2012 Doritos Marketing Plan by niko vergis

2013 Marketing Plan Niko Vergis 12/12/12 Developing a Marketing Plan

Title Page …

Table of Contents…

Company Overview...

3-4

Market Summary…

4 -5

Demographic Overview…

5–7

Competition…

8 – 11

SWOT Analysis…

Marketing Objectives… Key Strategies Mission Statement

13 - 14

Marketing Strategy and Programs …

14 - 21

Budget/Calendar…

Advertisement…

Bibliography…

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Doritos Company Overview PepsiCo’s mission statement states, “Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity”. PepsiCo also have a vision on the company and I states, “PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today. “Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company. Frito Lay is a sister company under PepsiCo and specifically creates sells and distributes many kinds of potato chips. Frito lay is one of five companies under Pepsi-Cos belt, the band has become public as a whole but not by itself. Frito Lay has been around for more than 75 years and holds 79.6% of the potato chip and snack foods industry to date. The revenue of Frito Lay over the last 3 years has steadily stayed around $16 Billion and about $3 Billion of that is in North America. As for PepsiCo as a whole the revenue has reached over $66.5 Billion. Frito Lay’s profits are not available to the public PepsiCo is, reaching a gross profit of $35 Billion and a Net profit of $6.5 Billion. Frito Lay currently has 40,000 employees worldwide and 3000 employees are in North America. In North America Frito has 7 important executives Albert Carey as president, Nancy Loewe as Chief Financial officer, Justin Lambeth as Secretary, and Leslie Keating- Randolph Melville-Jamie Montemayor- Anindita Mukherjee ass

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as Senior Vice Presidents. The North American headquarters for Frito Lay is located in Dallas Texas, while PepsiCo headquarters is located in New York, New York.

Market Summary The "salty snack" industry includes potato chips, corn chips, tortilla chips, ready-to-eat popcorn (except candy-coated), pork rinds, potato sticks, and extruded snacks such as cheese puffs. According to the Snack Food Association, sales for snacks during 2011 totaled $24.6 billion. Frito-Lay was the undisputed champion of this industry category, with Tostitos, Ruffles, Rold Gold, Fritos, Lay's, Cheetos, SunChips, and many more top sellers under its umbrella. Potato chips and tortilla chips controlled the snack foods market. Doritos as of 2011, hold over $5 billion of worldwide sales. 84 percent of American households eat potato chips, which had one-third of the salty snacks market in the mid-2000s. The dietary trend in the 2000s toward healthier eating did not affect the snack category of foods as much as anticipated, as approximately one-third of the population regularly ate snacks in place of a meal. Single-serve and other "on the go" packaging was lifting sales by catering to the demands of a faster-paced lifestyle. Three-fourths of those who snack do so in the evenings. In addition, snacks were becoming more healthful, with reductions in sugar and fat. New labeling requirements in 2006 stipulated that nutritional labels must specify trans-fat content, otherwise known as hydrogenated fats and oils, in grams. Industry leader Frito-Lay beat the rush by including the line on its labels in 2003, well in advance of the deadline for compliance. The salty snack foods industry has a unique structure, since Frito-Lay, a division of PepsiCo, controlled about two-thirds of the total market share. Although the industry has some elements of a monopoly (aggressive pricing and distribution policies among chip makers), the

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regional presence of many large and small manufacturers keeps it highly competitive. Numerous companies of varying size make up the snack industry. Many compete only on a regional level, although some find it difficult to price their products competitively with the larger manufacturers. Others, however, create a market niche, sometimes with a specialty product such as kettle-style potato chips or baked chips sold through health food stores. If their products meet with success among customers, the smaller makers can often charge higher prices than the biggest manufacturers. Larger manufacturers are generally full-service snack companies â&#x20AC;&#x201C; those offering a full range of products, including potato chips, tortilla chips, and other salty snacks. The smaller producers are more likely to specialize. Total Consumption Framework LifeStyle BehaviorStage Start-Up Families HHs with Young Children Only < 6 Small Scale Families Small HHs with Older Children 6+ Younger Bustling Families Large HHs with Children (6+), HOH <40 Older Bustling Families Large HHs with Children (6+), HOH 40+ Young Transitionals Any size HHs, No Children, < 35 Independent Singles 1 person HHs, No Children, 35-64 Senior Singles 1 person HHs, No Children, 65+ Established Couples 2+ person HHs, No Children, 35-54 Empty Nest Couples 2+ person HHs, No Children, 55-64 Senior Couples 2+ person HHs, No Children, 65+ Total

