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.