How Doritos Implement Co-Creation Strategy in their business strategies.

Introduction

Doritos is a brand of a seasoned tortilla chips released in 1964 by American food company Frito-Lay. The name came from Mexican Spanish, Doradito, which means little golden things. The plain chips are made of ground corn, vegetable oil, and salt. Other ingredients vary across the flavored chip varieties.

The purpose of this article is to develop a process-based conceptual framework for understanding and improving value co-creation. The article is organized as follows. First, we provide an overview of research into co-creation. Second, we identify key components of value co-creation and explain how these can be integrated in a new conceptual framework. Third, we use field-based research to illustrate application of the framework. Finally, we discuss limitations of the study and some areas for further research, how Doritos implement Co-Creation in their business strategy.

Traditionally, suppliers produced goods and services,and customers purchased goods and services. Today, customers can engage in dialog with suppliers during each stage of product design and product delivery. This form of dialog should be seen as an interactive process of learning together (Ballantyne 2004). Together, supplier and customer have the opportunity to create value through customized, co-produced offerings. The co-creation of value is a desirable goal as it can assist firms in highlighting the customer’s or consumer’s point of view and in improving the front-end process of identifying customers’ needs and wants (Lusch and Vargo 2006).

The conceptual framework we develop starts with recognition of the centrality of processes in co-creation. There is now an increasing recognition of the important role of processes (e.g., Webster 2002). S-D logic (Vargo and Lusch 2004a) emphasizes that marketing should be viewed as a set of processes and resources with which the compan seeks to create value propositions. Processes include the procedures, tasks, mechanisms, activities and interactions which support the co-creation of value. This process view accentuates the need to view the relationship between the provider and the customer as a longitudinal, dynamic, interactive set of experiences and activities performed by the provider and the customer, within a context, using tools and practices that are partly overt and deliberate, and partly based on routine and unconscious behavior. The literature, our initial research and our later fieldbased research confirmed the need for a practical and robust process-based value co-creation framework consisting of three main components:

Customer value-creating processes—Supplier value-creating processes—the processes, resources and practices which the supplier uses to manage its business and its relationships with customer and other relevant stakeholders.

Encounter processes—the processes and practices of interaction and exchange that take place within customer and supplier relationships and which need to be managed in order to develop successful co-creation opportunities.

These three main processes (customer, supplier, encounter) form the basis of the framework for co-creation presented in Fig. 1. We now provide an overview of the structure

of the framework and then illustrate the application of its use in Doritos co-creation.

Body

Have Doritos runs those 3 main components in co-creation framework. First, in the terms of Customer Value creating processes, Doritos took a major risk by implementing user-generated ads for the biggest promotional event of the year: the Super Bowl. In 2007 and 2008, Doritos pioneered the power of consumer-generated content and aired ads made by fans during the Super Bowl. this campaign encouraging consumers to submit ideas for TV ads to be shown during the Super Bowl, offering up to $5 million (€3.4m; £3.0m) to the winning entrants.

Secondly for Supplier value-creating processes, Doritos creates campaign to give name to its newest line of tortilla chips. it will take 100 winners and will be awarded the title ‘Flavor Master’ then invited to taste all the latest innovations from the brand, as well as getting free tortilla chips for a year. Also allowing the consumers to design the new flavour’s bag. Frito lay see opportunities provided by changes in customer preferences and lifestyles which create relationship experience design for customer that will make them more engage with the product.

At last component which is Encounter processes, Encounters between customers and suppliers can be considered exchange practices in which the parties exchange resources (e.g., money, products, work, information, time), as well as collaborative practices in which the parties jointly perform activities. Organizational learning necessarily involves a deep understanding of the content and form of these interactions (Grönroos 2006). In this term Doritos has strategy that makes game fight between two trial flavours (Smokin' Cheddar BBQ vs Wild White Nacho)

via website for decide which flavours that will still exist and the other one will terminated according consumer's play in the game. The flavours which has bigger vote/win will last in the market.

Conclusion