Frito-Lay sales and distribution team were starting to do the research as soon as the Cracker Jack acquisition opportunity became public. If Frito-Lays can efficiently use its distribution capabilities, it would significantly affect sales to increase.
Frito-Lay sales and distribution team were starting to do the research as soon as the Cracker Jack acquisition opportunity became public. Cracker Jack Management believed that the broadened distribution was the most important element of their new strategy.
The company is surely able to shoulder this. Because of this valuation they had and a growth plan they had they decided to announce sale of Cracker Jack in It was a great opportunity to fit Cracker jack case analysis Cracker Jack in the existing Frito-Lay sales and distribution infrastructure.
In order to determine the value of a business we need to determine its fair market value. However, this would still be a significant amount.
Additionally the new division of the sweet snacks can create opportunities for the Frito-Lay by using appropriate existing distribution networks and marketing channels for the new add on product. In relation to our topic of acquisition efforts regarding Cracker Jack, both companies are involved in the Snack Food Industry.
These are as follows: The company is also a growing company with an annual growth rate of 13 percent for the 5-year period from It is one of the most recognized consumer food brands in the country. There are other several reasons which is explained below why Frito-Lay decided to acquire the Cracker Jack.
The company has extensive distribution capabilities. This organization would be in-charge of a well-known brand under a sizeable corporation which is part of Pepsi Co. They makesales and delivery calls on approximatelyretail store customers each week.
Problem identification and root cause Frito-Lay is the market leader in the salty snack food production having something different in their products will get a competitive advantage.
The key threat of this organization would be its primary competitor International Home Foods Inc. References Kerin, Roger Cracker Jack Management believed that the broadened distribution was the most important element of their new strategy. This competitor produces a highly profitable brand known as Crunch and Munch.
It will provide the company entry into the RTE caramel popcorn segment of the snack industry.
This was a very well known brand even with a very few advertisements. The key strength of this organization would be the Cracker Jack Brand.
It would be a combination of the pertinent company and brand details of Frito-Lay, the acquiring company and Borden Foods, the selling company.
This was a very well known brand even with a very few advertisements. It was believed that a DSD sales force would provide product placement in the grocery DSD snack aisles, which is the highest velocity snack aisles in supermarkets.
Cracker jack case analysis growth, the company devised three criterions to qualify their choice. There are other several reasons which is explained below why Frito-Lay decided to acquire the Cracker Jack.
It is the largest store-door-delivery sales force in the world. How to Write a Summary of an Article? The brand name enjoys a 97 percent awareness among persons between the ages 15 and Today, prior to any acquisition, Borden Foods makes pasta, soup mixes, and bouillons, snack foods, consumer adhesives, and industrial adhesives, coatings and resins.
It is a definitive market share leader in the RTE popcorn segment of the snack food industry. This means they are involved not only in agricultural production but also stocking retailer shelves. The benefit of this plan of action would be the acquisition of a significantly American Brand with a deep heritage and extensive brand awareness.
It is a brand that will help the company venture into a new product category. The management team of Broaden also recognized that with the increase in competition they have not been able to successfully grow the sales figure in past five years.The primary reason for the Borden Foods to divert itself from snacks is to emphasis its efforts and resources in the growth of their whole-wheat meal segments - Cracker Jack Case Analysis introduction.
Because of this valuation they had and a growth plan they had they decided to announce sale of Cracker Jack. The Frito-Lay Cracker Jack case This paper is being written to analyze the Frito-Lay Cracker Jack case. This case is about the acquisition by the company Frito-Lay of Borden Food’s caramel popcorn brand Cracker Jack.
Cracker Jack as a brand has a 97% awareness with people from the ages of 15 to 60 and a 95% awareness amongst the caramel popcorn users. This was a. Cracker Jack Case Analysis Essay Case Recap The primary reason for the Borden Foods to divert itself from snacks is to emphasis its efforts and resources in the.
Free Essay: Frito-Lay Company - Cracker Jack 1. Why has Borden Foods decided to sell Cracker Jack? Borden Foods is in the process of divesting of snack and.
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