Lays

TABLE OF CONTENTS
The Exordium Acknowledgement Introduction Slogans Flavors Nutritional Information Key Objectives Marketing Environment SWOT Analysis Marketing Mix Product Planning Price Planning Authentication of Halal References HISTORY(Axe) AXE TARGETING AXE PROMOTIONAL AD CAMPAIGNS ADS(print and video) BRAND PERSONALITY Flaw in Fragrance Recommendations References

THE EXORDIUM
Nothing is deserving worship Almighty Allah, the most merciful, Compassionate and Gracious. All praises for him because he is the creator of this mysterious universe and guides us with the Holy Prophet Mohammed (Peace be upon him) and Holy Quran to explore it. We supplicate that Allah grant us serenity to accept the things we cannot change, courage to change the things we can, and wisdom to know the difference.

ACKNOWLEDGEMENT
Working on this report had been a great experience. We enhanced our pragmatic learning by applying the theoretical concepts on real life marketing. Every member of the group put his efforts to shape the project in the present condition. First of all we would like to mention that all thanks belong to God Almighty who made us able to come up this project. Then we present out gratitude to Madam Miss. Rabia Shoaib for the encouragement, guidance and support she enlightened us with for the completion of Report. In the end we would extend our gratitude to our parents & members of Bahria University for their kind co-operation and encouragement without which nothing had been possible.

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.

Tag lines / SLOGANS

That's another reason to smile! Lay's Potato Chips (2007) Lay's, get your smile on! (2006-) Betcha can't eat just one (1960s-present) Lays ka mazaa lo(Lay's Pakistan)meaning-Have fun with Lay's You can't eat just one....Lagi bet! Happiness is Simple. (2009) Simply Made. Simply Good. (2009) That's another reason to smile! (2007) Food for the fun of it! (2007) Lay's, get your smile on! (2006) Lay's. Want some??

FLAVOURS
Except for barbecue-flavor potato chips, which were introduced no later than 1958, up until the last 20 years, the only flavor of potato chips had been the conventional one. Despite an explosion of new flavors, the unadorned original is still the selection of 81% of consumers. In the Pakistan, Lay's offers a number of flavor combinations, in addition to the classic chips. Flavored products in the traditional fried varieties include
Barbeque Salted French cheese Magic Masala Salt and Vinegar Chicken Kharahi HOT GARLICTOMATO CREAMY Ketchup Classic Potato Natural Sea Salt Chile Limon

Nutritional information Bag of Lays Baked Chips As a snack food, the Lay's brands contain very few vitamins and minerals in any variety. At ten percent of the daily requirement per serving, vitamin C is the highest. Salt content is particularly high, with a serving containing as much as 380 mg of salt. A one ounce (28 gram) serving of Lay's regular potato chips has 130 calories and contains ten grams of fat, with three grams of saturated fat. Kettle cooked brands have seven to eight grams of fat and one gram of saturated fat but are 140 calories. Lays Natural has nine grams of fat, two grams of saturated fat and 150 calories. Stax

typically contain ten grams of fat, 2.5 grams saturated fat and are 160 calories per serving. Wavy Lays are identical to the regular brand except for a half-gram less of saturated fat in some combinations. The various brands do not contain any trans fats. The baked variety feature 1.5 grams of fat per one ounce serving, and have no saturated fat. Each serving has 110 to 120 calories. Lay's Light servings are 75 calories per ounce and have no fat. Lays Classic Potato chips are cooked in 100% pure sunflower oil (originally hydrogenated oil until January 1st, 2007). A one ounce serving has 150 calories, 90 of which are from fat, 10 grams of fat, and 1 gram of saturated fat. They have many flavors in the baked lays as well. Baked lays are produced in cheddar, barbecue, and original.

Type of Competition:
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 and Golden, 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.

Competitors Products & Activities:

Following Competitors products are being sold in the market but their product availability is not that good. The only reason for their presence is the Credit facility and high margins.

NATURE OF THE BUSINESS:

Snacks are of two types, Extruded and Potato Chips. Lays 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.

MARKETING ENVIRONMENT
MICROENVIRONMENT
Research & Development:
Company has established their own plant at plot no 413, Sunder industrial Estate, Raiwind Road, Lahore. Its working and efficiency is under consideration. Experts are there to watch out and examined the machinery as well as production unit. They are also ensuring that its production is fulfilling the requirements in due time. Experts make it sure that they are producing Quality products. (Maintaining their quality standards)

Production:
Company was importing Lays chips from Saudi Arab through its supplier Saudi Snack Food Company has started its production at its New Plant at Raiwind road Lahore on 14th August 2006. That improves the performance of the company. The time period of importing the product is eliminated. Raw material can be available in local market, so it would reduce the budget for raw material. The time span right from the production to distribution will squeeze and efficiency will be enhanced. .Company was importing Lays chips from Saudi Arab from 1st June 2005 through its supplier Saudi Snack Food and has a strong bond with them but now LAYS CHIPS is produced in Pakistan.

