Friday, March 6, 2015

Small company, big following: Popchips

Popchips, established in 2005, may not be the best known snack food, but the company has done a great job developing a social media presence that rivals its better known competitors. In fact, when the company started it relied on word-of-mouth and grass roots marketing, which included social media, rather than mass media (Hong, 2013). The content included endorsements from high profile celebrities such as Ashton Kutcher, Katy Perry, and P-Diddy. “That strategy helped it secure distribution in 30,000 retailers across the country, as well as private-equity firm infusions, along the way” (Lukovitz, 2014).

As of today, Popchips has:

Let’s compare this to Lays, the number one selling potato chip in the US.  As of today, Lays has:



If you just look at the numbers, you may think that Lays is doing a much better job with their social media efforts than Popchips, but I would argue that. Popchips annual revenue is approximately $93 million (Popchips, 2013) whereas Lays is approximately $11.3 billion (Frito-Lay, 2014). Further, Popchips employs only 90 associates (Popchips, 2013) while Frito lay employs over 50,000 (Our Vision, n.d.). With all of this in mind, I think Popchips has been quite successful. The company’s videos have gained a huge audience. I would recommend Popchips builds on its success and continues to post quirky videos featuring celebrity endorsements throughout its social media channels.

While an article in PracticalEcommerce mentions “The only way to capture and quantify how often social media influenced purchases…is to ask visitors and customers” (Wilson, 2012), I would argue in Popchip’s case, they could equate product awareness and sales to social media since the company doesn’t focus on other, mainstream media.

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References:

Frito-Lay (2014) Forbes. Retrieved from: http://www.forbes.com/companies/frito-lay/
Hong, Nicole. (2013, February 20). New Kind of Chip Pops on the Scene. Wall Street Journal. Retrieved from http://www.wsj.com/articles/SB10001424127887323764804578314071686763506
Lukovitz, Karlene. (2015, September 25). Popchips' Next Stage Includes TV, Redesigned Site. Media Post. Retrieved from: http://www.mediapost.com/publications/article/234886/popchips-next-stage-includes-tv-redesigned-site.html
Our Vision (n.d.) Frito Lay. Retrieved from: http://www.fritolay.com/company

Popchips (2013) Forbes. Retrieved from: http://www.forbes.com/companies/popchips/