Cosmopolitan Centers

Affluent Suburban Spreads

Comfortable Country

Struggling Urban Cores

Modest Working Towns

Plain Rural Living

Total

108

117

138

122

148

118

146

144

154

142

135

154

147

177

186

217

173

214

242

207

189

169

192

122

222

232

189

102

127

104

112

140

116

107

113

100

The main demographic of consumption for Doritos are younger bustling families with 6 or more children reaching 207 index which is over twice the consumption of the average consumer. Second highest consumers are older bustling families with 6 or more children reaching 189 index which is just under twice the consumption of the average consumer. As for 5|Page

the most consumption of Doritos within a lifestyle would be families in Plain Rural Living reaching 113 index, and following that would be Comfortable Country life style reaching 107index. Looking at the percentages below shows that Midscale Working Towns purchase a 7.3% volume of Doritos. Following that are Moderate Blue-Collar Towns with a 6.8% volume. Demographic Overview Variables and Measures Demographic Variables Education of Head of Household Not a High School Graduate High School Graduate Some College College Graduate Post College Degree Spectra LifeStyle Urban High Society Suburban Aristocrats Prosperous Suburbs Elite Country Manors Affluent Suburbs Affluent Minipolitan Sprawl Affluent Country Living Cosmopolitan Urban Mix Cosmopolitan Suburbs Midscale Suburban Mix Midscale Minipolitan Midscale Fringe Towns Midscale Working Towns Striving Urban Melting Pot Striving Suburban Mix Striving Small City Living Moderate Blue-Collar Towns Moderate Country Living Struggling Urban Mix Struggling Small City Mix Struggling Minipolitan Struggling Country Living Struggling Rural Mix Struggling Backroad Living Age of Oldest Child Age Under 6 Age 6 - 11 Age 12 - 17 No Children

% Volume

Index

16.6% 31.8% 28.4% 15.0% 8.3%

119 116 101 84 65

2.4% 3.6% 3.9% 3.0% 5.1% 4.8% 4.0% 4.5% 4.3% 4.0% 3.1% 4.2% 7.3% 4.9% 3.4% 3.2% 6.8% 4.3% 3.5% 3.2% 4.3% 4.5% 3.8% 4.1%

77 100 89 81 115 90 124 89 81 105 95 100 119 90 95 101 122 102 91 105 92 111 132 98

9.7% 17.1% 32.8% 40.5%

113 161 193 63

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The average consumers of Doritos are Hispanic with 3 or more people in the household, reaching a HHI of $50,000 - $74,000. Age of head of household are ages 35 – 44 with children aged from 6 – 17. The occupation this consumer has are crafts and precision and transportation and moving materials. This person is also married with kids and owns 3 or more vehicles. The education this consumer has accomplished is a high school diploma or no high school education at all. This consumer also lives in North West Central America.

Total Consumption

Demographic Skews 5+ Person Households Oldest Child 12 - 17 Presence of Both Children Under 6 and 6 - 17 Presence of Only Children 6 - 17 Married Families with Children 4 Person Households Oldest Child 6 - 11 Age 35 - 44 Male Head Only with Children Precision Production, Craft & Repair Occupations

22% 33% 14% 36% 38% 23% 17% 29% 4% 18%

Index

206 193 180 179 178 162 161 155 155 154

Number of Persons-Total Consumption Index 250 200 150 100 50 0 1 Person

2 Persons

3 Persons

4 Persons

5+ Persons

A clear indication of households with 5 or more people reaches an index of 206. Most consumers in the house hold are children from ages 12 – 17 at 193 index, 93% over the average.

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Competition

Brands with Similar Consumers

% Pen

Juanitas (Snacks : Tortilla Chips) Oz. ** Medallion (Snacks : Tortilla Chips) Oz. * Calidad (Snacks : Tortilla Chips) Oz. Private Label (Snacks : Corn Chips) Oz. Herrs (Snacks : Tortilla Chips) Oz. * Private Label (Snacks : Tortilla Chips) Oz. TOTAL TORTILLA CHIPS (SNACKS) OZ. TOTAL TORTILLA CHIPS (SNACKS) OZ. Santitas (Snacks : Tortilla Chips) Oz. Baked! Doritos (Snacks : Tortilla Chips) Oz. *

1% 1% 5% 6% 1% 28% 79% 79% 17% 1%

Demand Index

143 139 131 130 130 128 124 124 124 124

Disregarding the “TOTAL TORTILLA CHIPS”, the three competitors of Doritos are private label snack with 28% penetration. Second highest competitor is a Santitas Tortilla Chip which is another brand from Frito Lay with a 17%. Channel Distribution

Channel Summary Grocery Mass Merchandise All Other Club Drug Convenience

% Volume

60% 28% 5% 5% 2% 1%

Total Volume per 100 HHs

1452.74 665.30 122.91 109.43 43.59 15.90

Doritos Mass channel distribution is through grocery stores reaching 60% of total volume. Next are Mass Merchandise stores, for instance Target or Wal-Mart reaching 28% of total volume sold.

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Private Label Competitors Private Label (Snacks : Tortilla Chips) Oz.

