doritos final presentation

Doritos Nate NegriMarketing Research (BUS 1535)April 19th,2016

Contents Purpose

Executive Summary Background

Methodology Findings

Secondary Data Qualitative Data Quantitative Data

Implications Appendices

Purpose

Executive Summary

Affordable cost and taste are the top category motivators of the people surveyed. Taste and Advertising were the top category motivators for Doritos.

Healthy was the lowest category motivator for Doritos. The top competitors for Doritos are Lays, Cheetos, Sunchips, Tostitos, and Utz. Doritos was ranked third for affordable cost and ranked first for taste.

Background

This research was done to fulfill the requirements of Business 1535: Marketing Research.

The requirement for the course is to research secondary data, design studies and collect primary data, and analyze all data collected to develop actionable information for a company.

The research was for the brand Doritos and in the Snack Food Production in the US industry. NAICS: 31191.

Research Objectives

Demographics: Ages 18 to 35 of all gender, race, religion, and ethnicity Psychographic: Individuals that frequently enjoy snack foods and who purchase

chip based products. Point of Difference: Doritos owns 16 different flavors and many people enjoy their

products. Frame of Reference: Tostitos, Utz, and Cheetos

Research Objectives

Find unaided awareness for Doritos and its competitors. Find aided awareness for Doritos and its competitors. Find where Doritos ranks compared to their competitors What factors go into purchasing snack food See how Doritos ranks in the category motivators and how they compare to the

competition. See consumer’s behaviors and feelings about Doritos and its competitors.

Methodology

Methodology

Secondary Data Gathered from IBIS World and Market Share Reporter

Primary Data Qualitative Data

All subjects read and sign the Informed Consent Form (ICF) Personal Interviews- 5 interviewees Focus Group- 5 members

Quantitative Data All participants were given the chance to accept or decline the survey. Sample size estimates: census.gov and RaoSoft to find sample size 45 surveys: 25 online, 20 paper

Findings

Findings (Market Share)

Doritos40%

Tostitos14%Utz

2%

Cheetos20%

Other25%

Market Share

DoritosTostitosUtzCheetosOther

Market Share Reporter

Mean and Median Sales (In Millions)

Mean Median$0.00 $5,000.00

$10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00 $35,000.00 $40,000.00 $45,000.00 $50,000.00

26092.12 25881.39

13934.3 13821.84

4702.85 4664.87522.55 518.32

Cheetos Doritos Tostitos Utz

Industry Mean = $34,835.94Industry Median = $34,554.6

Snack Food Production in the US NAICS: 31191

Market Share ReporterIBIS World

Market Share x Industry Numbers

Findings (Sales)

2011 2012 2013 2014 2015$0 $5,000

$10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000

$12,916 $13,522 $13,822 $14,369 $15,043

$4,359.27 $4,563.68 $4,664.87 $4,849.43 $5,077.01 $484.40 $507.08 $518.32 $538.83 $564.11

$24,185.88 $25,319.95 $25,881.39 $26,905.35 $28,168.02 $32,291 $33,805 $34,555 $35,922 $37,608

Company/Industry Sales (Millions)

Doritos Tostitos Utz Cheetos Industry

Market Share x Industry Numbers

Personal Interviews Overview

Unaided Awareness answers were given by what brands they eat and see the most. Lays came out as a top competitor (5 out of 5 in unaided) Tostitos scored a 0 out of 5 in unaided awareness

When asked the aided awareness questions each brand scored a 5 out of 5. Top category motivators (Advertising and Taste)

Both scored a 5 out of 5 Find first, Healthy, Price, What others like

Doritos was perceived as a brand that targets the younger generation Utz is seen as old and out of date Cheetos get too messy Tostitos need other products to compliment the brand

Interview #1

Favorite brand was Lays Weis was the only brand for unaided awareness Knew all brands for aided awareness Appeal to personal interest was the only category motivator given Ranked Doritos first and Utz last Thought Doritos should create more flavors Did not think Doritos had a lot of advertising

Interview #2

Sunchips was his favorite brand Snyders, Doritos, Lays, Cheetos, Sunchips, Utz, Martins, and Hartleys Was aware of all brands for aided awareness Taste was his most important factor Doritos was his favorite, Tostitos was his least favorite Doritos has more of a variety compared to its competitors

Interview #3

Lays was the favorite brand Doritos, Fritos, Cheetos, and Lays for unaided awareness Was aware of all brands for aided awareness Advertising was an important factor Health and taste were other factors Doritos was the favorite, Tostitos was least favorite Advertising for Doritos was better than the competition Packaging for Doritos was more appealing Thought Utz was an older generation snack

Interview #4

Lays was the favorite brand Lays and Snyders were unaided awareness answer Was aware of all brands for aided awareness What he likes and others like were key factors Price and taste were other factors Doritos was the favorite, Utz was least favorite Thought of Utz as an “off brand” Advertising for Doritos was perceived has higher than other competitors Believe they should make a bigger bag for party purposes

Interview #5

Favorite brand was Lays Doritos, Sunchips, Lays, and Fritos were the answers for unaided awareness Was aware of all brands for aided awareness What he is feeling and location of the product in store were his key factors Doritos was the favorite, Cheetos was least favorite Believed Doritos had more flavors compared to competitors Doritos appeals to a younger audience better than the competition Utz was viewed as unattractive

Focus Group (Aided and Unaided Awareness)

No participant named Doritos as their favorite chip brand Lays (3/5), Middlesworth, Cheetos

Unaided Awareness Doritos (5/5), Cheetos (4/5), Utz (0/5), Tostitos (0/5) Lays, Sunchips, Fritos, Pringles, Middlesworth, Trailmixes, Ruffles were other brands listed

