While thinking about what to write for my next post, I sat here finishing my last chip of Doritos "Cool Ranch" and thought that it would be great to find out what makes Doritos so succeederful. After further research, I was stunned at what I discovered about this unbelievable brand, therefore why I've definite to share my findings with everyone. Frito-Lay is a noted conglomerate in the snacking industry and the owner of the Doritos brand chips. As one of the largest snack food companies in the United States, part of the company's succeeder is attributed to the firm's effective marketing strategies and tactic. Not only is the company involved in domestic and global marketing but also understands the influence that environmental factors could wear the succeeder of any product or service. Environmental factors such as global economic mutuality, trade practices, demographics, physical infrastructure, ethics, culture, technology, and even political systems influencing international dealings affects the company's marketing strategies.
To illustrate, here are some examples of internal and external environmental factors that could affect the marketing decisions and strategies for organizations:
Internal Environmental Factors
Organizational resources
Existing product line(s)
Management and Support
Capabilities and philosophies
External Environmental Factors
Technological
Political and legal
Economy
Social and cultural
By having a general understanding of environmental factors, we could now examine how it relates to the marketing decisions at Frito-Lay. As a proud member of the PepsiCo family, the company comprehends the grandness of demographics and physical infrastructure and effectively incorporates this into the firm's marketing strategies.
With an ample supply of resources and a good brand on the line, Frito-Lay has to ensure that all employees remain ethical and socially responsible in daily activities. Not only does the firm require annual re-certification on ethics courses for all employees but also the direction team constantly preach ethics and social responsibility. For instance, Frito-Lay has a 'zero landfill' initiative where the company partners with TerraCycle for recycling purposes. Customers are bucked up to collect, and send, used bags of chips to TerraCycle for recycling after consumption. In exchange, they'll receive $0.02 for each bag of chip sent in that'll be given to a school, or non-profit organization, of their choice. This is a very clever marketing scheme on behalf of Frito-Lay because the company lowers the cost of production for products because of recycling, on with serving the environment and society in parallel.
In addition, the firm also offers exceptional training programs for all stakeholders. The company's website aids with ensuring that stakeholders are kept up-to-date on the latest news moving products, technology, quality, ethics, marketing, etc. For instance, clients could visit the company's website to find the latest updates on new Frito-Lay products and provide crucial feedback on those new products through client surveys. This succeederively would enable the company to review the marketing research data obtained and adjust the company's marketing strategies accordingly. These are just some examples showcasing how Frito-Lay continues to understand how internal environmental factors could affect the company's marketing strategies and image. Therefore, the firm continues to demonstrate a strong structure culture acting ethically and socially responsible in an effort to improve on products, services, training, society, and the environment.
Frito-Lay has also leveraged the external environmental factors listed above to provide the firm with a competitive advantage. From a technological standpoint, Frito-Lay has incorporated the latest technologies to aid with online marketing and promotions for products offered. For instance, the company's website is filled with flash media and other marketing tactic that aid in highlight the delectableness of the variety of snacks offered at Frito-Lay. The website allows clients to navigate to any product of choice in an effort to gain more details about that particular product anterior to purchase. Details such as calories, price, and even promotions relating to those goods are listed daily to consumers online. In addition, Frito-Lay also uses technology to strengthen the company's brand. By exploitation inexhaustible energy, such as bio-fuels, star power, recycled heat and steam from plants, the company is estimating that it'll use 45% less energy per chip bag by 2019.
Personally, what I found most fascinating is the company's effective understanding of social, demographics, and cultural environmental factors and exploitation the marketing research data obtained to produce certain products tailored for specific target markets. For example, Frito-Lay conducted marketing research on the external environmental factors listed above and determined that the Japanese people had a distinct taste. To delight this specific target market, Frito-Lay began producing a variety of different flavored Doritos corn chips specifically for Japan. Flavors, such as coconut curry, wasabi mayo, tuna mayo, and even sausage flavored Dorito chips.
To me, this is very smart on behalf of Frito-Lay, especially with global economic mutuality and trade because organizations could reach new target markets in an effort to promote and sell their products to different end-users. As we're aware, international trade creates opportunities for businesses and exposes consumers to products and services that may not be available in their own country. International trade also provides consumers with more options in terms of price and the quality of goods offered because of aggregate producers. With international trade, companies such as Frito-Lay, have a competitive advantage because products or services are offered globally. Therefore, the increase in consumer demand could assist the firm because the cost of production is down as a result of economies of scale.
Although I have consumed Frito-Lay products for decades, I've ne'er done the research to realize the company's uncanny power to analyze internal and external environmental factors and create marketing strategies and products tailored to client needs. Whether satisfying the marketing mix domestically or internationally, Frito-Lay ensures that proper marketing research is conducted that takes into account environmental factors such as culture, ethics, technology, physical infrastructure, demographics, and the legal environment. Doing so would enable the firm to continue abreast products offered because of the marketing research data obtained.
David Ogilvy, an advertising guru, sagely explicit to "ne'er stop testing, and your advertising will ne'er stop up." Frito-Lay continues to test markets in an effort to produce products tailored for specific cultural tastes and preferences. This would enable the firm to satisfy current markets, on with reaching new global markets, therefore the company's astronomical succeeder.
Continue to chip away Frito-Lay - Bravo!
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