assignment 2 marketing

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PepsiCo Inc.: Marketing Plan for Introduction of Kettle Chips

Jamin Trinidad

Marketing Management GB530

Dr. Beatrice Bourne

6/28/21

Kettle Potato Chips Brand

The name of the profit organization is PepsiCo Inc. It is a multinational organization headquartered in the United States in New York. Its current CEO is Ramon Laguarta. It was founded in 1965 and had since then expanded its markets. It mainly offers beverages, snacks, and food.

Among the brands offered by PepsiCo Inc. are Lay's, Mirinda, Kurkure, and Lifewater. However, these brands need to be expanded to serve the American and international markets fully. Among the most popular snacks in the U.S. is Kettle Potato Chips. PepsiCo does not offer Kettle Chips, explaining why the new product should be introduced in the markets. This form of brand extension will involve product development whereby the company will have to make the Kettle Potato Chips for the customers. Statistics show that the kettle potato chips market will likely grow to 11.31 billion U.S. dollars in 2025. Therefore, the promising statistics explain why PepsiCo Inc. should extend its brands to include the Kettle potato chips brand. Thus, there is a market opportunity.

Kettle chips taste more potato-like when compared to non-Kettle potato chips. The natural taste will be a good marketing idea for PepsiCo Inc. after introducing the product to the customers. Its taste is closer to the potato, giving it a natural and healthy appeal to consumers. The processing method for kettle potato chips is simplified. Potatoes are placed in kettles filled with oil. The process is repetitive, and the temperatures need to be controlled.

The benefits of introducing the Kettle Potato Chips are immense. The first benefit is that the preparation method for the Kettle Potato Chips brand is easy. Therefore, the development of the snack will not cost PepsiCo Inc. a lot of capital. Another benefit of introducing the Kettle Potato chips brand at the organization is that it is among the most famous snacks in the United States. Therefore, it draws many customers, which will mean fewer costs in marketing the product. PepsiCo Inc. will use fewer costs in introducing the product to the markets because most customers are conversant with the product. Thirdly, the brand has growth potential. According to the statistics, the potato chips industry is expected to generate 11.31 billion dollars in 2025. The statistics show that there exist opportunities for PepsiCo company to expand its snack market share by introducing Kettle Potato Chips as one of its brands.

The target markets for the Kettle brands shall be individuals between 25 years old and 40 years old and those between 57 and 75 years. According to the report released by NDP, among the three snacks taken by the age groups are potato chips. Therefore, the target market is individuals that fall within the mentioned age sets. For those between 25 and 40 years, snacks are preferable because of ease of access, while for the elderly, snacks are preferred because they mostly live alone, which is the most straightforward food to eat. Internationally, PepsiCo can target the French markets because it is the second largest in chip consumption after the United States.

Conclusively, the organization identified is PepsiCo Inc. which deals with food, snacks, and beverage. The new product brand to be introduced is the Kettle Potato Chips. The brand has business potential, as statistics indicate. The target markets are those aged between 25 and 40 years and between 57 and 75 years. Internationally, PepsiCo Inc. can target the French markets.

References

Friend, N. (2018, March 14). Are Kettle Chips Healthier Than Regular Potato Chips? Food & Wine. https://www.foodandwine.com/news/are-kettle-chips-healthier

Snack Sales - Baby Boomers Eating More than Millennials -. The NPD Group. (n.d.). https://www.npd.com/wps/portal/npd/us/news/press-releases/2016/millennials-have-nothing-on-boomers-when-it-comes-to-snacking/

U.S. Potato Chips Market Worth $11.31 Billion By 2025: CAGR: 4.4%. Market Research Reports & Consulting. (n.d.). https://www.grandviewresearch.com/press-release/us-potato-chips-market-analysis .