![]() ![]() Brand awareness is the ability of a potential buyer to recognize or recall that a brand is a member of a certain product category. According to an article in the Journal of Comparative International Management by Wendy Wilson, Ming Ouyang, Shelley Rinehart and Stephen Grant, Aaker defined brand equity as a set of brand assets and liabilities linked to a brand, its name, and symbol that add to or subtract from the value provided by a product or service to a firm or to that firm's customers. Hence, a company's market competitiveness can be estimated based on an assessment of its brand equity. Cracker Jack turned a profit in its first year, and today has about $100 million in annual sales from the new four-ounce bags alone.Ĭompetition forces companies to invest intensively in brands in order to hold their market positions. The company then used its vast Frito-Lay distribution network to roll it out. Parent company Frito-Lay (a subsidiary of PepsiCo), hasn't mentioned that particular tidbit in announcing the launch of Cracker Jack's new limited edition packaging as 'Cracker Jill,' which will be introduced at ballparks across the country come April 7 (opening day, via MLB ). In response to consumer complaints, PepsiCo added 10 percent more peanuts, upgraded the prizes, and added a Web site. PepsiCo left Cracker Jack's iconic box package but also developed 4-ounce bags. The classic brand, which had annual sales of $40 million and was owned by Borden Foods Co., had not had serious advertising behind it since the late 1970s and had been losing money for five straight years when Pepsi picked it up in 1997. WEST RIDGE The smiling, patriotic boy and his dog greeting people on the front of each box of Cracker Jack were actually once real characters in the life of the snacks. Pepsi's recent acquisition of Cracker Jack gives a sense of the possibilities. Frito-Lay, which controls two-fifths of the world market for salty snacks, generated more than half of PepsiCoÆs profits. The average American now eats nearly 22 pounds of snacks each year, according to the Snack Food Association. Coupling its $10.9 billion in worldwide sales with the marketing power of parent company, PepsiCo Inc., and Frito-Lay clearly is king of the snack world. ![]() In 1997, Frito-Lay acquired the 104 year old snack, Cracker Jack from Borden Foods Inc.
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