Lays company

Week 2.7 Pricing    Chapter 20

For the Lays product, there are many price-related promotions. Normally, the price discount will depends on the different supermarket or shop situation, they will decide when the lays potato chips has special discount. Furthermore, Lays company uses the cost based price strategy and then profit maximization. Moreover, the Lays prefers the muir-pack discounts(see below picture), like two lays potato chips for 5$. The customer buys more and will enjoy more discount. 

 

(Lay’s Chips, Only $1.50 at Target!, 2016) 

(Giant Hypermarket Snacks & Home Appliances Offers 14 Jun- 27 Jun 2013, 2017)

For psychological pricing tactics, Lays is using odd pricing. For example, the Lays potato chips will according to different size of package and make different price. For example, 0.99€, 1.99€, 2.99€.

Personally, the process of produces the lays potato chips will influence on the make prices. In other words, the process of lays costs to produce potato chips, which consists of main power, machinery, electricity, raw material and salary of employees. 

Lays company uses the price differentiation regarding to the different region. For instance, the selling price of Lays chips in China will cheaper than the Netherlands. Perhaps because of the costs based or the economic conditions. Producing Lays chips in China could cheaper than the Netherlands. In China, there are more cheaper labour force and raw material like potato. 

Actually, the price elasticity would not has such big impact. Because the prices of Lays chips already had the cheaper selling prices than other products. In addition, the Lays brand is the biggest market share in potato chips market. Due to the cost based that Lays could increase the price level or reduce the capacity of products, but the customer could still chose the Lays potato chips. 

There are two strategies which are used by the manufacturer. One is penetration pricing; another one is price skimming. If lays chose the penetration pricing, the prices would be lower at the beginning of the selling. In this time, customer should more willing to buy Lays chips because of cheap, the sell will increase to some extend. 

Bibliography

Lays Chips logo, Vector Logo of Lays Chips brand free download (eps, ai, png, cdr) formats. (2016). Logotypes101.com. Retrieved 14 September 2016, from http://www.logotypes101.com/logo/lays-chips

Dibbs, S. (2012). Marketing conccepts and strategies. Andover: Cengage Learning.

Lay’s Chips, Only $1.50 at Target! (2016). Thekrazycouponlady.com. Retrieved 9 January 2017, from http://thekrazycouponlady.com/2016/02/28/lays-chips-only-1-50-at-target/

Giant Hypermarket Snacks & Home Appliances Offers 14 Jun- 27 Jun 2013. (2017). Singapore Promotions. Retrieved 9 January 2017, from http://singpromos.com/home-appliances/giant-hypermarket-snacks-home-appliances-offers-14-jun-27-jun-2013-69852/

Lays company

Week 2.6 Services Marketing; Modifying the marketing mix for business markets, services and international marketing     Chapter 13,21

Lays company can provides pre-sale service and after sale service. For the pre-service, it worth mentioning that they provides the quality control service. ‘The potato chip production line has nine critical checkpoints throughout the process for quality’(Frito-Lay's Quality-Controlled Potato Chips, 2016). According to the research, the SPC chart will control the production of Lays chips. They will track the sample of Lays potato chips to make sure the quality. Lays company also provides after sale service, as it can be shown on the package of Lays potato chips. There are some contact information provided in case the customer has any question or suggestion for Lays chips.

The new service could have more contact with customer. For example, for me as a customer, I really interesting on the different tastes potato chips in one package. Lays company already mixed two tastes of potato chips in a package. I think it could be better if more taste can be mixed. In term of customer contacting, it means the customer has more chance to join this brand. For example, designing the special package, mixing the most customer’s favorite tastes.   

There are four service characteristics, intangibility, variability, inseparability and perishability. The intangibility service means that this kind of service cannot seen, tasted, felt, heard, or smelled before purchase; the variability means that quality of service depends on who provides them and when, where, and how; the inseparability service means that services cannot separated from their provides; the perishability service means that service cannot be stored for later sale or use(Dibbs, 2012). The lays potato chips belongs to intangibility service, because it is a kind of snack, which cannot be tasted before purchase.

Lays company sets up a homepage on the Facebook. In this homepage, the consumers from different locations can find their own information to contact or   leave their suggestions. The Lays company can also update the information about the product on this homepage, such as the new taste of chips, the discount on the products and the activities of the products. It will help all the consumers to get the newest information about the products even they live in different places. Another service that the Lays company provides for consumers is the size of chips. Lays company provides different sizes of chips for the consumers with different needs. For example, Lays company has a small size chips which is designed especially for the people who is busy for work and this size of chips is easier for them to take with.

First of all, Lays company can put advertisements on TV, Internet, bus station and many other public places. For example, for the advertisement on TV, we can invite some famous local stars to attract local people’s attention and increase the popularity of our product. Then, we can provide some chips for local people to try in some public places like cinema , train station and shopping mall.

For perspective of personal, the buyer of Lays chips is young people, they like to eat snack during free time. They more like to enjoy the taste of Lays chips instead of pay attention on heath issues.

