Introduction
Doritos is a snack company that produces seasoned tortilla chips and sell them in different regions across the world. The company has been operation since 1964, and it is owned by PEPSCO as a parent company. Doritos Company operates in the food and beverage sector and specializes on Tasty Mexican Snacks that are made of different flavors. Various Doritos flavor include Cheese Supreme, Mexican, Original, and Nacho Cheese. The company also produces salsa as an accompaniment to tortilla chips. The target groups for Doritos Company are teen and young adults who need a taste for international flavors. This paper provides an insight into the situational analysis of the Doritos Company by analyzing SWOT Analysis and Environmental Scan.
Strength
The company enjoys international brand recognition and taste perception from its wide consumer base in different regions in the world.
The company offers various flavor and numerous sizes and shape of their products hence serving different preferences of the young people worldwide.
Doritos products and brands are aggressively enhanced by its parent company Pepsi Company. Pepsi Co is a reputable and the second largest company in a soft drink industry. Therefore, the company enhances Doritos brand through effective, attractive, and long-lasting packaging and advertising strategies.
Because the company is completely owned by Pepsi Co, it has extended in different places in the world hence becoming a popular brand in various continents.
Weaknesses
The company is also unpopular in the emerging economies especially developed countries hence have limited target market
Opportunities
The company can concentrated on the global marketing and develop aggressive marketing strategy that can enable the company to penetrate the emerging markets
In order to match the healthy conscious market, the company needs to introduce healthy products to all markets
The company can also seek collaboration with retailers such as supermarket and food outlets in order to increase sales
Threat
The niche segment is facing stiff competition from the main competitors such as Pringles, Lays, Uncle Chips, and Planters.
The global consumers are changing preference on food snack following the aggressive campaigns against unhealthy foods
The company has faced several lawsuits associated with the unhealthy food; this might affect the company’s brand reputation and consequently profitability.
Environmental Scan
Social forces
The company should utilize the concept of consumer behavior to analyze different tastes and preferences of different consumers across the globe. For example, in the India and Middle East markets the company should remove snacks that contain pork and mutton flavors in order to suit their preferences. On the other hand, the society is increasing becoming health conscious when making a decision regarding their consumption behavior. Therefore, the company should improve on healthy snack by emphasizing and offering nutritional products such as low fat and calories chips. Since Doritos Company has a significant experience in the industry, it can utilize the parent company to establish different age segments within its various markets. The company should, therefore, introduce products that fit the preference of both old and young consumers rather than targeting only young consumers.
Economic forces
Various branches of the Doritos Company experience macroeconomic challenges in the different countries across the world. Such challenges include inflation, high unemployment level, and exchange rate fluctuation that greatly affects the productivity of the company. In addition, due to a variety of competitors who produces homogeneous goods the consumers has a variety of products to choose from. Therefore, the consumers have a great influence on the process and quality of the products offered. In this case, the Doritos Company needs to develop effective strategies and tactics such as differentiation and marking strategies to remain relevant in the competition.
Technological forces
The company should take advantage of the technological advancement especially on the internet. In the company should utilize online marketing by mean of Google ads, Twitter, Facebook, Instagram and collaboration with online shops such as eBay. Such strategy can help the company to reach a broad consumer base across the world. In addition, since the company primarily target the youths, it should integrate its marketing through sports such as soccer and video games.
Competitive forces
The company is facing increasing and stiff competition from the main competitors such as Pringles, Lays, Uncle Chips, and Planters. These companies are working hard and aggressively to increase their market share. For instance, each of them is constantly working to improve the quality of their products while emphasizing on healthy snacks. Therefore, it is significant for the company to develop competitive strategies such as reducing costs and improving on consumer relation in order to gain competitive advantage.
Regulatory forces
The company adheres to the applicable corporate regulations that are enacted by various governments in which the company operates. For instance, in the United States, the company abides by the regulations set by the federal government. In addition, the company is required to adhere to the production and health regulations such as limits on fat usage and packaging regulations. In the international trade, the Doritos Company abides by tariff and trade laws effective in certain countries of operations.
Works Cited
"About | Doritos." N.p., 2015. Web. <https://doritos.com.au/about/>.
Dyson, Robert G. "Strategic development and SWOT analysis at the University of Warwick." European journal of operational research 152.3 (2004): 631-640.
Hsu, Donald K. "Case Studies in Marketing Management and Sales Management." Refereed Program of (2010).
Rossolatos, George. "Doritos: The Dip Desperado Strategy." Encyclopedia of Major Marketing Strategies, Golson Media (2013): 121-124.
Wheelen, T. L., and J. D. Hunger. Strategic management and business policy. Upper Saddle River, NJ: Pearson Prentice Hall, 2004. Print.
Williamson, D. Strategic management and business analysis. Amsterdam: Butterworth-Heineman, 2004. Print.
