The Marketing mix of Cheetos analyses the 4Ps of Cheetos, including the Product, Price, Place, and Promotions. Cheetos is a snack of puffed cornmeal with cheese flavor. It is manufactured by Frito-Lay, whose parent company is PepsiCo. It was created by Charles Elmer Doolin, creator of Fritos, and in 1948, it was being distributed across parts of the United States. In 2010, Cheetos was ranked at the top position in the United States primary market for its cheese puffs, and its annual sales in the retail market globally were estimated at 4 billion dollars. Some of its vital competitors are as follows-
- Uncle Chips
- Lays
- Doritos
About Cheetos
- Type: Snack food
- Industry: Food and beverage
- Founded: 1948
- Founders: Charles Elmer Doolin
- Headquarters: Plano, Texas, United States
- Area served: Worldwide
- Current CEO: Vivek Sankaran
- Number of employees: 39,000 (2022)
- Major products: Cheetos is a crunchy corn puff snack food brand made by Frito-Lay, a subsidiary of PepsiCo. Cheetos are available in various flavors, including original, Flamin’ Hot, and White Cheddar.
Table of Contents
Cheetos Product Strategy
Cheetos is associated with the snack segment of the beverage industry and has targeted youth and children as its consumer group. The brand has put its onus on different variants and increased flavors to satisfy the preferences of every customer. Products are now available in wild colors and unique shapes to attract its target audience of consumers. The first product of Cheetos was Crunchy Cheetos, and it remained its sole item for nearly twenty-three years. In 1971, a new variant of Cheetos Puffs was introduced. In mid-2000, Cheetos Natural was launched with white cheddar and natural ingredients.
In 2004, baked varieties, or Baked Cheetos, were introduced to the consumer market. Since 2010, 21 varieties of various flavors of Cheetos are available in the United States. One of the most preferred variants is Flamin’ Hot Cheetos. Cheetos introduced numerous local flavors like Zesty Japanese Steak and Cheetos Whoosh to meet the expectations of different markets worldwide. In 2015, Cheetos marketed its first sweet version, Sweetos, with sugar and cinnamon, which was introduced in the United States.
Cheetos offers a diverse range of new snack products with different flavors. The unique Product Mix of Cheetos in 2023 is as follows (Source).
- Crunchy: The classic, crunchy texture of Cheetos.
- Puffs: Soft, puffed versions of the snack.
- Popcorn: Cheetos-flavored popcorn.
- Pretzels: A twist on traditional pretzels with Cheetos flavor.
- Mac’ n Cheese: A cheesy macaroni and cheese product.
- Flamin’ Hot®: The spicy variant of Cheetos.
- Fantastix®: Stick-shaped Cheetos.
- Simply: A line focusing on simple ingredients.
- Baked: Baked versions of the classic Cheetos.
- Variety Packs: Assorted packs of different Cheetos flavors and types.
Cheetos Place Strategy
Cheetos is an American brand in the food and beverage industry and has its headquarters in Plano, Texas. During its early years, the brand focused on expanding its market in the United States. In 1976, Cheetos entered the market in Brazil and 1980s Australia. In 1994, it became the first snack-food brand of American origin to begin manufacturing and distribution in China. Slowly and steadily, the company broadened its horizons to new markets spread over thirty-six countries.
Cheetos has the backing of its parent company, PepsiCo, and hence has a vast distribution network that spreads across every part of the world. It has penetrated rural and urban areas and has captured the market relatively quickly. Cheetos products are available in general stores, grocery shops, retail stores, and other outlets through its distributors. Since 2011, the brand has started manufacturing, marketing mix, distributing, and marketing its products under three operating divisions of PepsiCo.
Cheetos employs a strategic place strategy to maximize its reach, distribution channels, and accessibility:
- Wide Retail Availability: Cheetos are available in supermarkets, grocery stores, and convenience stores, ensuring widespread accessibility.
- Global Distribution: The brand has a solid international presence, making Cheetos available in many countries worldwide.
- Online Retail Channels: Cheetos can be purchased through various online platforms, catering to the growing trend of online shopping.
- Vending Machines and Snack Bars: They are also found in vending machines and snack bars, providing easy access in public places and institutions.
- Targeted Placement in Stores: Cheetos are strategically placed in stores, often at eye level or near checkout counters, to encourage impulse buying.
Cheetos Pricing Strategy
Cheetos has adopted a product penetration policy and based its pricing policy on the same mantra. To capture new and emerging markets, it has kept its profit margin minimum and has set up a pricing policy that is reasonable and economical. It realizes that higher sales will automatically have lower prices and yield high revenues; hence, it has focused on more excellent sales figures. Cheetos has a marketing team that keeps track of prices set up by its competitors, and to compete with them, the brand has kept all its prices at nearly the same level. A pack of Cheetos products is affordable, readily available, and popular. The brand has kept steady prices of all its products to combat competition from its competitors.
Cheetos’ pricing, product innovation, and marketing strategy include several key points:
- Competitive Pricing: Aligns prices with market standards and competitor products.
- Segmented Pricing: Different price points for various product lines and package sizes exist.
- Promotional Discounts: Regular promotions and discounts to boost sales and attract customers.
- Economy Packs: Larger packs at a reduced per-unit cost for budget-conscious consumers.
- Seasonal Pricing Adjustments: Prices may vary during certain times of the year based on demand and market trends.
Cheetos Promotion Strategy
Cheetos is a high-quality product with attractive packaging that is long-lasting. Its brand is easily recognized because of its mascot, Chester Cheetah. The company has followed a promotional policy that portrays good branding and increases brand recognition and product visibility. Its marketing channel includes both print media and social media. Ads are displayed in the newspapers, magazines, and billboards, and commercials are aired on radio and television. One of the highlights of the commercials is its slogans, which have evolved and become trendy brands.
Online media has been roped in as it has become one of the essential mediums of advertisement nowadays. Brand has joined Twitter and engaged the common masses in sharing their opinion about the company and product. Cheetos has been building brand awareness by hosting several events and connecting with customers.
Some Recent Video ads and Print ads for Cheetos are:
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