Public gets to choose next Lay's flavor
People can vote online for versions that taste like garlic bread, Sriracha and chicken and waffles. What could possibly go wrong?
Consumers can vote on Facebook or Twitter for the Lay's Cheesy Garlic Bread, Chicken & Waffles and Sriracha flavors in the "Do Us A Flavor" contest.
These varieties were chosen from nearly 3.8 million fan submissions gathered between July 20 and Oct. 6 of last year. The winning entries are eligible for a prize of $1 million or 1% of the flavor's net sales, whichever is higher.
The announcement of this marketing effort two days before the company reports fourth-quarter results is no accident. PepsiCo is under pressure from investors to boost returns at Frito-Lay. During the third quarter, operating profit at Frito-Lay's North American unit was little changed.
Facebook (FB) and Twitter are trying to convince advertisers that they mean business, and companies are increasingly incorporating social media into their marketing plans. Hasbro (HAS), for instance, got lots of buzz when it enabled the public to chose to replace the iron Monopoly game piece with a cat.
Relying on the public to help formulate products is no guarantee of success, however.
New Coke, one of the greatest marketing flops in history, was test marketed. As Coca-Cola (KO) noted on its website, the formula for New Coke was preferred in taste tests of nearly 200,000 customers, so it seemed the time was right to change the formula of its flagship product. The Atlanta company, of course, couldn't have been more wrong.
"What these tests didn't show, of course, was the bond consumers felt with their Coca-Cola -- something they didn't want anyone, including The Coca-Cola Company, tampering with," Coke says.
Some companies, though, are glad they solicited views before making an important decision.
For instance, 20th Century Fox came within days of selling its stake in "Star Wars" as a tax shelter because it was afraid that George Lucas' science fiction classic would be a flop. Positive feedback from advance screenings convinced executives to drop the idea, and the film saved the studio from bankruptcy, according to IMDB.
The real test for Frito-Lay's potato chip marketing gimmick will come once the hoopla around the contest fades in a few months. You can bet that other companies thinking of giving this a try will be paying close attention, too.
--Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
More on moneyNOW
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The S&P 500 has inched back into the green while the Nasdaq (-0.4%) remains pressured.
Biotechnology weighed on the Nasdaq at the open, but the industry group has since climbed off its lows. The iShares Nasdaq Biotechnology ETF (IBB 258.44, -2.70) is now lower by 1.0%.
Despite the rebound in biotech, several large technology names have slid to lows. Apple (AAPL 527.20, -3.55), Google (GOOG 1216.29, -3.32), Facebook (FB 70.13, -0.71), ... More
More Market News
Stocks have rallied 177%, and while calling a top is the easiest thing to do, it might not be the most accurate.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'