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Advantages And Disadvantages And Presentation Of Sun Chips

Decent Essays

The presentation of Sun Chips was an immediate aftereffect of Frito-Lay venturing for a more beneficial alternative for customers looking for more advantageous and "better-for-you" choices with regards to regular snacks. This chip was extraordinarily intended to give a more beneficial option as opposed to the traditional to corn and potato chips and offer an entire grain/wheat alternative. As Sun Chips were meant to be a healthier alternative, it was advertised as such:

• For people who care about what they eat,
• Natural flavors and natural great tasting grains,
• They make you smarter,
• A combination of great taste, great crunch, and natural goodness, and
• The Sun Chips name portrayed a positive consumer image and suggested that the product …show more content…

During the test market, this number was 2.9 (meaning that repeat purchasers of the product purchased the product an average of 2.9 times over the course of the test market). Contrasted with 1.9 for Frito-Lays O'Grady's image, these numbers looked genuinely encouraging for sustainability.

3. Timing – The advantages and disadvantages to either presenting a new product too soon or past the point of no return On the off chance that a company presents another item too soon, it might not have enough data to precisely gauge the numbers related with presenting that new item (cannibalism, sustainability, sales, brand awareness, etc.). On the other hand however, if a company do not introduces its product fast enough, it might lose its competitive advantage for that market. Generally, the first to penetrate a market with a new idea becomes the leader of that market/product. If the company waits too long to put out the new product on the market, its risks a competitor being the first to introduce a similar item and becoming the …show more content…

RECCOMENDATION & CONCLUSION

The snack chip category is highly competitive and the new-product failure rate is high. Very few new products can generate more than $25 million in first-year sales. This leads to companies utilizing competitive pricing to differentiate. However, too much price competition can cause a decrease in profits. Therefore, it is very important to use other tools in order to stimulate sales for the product. One of the is brand awareness that helps in segmenting the position of the industry in this highly competitive market.

Frito Lay's Sun Chips turned out to be a decent other option to its customary snacks. Through looking at the historical data of the company’s performance and the Sun Chip’s performance it can be concluded that Frito Lay should diversify this line of healthier products as it does for its normal products, through constantly meeting the changing customer demands and hence develop the Sun Chips chain into a total factor health option.

Thus, Frito Lays faces a delicate yet smooth opportunity to work towards improving its brand image by proper marketing of a new line of healthier products to meet the growing customer

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