Marketing Objective

Company is having very clear perception about the target market which is explained as follows: Company want to capture as many share of the market so that the company maximize its market share. Customer attraction towards the product is very important and without this phenomena company cant fulfil its targets. Strong distribution channel is the foremost element and is required more when the need increases, so the company should also focus on them and will give them certain benefits as well as the retailers. Profit maximization is always prior magnitudes for every company for that purpose they reduce the cost of production to enhance the turnover of the company.

Marketing Strategies
LAYS Target Markets
LAYS is such kind of product which is designed for the region of south Asia specially the sub-continent (Pakistan and India) where the people like spicy kinds of food and snacks including urban and suburban areas. LAYS is not concerned with any religion, race, occupation, family life cycle or gender and has a target market in every social class. Main concerned segment is youth who have experienced high product consumption level. But they are also targeting families, as they understand this influence factor in this region. Except lower classes of our society, every social class and income level is favorable for the company. LAYS is usually consumed on occasionally basis, providing the better quality at economical price along with the convenience to consume. We deeply focus on non users, potential users and first time users in readiness stage they are unaware, desirous, interested and intending to buy. LAYS is expecting the positive response from the customers.

Product
LAYS as an extruded item which lies in the snacks category is offered to market for consumption and it is much satisfying the consumers needs and wants.

Levels of Product
For every product there are basically three levels of product.

i.

Core Benefit

Before introducing the brand the LAYS Company conduct different surveys to get the perception of the consumer about features, design and quality level. Public want to buy the potato chips to remove their hunger with little bit crunch and unique taste. But mostly people are not ready to compromise on quality. In fact there is no any basic necessity regarding snacks however it plays a vital role to fulfill that need.

ii.

Actual product

After a complete research LAYS Company turns the core benefits into the actual product and introduces the LAYS CHIPS which is unique in Quality, Flavor, taste and quantity. Its totally fulfilling the need of the people.

iii.

Augmented Product

As we know that LAYS is the convenience good at the consumer level so they are not offering any services directly to consumer i.e. after sale service, user manual but they are offering benefits to the retailers in the form of more profit. LAYS stands etc.

Consumer Product
Consumer products are those products which consumer buy or purchase for their personal use or consumption. So LAYS are the consumer product because it basically use at the consumer end.

Convenience Type of Product

LAYS snacks is the Convenience type of product in which consumer buying behavior is frequent purchase, little planning and little comparison and has a low price. And LAYS is believed on wide distribution channel.

Product Attributes
Quality
LAYS CHIPS are following the concept of Siemens (Quality is when customer come back and our product dont) as far as the quality is concerned. They also not neglect the two dimensions of quality (performance & conformance) to gain the satisfaction of consumer.

Features
All the features (like spiciness) and characteristics of LAYS are compiled by the company on the need and want of the consumer.

Style & Design

Style and design matter a lot on the outcome and response of the product. LAYS as the product (inside the pack and out side wrapper) has much attractive and catchy colors style and design which attracts the customers a lot.

Branding
The brand name came from an entrepreneur named H.W.LAY; he decided to keep the products name on his own name. He had variety of different names for the brand like: Zesty (means spicy) Giddy (means chat pata) Chat khara Franchisee Bar-B-Que Masala Salted With the time being this brand is so familiar to capture the mind of every person as a unique, quality, and tasty extruded with LAYS Brand.

It has several flavors these are:

All these names and LAYS it self comes under the lowest level of positioning the brand in which we describe the attributes of the product

Brand Development Brand Name Selection & Positioning

Line Extension
LAYS CHIPS has made line extension by following the line filling process having the same prices but different flavors. And also make line extension of all flavors following line stretching by providing the different packs of different quantity. 13 gm 28 gm 70 gm

Brand Extension
LAYS has made still no any brand extension.

Multi Branding
Pepsi-cola international Company is also producing a different product to compete its indirect competitors like.

Packaging
LAYS are available in three different kind of packing. Company is using high quality packing material so that product will remain fresh and its taste keeps secure up to more than four months. Packing is available in the beautiful colors which all are eye catching.

