Lays Experiential

Marketing Project

Submitted to:

Sir. Faizan Baloch

Group Members

Anas Alvi
Muhammad Uzair Ashraf 1311229
Mujtaba Shaukat
Indar Valasai 1311265
Mohsin Ali 1311274
Contents
INTRODUCTION..........................................................................................................3
HISTORY.......................................................................................................................3
SLOGANS.....................................................................................................................4
FLAVOURS...................................................................................................................4
Competitors:...................................................................................................................5
NATURE OF THE BUSINESS.....................................................................................6
SWOT Analysis..............................................................................................................7
Strengths.....................................................................................................................7
Weaknesses.................................................................................................................7
Opportunities..............................................................................................................8
Threats........................................................................................................................8
MARKETING STRATEGY..........................................................................................9
Marketing Objective...................................................................................................9
LAYS Target Markets...............................................................................................9
Market of LAYS.....................................................................................................10
Pricing Strategies.....................................................................................................10
Experiential Activity....................................................................................................12
The LAYS Chips Challenge- Do us a Flavor..........................................................12
INTRODUCTION
Lay's is the brand name for a number of potato chip varieties as well as the name of
the company that founded the chip brand in 1938. Lay's chips are marketed as a
division of Frito-Lay, a company owned by PepsiCo Inc. since 1965. Other brands in
the Frito-Lay group include Fritos, Doritos, Ruffles, Cheetos and Rold Gold pretzels.

HISTORY
Native American chef George Crum invented potato chips in 1853 while working in a
New York hotel. The snack food became popular during the 1920s following the
mechanical potato peeler. As distribution increased, a number of small companies
began manufacturing and selling the product.

In 1932 salesman Herman W. Lay opened a snack food operation in Nashville,

Tennessee and, in 1938; he purchased the Atlanta, Georgia potato chip manufacturer
"Barrett Food Company," renaming it "H.W. Lay & Company." Lay criss-crossed the
southern United States selling the product from the trunk of his car. In 1942, Lay
introduced the first continuous potato processor, resulting in the first large-scale
production of the product.

The business shortened its name to "the Lay's Company" in 1944 and became the first
snack food manufacturer to purchase television commercials, with Bert Lahr as a
celebrity spokesman. His signature line, "so crisp you can hear the freshness," became
the chips' first slogan along with "de-Lay-sious!" As the popular commercials aired
during the 1950s, Lay's went national in its marketing and was soon supplying
product throughout the United States.

In 1961, the Frito Company founded by Elmer Doolin and Lay's merged to form
Frito-Lay Inc., a snack food giant with combined sales of over $127 million annually,
the largest of any manufacturer. Shortly thereafter, LAYS introduced its best-known
slogan "betcha you can't eat just one." Sales of the chips became international, with
marketing assisted by a number of celebrity endorsers.

In 1965, Frito-Lay merged with the Pepsi Cola Company to form Pepsico, Inc. and a
barbecue version of the chips appeared on grocery shelves. A new formulation of chip
was introduced in 1991 that was crisper and kept fresher longer. Shortly thereafter, the
company introduced the "Wavy LAYS" products to grocer shelves. In the mid to late
1990s, Lay's modified its barbecue chips formula and rebranded it as "K.C.
Masterpiece," named after a popular sauce, and introduced a lower calorie baked
version and a variety that was completely fat-free (Lay's WOW chips containing the
fat substitute olestra).

In the 2000s, kettle cooked brands appeared as did a processed version called Lay's
Stax that was intended to compete with Pringles, and the company began introducing
a variety of additional flavor variations.

Frito-Lay products presently control 55% of the United States salty foods
marketplace.

SLOGANS
That's another reason to smile! Lay's Potato Chips (2007)

Food for the fun of it! (2007)

Lay's, get your smile on! (2006-)

Lay's. Want some?

