Lay’sSofia Shoffner,

Wei Dai,Mariana Aristizabal,

Chandler Shipley

Nature of CompetitionClass: Food

Category: SnackType: Chips

Target MarketAge group: 18-25

Main CompetitorsDoritosTostitos

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Positioning

*Attribute → Benefit

Perceptual Map

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Trendy Classic(3,3)

Variety of Flavors

(4.4,4.4)(1.4,4.3)

(4.1,2.5)

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Mental Maps

Brand Mantra

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Emotional Descriptive Function

Classic: Lay’s has been perfecting its potato chips for more than 75 years and is perceived as very traditional. Its products and brand image have remained mostly unchanged throughout the years so their customers know to expect practiced quality.

Social: Lay’s are consumed mostly at social gatherings. Their most common purchase situations include parties, BBQ’s, and sports viewing events.

Snack: As opposed to a meal, Lay’s are meant to be eaten in between meals, for those times when you want something light, something that keeps your hunger at bay, something to be munched on, something to be shared among family, friends, and guests

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Product: Creates Value

Price: Captures Value

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$2.607.75 oz

$3.0210.5 oz

$3.1513.75 oz

Price

Value

Economy Pricing Strategy

Ideal for Lay's target market of 18-24 year olds - a market comprised primarily of students and young, entry level professionals who want

inexpensive snack food.

Placement: Carries Value

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Pull Strategies

- Event marketing: Lay’s Summer Events 2015 (Cyprus)

- Coupons

Push Strategies

- Merchandising- Quantity discounts

- Stocking support for retailers

Indirect Channels:

- Wholesale retailers: Costco, Sam’s Club- Discounters: Wal-

Mart, Target- Retailers: grocery stores, convenience stores, gas stations, delis, office supply

stores- E-retailers: Amazon,

Google Express- Vending machines

- Schools

Manufacturer/ Distributor:

Frito-Lay

Direct Channels:

Shop online at fritolay.com/snacks/buy-online.html

Promotion: Communicates Value

Flavor Contests

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Print AdsTV Commercials

2012-2015

2016

Product Placement

The Hangover

Brand Element: Logo

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Analysis Score

Meaningful 100% of respondents were able to tell that this logo belonged to a chip company 9

Memorable Facilitates recognition and recall, all respondents knew the logo and 72% said it was recognizable as a chip brand

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Appealing Increased burden on IMC because only 28% of respondents found it inviting and only 35% of respondents perceived it as happy

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Transferable Very transferable. Logo is used in many circumstances and is kept constant globally 8

Adaptable It is adaptable. Has changed seamlessly through time with major and minor stylistic changes; periods of different logos = 1965–1986, 1986–1996, 1996-2003, 2003-2007

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Protectable It is trademarked so it is protectable. 8

Brand Element: PackagingAnalysis Score

Meaningful -53% of respondents perceived the packaging as pertaining to a food that is “easy to eat” therefore establishing its membership in the “snack food” category-Further establishes category membership through metalized plastic bag material → snack food-Establishes membership type through images and descriptions of chips on face of package

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Memorable - Facilitates recognition, Logo is printed largely on front of packaging and packaging is consistent across variety of flavors- Yellow color of Classic bag is especially easy to recall and recognize

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Appealing - 25% of respondents said that the packaging was inviting- 21% of respondents said that the packaging was fun- 25% of respondents said that the packaging was happy

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Transferable Material and design is transferable across the world and across flavor varieties 8

Adaptable As product changes and evolves, packaging is able to adapt (through major or minor changes)

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Protectable Not protectable, is similar to many other chip packages 2

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Brand Element: Do Us a Flavor ContestAnalysis Score

Meaningful Yes, contest highlights one of Lay’s largest (wide variety of flavors) 9

Memorable Not a lot of consumers associated Lay’s with variety of flavor - therefore as of now, this contest does not facilitate recall or recognition

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Appealing Reduces burden on IMC, interesting, fun, rich in visual and engaging therefore it 10

Transferable Transferable because Lay’s can implement contest internationally 9

Adaptable - Contest will naturally adapt to changes in consumer flavor preferences over time; consumers come up with flavors that they want to see - Contest main idea and rules are also adaptable in order to maintain consumer excitement and avoid boredom - in 2016, Lay’s evolved it to become the “Flavor Swap” contest

