Lays World Cup Campaign

Did the innovation of the World cup 2011, range of flavors by Lays affect the consumer sensibilities, to readjust and restore their brand loyalty to the original product?

Did the innovation of the World cup 2011, range of flavors by Lays affect the consumer sensibilities, to readjust and restore their brand loyalty to the original product?

Submitted By: Shazil Ahmad Fahad Zakria M.Naqeeb Arshad M.Saad Siddique Ibrar Chaudhary Rao kamran Ali Kamal Pasha

Submitted to: Ms Amna Rehman

30 June 2011

Acknowledgment

We hereby take this opportunity to thank all those people including our friends and colleagues who helped us for the successful completion of this project. We would also like to thanks Mrs. Amna Rehman who gave her continuous support and guidance for the successful completion of this project. We express our gratitude towards our parents for their encouraging support, incandescent sprit and endurance towards the making of this project. In the end a special thanks to all the members who are directly or indirectly associated with the project.

Introduction PepsiCo is a world Leader in convenient snacks, foods and beverages, with revenues of more than $39 billion and over 185,000 employees. The company consists of PepsiCo Americas Foods(PAF), PepsiCo AmericasBeverages (PA B) and PepsiCo International(PI). PAF includes Frito-Lay North America, Quaker Foods North America and all Latin America food and snack businesses, including Sabritas and Gamesabusinesses in Mexico. PAB includes PepsiCo Beverages North America and all Latin American beverage businesses. PI includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. PepsiCo brands are available in nearly 200 countries and generate sales at the retail level of more than$98 billion.

HistoryLay'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. Contents 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 crises-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 largescale 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 grocery 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.

FLAVOURSExcept 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: Tango Salted French cheese Salt and Vinegar

LAYS CAMPAIGNThe world cup campaign of lays was based upon its many global success models. As Lays is product of the snacks division of PEPSI CO, which itself is in more than 100 countries. By gaining different learning from different countries, Lays has devised some global success models, the flavor world cup campaign is one of these models. Ruffles introduced flavor world cup in UK and Mexico around the sporting event of football. In United Kingdom they introduced eight flavors, while in Mexico there were a staggering twenty four flavors.

To introduce this campaign in Pakistan all the basic global learnings been available; however region wise research had to be done. In this research two major concepts were checked with the consumer. These concepts were checked on the by the tool of carrying out focus groups. The first concept was introducing new flavor with famous cricket players and the second was to introduce these flavors with famous cricket playing nations. This research was carried around all socio economic categories and segmented markets. The masses in our country could not relate the flavors with the names of different cricket players, thus concept two was adopted, also to add up was the added cost of having to buy patent right from the famous cricket players. These concepts were tested by allotting two flavors to every country. When asked that on what basis the countries were picked, it was revealed that an aspirational value behind the country and the flavor was looked at. Secondly the giant cricket nation to which the consumer could actually relate the flavors to, were very few and the brand had to exclude India as the product was launched in Pakistan considering the patriotic reason. The campaign in itself was very basic taking under consideration the masses of the consumer. It was to vote for your favorite flavor and win a paid trip to the world cup semifinal along with weekly prizes. The campaign itself was 360 degree campaign, with online voting. As the campaign ended, by voting it was evident that Chicken Achari flavor was to be launched.As this was the Pakistani flavor, their lied a patriotic reason behind it winning. However Chicken Achari and Roasted onion and Ballsic Vinegar were very neck to neck in the voting. The dilemma which the company faced was that as Chicken Achari was very similar in flavor to already existing base flavor of Masala, it would cannibalize Masla because both were in the same flavor bucket.

Focus GroupPurpose This tutorial addresses strategies for using focus groups as a method of collecting information for program evaluation. Introduction Focus groups are a method of group interviewing in which the interaction between the moderator and the group, as well as the interaction between group members, serves to elicit information and insights in response to carefully designed questions. The dynamic nature of the questions asked by the moderator and the group process produces a level of insight that is rarely derived from 'unidirectional' information collection devises such as observation, surveys and less interactional interview techniques. Methods of recording and analyzing information gathered during focus groups, and strategies for collecting unbiased information have helped focus group research to gain credibility as an accurate and useful source of information collection.

