Frito-Lay Company - Cracker Jack

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Recommendation-The 4 Ps

Considering several options, the third option would be the best one for Frito Lay which acquires brand or entire business, especially when Borden intends to divest its high brand awareness Cracker Jack. Frito Lay should combine sales and distribution of Cracker Jack and Frito Lay products and place Cracker Jack product on Salty Snack Aisle. Doing this would tell customers that Cracker Jack is now part of Frito Lay’s brand which makes easily accessible to consumers and progressive. In first year Frito Lay should primarily focus on establishing the Cracker Jack base business given a new sales and distribution infrastructure. It also needs to make a marketing and promotion plan for 8 ounce in box product so consumers can feel the product is reasonable price with good tasting. This strategy indicates that Cracker Jack is not only cool to eat and quality snack, but it still stays affordable. Consumer advertisement needs to be done aggressively so make the consumers know about the product and remember to purchase it. Cracker Jack has been out of the market for a long time, so the promotion must be performed in order to capture customer’s attention. Aggressive marketing campaigns will help to reconnect with lost customers. The advertising will be on television such as sport events and social media. Frito Lay projects to spend about $22 million in advertising and promotion for 8 oz. bag in box and expect the return of $83.4 million in sales. It also projects to spend about $15 million in advertising and promotion for 7 –oz. flex bag which is expected the return of $77.1 million in sales. Using these marketing strategies consumers will recognize Cracker Jack brand and when they go to purchase it they would be able to find 8-oz and 7-oz Cracker Jack bags available in the same location along with Frito Lay brands. As the consumers are becoming more health conscious, the promotion message will emphasize on low caloric content of snacks compare to other items.

Cracker Jack product will be continued to be distribute at supermarket, whole sale stores, movie theaters and vending machines.

Reference

Kein, R.A., Peterson, R. A. (2003). Strategic Marketing Problems Cases and Comments (13th ed.). New Jersey: Pearson Prentice Hall.