Question

In 1932, C.E. Doolin purchased a bag of corn chips at a small San Antonio café. He liked them so much that he purchased the recipe and began selling them from his Model T Ford. He named them FRITOS. Also in 1932, Herman W. Lay began a potato chip business in Nashville, calling it the H.W. Lay Company. In 1961, the two companies merged to form Frito-Lay, Inc. Today, Frito-Lay's main brands are Fritos, Lays, Doritos, Tostitos, Cheetos, Ruffles, and Sun Chips. Together, Frito-Lay brands account for almost 60% of the snack chip industry in the United States. Currently, the company has about 48,000 employees in the U.S. and Canada.

Imagine that Frito-Lay noticed that its sales of Lays potato chips were stagnant. In order to understand how consumers felt about potato chips and snacking in general, it held small group discussions with customers and learned their preference was for lower fat snacks. To gather more information, the company utilized its existing scanner data and determined that consumers purchase more popcorn, pretzels, and other healthy snack options. In response, marketing managers are considering developing and introducing a new ultra low fat potato chip. The marketing managers have worked with the research and development department to create several prototypes to determine which, if any, consumers prefer.

1.

Frito-Lay's overall research objective is to

understand why Lays potato chip sales are flat.

determine new pricing objectives.

increase promotional spending on Lays.

2.

The research and development team will gather important information by first using __________ data.

secondary

primary

focus group

3.

A specific research objective from the information obtained in the small groups is to

increase the number of customers through promotional efforts.

provide more general information on Lay's sales.

create a marketing plan for Lay's chips.

4.

The scanner data collected by Frito-Lay is a form of

primary data.

external secondary data.

internal secondary data.

5.

In order to understand consumer purchasing patterns for Lay's chips, Frito-Lay market researchers are likely to use ___________ as it analyzes large purchase history databases and coupon redemption histories looking for patterns.

focus groups

surveys

data mining

Answer 1

1. understand why Lays potato chip sales are flat. [because the sales of chips went stagnant]

2. focus group [because focus group provide an idea of the market and its related situations]

3. provide more general information on Lay's sales [because the small group was formed to find out the reason behind the stagnant sales of chips]

4.  external secondary data [because these data were collected from the retail stores]

5. data mining [because it will provide huge chunks of data and meaning information from the same]

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