Thesis Statement Did the innovation of the World cup 2011, range of flavors by Lays affect the consumer sensibilities, to readjust and restore their brand loyalty to the original product?

Main objectives

To find out what population likes to eat snacks. To find out which flavor of Lays is most preferred. To know the satisfaction level of people who eat Lays. To find out how much people spend on snacks weekly. To find out peoples preferences on different flavors of the snack. To find out how the Lays campaign affect the consumers.

Conducted Focus Group Brief Introduction: There were three focus groups that were conducted by Ali Kamal Pasha (Moderator), one of the group members. The conversations were filmed, and transcriptions of those recordings are the basis for this report. As far as excerpt of the interviews is concerned, the conversations with the three groups involved lively discussions with high participation by most members. Before the discussion began, the moderator gave an introduction about the purpose of the meeting, and the expectations about individual participation. He stated that everyones opinion and experience was important and reassured participants regarding the confidentiality of their statements. Introductions followed with participants being asked to state their name, where and with who do they live, for how long they have lived in Lahore, and what they like to do in their free time.

The moderator used a set of questions designed by the group, which was related to their thesis problem. The questions were in the same order to assure a fair comparison between all the groups.

According to our focus group we profiled the consumer in to three major categories considering the product at hand. Kids (from age 8 to 13 years) Teenagers (from age 14 to 19 years) Young men and women (from age 20 to 23)

These age brackets were categorically picked up, considering the consumption of the product, to analyze the effect of the campaign.

CONSUMER PROFILE Adults Date: 28-06-2011 Venue: 92-k, Defence The Group contains customers who are moderate users of snacks. In this group there are 5 males and 2 females, the total number of the respondents which are segmented in this category is 7. The preference of this group is varied but is mostly Lays. The segmented customers are using the product from past one year. The decision making of the customers is highly independent this segment. The major source of information is TV advertisement and the billboard. The most of the customer of the segment is taste conscious and quality conscious the customers. Major traits of the customers which are segmented in this segment are as follow:

1. Heavy user of snacks. 2. Lays is the first preference of thecustomers.. 3. Independent decision making. 4. Major source of information is TV and Billboard. 5. Taste is the key of retaining the customer. 6. Quality conscious.

Consumer Findings Starting first with the consumers which were young men and women and could give a more vivid perspective to our questionnaire both qualitatively and quantitatively. The individuals from these focus groups were well aware of the Lays World Cup campaign. They had tasted all the new flavors which had been launched. When asked about that which flavor they would want to retain in the market, most of them agreed with Roasted onion and Ballsic vinegar. The reason for this was that they considered the flavor as unique and could relate it to other international flavors of different chips. Consequently some of them were well aware of the fact that to launch Chicken Achari (under process) was the essence of the campaign as the campaign revolved around Pakistan and the world cup. They also stated that it would not affect the sales of the company taking the flavors back; however they preferred the flavors staying in the market which gave them a variety of taste in their consumption of chips. They established over the point that the base flavors of Lays still captivate the masses.

TEENAGERS Date: 27-06-2011 Venue: Coco Caf 6 customers fall in this segment in which 3 are male and 3 are females who are prominent user of the snacks and first preference of the customers are lays. The respondents that fall in this

segment are pioneer customers of lays chips. They have been consuming lays from last one year and are the loyal customers of lays. The decision making power of the customer is in their own hands. The major source of the information for this kind of customer is TV advertisements. The major tacit to retain the customers are the taste because most of the customers are taste conscious and quality conscious.

.The major traits of the customers are as follows: 1. Significant user of snacks. 2. The preference of the customer is Lays. 3. They are the pioneer customer of lays. 4. Independent decision making power. 5. Major source of information is TV advertisement 6. Taste conscious 7. Quality conscious. Customer Findings First we have Adults, who in general had very mixed opinion. They were well aware of the brands superiority in the market; however they were more adamant over experimenting with taste. Their consumption of chips mainly consisted of Lays, nevertheless every now and then they accepted on trying others brands as well. They were again aware of the Lays World cup campaign, but they believed that the flavor introduced should have stayed in the market. But it was noticed that the flavor campaign filled their appetite for experimentation with the taste. They also related the chips to different international potato chips brands, however were persistent over different flavors staying in the market. The general consensus over Chicken Achari being introduced was that it wasnt up to their taste conversely it held its appeal to the market and Lays the brand itself was a market giant by now, since its introduction.

