "Business Statistics," says Frito-Lay offered the Hispanic community chile and tomato chips, fried corn strips and lime-seasoned chips. The company also included a smiley-face on the packaging to remind these consumers of a Mexican sister brand that used a similar image. Frito Lay engages in similar marketing efforts with the Chinese and Indian markets.
Overcoming Obstacles
Frito-Lay uses marketing efforts to overcome stigmas related to its products. The health movement and the Atkins diet posed significant threats to a company that purveys high-carb, high-calorie snack foods. In some cases, Frito-Lay piggybacks on health trends such as locally grown food by offering chips from potatoes grown in the U.S. The uses advertising techniques to make women feel less guilty about their eating habits by touting healthier ingredients.
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