Lays Marketing Strategy | Marketing of Lays

by Shamsul
Lays Marketing
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Lays Marketing Strategy | Marketing of Lays

 

The history of lays and lays marketing is quite interesting. In 1932, Herman W. Lay founded a little business and started selling potato chips. Later, it was purchased by Herman. Then it was owned by Frito-Lay and now is the new owner of Lays. This is the reason why Lays is a popular brand in the world. However, Lays was the first snack that advertised on TV. Now, Lays is a famous global brand and offers high-quality potato chips of different flavors according to people’s tastes and cultural needs. That’s why it maintains an excellent brand name in the relative snack industry. Keep scrolling to find out some important Lays marketing strategies throughout.

 

Marketing Strategy of Lays (Segmentation, Targeting, Positioning):

  • Segmentation:

Lays has focused its marketing on different markets and several regions. It is available in different parts of India and Pakistan and focusing rural and semi-rural areas of both countries. But don’t forget that it has a global presence. We are specifically talking about its effective marketing segmentation. The main customers of Lays are consists of young people, that’s why it is very popular among kids and teens. But adults can also enjoy this snack due to the availability of different flavors. It is not a costly product and all kinds of people consume these potato chips. According to an idea, these chips are heavily consumed in cinemas, parties, schools, and colleges.

  • Targeting:

Lays provide several flavors and tastes in its offerings to attract several groups of customers. They also launched Baked Lays which is specifically designed for calorie-conscious people or groups of consumers. So, we can say that they want to attract youngsters and health-conscious people in order to increase its profit game. You can consume these snacks at home, in the theatre, and in stadiums while cheering up your favorite team.

  • Positioning:

As we know that Lays is a global brand and you can purchase these snacks from anywhere with the utmost ease. They maintained a specific position in the snack industry because you can eat these snacks at any time. In addition, you can also see the advertisement and supporters of Lays during various sports events such as cricket matches. They have changed different taglines in order to attract customers. The company is now focusing on consumer’s joy and happiness. The main mission of Lays is to become the world’s most favorite snack.

  • Vision:

The main vision of Lays is to obtain a strong market presence and trusted brand in the world. For this purpose, they are trying to introduce innovation in its offerings, tastes, quality, packaging, and supply chain network. Plus, they are also trying to protect the environment with eco-friendly practices.

 

Marketing Strategy of Lays

 

Lays Marketing Strategy | Marketing of Lays

Competitive Advantage:

  • Strong Worldwide Presence:

PepsiCo is the parent company of Lays and due to this reason, they have a strong global presence. They are working in different parts of the world such as Europe, Asia Pacific, the US, Africa, and the Middle East. Lays gets the benefit of PepsiCo’s powerful presence in more than 100 countries.

  • Robust Supply Chain Network:

Lays have a strong supply chain network due to PepsiCo. They drive most of its distribution through PepsiCo’s supply chain network. Naturally, PepsiCo has a robust and best distribution networks across the world.

  • PepsiCo as a Parent Company:

PepsiCo is one of the most renowned FMCG companies in the globe in terms of revenue and profitability. They help the Lays in different segments such as branding of its products and marketing of its promotions. They are also working to take the number position in the snack industry with a 45 percent (2 billion dollars) market share. Having such a giant company as a parent is very beneficial for Lays.

 

Lays Marketing Strategy | Marketing of Lays

BCG Matrix:

PepsiCo is one of the leading companies in the salty snacks business in the form of Lays. As we see a huge decline in the sales of carbonated drinks, that’s why PepsiCo is relying on the growth and profit of lays. They are expanding this segment by introducing different snacks such as Cheetos, Doritos, and Kurkure in South Asian markets with other global markets. That’s why it falls in the star category of BCG Matrix due to the presence of heavyweights or competitors. Moreover, they are also improving their marketing strategy in order to get a boost in the sales of Lays.

 

Lays Marketing Strategy | Marketing of Lays

Distribution Strategy:

Lays utilizes an exhaustive supply chain network to provide stock in possible outlets as soon as possible. As Lays is not an expensive product and one of the best-selling brands, that’s why their demand is very huge in every region of the world including rural and semi-rural areas. You can get its products with utmost ease from local grocery stores, supermarkets, gas stations, and many more. It is a household name in potato chips. The stock reaches the market through three different supply chain networks including distributors, direct store delivery (DSD), or customer warehouses. As PepsiCo has good relationships with suppliers and retailers, so lays dominating the chart with an effective distribution network.

 

Lays Marketing Strategy | Marketing of Lays

Brand Equity:

Lays have a strong worldwide presence and now they are using different channels for promoting its brands such as Facebook. They recently created a new flavor Cheesy Garlic Bread which is a fan favorite. They get a huge positive response due to this flavor and its sales increased by 8 percent. Additionally, Lays also help PepsiCo to retain the number one position in the snack market. Plus, they also help to compensate for the loss of the carbonated drinks business. In short, Lays is an important part of PepsiCo which helps them in thick and thin with its profitability and sales.

 

Lays Marketing Strategy | Marketing of Lays

Competitive Analysis:

Recently, Lays had launched several types of flavors such as Spanish Tomato, Chile Lemon, French Salt, and Cracked Paper. They introduced these flavors in different regions of the world. The response from the customers was amazing and this thing helps the company to increase its revenue game and sales. They are giving tough competition to different local and international competitors similar to Haldirams in India. Bingo is another rival in the snack business. According to research, nearly 3000 brands are available in the market that offers the same products in the snack segment. Lays is also trying to reduce the consumption of sodium content and this thing helps to lead in the snack business.

 

Lays Marketing Strategy | Marketing of Lays

Customer Analysis:

Initially, Lays targeted high school students and college students so that young or adult people can consume its products. That’s why it is a very popular brand among youngsters and people love to eat these snacks while watching movies in cinemas, watching cricket or football in stadiums, and anywhere they love to. This type of mass marketing helps the company a lot to attract new customers and consumers. This is the reason that they have a powerful consumer base and its consumers don’t even think about any snack in the presence of Lays. They are also offering at Rs. 5 per packet in rural and semi-rural parts of India. They are also attracting the South Indian market by providing spicier flavors.

 

Lays Marketing Strategy | Marketing of Lays

Promotion Strategy:

The promotional strategy of Lays is very strong and you can see its advertisements and promotions on different platforms such as television, newspaper, magazines, and other print media channels. Moreover, the brand has powerful visibility on social media channels such as YouTube, Facebook, Instagram, and Twitter. They also sponsor different sports events in order to attract youngsters to increase their popularity. Plus, they are also improving their packaging, flavors, and quality in order to bring smiles to the face of consumers and enhancing their experience. In addition, they also participate in different campaigns and events to attract the target audience. These types of advertising techniques have helped the company to create a strong global presence. With these marketing strategies, Lays has evolved as a popular snack brand in the competitive market. So, we can say that Lays is one of the most profitable brands in the world.

 

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