Marketing Strategy of Lays analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Lays marketing mix, help the brand succeed in the market. Let us start the Lays Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Lays marketing strategy can be explained as follows:
Lays, from Pepsi Co, is a leading snack and chips brand, having its presence all across the world. Lays products are specifically made with respective country’s demand. Globally the flavors are given to the potato chips according to regional popularity, resulting in increase in customer base. The potato chips are trans fat free. Hence they are marketed as healthy snacks.
European countries’ consumption is totally dependent on packed food hence this snack food has been in high demand. In Lays, the packaging and designing of the product is also an important aspect of the business. Some of popular flavors of Lays are:
• American Style Cream & Onion
• West Indies' Hot 'n' Sweet Chili.
• Spanish Tomato Tango.
• Thai Sweet Chili
• Sizzling Barbeque Potato Chips
• Baked Cream, Herb & Onion
• Crispz Herb & Onion
• Twistz Herb & Onion
Lays chips are available in different countries with a different name i.e. Walkers in UK, Smith's in Australia, Hostess in Canada etc.
Lays Price/Pricing Strategy:
Below is the pricing strategy in Lays marketing strategy:
Lays has positioned itself as a tasty affordable snack. Across the world, the brand offers its chips at very competitive rates.
Lays have maintained their low prices so as to compete in the market. Different sizes & packages with different prices are available for customers. The manufacturing locations, supply chain management, distribution and variable cost is maintained for competitive pricing. Availability of products, bulk ordering and marketing contribute to the pricing strategy of the Lays. The average price for a bag of Lays chips is around $4. The annual revenue for Frito-Lay is more than $15 billion worldwide.
Following is the distribution strategy in the Lays marketing mix:
Lays have very strong supply chain network plus distributer and retailer network. One can find Lays chips in any corner of the world. Supplier, distributer and retailers are the backbone of Lays sales. There is no specific targeted area for Lays as this snack is targeted towards a general population globally. The production of Lays requires a very high quality of potato. Hence production plants of the chips are present at different locations. Worldwide this snack food is highly demanded with high competition.
Being a PepsiCo product, Lays has the advantage of the its own supply chain and advertisement strategy. The brand of chips is available is different countries like USA, UK, Canada, India, Russia, China, France, Germany & many more.
Lays Promotion & Advertising Strategy:
The promotional and advertising strategy in the Lays marketing strategy is as follows:
Being a PepsiCo product, Lays have an extensive marketing strategy. Celebrity endorsements is one of the important marketing strategies to drive their business. Lays have a different brand ambassador with time and the kind of marketing. Advertisements of the brand are present on popular TV channels, radio, magazines, newspapers and other print media channels. Lays also have a high digital marketing footprint. Social media marketing on Facebook, Twitter and YouTube along with descriptive blogs about the product are also one of the effective strategies. Sponsoring different global events like football, cricket, Olympics etc. also help connect with customers world over. Hence, this completes the Lays marketing strategy and marketing mix.
The PepsiCo product of snacks segment food which is made up of potato. The fast food industry is growing at rate of 5% per year from last few years which is something that Lays has been driving on. After launching Lays in 1932, PepsiCo has acquired it, and since then it has become a strong global brand.
Lays product has different flavors to serve different demands across different regions in the world. According to consumer demands the new regional and most demanded flavors were launched by Lays to grab more market share.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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