C.E. Doolin Herman W.

Lay
 EVOLUTION OF LAYS
• The Frito Company In 1932, Elmer Doolin entered a small
San Antonio cafe and purchased a bag of corn chips to eat
with his sandwich.
• Doolin initially made chips in the mothers kitchen and then
sold it in the Ford T model car.
• Doolin’s kitchen Garage San Antonio Dallas
• Prototype for The Frito Company's "store-to-door"
distribution system.
• After the world war II Frito Sales Company was formed the
sales Engineering division which was charged with
analyzing the sales potential of different trade areas and
designing the routes accordingly.
• This outstanding distribution system, which is still in use
today, allowed each truck to service a route and deliver
Fritos directly to customers.
• Frito National Company in 1945 has the six franchise
company
• Three years later, in 1950, FRITOS® were sold in all 48
• At the time of his death in 1959, The Frito Company produced
over forty products, had plants in eighteen cities, employed over
3,000 people, and had sales in 1958 in excess of $50 million
• In 1932 salesman Herman W. Lay opened a snack food operation
in Nashville, Tennessee and, in 1938, he purchased the Atlanta,
Georgia potato chip manufacturer "Barrett Food Company,"
renaming it "H.W. Lay & Company."
• In 1944 became the first snack food manufacturer to purchase
television commercials, with Bert Lahr as a celebrity spokesman.
His signature line, "so crisp you can hear the freshness," became
the chips' first slogan along with "de-Lay-sious!"
• In 1961, the Frito Company founded by Elmer Doolin and Lay's
merged to form Frito-Lay Inc., a snack food giant with combined
sales of over $127 million annually, the largest of any
manufacture
• In 1965, Frito-Lay merged with the Pepsi Cola Company to form
Pepsico, Inc.
 Simple Magic

COOK SEASON
SLICE

PEEL

WASH
• Today, FRITOS® Corn Chips rank among
the top 10 salty snacks in the United
States

Lay's second
logo used from Lay's current
the late-90s to logo (September
Sept. 2007. 2007-present), a
This logo can slight variation
still be seen on on the late-90s
Baked! Lay's logo
packages.
• Frito lays introduced so many product line the
customers is not loyal to particular variety ,
people identify only by tahe colours
• southern Asia is called "Magic Masala
• Russia has "Lay's MAX" chip
• In Poland Kebab, Pepper and Cheese, Onion and
Cheese
• IN USA include sour cream & Onion, Barbecue,
cheddar & sour cream, Hidden Valley Ranch, salt
& vinegar, salt & pepper, Flamin' Hot, dill pickle,
limón (Lime) and a thicker "Deli style" chip
• Despite an explosion of new flavors, the
unadorned original is still the selection of 81% of
consumer.
• Frito-Lay has learned that the best managers are
often locals who know the market and culture
well.
• Regional managers are encouraged to look for
new "occasions" to increase sales in their specific
areas.
• In Holland, where the Dutch tend to eat potato chips only at
night, as an after-dinner snack, manager Eugene Willemsen
focused his efforts on changing their habits by distributing
free samples on the streets during the day.
• In South Africa, national sales manager Arnold Selokane
boosted sales in native townships by hiring local drivers to
make deliveries, making the product seem less foreign.
• In China, sales director Jackson Chiu raised sales by 57
percent in one year, in part by focusing on girls and young
women. "We market to girls and the boys follow," he said.
• The executives behind Frito-Lay's global expansion
acknowledge that they try to swing national eating habits to
a food that was created in America, but they deny that
amounts to economic imperialism
• We're making products in those countries, we're adapting it
to the tastes of those countries, building businesses and
employing people and changing lives," said Steve
Reinemund, PepsiCo's chief executive.
• One thing the lays did was it had the store
delivery system ,route density ( how many retail
outlets), system efficiency .
• Hence it had more profit than the competitors
which they made use to invest in quality and
consumer advertising
• Next thing is that the lays sales representatives
got their products the most favourable placement
in the asile
• They popped the bags so that the frito-lay looked
more applealing than the competitors
• The company could afford to dedicate a full-time
sales rep to each store to ensure the shelves
were always properly stocked and merchandised
• LAY'S® Barbecue Flavored Potato Chips
• LAY'S® Cheddar & Sour Cream Artificially Flavored Potato
Chips
• LAY'S® Chile Limon Flavored Potato Chips
• LAY'S® Classic Potato Chips
• LAY'S® Classic Potato Chips 6 Count Singles
• LAY'S® Dill Pickle Flavored Potato Chips
• LAY'S® FLAMIN' HOT® Flavored Potato Chips
• LAY'S® Hot & Spicy Barbecue Flavored Potato Chips
• LAY'S® Light Original Potato Chips
• LAY'S® Limon Tangy Lime Flavored Potato Chips
• LAY'S® Natural Sea Salt Flavored Thick Cut Potato Chips
• LAY'S® Salt & Vinegar Artificially Flavored Potato Chips
• LAY'S® Sour Cream & Onion Artificially Flavored Potato
Chips
• BAKED! LAY'S® Barbecue Flavored Potato Crisps
• BAKED! LAY'S® Cheddar & Sour Cream Flavored Potato
Crisps
• BAKED! LAY'S® Original Potato Crisps
• BAKED! LAY'S® Sour Cream & Onion Artificially Flavored
Potato Crisps
• LAY'S® Cracker Crisps Delightfully Crispy Original Baked
• LAY'S® Cracker Crisps Zesty Herb & Parmesan Flavored
Baked Snack Crackers
• LAY'S® Kettle Cooked Jalapeno Potato Chips
• LAY'S® Kettle Cooked Maui Onion Potato Chips
• LAY'S® Kettle Cooked Mesquite BBQ Potato Chips
• LAY'S® Kettle Cooked Original Potato Chips
• LAY'S® Kettle Cooked Reduced Fat Original Flavored Potato
Chips
• LAY'S® Kettle Cooked Sea Salt & Vinegar Potato Chips
• LAY'S® STAX® Cheddar Flavored Potato Crisps
• LAY'S® STAX® Hot'n Spicy Barbecue Flavored Potato
Crisps
• LAY'S® STAX® Salt & Vinegar Flavored Potato Crisps
• LAY'S® STAX® Original Flavored Potato Crisps
• LAY'S® STAX® Mesquite Barbecue Flavored Potato Crisps
• LAY'S® STAX® Ranch Flavored Potato Crisps
• LAY'S® STAX® Sour Cream & Onion Flavored Potato Crisps
• LAY'S® Wavy Au Gratin Flavored Potato Chips
• LAY'S® Wavy Hickory Barbecue Flavored Potato Chips
• LAY'S® Wavy Original Potato Chips
• LAY'S® Wavy Ranch Flavored Potato Chips
PRODUCT SALES
billion. The dip business is part of the Frito-Lay Company. There were three dips sold by the company until 1983. During 1983 and 1984, there
were a number of cheese-based dips introduced by the company. All the dips were displayed in the salty snack section of supermarkets, where
80 percent of dip sales are made.
There are many internal factors of the company, which affect their strengths and weaknesses. The company does have a well-experienced
marketing department but they have a weak leader. A well developed line of salty snack foods are offered by the company, which can help the
sales of the dips. The dips are displayed besides the salty snack food section. Whenever a person buys some chips they will also be heavily