CHILDREN Date: 29-06-2011 Venue: 116/2A, Cantt 6 customers fall in this segment in which 4 females and 2 males, who were prominent user of snacks and there on preference was lays. The customers in this group were loyal customers of the products. The decision making power of the children was dependent upon their parents but the seemed more keen towards lays Major Traits: 1. Significant user of snacks. 2. The preference of the customer is Lays. 3. Major source of information is TV advertisement. 4. Taste conscious 5. Dependent customers

Consumer Findings In this group the consumer were kids falling in the age bracket of 8 to 13 years. The interview of children was conducted in a controlled environment under the supervision of the parents, and their consent for the research was attained prior to the initiation of the procedure. The consumption of chips in this segment was considerable. A bag of Lays was bought on a daily trip to market. Their consisted an adequate consciousness of the Lays world cup campaign. It was seen the ample excitement and involvement was created amongst the kids by the new campaign. Their consumption; it was more inclined towards the new packaging of the different flavor which was consumed. This segment most eagerly waited for innovative flavors and more campaigns.

The kids were effectively taste conscious as they were able to distinguish between two highly similar products of the company. Television advertisement was the most dynamic factor in creating awareness for the children about the products. Another key factor was the active placement and the ready availability of the Lays products at the shops.

Conclusion According to their own analysis and also by the consumers opinion in our focus groups Roasted onion and Ballsic Vinegar would have created a exclusive place in the market due to its unique flavor and might have considerably increased sales for the company, however as promised to the consumer, the company stood by its decision to launch Chicken Achari. Why was this, the case? Why would the brand consider launching a new flavor for a limited time and then take it off from the market? Wouldnt this cause the consumers taste to shift and later on affect their sales? Lays model here is to create a certain excitement towards their brand, moreover keep the consumer involved. As mentioned earlier their global models are practiced in every region with respects to the regional research. Campaigns such as these are to introduce limited time offers which entice the consumer towards the brand in the long run rather than towards the flavors. Such gimmicks have a back drop to them, in consumers mind they might affect the company sales slightly, but what the brand looks at is that in keeps the consumers involved in the brand.

Recommendations It can be deduced from the following research and the findings that Lays can use these to generate to another model to launch the more popular flavor of Roasted onion and Ballsic Vinegar. The focus groups conducted support the outcome of launching the flavor as most of the individuals were in the favor of it. Lays can benefit from this by initiating a future campaign based on the available learnings. This can serve both as beneficial for the brand and would also fulfill the consumers aspirations of retaining the flavor, Roasted onion and Ballsic vinegar in the market. To sum it up the company produced another model which it can induct in the local market, without added costs and it can introduced an already test flavor in the market, which has appealed the masses and evolved as a success model from another campaign.

Appendix

QUESTIONNAIRE: Your name? Are you a snack consumer? Which flavor appeals you the most? What portion of your monthly income goes towards purchasing LAYS? How often you purchase LAYS? How brand loyal are you? Are you familiar with the LAYS Cricket World Cup 11 special flavors campaign? Which flavor did you like the most? Were you loyal to the flavors initially introduced by LAYS? Do you feel the discontinuation of flavors by the company was a mistake? Being a consumer were you affected by that mistake? Are you still a loyal LAYS consumer? Which flavor among the special range did you like the most? Did you vote for your favorite flavor on the internet? You voted for CHIKEN ACHARI out of taste or Patriotism? Would you like to drive any suggestions to the LAYS family regarding the revival of any flavor or the launch of new flavor?

Adults

Teenage

Children

Gender

5 Males 2 Females 20-23

3 Males 3 Females 14-19

2 Males 5 Females 8-13

Age

Education

Bachelors

A-levels

Primary school

Income Level

1-Lakh

1-Lakh

50000-75000

Awareness Source

TV Ad, billboards

TV Ad, billboards No

TV Ad

Price Consciousness

No

No

Preferences Flavors Loyalty

Salt and Vinegar

Roasted Onions High

Tango ketchup

Moderate

Very High