All participants were aware of all brand for aided awareness

Focus Group (Category Motivators)

Top two Taste (3/5) Portion Size (3/5)

Others Cost (2/5) Event (2/5) Advertising Deals Word of mouth

Focus Group (Attitudes)

Doritos had a unique style of chip Had the best variety of flavors Great advertising (Super Bowl) Saw Doritos as priced high Suggested a creating a bigger portion size and resalable bags

Focus Group

Sample Size Estimates

According to census.gov, the population of people living in Cambria County that were under 18 was 19.7%

136,411 x 19.7% = 26,872.97 people under 18 136,411- 26,872.97 = 109,538 target population 109,538 is the amount of people in Cambria County that is over the age of 18

http://www.census.gov/search-results.html?q=Cambria+County%2C+PA&page=1&stateGeo=none&searchtype=web&cssp=Typeahead

Sample Size Estimates

Sample size should be 383 of the population with a 95% confidence level. With a sample size of 45, the margin of error would be 14.61%.

http://www.raosoft.com/samplesize.html

Demographics (Age)

0.2444,

0.3111,

0.467

,

18-20 21-25 25+

Demographics (Gender)

27%

73%

MaleFemale

Demographics (Year of School)

Freshman Sophomore Junior Senior Graduate Student Other0

5

10

15

20

25

3

86 7

2

20

*Out of 45 Participants.

Favorite Brands

Doritos22%

Lays20%

Middlesworth18%

Other40%

*Other brands included Snyders, Veggie chips,Sunchips, Pringles, Cheetos, and Cape Cod Ruffles.

Unaided Awareness

Cape Cod Ruf -fles

Cheetos Doritos Lays Sunchips Tostitos Utz0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%

100.00%

0.67% 2.67%

14.67%24.70%

6.00% 4.00% 8.00%

Aided Awareness

Cheetos Doritos Sunchips Tostitos Utz0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%

100.00% 100.00% 100.00%95.56%

100.00% 100.00%

Category Motivators

Taste

Portion Size

Healthy

Affordable Cost

Advertising

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

4.77

3.48

2.54

3.63

2.42

*Scored out of a 1 to 5 scale. (5=Best, 1=Worst)*Averages

Category Motivators (Continued..)

Advertising Affordable Cost Healthy Portion Size Taste0

10

20

30

40

50

60

70

80

90

100

2.42 3.63 2.54 3.48 4.779.69

18.8812.73

16.63

44.27

• Orange = Category motivators ranked 1 out of 5• Black = Category motivators ranked 0 to 100

*Averages

Top Brand Differentiators

Affordable Cost Taste00.5

11.5

22.5

33.5

44.5

5

3.13

4.08

3.08

4.35

33.42

3.063.43.33 3.17

Cheetos Doritos Sunchips Tostitos Utz

*Averages*Scored out of a 1 to 5 scale (5=Best, 1=Worst)

Other Brand Differentiators

Advertising Heathy Portion size00.5

11.5

22.5

33.5

44.5

5

3.69

1.85

3.06

4.04

1.91

3.38

2.28

3.38 3.273.062.72

2.232.17 2.23

3.19

Cheetos Doritos Sunchips Tostitos Utz

*Scored out of a 1 to 5 scale (5=Best, 1=Worst)*Averages

Satisfaction Rating For Doritos

Participants were given a question on a 1 to 5 scale (5=Best, 1=Worst) of how the feel about the brand Doritos. The average score of the 45 participants was a 4.38 out of 5.

Rankings for the Brands

Cheetos Utz Sunchips Tostitos Doritos012345

3.33 3.1 3.04 3 2.63

On a 1 to 5 scale (5=Best,1=Worst)

These are the averages of brands when ranking them on a 1 to 5 scale when asked how participants would rank these brands from their favorite to least favorite.

Positioning Map

Affordable Cost

Taste3.08, 4.35

3.13,4.08

3.00, 3.42

3.06, 3.40

3.33, 3.17

Implications

ImplicationsResults ImplicationsDoritos ranked second in unaided awareness and was part of a four way tie for first in aided awareness.

Doritos ranking being so high for both aided and unaided awareness is due to its perceived great taste as well as good advertising. Consumers see the brand as a great tasting snack food with it being ranked first in taste. Also, the advertising for the brand has been affected in a positive manner due to the popular Super Bowl ads they produce every year.

Doritos ranked third in affordable cost. Utz was first in affordable cost when compared to the other brands with Cheetos being second. Since Doritos was ranked third they should keep the price as it is since it only opposes a brand that is perceived to have the worst taste out of all the brands. Since Doritos is perceived to have the best taste, they should not and change their image to look like a cheaper product.

ImplicationsResults Implications Lays is considered a top competitor of Doritos. For Lays, the brand was scored highest in both

qualitative and quantitative data when asked for the participants favorite snack food. Although Doritos was ranked second for unaided and was ranked high in category motivators, they should pursue different options such as a resalable bag or bigger portion size to compete with Lays for the favorite snack food.

Doritos was last when asked to rank the brands from favorite to least favorite.

When asked to rank the following brands, Doritos average was last compared to all the other brands given. Although they had a 4.38 out of 5 ranking average in satisfaction, they should try to improve their scores with other category motivators such as healthy and portion size to boost their overall ranks when compared to the other brands.

ImplicationsResults Implications

Doritos lowest ranking in category motivators was healthy.

Doritos is seen by the sampled surveyed as a unhealthy snack, scoring a 1.91 out of 5. although it is high in the other factors, Doritos should explore trying to create healthy alternatives such as a veggie chip to try and boost the perception of healthy to the public.

Appendices

Appendix A

Appendix B

Appendix C

Appendix D

Appendix E