Lays company

Week 2.5 Channel players and physical distribution   Chapter  15

Lays potato chips almost sell on each supermarket, I visit two supermarkets in Deventer, which named Dirk supermarket and Jumbo supermarket. I find Lays potato chips  has different presented in those supermarket.

Comparing two supermarkets, Jumbo’s atmospheres is more better that Dirk. There are some reasons following. Firstly, the size of two supermarkets are totally different, Jumbo is big than Dirk. So that the generally atmosphere in Jumbo is good than Dirk. Secondly, when I visit Jumbo, I can listen some soft music. In contrast, there are only noisy in Dirk. Thirdly, Jumbo has many staffs and they all wear labour suit, moreover, if you have any problem, you can find the staff immediately. However, there are few staffs in the Dirk. In term of Lays chips, Jumbo has many shifts are selling Lays chips. Customer can find Lays products quickly. Surprisingly, In my visited Jumbo, I saw that  some of the Lays chip were put nearby entrance(see picture one). But Dirk in Deventer only sells few tastes of Lays potato chips, some of Lays potato chips were covered by the wall(see picture 2).  

  

Picture 1                                                                    Picture 2

In the Jumbo supermarket, the Lays potato chips are located on the snack area. I this the Lays potato chips also are put on the most eye catching place(see picture 3). Customer can find it easily, there are many different tastes Lays potato chips offering in Jumbo.

(Picture 3)

There are only few brands surrounding Lays products, the Croky, BIO and Jumbo producing products(see picture 4). But those brands of product all put on the top or the bottom of shifts. Therefore, the Lays potato chips has more competitive.

(Picture 4)

The relation between transportation, packaging and communication is really important for all product(Dibbs, 2012). I think the most important parts for Lays potato chips are transportation and packaging. Because the Lays chips is gas flush package in order to keep the good quality and tasty of the potato chips. The packing is really important. Moreover, the transportation of gas flush package also need to be careful. The manufacture of Lays to produce potato chips, than the wholesaler packagings and transports  potato chips to the retrial. The retail transports to the different supermarket. So that the transportation is most important stage. However, there are less communication for Lays potato chips. Because it belongs to convenience good.  

Lays chips

Week 2.4 Marketing channels     Chapter 14

   

  

As it can be shown in above chart, the Lays company uses indirect marketing channel , applying a vertical marketing system for distribution(Lay’s Classic Marketing Mix: Place, 2016)wholesaler channel. There are three steps from Lays potato chips to final customer. The wholesaling is a really important aspect of distribution, the wholesaler needs to persuade retailer to buy products. As I did research, the Tradavo is one of the largest selections of wholesale Frit-Lay items(Wholesale Frito-Lay, Chips, Pretzels and More, 2016). The wholesaler of Lays chips also provides marketing information. For example, they collect information about which tastes are customer favorite, this information all collected from retailers and gives it to manufacture. However, the wholesaler also takes risks, like the demand Lays chips is decreasing. In term of retailer, the retailer need to sell the product. The retailer of Lays chips need to advertise the product, sometimes even retailer needs to provide the services for customer and wholesaler.    

For Lays chips, I think the retailer can use promotion strategies to expand the reputation of Lays chips. Because more people are family with lays chips, the potential buyer will increase. The intensive distribution is using for Lays products, because this is convenience goods. People searching for Lays product only spend minimum time, because it can be brought in a normal supermarket.     

Lays company

Week 2.3 Targeting and positioning   Chapter 8

Good day, I want conduct the research about the consumer perceptions of your Lays potato chips. Through this brief survey, you answers will be helpful in my Marketing study. Your response will only be used for survey purposes. In case you have any questions regarding the survey, please call NanWang at +31 0624478599. Thank you very much for your time and suggestions.

Name: __________________

Gender: _________________

Age: ____________________

1. Please name top 3 brands of potato chips.

__________________

__________________

__________________

1. Do you know Lays brand?

A: Yes   B: No

3.  Do you trust in Lays brand?

A: Yes   B: No

3. The price of Lays potato chips (yasiniub, 2016)

A: Is as your expectations

B: Is more than your expectations 

C: Is less than your expectations

D: Is hard to say

4. How often do you buy Lays potato chips per week?

_________________________

5. Where are you know the information about Lays potato chips?

A: Family members and Friends 

B: TV

C: Website 

D: Newspaper/Magazine

E: Other_____________

6. To what extent has the product been successful to meet your needs?

A: 80%—100%

B: 60%—80%

C: less than 60%

7: Can you give some suggestions to improve Lays brand?

____________________________________________________________ 

    

  

    

  

There are chart above is conducted based on the response of questionnaires. It worth to mention that the Lays potato chips is the favorable product. Almost everyone knows that brand. The bran loyalty and awareness are the best comparing with other brands. The main competitors are Bingo and Soya puff. The Bingo is well know chips producer as well, but most interviewees chosen Lays chips. However, some of interviewees are not satisfy with the taste of potato chips, they like to choose Soya puff. I think It is necessary to develop a new product in the same market for Lays company. For example, the Soya puff.  According to the book, developing the new product which are meet to same customer group, that is product development(Dibbs,2012). Through this way lays company can account to majority of the snack market. 