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Protectable Contest slogan is protectable but the contest idea is easy to replicate by other brands

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Brand Element: Brand Name “Lay’s”

Analysis Score

Meaningful Name does not imply class, category or type 1

Memorable 87% of respondents recalled Lay’s as a chip brand, and 96% said they were familiar with the Lay’s brand

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Appealing Lay’s is considered classic, however it is not very interesting (no meaningful root word or suffix), or fun (not a play on words, does not induce imagery)

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Transferable Not transferable. Frito Lay changes the name for this brand in almost all new geographical regions

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Adaptable Most likely will not be changed because it has brought so much equity to the brand 1

Protectable Its trademarked so it is protectable 9

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Secondary Sources of Equity

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Other Brands

Sponsorship:- NHL Team -the

Winnipeg Jets

Company:- Frito-Lay- PepsiCo

Ingredient:- Sriracha: Sriracha

flavored chips

Things

Causes- Love Has No

Labels = Lay’s is a partner

People

Endorsers- Eva Longoria

- Celebrity Chef Michael Simon

Salience

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Breadth

- 67% of respondents eat Lay’s less than once a month

- Lay’s are consumed less frequently than any of its biggest

competitors- No respondents consumed it

more than once per week

Depth

Recall: 84% unaided recall

Recognition: 100% were familiar with and classified Lay’

s as Chips

Primary Characteristics

1. The chip size2. Different flavors3. Comes in a bag4. Different ingredients

within chip flavor variety

Performance

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Product Reliability, Durability

Only 34% of respondents said that they associated “good

quality” with the brand Lay’s

Secondary Features

1. Portion control, snack2. Can be used for a variety

of recipes, pairs well with certain dips (as recommended online)

3. Can be eaten on the go4. Satisfies dietary/ allergy

restrictions

Performance

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Style & Design

● 81% of respondents think of Lay’s and its image as a classic. Their logo and packaging are simple, very colorful, and easy to recognize

● On a scale of 1 to 5, respondents gave Lay’s chips an average rating of 2.7 on “dipability”

Service Effectiveness, Empathy: Lay’s Marketing “Do us a flavor

contest”

Effectiveness: customer is given control over flavor variety/choices and thus perceives high level of service and dedication to customer satisfaction

Empathy: consumers understand that the brand greatly values their input and

understands consumers’ desire for flavors that align with their preferences,

favorite foods, fantasies, etc.

Price

● 69% of respondents believed Lay’s were priced fairly

● 21% thought they were priced high or too high,

● 10% thought they were priced low or too low

User Profiles

Respondents view the common Lay’s consumer as:● Children & 18-25 year olds,

males and females● Couch potato, lazy● Sports fans● Social young adults (people at

parties/bbqs)

Imagery

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Purchase & Usage Situations

The three most popular consumption occasions forLay’s chips are:

○ Parties○ Snacks○ BBQ’s

Imagery

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Personality & Values

Percent of respondents that associated Lay’s and these values:

○ Classic: 81%○ Family friendly:45%○ Trustworthy: 21%○ Likable: 38%

Judgment Quality

Texture, Saltiness, Tastiness and Variety of flavors were all qualities that respondents believed Lay’s satisfied.

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Credibility

● Trustworthiness: only 21% of respondents associated “trustworthiness” with the Brand Lay’s

● However, the vast majority of respondents (81%) described Lay’s as “classic”, the highest rating of all

competitors, implying a form of credibility

Judgment Superiority

● Lay’s was not considered superior to its competitors in any of the most important chip qualities, except for for saltiness.

● Tastiness and variety of flavors were its more superior qualities but Doritos received similar ratings in both of these areas.

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Feelings

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Ratings of How Respondents Felt After Eating The Following Chips (Scale of 1-5)

Lay’s

Lay’s develops little equity in this dimension:

● Lay’s received an average rating of 2.7 for the feeling “happy” by respondents after eating

● However, Lay’s also leads the competition in feelings of guilty, disappointed with self, self conscious, and gross after eating

Resonance

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Attitudinal Attachment

Lay’s has small but significant attachment from consumers● Only 14% respondents felt emotional attachment and

said that their life would be worse without lays

● 32% of respondents were slightly/moderately/very interested in merchandise with the Lay’s name on it

ResonanceCommunity (Brand + Consumer + others)

Lay’s develops little community based equity● Only 2% of respondents felt

probably/ definitely felt a deep connection with others that eat Lay’s.