s
inclined to buy a dip to go with it. This can helps to increase sales of the dip. The company does try to offer more choice of dips but is still not
enough. People need different taste and more choice. People are loyal but still want to try new tastes sometimes. Frito-Lay recognizes the up and
coming health consciousness of Americans and is considering the expansion into the vegetable dip niche.
The Frito-Lay Company has national awareness and has distribution center across the U.S. The company has 350,000 outlets that distribute the
products nationally. They have many kinds of distributors throughout the states but the majority of Frito-Lay dips are sold through supermarkets.
There are four geographical zones that organize the distribution system and cover the entire United States. Thirty-three percent of salty snack
food tonnage sold in the United States was captured by Frito-Lay. This will also help a brand recognizing by the customers. Cheese dip was
introduced and it has a good initial penetration of the market. This can also shows that a different kind of dip will catch people's eye and get
interest in buying it. The Cheese dip sales have tapered off because the novelty of shelf-stable cheese dips has passed.
The company is organized around four geographical zones and each zone contains distribution centers to provide inventory for the sales force.
During an average day, the sales force makes 400,000 sales and delivery calls. Each salesperson has their own route for selling the company
products. Frito-Lay uses a "front-door store" delivery system that is suited the 270,000 non-chain outlets. The supermarkets, which are chain-
store accounts, were not favored by the front-door store delivery system. A Frito-Lay region or division manager always required participating.
This is necessary because the chain-store buyers responsible for the outlets in the chain also approve in-store merchandising plans as well.
Frito-Lay has the opportunity to capitalize on their present commanding position in the dip market by expanding their product line to include
vegetable dips that will complement their successful cheese and picante (Mexican) dip lines. With the correct launch and positioning, Frito-Lay,
Inc. could penetrate and stake a claim to a large and undefined, yet extremely viable, vegetable dip market. This is a market which does not have
a major competitor in a strong competitive position, there isn't a shelf-stable sour cream-based dip offered by anyone (Frito-Lay has one ready to
be released), and consumers are becoming more concerned over the content of the food they eat and buying enough "substitute dip" (salad
dressing) to support growth in this market at an astonishing 18% compounded rate per annum. This growth rate has been sustained since 1978.
The vegetable dip market is estimated at $23 million in sales per year Further, sour cream dips are the most popular flavor, accounting for about
50% of dip sales in the salty snack dip segment of the market. Combining this prior information with the additional fact that after cost analysis,
the gross margin on the sour cream dip will be a healthy 45% and you have all the makings of a cash cow product line. Now if Frito-Lay can
muster the resources and intestinal fortitude, they could really start working on the next billion in sales for the company in '87.
Naturally, in a free market, there are always risks that are associated with any undertaking. The company faces several threats from the market
that must be objectively weighed when conducting the planning for expansion into a new market segment. Principally, as the new sour cream dip
will be positioned in a different part of the supermarket, away from the rest of the Frito-Lay salty snack food products, the normal front-door
delivery system will need to be changed.
New contacts with the produce managers in each store will have to be developed so as to get proper positioning and exposure for this new dip.
The company sales force will need additional training and marketing expenditure at the supermarket level to capture interest and assist in the
placing of the new product. If the stores can't or won't make space in their produce sections, then this venture faces the possibility of a very
limited lifespan. Perhaps the marketing department could develop new display racks that would attach to the top of produce bins and offer
supermarkets additional marketing space without sacrificing floor space.