Case Study Analysis

The Frito-Lay Cracker Jack case

This is being written to analyze the Frito-Lay Cracker Jack case This case is about the acquisition by the company Frito-Lay of Borden Food 's caramel popcorn brand Cracker Jack . The case facts extensively details company information of Frito-Lay , Borden Foods and the brand Cracker Jack . It also discusses efforts already undertaken by Frito-Lay in its bid to acquire the brand from Borden Foods . There are already extensive discussions on these types of information . The task at hand is meant to analyze the intended sale from a

marketer 's point of view using the worksheet provided by Kerin and Peterson (2007 ) in their book on Strategic Marketing Problems

In to do an adequate case study analysis using the worksheet , we answer the specific s with 5 questions in mind . These are as follows

a ) Why is Borden selling Cracker Jack

c ) What would a SWOT analysis of Cracker Jack look like from Frito Lay 's perspective

d ) How will Frito-Lay likely market Cracker Jack

e ) What is a fair market price for the sale

The reasons why Borden and Frito-Lay are selling and buying the Cracker Jack brand would be discussed in our discussion on the Nature of the Industry and Market of which both companies belong

The SWOT analysis of Cracker Jack from Frito-Lay 's perspective will be tackled successively in The Organization . The SWOT analysis is simply an assessment of the strengths , weaknesses , opportunities and threats facing the Cracker Jack brand when it is acquired by Frito-Lay It would be a combination of the pertinent company and brand details of Frito-Lay , the acquiring company and Borden Foods , the selling company . The question regarding Marketing strategies of Cracker Jack under Frito Lay and the suggested price for fair market value will be discussed under the headers Plan of Action ' and Potential Outcomes . Buying the brand and properly marketing it is a distinct plan of action by Frito-Lay with distinct outcomes depending on the methods used

Nature of the Industry , market and buyer behavior In starting any case analysis discussion on industry , it is noteworthy and important to distinguish the particular industry where the company or companies involved are part of . We would briefly state the pro of the companies and proceed onwards

Frito-Lay is a division of Pepsi-Co . Inc . It is a highly profitable enterprise with an operating profit of 1 .63 billion of net sales in 1996 . It is also an integral part of Pepsi-Co . Frito-Lay contributes 31 percent of Pepsi Co 's net sales and 60 percent of its operating profit

The company is also a growing company with an annual growth rate of 13 percent for the 5-year period from 1991-1996 (Kerin , 1999 ,

. 237

Borden Foods with its brand Cracker Jack is one of the two industry leader in the Ready to Eat caramel popcorn category . It is owned by Kohlberg Kravis Roberts Co which purchased the company for 1 .9 billion dollars in 1994 . It was widely...