LAYS is available to the consumer only in primary packing. No secondary packing is using. However they are using container packing, which carries 48 packs of 38 gm each, to supply the product to the retailers and resellers. LAYS CHIPS are available in three different sizes.

Labeling
Labeling is the significant part of the product although there is less space available for that but it contains many information regarding the product. On the pack of LAYS following information are available.

Nutritional Facts
Serving size(10g) Energy (Calories) Total Fat (g) Saturated Fats (g) Carbohydrates (g) Of Which Sugar Fiber (g) Protein (g) Sodium (g) 220 6.0 3.1 5.0 0.1 0.4 0.9 00.1

Nutrition facts are available on the back side of the lays chips in all four types of that such product available in the market for health conscious people.

Ingredients
POTATOES Edible Oil

Identical cheese flavor Natural color Salt Spices

Expiry Date
Four months expiry date is mentioned on the packing of lays chips from the date of manufacturing.

Flavors
On the pack of LAYS there also informed the consumer that there are four flavors of this available in the market.

Brand Logos
The PEPSI Int. logo is placed at the front of the pack to gain the confidence of the consumer that it has any affiliation with that and at the back they have also placed the logo of Lays that shows that it is the product of Lays.

Hilal

On the front of LAYS pack it is clearly shown that it is A Hilal food.

Other Information
1.Flavor Taste., 2. No Artificial Flavors., 3. Quality Freshness., 4. Product of Pepsi-cola international.

Pricing Strategy
Price
Price is the amount which is given by the consumer for the value and satisfaction of the product. LAYS chips have set up the prices for the entire consumer for their maximum satisfaction. LAYS is offering three different prices for different packaging. Rs.6 for 13 gm pack Rs.10 for 28 gm pack Rs.20 for 70 gm pack Rs.40 for 150 gm pack

Pricing Decision
Market of LAYS
As far as the LAYS is concerned with the market in which it deals is near to pure competition but due to certain factors it lies in the monopolistic competition because every company is charging the different prices according to their quality and product features and as well as target market. Lays is charging comparatively high prices from other ones in potato chips. And if we talk about the Pringles they serve the elite class with quality and style thats why they are getting too high prices which is not near to any company which deals with snacks.

Pricing Strategies
The pricing strategy which is LAYS is following, cannot be easily evaluate because from company has not mentioned clearly about any system. However most of the companies including this are following the Cost-Based Pricing. But a company cannot follow a single strategy straightly because in the Facts product market their will be influence of competitors based pricing along with a bit affect of customer value.

More Flavors
They have to introduce more flavors in Pakistan market. This can open new horizons in the Pakistan market. By doing this they should enhance the share of the company.

Brand Extension
In the market LAYS has good image of better quality offering at low price. So they cash their brand image by investing in brand extension like kurkeray. Lays chips are surveying their customer a good quality but at high prices which is favorable for LAYS to manufacture such or better quality at low price.

PROMOTION
Promotional Strategy
Pull Strategy
Lays chips provide wall clocks, menu paper pads calendars to its dealers. Lays chips also provide key chains and calendars to its customers. Recently consumer Promotion has been introduced for students in schools where Lays chips co branded with Jang group for conducting a series of Super Fun Day. The only trade promotion have been in lays is for new range products where trader gets one pack free against every twelve packs, he buys.

Promotional Activities
1) Advertising:

Lays chips arranges advertisement on different electronic media. Advertising accounts for about 3million dollars of the total promotional budget. In-fact, advertising is most popular and effective media to persuade the customers. Share of Different Media for Advertising Electronic Print Media POS Out Door 15% 12.5% 17.5% 17.5%

2) Sales Promotion:
Its share in promotional budget is about 28.5%. It includes Sampling Trade Offer Trade Offer in sale promotion is designed to gain resellers support and to improve selling efforts, including discount, allowances and trade shows. Sales force promotion in sales promotion is designed to motivate the sales force and make sales force selling efforts more effective, including bonuses, contests, gifts and sales rallies.

