As E-Commerce Grows, Frito-Lay Looking To Make Products ‘Resonate Online’

Indra Nooyi, chairman and chief executive for Frito-Lay's parent, PepsiCo, views the rise of e-commerce as a gateway to new marketing and shipping techniques. 

Frito-Lay

The online marketplace continues to grow, and Plano-based Frito-Lay is looking to make its products more appealing and shippable to online consumers. 

While potato chips can easily be crumbled, and most single-purchase bottled soft drinks are sold chilled, Frito-Lay is looking for innovative ways to deliver its products to consumers in top shape. 

“How do you get that 89 cent bag of Lay’s to really resonate online?” asked Bernstein analyst Ali Dibadj during this week’s second-quarter profits call, according to The Dallas Morning News. “It seems to me it’s becoming a bigger and bigger deal given the lower foot traffic in brick and mortar retailers.”

Indra Nooyi sees the rise of e-commerce as a gateway to new marketing and shipping techniques. 

Indra Nooyi, chairman and chief executive for Frito-Lay’s parent, PepsiCo, views the rise of e-commerce as a gateway to new marketing and shipping techniques. 

“So we’re looking at meaningful innovation both in snacks and beverages in order to address the exploding growth of e-commerce,” Nooyi said during the call. 

In recent years, Frito-Lay has focused on “upping its innovation game,” according to DigidayWith campaigns such as “Do Us a Flavor” and “Boldest Choice,” chief marketing officer Jennifer Saenz told Digiday in December the company aims to provide a means of customer interaction with the brand.

“For us, innovation in keeping consumers’ attention is more important than ever,” Saenz said. 

“For us, innovation in keeping consumers’ attention is more important than ever.”

Jennifer Saenz

Frito-Lay has a “70-20-10” approach to innovation. Seventy percent of its marketing is traditional, 20 percent is experimental, and 10 percent is meant to be unique. The company’s overall strategy is “grow the core and add more,” Saenz told Digiday. 

As the digital age progresses, Frito-Lay sees it as less of a challenge, and more of an opportunity for growth.

“We believe we are well-positioned to win in this environment,” Nooyi said. “In fact, we anticipated and prepared for many of the trends we are witnessing today.” 


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