LifeStyle BehaviorStage Start-Up Families HHs with Young Children Only < 6 Small Scale Families Small HHs with Older Children 6+ Younger Bustling Families Large HHs with Children (6+), HOH <40 Older Bustling Families Large HHs with Children (6+), HOH 40+ Young Transitionals Any size HHs, No Children, < 35 Independent Singles 1 person HHs, No Children, 35-64 Senior Singles 1 person HHs, No Children, 65+ Established Couples 2+ person HHs, No Children, 35-54 Empty Nest Couples 2+ person HHs, No Children, 55-64 Senior Couples 2+ person HHs, No Children, 65+ Total

Cosmopolitan Centers

Affluent Suburban Spreads

Comfortable Country

Struggling Urban Cores

Modest Working Towns

Plain Rural Living

Total

156

142

141

104

149

129

137

102

109

120

111

146

197

223

114

152

158

167

158

194

201

120

184

216

185

100

104

111

121

106

103

114

101

100

Although the product snapshot for the private label competitors and Doritos are fairly similar there are some differences. Private label companies are reaching younger bustling families totaling at 167 and older bustling families totaling at 185. The exception of the struggling urban communities buying a little more over the expected amount, Doritos currently has a higher index as a competitor in this lifestyle. The most popular lifestyle would reach both affluent suburban spreads and comfortable country totaling at 114 indexes. Doritos currently has comfortable country and plain rural living as strong purchasers. The private label consumer is non-Hispanic, has 4 to 5 persons in the household with an income of $55,000 - $74,000. The head of household is aged anywhere between 25 â&#x20AC;&#x201C; 44 years old and have children from ages 6 to 17. The occupation of this consumer is blue collar and is married with children, living on the east north central census.

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Santitas Competitor LifeStyle BehaviorStage Start-Up Families HHs with Young Children Only < 6 Small Scale Families Small HHs with Older Children 6+ Younger Bustling Families Large HHs with Children (6+), HOH <40 Older Bustling Families Large HHs with Children (6+), HOH 40+ Young Transitionals Any size HHs, No Children, < 35 Independent Singles 1 person HHs, No Children, 35-64 Senior Singles 1 person HHs, No Children, 65+ Established Couples 2+ person HHs, No Children, 35-54 Empty Nest Couples 2+ person HHs, No Children, 55-64 Senior Couples 2+ person HHs, No Children, 65+ Total

Cosmopolitan Centers

Affluent Suburban Spreads

Comfortable Country

Struggling Urban Cores

Modest Working Towns

Plain Rural Living

Total

151

124

175

119

160

131

113

135

121

198

135

156

155

177

150

126

194

107

167

232

157

117

101

105

145

113

145

120

134

112

123

106

124

121

100

Viewing Santitas as a big tortilla chip competitor differentiates from Doritos slightly. Reaching younger bustling families at 150 index and older bustling families at 157 indexes, Doritos still takes the lead reaching an average 200 index between the two behavior stages. Santitas popular lifestyles are comfortable country at 124 and plain rural living at 121 indexes, taking the lead from Doritos in these 2 categories. The average consumers for Santitas are mainly Hispanic with 5 or more people in the household, gaining an income of $50,000 - $74,999. The age of the head of household is 35 â&#x20AC;&#x201C; 54 with children primarily 6 â&#x20AC;&#x201C; 17 but younger as well. The consumer has a high school education and their occupation is farming, fishing and forestry. This person is married and lives primarily in mountain or west south central census.

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Tortilla Chip Category Competition TOTAL TORTILLA CHIPS (SNACKS) OZ.

LifeStyle BehaviorStage

Cosmopolitan Centers

Affluent Suburban Spreads

Comfortable Country

Struggling Urban Cores

Modest Working Towns

Plain Rural Living

Total

124

109

130

111

124

129

121

133

139

110

118

126

160

176

185

117

166

172

164

160

183

190

120

176

186

174

101

104

122

130

105

118

114

100

101

113

114

100

Start-Up Families HHs with Young Children Only < 6 Small Scale Families Small HHs with Older Children 6+ Younger Bustling Families Large HHs with Children (6+), HOH <40 Older Bustling Families Large HHs with Children (6+), HOH 40+ Young Transitionals Any size HHs, No Children, < 35 Independent Singles 1 person HHs, No Children, 35-64 Senior Singles 1 person HHs, No Children, 65+ Established Couples 2+ person HHs, No Children, 35-54 Empty Nest Couples 2+ person HHs, No Children, 55-64 Senior Couples 2+ person HHs, No Children, 65+ Total

The tortilla chip categories compared to Doritos are fairly similar. Younger bustling families reach 164 and older bustling families reach 174 indexes, as for Doritos reaching nearly 200 for both categories. The life style with the most consumers is, affluent suburban spreads and comfortable country totaling at 113 and 114. Doritos does not have the lead with the overall total in this category. The average consumer is non-Hispanic or Hispanic and has 4 to 5 people in their household having an income at $100,000 - $149,999. The head of household age is 35 â&#x20AC;&#x201C; 54 years old having children under 6 and 6-17 years old, a college graduate and an occupation of executive, administrative and managerial. This person is married with children and lives in the mountain or west north central census.

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SWOT Analysis Strengths 

Does well in engagement marketing by redirecting their website directly to Facebook.



Dominated the tortilla chip world with the number one flavor.