Marketing Intermediaries:
To execute an assortment of necessary functions to get the product to the final customers lays has one major distributor, Shahbaz brothers in Pakistan.

Customers:
The strategic focus of a business or a marketing plan of lays Company is that they are targeting Youth, Girls and housewives (opinion leaders). The company needs to study five types of customers like consumers, business, resellers, International and government. But in the case of lays only consumers are exist.

Public:
All the public groups has an impact on lays, banks from they have obtained loan, advertising agencies from whom they have run their advertising campaigns, govt. will Also because they have an opportunity to collect tax and employees also because they have to earn from this.

MACRO ENVIRONMENT
Demographic:
Lays are not specifically concerned with any religion, race, occupation, family life cycle or sex and has a target market in every societal group. Main concerned segment is girls, housewives and youth. Who have experienced high product consumption level? But they are also targeting families, as they understand this influence factor in this region.

Economic:
All income groups are favorable for the business of Lays although those are not who are working class (labors).

Natural:
Lays as an extruded item, made of vegetables, although these are natural resources but still there are not harmful to the nature. And there is rare chance of shortage of raw material in this case.

Cultural:
Lays is not as such a product which can be affected by the culture and tradition (primary & secondary) changes. Infect, it is based upon the culture of South Asia (Sub-continent) and Pakistan. Technological: Lays being the product of PEPSI International and having a good repute in international. Market is already using modern technology to enhance the production and the quality.

Marketing Objective:
Company is having very clear perception about the target market which is explained as follows: t to capture as many share of the market so that the company maximize its market share. without this phenomena company cant fulfill its targets. t 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.

company for that purpose they reduce the cost of production to enhance the turnover of the company.

SWOT Analysis:
Strengths
10000 can buy and consume LAYS. national company having the huge investment spending massive amount on advertising campaigns to aware the customer towards LAYS

emphasizing on its distribution and placement strategies. and also PEPSI International. thats why customers are much satisfied by LAYS chips. We can say it that Value = Satisfaction of age or gender. health conscious people because it is made of grains (wheat, rice and many others).

consume.

Weaknesses
Facing the enormous competitors prevailing in the market.

supply excellent but still they are not reached to the rural areas of Pakistan. ay) and many others exist in Pakistan where still LAYS cannot manage to fulfill their requirements and where the products of competitors are available. compared to the middle and others due to the price as we can say the status problem

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. campaigns.

re the other competitors are existing already. market leader in the smallest span of time. which also cost you cheaper and ultimately will accept by the consumer. requirement. incentives to the shop personals so that also motivate towards it. nity to introduce a less spicy or light flavor to increase their consumer ship and target market.

Threats
is the biggest threats to our product. hold major share of Market. create hurdles in the growth. the main competitors or threats to LAYS chips. Kolson introduced a new flavor in their brand Slanty which may divert the attention of consumer towards them from LAYS chips. great threat for LAYS chips. flavors which is the up coming threat to the LAYS because they have only four flavors.

MARKETING STRATEGY
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 Products
For every product there are basically three levels of product.

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.

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.

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 is 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
.

With the time being this brand is so familiar so its capture the mind of every person as a unique, quality, and tasty extruded with LAYS Brand.

Market of LAYS:
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 affluence of competitors based pricing along with a bit affect of customer value. strategy. same. e 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.

Authentication of Halal
The following list of E-CODES. If any of the ingredients listed below is found, As it has got PIG FAT; E100, E110, E120, E 140, E141, E153, E210, E213, E214, E216, E234,E252,E270, E280, E325, E326, E327, E334, E335, E336, E337, E422, E430,E431, E432, E433, E434, E435, E436, E440, E470, E471, E472, E473,E474, E475,E476, E477, E478, E481, E482, E483, E491, E492, E493, E494,E495, E542,E570, E572, E631, E635, E904.

Courtesy Dr. M. Amjad Khan Medical Research Institute United States Dr M Liaqat (PhD Food Biochemistry) MA CONSULTING UK Non of these code is found in the ingredients of Lays of Pakistan

References
http://en.wikipedia.org/wiki/Lay%27s http://www.mesmarty.com/2009/04/02/why-pig-fat-is-notmentioned-but-codes-are-printedlays-chips-pig-fat/
http://www.scribd.com/doc/25521847/ http://militaryfoodex.com/catalog/featured_products.php http://pepsicoindia.co.in/Brands/Foods/Lays.aspx http://www.pmarketing.com/directory/lays_pakistan.html http://pakspire.com/lays-chips-controversy http://www.ittaleem.com/showthread.php?t=26428