Frito-Lay has 38 manufacturing plants in North America. Discuss the factors that influenced Frito-Lay in terms of the locations of their plants. QUESTION FOUR Providing value and retaining customers is a constant challenge for organisations such as Frito-Lay. Innovation is fundamental in meeting this challenge. One approach to managing innovation is through a new product development (NPD) framework. With reference to this:
4.1 Identify the characteristics of innovation.
4.2 Outline and explain the components of an NPD framework.
The choice of locations of Frito Lays depend on energy efficiency . It tries to choose locations where it can use solar energy as an energy source . Therefore it has predominantly looked at desert locations wherever possible to implement this.
Innovation in a snack food industry is important to maintain
market share because consumers have a tendency to get bored very
fast. When we state the term value in the context of the snack food
industry we are looking at innovation in taste , shape and packaged
. All three add novelty and attracts customers to a new product .
New Product Development in a snack food industry needs to be
continuous and proactive . Frito Lays needs to predict the
competitor moves and introduce innovations before its competitors .
This is so because the first mover has a distinct advantage over
its competitors.
Components of a NPD framework.
1. The first step is Market Research
2. Analysis of the results to select the best option .
3. Check the feasibility of introducing the new product I.e.
carry out a cost benefit analysis.
4. Carry out test marketing of the product .
5. On successful results release the product in the market.
Frito-Lay has 38 manufacturing plants in North America. Discuss the factors that influenced Frito-Lay in terms...
Frito-Lay, the massive Dallas-based subsidiary of PepsiCo, has 38 plants and 48,000 employees in North America. Seven of Frito-Lay’s 41 brands exceed $1 billion in sales: Fritos, Lay’s, Cheetos, Ruffles, Tostitos, Doritos, and Walker’s Potato Chips. Operations is the focus of the firm—from designing products for new markets, to meeting changing consumer preferences, to adjusting to rising commodity costs, to subtle issues involving flavors and preservatives—OM is under constant cost, time, quality, and market pressure. Here is a look at...