Business Case Studies & Business Publications

Frito-Lay, Inc.

Newton, Derek A., ...

Case

Frito-Lay, Inc.

Newton, Derek A.; Miller, Ann

M-0276 | Published April 2, 1984 | 15 pages Case

Collection: Darden School of Business

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Learning Objectives

In the fall of 1983, executives of Frito-Lay are considering an experiment in Kansas City involving a change in the allocation of spending among advertising, consumer promotions, trade promotions, and sales-force incentives in its efforts to expand the sales of Grandma's Cookies. The amount of marketing funds under consideration is $100,000 over the current annual rate of $363,000. The experiment is to last six months. The purpose of this case is to expand student understanding of various push and pull tactics to include the concepts of trade and consumer loading/unloading, and the timing involved in these considerations. A further objective is to relate the various trade and consumer deals and promotions to consumer and competitive behavior.