Broccoli Flavored Doritos

The assignment was to develop a new product for Frito-Lay.  My class team wanted a low fat chip because so many people are trying to reduce fat consumption. My recommendation was broccoli flavored chips. After some debate I was able to convince the team that the broccoli flavored approach would generate far more profits than a low fat chip.


New product strategy needs to look at the potential market but also the strengths of the company and the weaknesses of the competitors. There is a definite demand for low fat chips however there is nothing to prevent the competitors from introducing their own version. In six months time market share and profits will be exactly as it is now.


However Frito-Lay has two strengths that the competitors cannot match. The research and development department is better at developing new products and more importantly Frito-Lay‘s distribution system can quickly get new products to market nationwide.


By introducing a new flavor for a limited time and with heavy promotion, Frito-Lay will generate customer excitement.  The product will no longer be another chip among many but the chip to get.  People will go to the chip isle just to see what the new flavor is.  If they really like the flavor people will also stock up knowing that flavor won’t be available next month.


Before the competitors can introduce a similar flavor Frito-Lay will pull it from the market and introduce a new flavor. Frito-Lay will be able to experiment with new flavors that might have limited appeal over time but may bring in high revenue because of the novelty factor.  Broccoli flavored chips might not be a long term product but there are many people who will buy one bag out of curiosity. Frito-Lay can introduce flavors that might attract non-traditional chip eaters such as a fig bar flavor. The flavors can be timed to coincide with seasons such as pumpkin spice for autumn or colored appropriately for the teams playing in the super bowl.


Concentrating on what separates you from your competitors can increase profits and can lead to wonderful taste sensations. Small companies sometimes think they can't compete with the big boys but by concentrating on areas where small is an advantage, such as a personal touch, customer loyalty and profits can increase.


The essential element of successful strategy is that it derives its success from the differences between competitors with a consequent difference in their behavior. Ordinarily, this means that any corporate policy and plan which is typical of the industry is doomed to mediocrity. Where this is not so, it should be possible to demonstrate that all other competitors are at a distinct disadvantage. Bruce Henderson  


The successful man is the one who finds out what is the matter with his business before his competitors do. Roy L. Smith


What business strategy is all about; what distinguishes it from all other kinds of business planning - is, in a word, competitive advantage. Without competitors there would be no need for strategy, for the sole purpose of strategic planning is to enable the company to gain, as effectively as possible, a sustainable edge over its competitors Keniche Ohnae

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