Strong, bold and entertaining television and print ads.



Fights for differentiation on advertising and high market share.



Loyal consumers.



Shaped partnerships.



Delivered solid operating and financial performance and generated significant operating cash flow.



Highly diversified brand by having 102 flavors since 1964.

Weaknesses 

Insufficient health benefits



Image damage due to recall of other PepsiCo products.



Overdependence on US markets.

Opportunities 

Expand brand with mergers and acquisitions for strong presence all over the world.



Invest in R&D to expand offerings of more nutritional health conscience lifestyles.

Threats 

Increase of a health conscious economy.



Intense competition of big competitors.



Smaller company’s becoming furious competitor which makes competition harsh.

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Marketing Objectives 

Gain 10% market share of healthy customers in 18 months.



Grow international sales by 15%.



International media awareness and coverage.

Key Strategies 

Looking further in to Research and Design will help identify and build new offerings into more nutritional health conscience life styles.



Partnerships with healthier brands (Sun Chips, Kashi) to help leverage a healthier image.



Expand brand with current partners and mergers (Mountain Dew, Microsoft Xbox, EA Sports, NFL) for a stronger worldwide presence.



Create more partnership relations with overseas companies to leverage global market.



Doritos is a top sponsor of the NFL, therefore becoming a top sponsor for the biggest international sport FIFA/MLS, will have the same increasing impact as the U.S. has.



Price promotions – holiday promotions.

By adding to the strength of Frito lays current portfolio, we believe that we can deliver quicker financial returns to investors over the long-term. Creating deeper expansion of Doritos into other countries and a more “better for you, good for you product,” The growth will translate over to high single digit earnings per share, increasing margins and increasing returns on capital.

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Mission Statement Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth worldwide and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

Marketing Strategy and Programs LifeStyle BehaviorStage Start-Up Families HHs with Young Children Only < 6 Small Scale Families Small HHs with Older Children 6+ Younger Bustling Families Large HHs with Children (6+), HOH <40 Older Bustling Families Large HHs with Children (6+), HOH 40+ Young Transitionals Any size HHs, No Children, < 35 Independent Singles 1 person HHs, No Children, 35-64 Senior Singles 1 person HHs, No Children, 65+ Established Couples 2+ person HHs, No Children, 35-54 Empty Nest Couples 2+ person HHs, No Children, 55-64 Senior Couples 2+ person HHs, No Children, 65+ Total

Cosmopolitan Centers

Affluent Suburban Spreads

Comfortable Country

Struggling Urban Cores

Modest Working Towns

Plain Rural Living

Total

108

117

138

122

148

118

146

144

154

142

135

154

147

177

186

217

173

214

242

207

189

169

192

122

222

232

189

102

127

104

112

140

116

107

113

100

Above is a graph showing the heaviest users in the U.S. by the stage of behavior. Younger Bustling families reach a total of 207 and Older Bustling families are reaching 189. Both of these are purchasing twice the amount a regular consumer would buy. This graph shows us that these two behavior stages are doing well on their own, and to focus our marketing on the other behavior stages.

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Cosmopolitan Centers

Affluent Suburban Spreads

Comfortable Country

Struggling Urban Cores

Modest Working Towns

Plain Rural Living

Total

108

117

138

122

148

118

146

144

154

142

135

154

147

177

186

217

173

214

242

207

189

169

192

122

222

232

189

102

127

104

112

140

116

107

113

100

The graph above is showing Small Scale Families reach 147 index and Established Couples reach 116. I chose these to behavioral stages because they are the middle ranged average buyers, buying around one and a half times the average buyer. These are 2 groups we could focus on to have them purchase twice the amount they do now. That would put them in the heavy user category. LifeStyle BehaviorStage Start-Up Families HHs with Young Children Only < 6 Small Scale Families Small HHs with Older Children 6+ Younger Bustling Families Large HHs with Children (6+), HOH <40 Older Bustling Families Large HHs with Children (6+), HOH 40+ Young Transitionals Any size HHs, No Children, < 35 Independent Singles 1 person HHs, No Children, 35-64 Senior Singles 1 person HHs, No Children, 65+ Established Couples 2+ person HHs, No Children, 35-54 Empty Nest Couples 2+ person HHs, No Children, 55-64 Senior Couples 2+ person HHs, No Children, 65+ Total

Cosmopolitan Centers

Affluent Suburban Spreads

Comfortable Country

Struggling Urban Cores

Modest Working Towns

Plain Rural Living

Total

108

117

138

122

148

118

146

144

154

142

135

154

147

177

186

217

173

214

242

207

189

169

192

122

222

232

189

102

127

104

112

140

116

107

113

100

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In this graph above I wanted to show the highest outreach specifically in lifestyles of the consumer. I pulled Plain Rural Living as the highest users reaching 113 indexes, a little over the average user. Looking at the life styles in certain locations would also help build market share. Also, looking at the total number of life style, it’s possible that we can penetrate Comfortable Country, Affluent suburban spreads, and modest working towns. Kashi Overview Cosmopolitan Centers

