SWOT

1
SWOT
By Akiko AraiKenneth BagulaDonavon
BlackJin-young ChoiChiaying LuMaiko Muto
Anh-Thu TruongWan I (Jenny) Wu
2
A Brief History

• In 1914 Grandmas cookies company was founded by
  Foster Wheeler.
• In 1965 Frito Lay became a part of PepsiCo
• In 1980 Grandmas cookies company acquired by
  Frito Lay, Inc.

3
Industry Overview

• PepsiCos overall mission is to increase the
  value of the shareholders investments.
• Pepsis commercial success depends upon offering
  quality and value to consumers.
• Frito Lay division is responsible for more than
  59 of the annual revenue that the company earns.

4
STRENGTHS

• Grandmas has a distinct advantage in management
  capabilities.
• Frito-lay division holds 59 of the snack food
  industrys share in the United States and 53 of
  the worldwide market.
• Snack food industrys annual growth rate of 9
  per year ?plenty of consumers for Grandmas
  cookies to cater to.

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STRENGTHS (cont.)

• Grandmas cookies generates 80 of the sales in
  the sweet good segment of Frito Lay (Over
  45,000,000 in a year).
• The image of Grandma on the cookie packages gives
  the consumer a feeling that the product quality
  can be trusted.
• Grandmas cookies would be one of many products
  marketed jointly by Frito Lay to boost earnings.

6
Weaknesses

• Grandmas cookies brand is not conceded as a
  well-known brands.
• Grandmas gives a very small contribution to
  overall portfolio.
• Overwhelmed by other brands such as Nabisco and
  Keebler.
• There is no marketing campaign to expand this
  product line.
• Limited distribution of Grandmas cookie.
• Discontinued one great flavor of cookie without
  reason.
• DSD (Direct Store Delivery) technique not
  efficient.

7
Opportunities

• The snack food consumer segment has been growing
  steadily at a rate of 2.7 yearly since 1997.
• In 1998, cookies and crackers became the second
  largest segment of the dry grocery category in
  supermarkets.
• In 2001, sweets convenience foods drove most of
  the growth in the snack food industry.
• Frito-Lay has the ability to offer lower prices
  than its competitors.

8
Opportunities (cont.)

• Frito Lay Inc. is the second leading company in
  the cookies and crackers industry.
• Grandmas cookie should expand its product line.
• Snack food and cookies continue to be popular
  with consumers because of
• Small serving size
• Offering healthier alternatives

• Grandmas cookie appeal to all kids, teens, and
  adults.
• Can position Pepsi and Mountain Dew alongside
  Grandmas cookies may increase sales for all
  products of PepsiCo.
• Making products readily available at any
  convenience or grocery stores and vending
  machines will boost sales dramatically.

9
Threats

• Many low-fat or fat free cookies with
  artificial sweeteners contain carcinogens that
  cause cancer.
• Health conscious adults are choosing not to
  purchase sugared snack foods whether it is for
  dieting or health risk factors.
• Many parents are concerned that cookies contain
  too much sugar and are unhealthy for their
  children.  
• Competitors now utilize the emotional appeal.
• Biggest competitor, Mothers cookies is
  dominating shelf space on grocery aisles
• Over 26 different kinds of cookies
• 4 different animal cracker flavors

10
References

• Fitzgerald, Kate. Pepperidge breaks out first
  tour. Advertising Age, 2/18/2002, Vol. 73 Issue
  7, p3, 2p, 1c.
•  
• Howell, D. A booming snack market sweetens sales
  for retailers. DSN retailing Today March 5, 2001.
•  
• Thompson, Stephanie. Kellogg broadens bond with
  Disney. Advertising Age, 2/18/2002, Vol. 73
  Issue 7, p3, 2p, 1c.
•  
• Thompson, Stephanie. Nabisco maps major and
  blitz to back new cookie, cracker line.
  Advertising Age. 12/06/99, Vol. 70 Issue 50, p3,
  2p, 4c.
•  
• Encyclopedia of American Industries, third
  edition, Fagnani, Stephanie Supermarket News July
  2, 2001.
• http//www.fritolay.com
• http//pepsico.com/2001/world-wide.html
• http//rans.hvers.m/ani//ran/er/prfile/9/0,3653,48
  009,00.html
• http//proquest.umi.com/pqdweb?Did000000067429479
  

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Questions

• Thank you very much for your attention
• Have a great day
• ?