SWOT Analysis
Strengths
Almost all income level especially below 5000 and even above 10000 can buy and consume LAYS. Brand conscious people like it most. LAYS being the multi national company having the huge investment spending massive amount on advertising campaigns to aware the customer towards LAYS People are comfortable with the Price of LAYS. Placement is becoming a plus point it means company is emphasizing on its distribution and placement strategies. LAYS chips have a strong brand image at their back like Lays and also PEPSI International. LAYS is the blend of maximum satisfaction at minimum price thats why customers are much satisfied by LAYS chips. We can say it that

Value = Satisfaction LAYS chip is such kind of product which has no any restriction of age or gender. LAYS being a new product in snacks which is also useful for health conscious people because it is made of grains (wheat, rice and many others). LAYS chip is such type of snacks which is always ready to consume. They also give incentives to retailers Human Capital is the main strength of LAYS.

Weaknesses
Facing the enormous competitors prevailing in the market. Competitors like Kolson and Triple M are investing heavily in branding. Although they are trying to make their efforts best to make their supply excellent but still they are not reached to the rural areas of Pakistan. Some areas like Highways (especially on Motorway) and many others exist in Pakistan where still LAYS cannot manage to fulfill their requirements and where the products of competitors are available. Elite class of your society are not consuming too much as compared to the middle and others due to the price as we can say the status problem At that time LAYS only offering four flavors. LAYS are not providing any extra facility or benefit to the customer.

Opportunities
Supply of this product in the remote areas of Pakistan. Improvement in its Quality as there is always room for the improvements in anything. Addition of new local flavors helps a lot to sustain in the market. Sponsoring major events and festivals for huge awareness campaigns. Try to make supply in all the areas where the other competitors are existing already.

Design such strategies and advance planning to become the market leader in the smallest span of time. Introduce the family and economy pack to serve the large families which also cost you cheaper and ultimately will accepted by the consumer. Try to serve the elite class according to their status and requirement. Make advertisement in suburban and rural areas and give incentives to the shop personals so that also motivate towards it. LAYS has an opportunity to introduce a less spicy or light flavor to increase their consumer ship and target market.

Threats
Competitors like kolson and Triple M are the biggest threats to our product. Indirect competitors are also contributing in the same way. BUSCUITS and NIMKO hold major share of Market. New entrants can also the threat for the LAYS chips and may create hurdles in the growth. Small companies that are not a problem at that time may become the main competitors or threats to LAYS chips. On arrival of LAYS Kolson introduced a new flavor in their brand Slanty which may divert the attention of consumer towards them from LAYS chips. There are many substitutions in the case of snacks which is the great threat for LAYS chips. People usually like variety in flavors which is the up coming threat to the LAYS because they have only four flavors. Govt. policies may affect the growth of the lays chips.

DISTRIBUTION
Lays has indirect channels of distribution. There are 6 distributors in Lahore.

Shahbaz Brothers: Snacks Traders: CGI: Fazal Industry: Asif Brother: Shah G:

Order Taking Process:

Lays has specific distribution department which takes care of the order taken by the retailers. The time for the dispatch of order is only one day after the order is placed.

Area Coverage:
The distribution of the stock is done by distributor vehicles driven by the specially trained drivers with sales man. They supply stock minimum 70 shops and at maximum 130 shops in a day.

Exclusive Deals:
They have exclusive deals with Beacon house school e.g. within the canteen of every chain of Beacon house school no other chips is being sold except lays chips.

Discount:
They are offering discounts to the bulk and regular buyers like gourmet and Beacon house. They are giving 30% discount and also giving complementary gifts.

Commission to Lays Sales Man:

They offer 8% commission on achieving the given target of supplying stock to the retailers.

PRICE
Q: WHAT IS YOUR PRICE STRATEGY? ANS: SKIM Q: WHAT PERCENTAGE OF PROFIT YOU RECEIVE AND YOUR DISTRIBUTORS? ANS: 5%MANUFACTURER 8%DISTRIBUTER Q: WHAT PRICING METHOD YOU ARE USING? ANS: MAKE UP PRICING METHOD Q: DO YOU OFFER ANY VOLUM DISCOUNT TO THE WHOLE SELLER OR RETAILERS ON BULK PURCHASE? ANS: YES Q: DO YOU HAVE ANY DISCRIMINATION BETWEEN THE CREDIT AND CASH CUSTOMERS? ANS: NO Q: DO YOU OFFER ANY SEASONAL DISCOUNT? ANS: ITS NOT A SEASONAL PRODUCT Q: WHEN YOU SEND YOUR PRODUCT OUT SIDE THE CITY DO YOU INCREASE THE PRICES ? ANS: NO

