Sun Chips Case

0817 General Assessment of Sunchips see market results. Pros A pro would be that Frito-Lay receipts where the majority of their sales atomic number 18 happening. Due to about 90 percent of them being in supermarkets and thingummy stores. It is also a pro that they spend a penny determined what percentage of for each one size package and flavor they are selling. In addition they claim also determined the percentage of cannibalization that will happen. Another pro is that the additive repeat percentage steadily rose every week. Cons A larn to these ravel market results would be that they have only been run for x months.The results could be ballooned pick upsidering that they are introducing a youthful product. Another con would be that only about 1 in 5 households (less than 20%) have tried the product. And out of that 20 percent only 41. 8 percent had repeat purchases. Continue ravel market for some other six months Pros A pro for continuing examination marketing fo r six additional months would be that they would get even more surgical test market results. In addition, they will have the advantage of seeing how much word of mouthpiece can raise their cumulative trial and repeat percentages. ConsThe con to continuing test marketing for six more months would be that if they dont go ahead and launch across the country a competitor talent launch a similar product nationally and upstage Frito-Lay. at that placefore, the hazard to be first-to-market would be lost. Another con could be that if their data is undefiled they are losing significant profit for the next six months. Introduce Sunchips nationally with the same introductory strategy. Pros A con to this strategy would be that if the test market results are accurate, then Frito-Lay would profit from their new product and know all the necessary details of cannibalization.Yet, if the test market results are accurate then Frito-Lay should definitely introduce Sunchips nationally. Frito-Lays revenue goal for Sunchips deoxycytidine monophosphate million if introduced nationally. Revenue in the M-St. Paul Minneapolis from triers and repeaters was about 512,000 and 620,000 respectively. The M-St. Paul Minneapolis field of force accounts for 2. 2 percent of the 90 million snack ship user households in the U. S. By extrapolating the results from M-St. Paul Minneapolis to the U. S. , Frito-Lay can expect revenue to go along 110 million. ConsA con would be the possibility of the ten month test market results to be inaccurate. In this case Frito-Lay would have launched nationally too soon. In addition, Frito-Lay will be giving up the opportunity to test out different strategies. Introduce Sunchips with some strategy modification (more advertising, big package sizes, another flavor) Pros More advertising would lead to more discolouration awareness and possibly more sales. Larger package sizes would be technical if sold at the same price per ounce. They would give custome rs another option.Adding another flavor would increase sales and possibly gain new customers. Cons The con to more advertising would be more spending, which takes away from profits. The problem with bigger package sizes is that they would have to produce and distribute a whole new package. The con to adding another flavor is that it would increase cannibalization from 30 to 35 percent. There is also a con to the combination of adding a larger package and a new flavor. By adding these two, stock-keeping units would double from six to twelve, therefore leaving from two flavors and three sizes (6) to three flavors and four sizes (12).