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.