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 customers or

consumers 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 cocreation 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 cocreation framework consisting of
three main components:

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

Encounter processesthe
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 cocreation 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 flavours 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 (Grnroos
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