Q: DO YOU HAVE ANY COMMETTE WHO CHEACK THE PRICES IN DIFFERENT AREAS? ANS: YES Q: WHAT IS YOUR REVENUE GROWTH? ANS: 43%

Q: WHAT IS THE PRICING STRATEGY? ANS: PENETRATION Q: WHAT PRECENTAGE YOU HAVE SET ON SALES? ANS: 5%

PROMOTION
Q: WHAT IS YOUR PROMOTION STRATEGY? ANS: PULL Q: WHAT RATIO OF BUDGET YOU HAVE ALLOCATED FOR PROMOTION ACTIVITIES? ANS: 300000$ Q: WHAT MEDIA OF ADVERTISING YOU SELECT?

ANS: PRINT MEDIA ELECTRONIC MEDIA PERSONAL SELLING Q: WHAT IS THE PERCENTAGE OF ADVERTISING ON DIFFERENT MEDIAS ? ANS: BILL BOARDS WALLS PAINTING RADIO TV NEWSPAPER MAGZINES Q: DO YOU GIVE STANDS, STECKERS ,POSTERS, TO RETAILER? ANS: YES Q: DO YOU HAVE ANY SEPREATE DEPARTMENT WHO WORK ON PROMOTION? ANS: YES Q: ON WHAT TIME YOU GIVE YOUR ADVERTISMENT ON TV? ANS: EVENING Q: WHO ARE YOUR TARGET CUSTOMERS? ANS: LAIDIES,CHILDREN,YOUTH. Q: DO YOU MAKE FUTURE PLAN FOR PROMOTION?

ANS: YES Q: DO YOU ORGANISED ANY SHOWS AND CONCERTS? ANS: NO

PLACEMENT
Q:What Distribution chaneel You Used? ANS: INDIRECT Q: What is your Network Distribution? ANS: THROUGH DISTRIBUTERS. Q: What is your Market Coverage Strategy? ANS: URBAN AREAS FIRST. Q: Where is your Whear Houses? ANS: NO Q: What is your Transpotation System? ANS: TROUGH VANS. Q: How Many Shopes are in one Area?

ANS: 70 TO 130 Q: What is your working hours 12 Or 24 Hours? ANS: BOTH Q: How many Distributors In Lhr? ANS: 6 Q: Do You Have The Institutional Buyers Like a Wary Hotel? ANS: YES. Q: From which City you Start your Distribution? ANS: Karachi,Islamabad,Lahore. Q: Do you sail yourproduct Door TO Door Or Not? ANS: NO

PRODUCT
Q: When was lays launched in the market? ANS: JAN.2007 Q: What are the specific features of the product that makes it different from other similar products present in the market?

ANS: TASTE. Q: Is the product manufactured locally or imported? ANS: NEW LOCALLY MANUFACTERS. Q: What is the role of Research and Development department in the development of the product? ANS: NEW TASTE. Q: Is the technology in making the products also local? ANS: NO. Q: Did lays made any changes in the product or its manufacturing process since its launch? ANS: NO. Q: When lays launched the product, do its sales excel or fell short of the company sales targets? ANS: YES. Q: Is lays good for health; is it according to international health standards? ANS: YES. Q: What is the target market of product? ANS: LADIES,CHILDRENS,YOUTH. Q: Did the company ever have some problems with the product?

ANS: NO Q: Did the company have any special concept behind launching the product? ANS; YES. Q: What is the current position of the product in the market? ANS: VERY GOOD. Q: what about the packing of the product, any specifications? ANS: ANTI BACTERIAL. Q: Who are the major competitors of product? ANS: KOLSON,GOLDEN,PRINGLES. Q: Who are the consumers of lays? ANS: YOUTH.

MISSION STATEMENT

To be the Worlds favorite snack and always within arms check