CHEETOS
- 1. CRITICAL SITUATION IN AN ORGANISATION & MANAGERIAL SOLUTION NAME: E. KARTHIKEYAN REG.NO.: RA1952001020040 Course & section: MBA – “A”
- 3. INTRODUCTION Cheetos (formerly styled as Chee-tos until 1998) is a brand of cheese- flavored puffed cornmeal snacks made by Frito-Lay, a subsidiary of PepsiCo. Fritos creator Charles Elmer Doolin invented Cheetos in 1948, and began national distribution in the U.S. In 1965 Frito-Lay became a subsidiary of In 2010, Cheetos was ranked as the top selling brand of cheese puffs in its primary market of the United State. The original Crunchy Cheetos are still in production but the product line has since expanded to include 21 different types of Cheetos in North America alone. As Cheetos are sold in more than 36 countries.
- 4. MARKETTING Cheetos first entered Brazil in 1976, followed by other countries such as Australia during the 1980s. In 1994, Cheetos became the first American brand of snack food to be made and distributed in China. As the distribution of Cheetos expanded outside the U.S. to include more than 36 different countries, localized versions were produced to conform to regional tastes and cultural preferences. Frito-Lay conducted extensive testing before settling on flavors for the Chinese market, with ranch dressing, North Sea crab, smoked octopus and caramel being passed up for two flavors: Savory American Cream and Zesty Japanese Steak. In 2013, a Pepsi-flavored Cheeto was introduced in Japan, and a Mountain Dew-flavored variety was available in 2014. In India, Cheetos Whoosh are sold, made of ingredients such as whole grain and vegetables
- 5. CRISIS IN CHEETOS Changing consumer preferences and rising competition have led to a fall in market shares and revenues that the US-based food and beverages maker has failed to arrest despite shifting focus to healthier offerings PepsiCo India Holdings Pvt. Ltd, maker of a range of foods and beverages including Kurkure, Quaker Oats, Pepsi and Gatorade, ended fiscal year 2017 (FY17) with a revenue of Rs6,540 crore, its filings with Registrar of Companies (RoC) show, less than its 2012- 13 figure of Rs6,994.8 crore. The decline also shows up on market share data provided by independent research agencies, confirming PepsiCo has been losing fizz in India.
- 6. CRITICISM Beginning in 2008, Cheetos advertising and promotion broadened in regards to age appeal, with a revised focus on an adult demographic. In the US$3 million, 30 second advertisement, a "loud, chatty woman" is talking on her mobile phone at a restaurant. Chester the Cheetah persuades another customer to toss Cheetos onto the ground, attracting a flock of birds to drive away the obnoxious loud-talking customer. In 2009, Frito-Lay invited popular blog Boing Boing to feature online ads for Cheetos. The blog contracted Johannes Grenzfurthner (of monochrom) to create an artistic campaign for the product. On August 15, 2017, Frito-Lay announced the opening of its The Spotted Cheetah pop-up restaurant in New York, with dishes made with Cheetos with chef Anne Burrell. According to the Wall Street Journal, the restaurant's reserve spots quickly sold out.
- 7. SOLUTION Cheetos mascot was the animated Cheetos Mouse, which debuted in early 1971. The Cheetos Mouse spoke with an upper-crust accent, and typically wore a three piece suit. He used the slogans "Chee-tos. Cheese that goes crunch!" and several years later, "Hail Chee-sar!". The mouse was seen in television commercials and print ads for Cheetos, until the character was phased out around 1979. The Cheetos brand is commonly recognized by association with its second and current mascot, an anthropomorphic sly, smooth-voiced cartoon cheetah named Chester Cheetah. Chester first appeared in television commercials in 1986, known for concluding Cheetos advertisements with slogans, which have evolved over time. He used both "The cheese that goes crunch!" and "It ain't easy bein' cheesy" as slogans from 1986 to 1997, and then "Dangerously cheesy" from 1997 onwards.
- 9. REFERENCE PepsiCo Rebrands 'Natural' Products with 'Simply Frito-Lay, Inc. Company Profile for Students Cheetos Mystery Colorz Snacks Taste Cheesy Like Cheetos