BehaviorStage Start-Up Families - HHs with Young Children Only < 6 Small Scale Families - Small HHs with Older Children 6+ Younger Bustling Families - Large HHs with Children (6+), HOH <40 Older Bustling Families - Large HHs with Children (6+), HOH 40+ Young Transitionals - Any size HHs, No Children, < 35 Independent Singles - 1 person HHs, No Children, 35-64 Senior Singles - 1 person HHs, No Children, 65+ Established Couples - 2+ person HHs, No Children, 35-54 Empty Nest Couples - 2+ person HHs, No Children, 55-64 Senior Couples - 2+ person HHs, No Children, 65+ Total

97 107 133 182 96 126 16 198 170 160 130

Affluent Suburban Spreads

Comfortable Struggling Urban Modest Working Plain Rural Country Cores Towns Living 282 178 135 295 168 195 106 290 168 180 211

127 63 225 128 91 45 22 127 109 58 98

78 48 74 33 45 22 19 48 104 135 55

31 37 49 66 107 32 33 78 88 60 58

Total

120 69 110 53 48 34 9 43 46 34 53

129 84 120 145 89 70 30 133 112 93 100

The Graph above is Kashi products and is a target market for the Doritos new angle on a healthier tortilla chip. The majority of Kashi’s “healthy consumers” are in suburban affluent spreads. This consumer is white with a yearly income of $100,000 +. They’re aged between 25 – 34, have graduated college, and have children under the age of 6 with 1-2 people living in the house hold.

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Geography Name South Atlantic Pacific East North Central West South Central Middle Atlantic Mountain West North Central East South Central New England Total

Doritos heavy user consumption Total % HHs Target % HHs 20.02% 14.84% 15.39% 11.40% 13.21% 7.04% 6.96% 6.31% 4.84% 100.00%

18.59% 16.38% 14.98% 13.20% 12.12% 7.50% 6.86% 6.10% 4.26% 100.00%

Target % Target Index Target HHs Pen 16.88% 93 3,949,014 20.07% 110 3,480,738 17.70% 97 3,183,060 21.06% 116 2,805,679 16.69% 92 2,575,662 19.37% 107 1,592,738 17.93% 99 1,458,306 17.60% 97 1,296,866 15.99% 88 905,314 18.18% 100 21,247,377

The heaviest use for Doritos in the U.S. is the west south central region with 116 as target index. The highest percentage is the Pacific region and the West South Central reaching 21% penetration. Since this is the most popular geographical target, few are right behind it. The Pacific and south Atlantic geographic locations have potential for increasing their target index. Future goals are to increase south Atlantic, Pacific and East north central target % HHs by 5 percent. This decision should also increase target penetration %.

Geography Name East South Central West North Central West South Central South Atlantic East North Central Mountain Middle Atlantic New England Pacific Total

Doritos average user consumption (country) Total % HHs Target % HHs 6.31% 6.96% 11.40% 20.02% 15.39% 7.04% 13.21% 4.84% 14.84% 100.00%

15.19% 9.70% 15.76% 24.69% 13.48% 6.14% 7.08% 2.28% 5.68% 100.00%

Target % Target Index Target HHs Pen 50.08% 241 3,690,987 28.99% 139 2,357,551 28.74% 138 3,828,882 25.63% 123 5,998,075 18.22% 88 3,276,127 18.14% 87 1,491,615 11.14% 54 1,719,887 9.81% 47 555,188 7.96% 38 1,379,435 20.79% 100 24,297,748

The average consumers of Doritos are mostly located in the East South Central reaching 241 index, 2 and a half times what an average person would by. This location also has a 50%

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penetration in the market. This could lead to a good opportunity to build market share and market in the West North Central, West south Central, and South Atlantic. These regions have buyers that have potential to buy more frequently. Increasing the target penetration % with help increase the index in South Atlantic, West North and West south Central regions, this could be helpful with reaching our new marketing objectives.

Doritos heavy user consumption Geography Name Total % HHs Target % HHs 28547 Camp Lejeune NC 28310 Fort Bragg NC 28308 Pope A F B NC 28307 Fort Bragg NC 27531 Goldsboro NC 28386 Shannon NC 28508 Albertson NC 28119 Morven NC 28377 Red Springs NC 27229 Candor NC 28364 Maxton NC 28371 Parkton NC 28383 Rowland NC 28360 Lumberton NC 27209 Biscoe NC 28357 Lumber Bridge NC 27508 Bunn NC 28333 Dudley NC 28326 Cameron NC 27518 Cary NC 28372 Pembroke NC 28578 Seven Springs NC 28376 Raeford NC 28453 Magnolia NC 28373 Pinebluff NC 27823 Enfield NC 28173 Waxhaw NC 27937 Gates NC 28719 Cherokee NC 28340 Fairmont NC 27242 Eagle Springs NC 28458 Rose Hill NC