Betcha can't eat just one (1960s-present)

LAYS ka mazaa lo(Lay's Pakistan)meaning-Have fun with Lay's

Say It with Smile

FLAVOURS
Australian Barbeque

Herbs

Salted

French Cheese
 Masala

Sour Cream & Onion(Wavy)

Balsamic Onion and Vinegar(Wavy)

Their competition strategies are based on the competitors strategy. They dont follow
the price war competitive strategy. They follow the standard of product and quality in
competition. Their competition type is oligopoly.

Competitors:
One cant imagine about a business without competition. LAYS has also some
competitors. Major threats to LAYS are Pringles, Kolson, Oye Hoye and Golden,
Tripple Em which has almost 45% of the market share. But as quality of the product
play an important role that is not up to the standard by the competitors. So, LAYS is
outstanding in all ways to the competitors like quality, quantity, price and variety of
the products etc.

GRAPH

LAYS = 45%
Kolson = 15%
Golden = 08%
Tripple Em(Super Crisp) = 15%
Others = 17%
NATURE OF THE BUSINESS

Snacks are of two types, Extruded and Potato Chips. KURKURE lies in the
extruded item which comes under FMCG Products (fast moving consumer goods).

Key Objectives
Like every business, the primary objective of LAYS Company is to be flourishing
and earn more profits. But its possible only when the company understand the
environment of the market, where:

1. Different types of customer in this region who consider low price but still
want for high quality.
2. Currently weak competition for a multinational company regarding quality
with price.
3. A handsome share of the market is still vacant.
4. Companys own profit orientation by producing in bulk quantity and reducing
cost.
5. Strong distribution channels are helpful to distribute and sale quickly and can
generate high turnover.

Therefore, they pursue following objectives:

1. Produce high quality product at reasonable low price.
2. Facilitate as maximum share of market as they can.
3. Customer satisfaction is the top priority.
4. Acquire the strong distribution channel so the product is made available on the
shelf.
 SWOT Analysis
Strengths
Almost all income level especially below 50000 and even above 100,000 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
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 Tripple 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.
There are many substitutions in the case of snacks which is the great threat for
LAYS chips.
MARKETING STRATEGY

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.

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.

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 FMCGs product market their
will be
fluence of competitors based pricing along with a bit affect of customer value.
It is already decided between kolson and LAYS about their price strategy.

They made the agreement that their prices will remain the same.

They also decide the price of their packaging; they also set their strategy on
Cost + Price.

Their cost includes:

Man Power

Machinery

Electricity

Raw material
 Employees

Setting the right price is the most important thing, and LAYS is doing well. Price is
set by keeping in view the quality of the product and the prices which are being
offered by the competitors.

Profit Maximization:
Pepsi has priced its products to achieve a certain percentage return on its sales. It has
settled the price of its products so that it can earns a net profit on its net sales.

Consumer Satisfaction:
There is a balance in consumers mind between the price they pay and the quality of
the product they purchase.

Affordable Price:
The price of LAYS is affordable for middle level income groups. The price is
adjusted according to the demand of the product. When LAYS Jumbo pack was
launched, its price was high as Rs. 25 now they reduced it @ Rs.20, causing an
increase in demand of the product.
Experiential Activity
The LAYS Chips Challenge- Do us a Flavor
After a small research & later discussion by group members, we came up with this
idea of The LAYS Chips Challenge- Do us a Flavor the idea was basically, we will
make participants taste different flavors of LAYS & ask them to tell name of those
flavors, on 3 correct guess, they will get a LAYS Packet free, and for 4 correct guess
they will get a Lays Packet & Pepsi.

We conducted this activity on relatively smaller scale due to less resources, including
cost & time, but the objectives of the activities were surely met. The activity went on
for around 2:30-3:00 hours at 100 Garden- Opposite SSC room, and more than 50
participants were part of this experience, with 4 winners.

The Costing of the Event

Items Number item price Total

1. LAYS Large 6 50 300

2. LAYS small 15 20 300
3. LAYS Wavy 6 20 120
4. Pepsi 3 25 75
5. Disposable Plate 10 5 50
6. Miscellaneous exp. N/A N/A 150

Total Costs 1000/-(200 each member)