Published by MBA Skool Team, Last Updated: November 25, 2017
Marketing Strategy of Lays analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Lays marketing mix, help the brand succeed.
Lays marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Lays Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Lays Product Strategy:
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. In india,the flavours are given to the potato chips acording to regional popularity of flavours resulting in increase in customer base. As indian masala are most famous worldwide hence Lays have also made some international flavour chips. 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 india also, crazy of fast food, packed food is resibng contineously. Lays come with air filled to maintain crispyness of the chips with long life. In Lays, the packaging and designing of the product is also concern part.
Some of following flavours of Lays are:
• American Style Cream & Onion Flavour.
• West Indies' Hot 'n' Sweet Chili.
• Spanish Tomato Tango.
• Thai Sweet Chili Flavour
• Sizzling Barbeque Flavour Potato Chips
• Baked Cream, Herb & Onion Flavour
• Crispz Herb & Onion Flavour
• Twistz Herb & Onion Flavour
Lays Price/Pricing Strategy:
Below is the pricing strategy in Lays marketing strategy:
The price is the point where products are distinguished as pack snack food can/can not be the replacement of the currernt snackc food in india.
Indian population is concern about taste but moverover price come. Considering competition from Kurkure, bingo, Haldirams chips and many more, Lays have maintained their prices as low as to compete for the marke. Different sizes with prices are availabel. Lays don’t change its prices with change in raw material cost, they change quantity as package contails 70% air. The manufacturing locations, supply chain management, distribution and variable cost is maintained for competitive pricing. Availability of product, bulk ordering and marketing these all things contribut to the pricing strategy of the Lays.
Lays Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read Lays SWOT Analysis, STP & Competitors
Lays Place & Distribution Strategy:
Following is the distribution strategy in the Lays marketing mix:
Lays have very strong supply chain network plus distributer and retailer network. Hence one can find Lays chips in any corner of the country. Supplier, distributer and retails are the backbone of Lays sales. There is no specific targeted area for Lays as this food is demanded and favourate of everyone. The production of Lays requires high quality of potato. Hence production houses of the are at different location in india. Worldwide this snack food is highly demanded with high competition.
Being PepsiCo product Lays have advantage of the its own supply chain and advertisment starategy.
Lays Promotion & Advertising Strategy:
The promotional and advertising strategy in the Lays marketing strategy is as follows:
Being PepsiCo product, Lays have extensive marketing strategy. Celebrity endorsement is one of the important and impacting marketing channel. Lays have different brand ambassador with time and marketing type. Being all segment snacks food product Lays have reached to customers in different way. Advertisement on popular TV channels, radio, magazines, newspapers, other print media channels is among important promotional plans of Lays. Lays also have high digital marketing footprint. Social media marketing due to more brand visibility on Facebook, twitter and YouTube with descriptive blogs of product on magazines is also one of the strategies. Sponsoring different events like IPS and cricket has also made Lays more popular food among sports enthusiastic.
The PepsiCo product of snacks segment food which is made up of potato. In India during 2014, Lays had market share of 50.2% market share while in US it was 29.6 of potato chips market. In fast food industry is growing at rate of 5% per year from last few years. The pack food industry is in demand due to changing lifestyle specially in India the lifestyle of metro is changing resulting in demand. After launching Lays in 1932, PepsiCo has acquired it. In India, Lays product has different flavours to serve different demands and more deliverables.
According to consumer demands the new regional and most demanded flavours were launched by Lays to grab more market share. PepsiCo has also had other products in fast food snacks segment where Lays had gained the brand value with time in India and across the globe as well.
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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