0.04% 0.06% 0.01% 0.06% 0.02% 0.05% 0.02% 0.03% 0.12% 0.03% 0.13% 0.05% 0.08% 0.13% 0.03% 0.03% 0.02% 0.11% 0.14% 0.22% 0.11% 0.05% 0.34% 0.04% 0.02% 0.08% 0.35% 0.04% 0.06% 0.12% 0.02% 0.06%

0.14% 0.14% 0.02% 0.15% 0.03% 0.10% 0.04% 0.06% 0.21% 0.06% 0.23% 0.09% 0.13% 0.21% 0.05% 0.05% 0.03% 0.17% 0.23% 0.33% 0.17% 0.07% 0.51% 0.05% 0.04% 0.12% 0.52% 0.05% 0.08% 0.17% 0.03% 0.09%

Target % Target Index Target HHs Pen 56.96% 331 911 43.53% 253 919 42.71% 248 120 41.19% 240 962 34.25% 199 223 34.11% 198 648 33.12% 193 243 30.78% 179 363 30.59% 178 1,340 30.50% 177 386 29.69% 173 1,508 29.02% 169 578 28.81% 168 880 28.43% 165 1,382 27.89% 162 358 27.46% 160 296 27.31% 159 199 27.09% 158 1,124 26.98% 157 1,473 26.48% 154 2,166 26.41% 154 1,100 26.19% 152 462 26.14% 152 3,355 25.98% 151 348 25.74% 150 232 25.73% 150 756 25.63% 149 3,403 25.63% 149 350 25.51% 148 544 25.40% 148 1,110 25.37% 148 199 25.28% 147 591

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Doritos heavy user consumption Geography Name Total % HHs Target % HHs 60165 62225 60958 60501 60585 60426 62424 60428 60564 60827 60472 60072 60153 60037 60110 60804 60565 60490 62467 61065 60410 60432 62445 60505 61769 60487 60623 62030 60104 60491 60442 60639 60043 62365 60133 60423 62462 60088 62063 60175 60652 62218 62206 60145 60484 60073 60545 60440 60919 61011 60632 60629 60448 62357 61010 61020 61470 60451 61052 60164 60447

Stone Park IL Scott Air Force Base IL Pembroke Township IL Summit Argo IL Plainfield IL Harvey IL Dieterich IL Markham IL Naperville IL Riverdale IL Robbins IL Ringwood IL Maywood IL Fort Sheridan IL Carpentersville IL Cicero IL Naperville IL Bolingbrook IL Teutopolis IL Poplar Grove IL Channahon IL Joliet IL Montrose IL Aurora IL Saunemin IL Tinley Park IL Chicago IL Fidelity IL Bellwood IL Homer Glen IL Manhattan IL Chicago IL Kenilworth IL Plainville IL Hanover Park IL Frankfort IL Sigel IL Great Lakes IL Medora IL Saint Charles IL Chicago IL Bartelso IL East Saint Louis IL Kingston IL University Park IL Round Lake IL Plano IL Bolingbrook IL Cabery IL Caledonia IL Chicago IL Chicago IL Mokena IL New Salem IL Byron IL Davis Junction IL Prairie City IL New Lenox IL Monroe Center IL Melrose Park IL Minooka IL

0.02% 0.03% 0.02% 0.07% 0.11% 0.20% 0.01% 0.08% 0.25% 0.20% 0.04% 0.01% 0.14% 0.00% 0.24% 0.45% 0.30% 0.12% 0.02% 0.07% 0.09% 0.15% 0.01% 0.39% 0.00% 0.18% 0.53% 0.00% 0.13% 0.15% 0.07% 0.50% 0.02% 0.01% 0.23% 0.20% 0.01% 0.03% 0.01% 0.15% 0.25% 0.01% 0.12% 0.02% 0.05% 0.36% 0.10% 0.37% 0.00% 0.02% 0.49% 0.63% 0.17% 0.00% 0.06% 0.02% 0.00% 0.23% 0.01% 0.13% 0.09%

0.06% 0.07% 0.03% 0.13% 0.20% 0.35% 0.02% 0.13% 0.43% 0.34% 0.06% 0.01% 0.24% 0.00% 0.41% 0.74% 0.49% 0.20% 0.04% 0.12% 0.15% 0.25% 0.01% 0.63% 0.01% 0.28% 0.85% 0.00% 0.20% 0.25% 0.12% 0.79% 0.03% 0.01% 0.36% 0.31% 0.01% 0.05% 0.01% 0.23% 0.39% 0.02% 0.18% 0.03% 0.08% 0.55% 0.16% 0.56% 0.01% 0.04% 0.74% 0.94% 0.26% 0.00% 0.09% 0.03% 0.01% 0.33% 0.01% 0.20% 0.14%