Here is my blogger link

Bibliography

Lays Chips logo, Vector Logo of Lays Chips brand free download (eps, ai, png, cdr) formats. (2016). Logotypes101.com. Retrieved 14 September 2016, from http://www.logotypes101.com/logo/lays-chips

Dibbs, S. (2012). Marketing conccepts and strategies. Andover: Cengage Learning.

yasiniub,. (2016). Brand questionnaire. Slideshare.net. Retrieved 30 November 2016, from http://www.slideshare.net/yasiniub/brand-questionnaire

Lays company

Week 2.2 Segmenting markets   Chapter 7

Lays product as a convenience good focuses on all potential customers. There are no exactly potential buyer for Lays product. However teenager is more likely to buy Lays chips to some extent (Teens and young adults eat more junk food than anyone else, 2014). Moreover, the teenager does not have enough purchasing power, so their parents could buy it for them. So that there is not specific potential buyer. For lays company, there is undifferentiated marketing. It means Lays company ‘attempts to reach all potential buyers using one marketing strategy. In this way, undifferentiated marketing treats all segments of the population the same, and the strategy is to use one approach that aims to appeal to as many people as possible’ (Bass , 2016). Therefore, Lays company can make segmentation by demographic variables. For instance, according to the different ages, Lays company makes advertisement based on teenager preference. Because the teenager is the main potential consumer. Moreover, Lays company can also design the different kinds of package to meet the requirements of various family size. In other words, the big family is willing to buy big package of potato chips in order to share with their family members. Lays company uses various positioning strategies. There are five position strategies which consist of information positioning, transformational positioning, two sides positioning, execution positioning and comparing with other brands(Dibbs, 2012). As I did research, there two types of positioning strategies has been used by Lays company. Firstly, it was information positioning, using the cartoon to show that lays chips taste so good. Secondly, Lays advertisement is made by well-known football athlete, Messi, which uses the execution positioning. 

 (Lay's Checkout, 2015)

 

(Lionel Messi Lays Chips Commercial Champions League, 2016)

Segmentation effectiveness divides into five factors, Homogeneity of segments, Heterogeneity between segments, Accessibility, Stability and Buying power(Dibbs, 2012). In term of Lays potato chips, the homogeneity means people like to eat potato chips. The heterogeneity between segmentation means people can choose different tastes of Lays potato chips. The accessibility means people buy it easily and the price of Lays chips is quite cheap. 

Bibliography

Bass , B. (2016). What Is Undifferentiated Marketing? Retrieved November 22, 2016, from Small Business: http://smallbusiness.chron.com/undifferentiated-marketing-20797.html

Lay's Checkout. (2015, April 2). Retrieved November 22, 2016, from YouTuBe: https://www.youtube.com/watch?v=pdyBQzpiWLA

Lionel Messi Lays Chips Commercial Champions League. (2016, March 15). Retrieved Novembr 22, 2016, from YouTuBe: https://www.youtube.com/watch?v=p2DoTEQMAcE

Teens and young adults eat more junk food than anyone else. (2014, May 9). Retrieved November 22, 2016, from Sunshine Coast Daily: http://www.sunshinecoastdaily.com.au/news/Teens-young-adults-eat-more-junk-food/2253817/

Lays Chips logo, Vector Logo of Lays Chips brand free download (eps, ai, png, cdr) formats. (2016). Logotypes101.com. Retrieved 14 September 2016, from http://www.logotypes101.com/logo/lays-chips

Dibbs, S. (2012). Marketing conccepts and strategies. Andover: Cengage Learning.

The basic information for Lay's company

I chose Lay’s chips, because Lay’s is a well-know product and I know it for a long time. The product belongs to convenience goods, you can buy it easily in the supermarket. The producing company for Lay’s chips is Lay’s company, which owner of the brand name. Interestingly, this brand also has a top brand, called Frito-Lay, which are provided different  snacks. There are around 30 snack brands same as Lay’s belong to Frito-Lay  (LAY'S® Kettle Cooked Jalapeño Flavored Potato Chips, 2016). Such as the Doritos, Smartfood, Cracker Jack that all included in Frito-Lay brand. 

The Lay’s brand has been for more then 75 years. “Snack food manufacturing giant PepsiCo Inc. exceeded $10 billion global potato chip sales in 2010. PepsiCo Inc. owns the largest snack food brand Frito-Lay. Frito-Lay snack food products often top market sales with 60% coming from outside North America. Its top ten markets include the United States, Mexico, Canada, Australia, Russia, United Kingdom, Spain, Netherlands, China and India”(The Top 10 Bestselling Potato Chips, 2016). 

References:

LAY'S® Kettle Cooked Jalapeño Flavored Potato Chips. (2016). Retrieved from http://www.fritolay.com/snacks/product-page/lays/lays-kettle-cooked-jalapeno-flavored-potato-chips 

The Top 10 Bestselling Potato Chips. (2016). TheRichest. Retrieved 5 September 2016, from http://www.therichest.com/expensive-lifestyle/food/the-top-10-bestselling-potato-chips/