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Socio-Cultural Trend Analysis

Essay by   •  April 21, 2011  •  Case Study  •  557 Words (3 Pages)  •  1,667 Views

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Children are the greatest influencers of which snacks get purchased by households. They often decide which brand will be purchased, and the head of household (typically the mom) will define the specific type (PepsiCo Investor Relations, 2010). The selling process for the Spoonachos snack will have to consider this dynamic, as it has direct implications on the next factor as well. As this is a complex buying decision, it is critical to look at the socio-cultural factors that also influence the selling of snacks.

Socio-Cultural Trend Analysis

The combination of changing consumer lifestyles that place a greater premium on time, and the increased interest in healthy snacks have combined to increase all forms of chip consumption over the last five years. Many families are today working two or more jobs which makes time and money all the more precious to customers in these segments (PepsiCo Investor Relations, 2010). Adding to these concerns are the need for healthy alternatives to sugar-based snacks and high calorie fast food, and the catalyst is being created for chip demand to increase substantially through 2015.

Economic Trend Analysis

The market for mid-range and low-end snacks continues to be price-inelastic, with pricing changes not affecting demand (PepsiCo Investor Relations, 2010). At the higher end of the snack market, price elasticity is more prevalent for the market leader, Frito-Lay, and their combination of granola, gain and bread-based products, where there is greater brand loyalty and fewer substitutes that can force inelasticity into the market (PepsiCo Investor Relations, 2010). As a result, low-end snack foods do better during periods of challenging economic times as consumers look for bargains and special deals. Grocery wholesalers and dealers often bundle in low-end snacks to gain greater share of their distribution channels, often using potato chips as a means to gain greater shelf space and sales. In conjunction with these factors is the flat growth of household disposable incomes in the U.S., where incomes grow only .8% in 2009. As a result of this slow growth of per capita incomes, many families are now eating at home more often, consuming more chips and snacks rather than going out for formal dinners. These are all positive factors relating to the potential a successful launch of Spoonachos.

Technological Trend Analysis

Consumers' use of technology is making it possible for marketers to reach them through social media, which includes support for cell phones, tablet PCs, and smart phones. This technological development is completely re-defining the methods used for selling snacks, putting the customer in control of the conversation (Bernoff, Li, 2008). Social media in general and social networks specifically including Facebook, Friendfeed, Twitter and others

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