Target % Target Index Target HHs Pen 44.30% 239 525 37.71% 203 588 33.05% 178 270 32.96% 178 1,121 32.86% 177 1,786 32.79% 177 3,115 32.74% 177 220 32.64% 176 1,184 31.83% 172 3,798 31.60% 170 3,037 31.46% 170 524 31.32% 169 86 31.04% 167 2,134 30.98% 167 27 30.92% 167 3,592 30.76% 166 6,529 30.52% 165 4,338 30.47% 164 1,731 30.32% 164 347 30.08% 162 1,040 30.04% 162 1,301 29.82% 161 2,159 29.76% 161 116 29.72% 160 5,572 29.68% 160 67 29.55% 159 2,483 29.53% 159 7,472 29.47% 159 13 29.46% 159 1,765 29.42% 159 2,165 29.41% 159 1,039 29.21% 158 6,992 29.05% 157 223 28.99% 156 70 28.96% 156 3,149 28.88% 156 2,714 28.79% 155 115 28.79% 155 434 28.59% 154 131 28.57% 154 2,026 28.39% 153 3,399 28.29% 153 150 28.26% 152 1,600 28.22% 152 256 28.21% 152 692 28.18% 152 4,828 28.07% 151 1,384 28.06% 151 4,890 28.06% 151 54 28.05% 151 330 27.89% 150 6,524 27.85% 150 8,301 27.80% 150 2,309 27.79% 150 29 27.72% 150 788 27.67% 149 286 27.57% 149 49 27.51% 148 2,943 27.49% 148 127 27.45% 148 1,755 27.44% 148 1,201

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Reviewing specific locations further, North Carolina has opportunity to reach into target % households and increase overall index. Following North Carolina is Chicago with the same opportunity. By developing strategies to penetrate these areas along with international cities, there is advantage of increasing market share and cost retention.

Doritos average user consumption Geography Name Total % HHs Target % HHs 27413 Greensboro NC 27047 Siloam NC 27923 Coinjock NC 27916 Aydlett NC 27974 Shiloh NC 27583 Timberlake NC 27042 Pine Hall NC 27921 Camden NC 27956 Maple NC 27981 Wanchese NC 27964 Point Harbor NC 27966 Powells Point NC

0.00% 0.01% 0.01% 0.01% 0.01% 0.06% 0.01% 0.05% 0.00% 0.02% 0.01% 0.02%

0.00% 0.02% 0.01% 0.01% 0.02% 0.08% 0.01% 0.07% 0.00% 0.02% 0.01% 0.02%

Target % Target Index Target HHs Pen 37.06% 164 9 32.61% 144 137 32.53% 144 99 32.34% 143 75 31.08% 137 167 30.94% 137 724 30.62% 135 78 30.50% 135 562 30.30% 134 33 30.21% 133 190 30.10% 133 63 30.10% 133 180

Doritos average user consumption Geography Name Total % HHs Target % HHs 32355 Saint Marks FL 33973 Lehigh Acres FL 33971 Lehigh Acres FL 32083 Raiford FL 32327 Crawfordville FL 33545 Wesley Chapel FL 32908 Palm Bay FL 33620 Tampa FL 32124 Daytona Beach FL 32068 Middleburg FL 32509 Pensacola FL 32827 Orlando FL 33976 Lehigh Acres FL 32622 Brooker FL 32348 Perry FL

0.00% 0.03% 0.07% 0.01% 0.13% 0.05% 0.05% 0.00% 0.02% 0.24% 0.00% 0.02% 0.04% 0.01% 0.05%

0.00% 0.06% 0.12% 0.01% 0.21% 0.08% 0.07% 0.00% 0.02% 0.36% 0.00% 0.03% 0.06% 0.01% 0.07%

Target % Target Index Target HHs Pen 34.16% 179 37 33.18% 174 854 30.87% 162 1,687 30.33% 159 117 30.13% 158 3,045 29.84% 156 1,174 29.45% 154 1,026 29.33% 154 2 29.05% 152 328 29.01% 152 5,129 28.95% 152 1 28.92% 152 401 28.28% 148 821 28.27% 148 164 28.24% 148 1,070

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The two graphs above show the geography of average consumers in North Carolina and Florida. Both need development in the target % House Hold. North Carolina has high Target % penetration but the target index in dramatically low. Florida does have lower % penetration but has a higher % house hold totals increasing the target index. HIGH INDEX / LOW PENETRATION % P en

D emand Index

HIGH INDEX / HIGH PENETRATION % P en

Tiger Beat (Books & Magazines : Magzn 0.3 Select170 Titles) Ct. *** Pop Star (Books & Magazines : Magzn 0.2 Select 163 Titles) Ct. *** J 14 (Books & Magazines : Magzn Select 0.4 Titles) 160 Ct. *** Seventeen (Books & Magazines : Magzn 0.3 Select 158 Titles) Ct. *** Sophisticates (Books & Magazines 0.2 : Magzn Select 119 Titles) Ct. *** Shape (Books & Magazines : Magzn0.2 Select Titles) 115 Ct. *** Oxygen (Books & Magazines : Magzn 0.3Select Titles) 113 Ct. *** In Style (Books & Magazines : Magzn 0.4Select Titles) 113 Ct. ** Self (Books & Magazines : Magzn Select 0.2 Titles) 112 Ct. *** Weight Watchers (Books & Magazines 0.4 : Magzn 108 Select Titles) Ct. ** Favorite Recipes (Books & Magazines 0.3 : Magzn105 Select Titles) Ct. ** Betty Crocker (Books & Magazines 0.3 : Magzn Select 103 Titles) Ct. ** Sports Illustrated (Books & Magazines 0.4 : Magzn101 Select Titles) Ct. **