● Likewise for those that like to talk about Lay’s with others

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Engagement

Lays struggles to create consumer involvement via social media:

● 14% of Respondents follow Lay’s on social media.

Resonance

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What Lay’s tries to do:-do us a flavor competition (2012-2015), dousaflavor.com, #

DoUsAFlavor,- flavor swap competition (2016), flavorswap.com,

#FlavorSwap, vote online and create a gif to share votes with friends

-”become a fan” on webpage: “Sign up for exclusive updates on new tastes, fun tips,

entertainment and great deals. If you want to up your snack game, SNACK PERKS is for

you.”-social media engagement on Twitter, Facebook, Pinterest,

Youtube#lays

LoyaltyConsumers showed high consideration for substitutes:

● Only 8% of respondents were either somewhat or extremely unlikely to buy another brand of chips if Lay’s were unavailable

Equity RatingWhat’s in consumer’s mind + brand marketing = equity

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Weight (%) Rating (1-10) Score(Rating x weight)

4 P’s 15 7.5 1.13

Positioning 30 9 2.7

Brand Elements 15 7 1.05

Secondary Sources 10 4 .4

Brand Resonance Pyramid Model

30 6 1.8

Total 100 n/a ~7.1

Appendix

Primary Research Overview

● Target Market: Students between the ages of 18 and 25.

● Methods used:○ Interview (8 responses)○ Survey (129 started surveys, 77 total

responses)

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Survey Responses

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Survey Questions

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Interview Questions1. Do you eat chips? Why, why not?2. How often do you eat chips? For what occasions do you purchase them? 3. What do you eat with chips?4. Do you eat Lay’s potato chips?5. Who are Lay’s biggest competitors?6. What makes lays different than other chips?7. What makes it the same?8. What brand do you purchase most often? Why?9. Describe Lays in 5 words.

10. Describe (competitor) in five words.11. Describe how you feel when you eat lays.12. What kind of person eats Lays (gender, age, occupation, hobbies)?13. What kind of person eats (competitor)?14. What do you look for in chips when you purchase them? (Variety of flavor, natural flavor, crazy flavors, price, etc.)15. What foods would you eat as an alternative to chips?16. What new options would you like to see in the chips market?17. What is the biggest negative about lays?

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Interview Findings1. Most people do eat chips because they taste good and they are a convenient snack to eat on-the-go. 2. Usually less than once per week. Are mostly consumed at social gatherings and bought for parties rather than personal

consumption.3. Most respondents eat chips with salsa and different dips.4. Half of our interview respondents said they ata Lay’s, the other half said they didn’t.5. Lay’s, Doritos, Tostitos, Sunchips, Ruffles, Pringles6. Classic, original flavors, thinner, 7. More air than chips in the bag, crunchy texture, size of chip and packages, price, classic flavors.8. Corn chips (such as Tostitos, Doritos, and Mission Chips) because they are more versatile and can be eaten with meals.9. Classic, yummy, salty, plain, round, weak, fragile, thin, variety of flavors, thin, small, oily

10. Tostitos: Mexican, tortillas, flour, scoops, partya. Doritos: triangle, multi-flavored, cheesy, creative, Locos Tacos, flavorful, great commercials, savory, orange,

cheesyb. Ruffles: strong, wavy, thick, dry, “dippable” (need to be paired with dip)c. Sun Chips: wavy, healthier, tasty, limited flavors

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Interview Findings 11. Satisfied, fat, unhealthy, guilty, happy, angry, gross 12. 10-35, both genders, who likes junk food, attend social gatherings 13. Tostitos: 16-24, mexican food lovers, both genders Doritos: Football fans, students, party goers, Ruffles: People who watch sports, such as at a super bowl party, eating them with dip, more mature audience Sunchips: expensive, care about taste a little more, college students and up 14. Good taste, good value for what I pay (price) 15. Crackers, granola bars, peanuts, chex-mix, fruits, popcorn, hummus, veggies and dip 16. Healthier chips, more favors (but not too crazy), less air in the chip bags. 17. Unhealthy, oily, too thin.

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Sources:http://www.fritolay.com/snacks/product-page/lays

http://www.fritolay.com

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