Consumer Behaviour Case Study

Frito-Lays: Healthy Food Initiatives

OR

Abstract:
Frito-Lay, one of the world’s leading manufacturers and marketers of snack food products, is an operating division of PepsiCo and provides varieties of snacks options. In 2005, Frito sold nine of the top-ten snack chip brands in the US supermarkets.

With the strong backing by its parent company, the company enjoys a strategic advantage over its competitors, including financial support, superior brand identity and product recognition. People have become more concerned about obesity and health. Keeping in mind, consumer preferences and changing trends, in 2002, the company has ventured into the health food segment. Its initial efforts have not yielded significant results. In early 2006, the company has initiated a makeover of the majority of its products and has also included healthier offerings in its product portfolio to reinforce its image as a health food company.

Pedagogical Objectives:

• Growth of Potato chip industry
• Change in consumers taste and preference / Growing health concern among consumers
• Frito Lay’s product revamping strategy.

Keywords :  Food & Beverage company, Obesity, Health consciousness, chips market, Marketing Strategies Case Study, Health care market, Nutrition Division, Direct store delivery system, Trans fat, Low carb diet

Contents:

• Frito's Business Model
• Background Note
• Food Industry
• Frito's Health Initiatives
• New Initiatives
• Looking Ahead