D emand Index

% P en

D emand Index

% P en

D emand Index

All You (Books & Magazines : Magzn 1.6Select Titles) 128 Ct. In Touch (Books & Magazines : Magzn 1.6 Select 122 Titles) Ct. Ok! (Books & Magazines : Magzn Select 0.9 Titles)118 Ct. * Cosmopolitan (Books & Magazines :0.7 Magzn Select 118 Titles) Ct. ** Time Dstrbtn Srvc-Wp (Books & Magazines 2.1 : Magzn 117 Select Titles) Ct. Life And Style Weekly (Books & Magazines 1.0 : Magzn 115 Select Titles) Ct. * Us Weekly (Books & Magazines : Magzn 1.4 Select 113 Titles) Ct. Harris Publcatns Xtra (Books & Magazines 0.5 : Magzn 110 Select Titles) Ct. ** Every Day With Rachael Ray (Books0.6 & Magazines 108 : Magzn Select Titles) Ct. ** Glamour (Books & Magazines : Magzn 0.4 Select Titles) 107 Ct. ** Martha Stew art (Books & Magazines 0.5: Magzn 106 Select Titles) Ct. ** People (Books & Magazines : Magzn4.4 Select Titles) 103 Ct. Taste Of Home (Books & Magazines0.9 : Magzn Select 100 Titles) Ct. *

The above graph shows the best options for media buying. The red index on the left shows the consumers of Doritos reads those magazines. Although a good option would be to buy into the magazine with high percent penetration (J 14, In Style, and Sports Illustrated). Also, buying ad space in MLS, ESPN, and Gamer magazine would reach targets that out partnerships reach out to. Using advertising options on, taxi cab tops, subway signs, and bus station ads primarily in big U.S. cities as well as, Asia, UK, and Europe will also leverage new Doritos marketing strategy. Also for international marketing, purchasing 2nd, 3rd, or 4th pages in soccer magazines will build a great opportunity.

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Budget Objectives

Strategies

1. • Gain 10% market share of healthy customers in 18 months.

Programs

Tactics

A. Market Positioning

1. Launch a healthier product 2. Promotions

1. R&D 2. Engagement marketing 3. Holiday promotions

100,000 5,000 50,000

B. Follow healthier brands footsteps

1. Partnerships with healthier brands (Sun Chips, Kashi) 2. Partner with healthy activities

1. Integrated brand awareness 2. Sponsor Marathons 3. Sponsor high school athletics

A. Expand with current partners

1. Sponsoring sports 2. Sponsoring video games

1. In-game promotions 2. Host Xbox competitions 3

80,000 100,000

B. Create more partnerships overseas

1. Tour De France 2. World Cup

1. In game promotions 2. On screen promotions 3. Give aways

50,000 80,000 20,000

A. Advertising

1. Print 2. Other

1. Taxi tops (Chi, LA, NY,Miami,San Diego) 2. Subway signs 3. Bus station ads 4. 2nd, 3rd, 4th page ads

70,000 50,000 50,000 100,000

B. Media coverage

1. International Magazines 2. Commercials

1. MLS magazine 2. EuroSport TV - ESPN Euro 3. ESPN Magazine 4.ESPN TV 5. Gamer Magazine

80,000 100,000 80,000 100,000 80,000

80,000 50,000

Subtotal: $285,000 2. • Grow international sales by 15%.

Subtotal: $150,000 3.• International media awareness and coverage.

Subtotal: $710,000

ADDS TO STAFF

2 Events managers'

70,000

TOTAL:

1,395,000

Calendar jan Considerations

feb 1st Xbox Comp

march

april

Social Media FB Twitter Email website Target Ads Taxi/Bus/subway Ads MLS magazine Gamer magazine Commercials

may june New Product Launch

15th launch 15th launch 15th launch 15th launch

20th launch

july

august

25th kick off 25th kick off 20st kick off 20th kick off

30th aug MLS kick off 1st aug MLS kick off ad

sept

oct 31st MLS Season Starts

nov

dec 1st MLS ends

1st xbox 1st xbox 20th xbox 5th xbox

20th xbox 20th xbox

15th launch

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Bibliography http://www.warc.com/Content/ContentViewer.aspx?MasterContentRef=bb6918bd-a6aa-480b8246-5c5bb14383a8&q=doritos http://www.warc.com/PDFFilesTmp/f6a05142-7a6c-498f-815b-71cb05ae4aaf.PDF www.pepsico.com/company/our-mission-and-vision.html http://ehis.ebscohost.com/ehost/detail?sid=3228ddd-1ffe-4c16-95 .html http://finance.yahoo.com/q/ks?s=PEP http;//bi.galegroup.com/global/company/40783

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