Lay’s Marketing Strategy

All of us would have gobbled a packet of Lay’s chips, but do you know it has been 88 years since it has started serving flavored potato chip snacks to its consumers? This became the first snack food to be ever marketed on Television. Lays is also a popular brand with a worldwide footprint, producing variations that retain a strong market image due to various preferences and flavors. The potato processing industry is growing rapidly in India and the snack foods market, like potato chips, is evolving more rapidly. The market leader in this segment is Frito-Lay with over 50% market share. In India, it was launched in 1995 and since then, has become the largest snack food brand. The marketing profile of Lays has been very interesting since its launch, its features can be examined further:


1) Branding:

Lay’s has established itself as a brand for young people. The consumer 's largest portion is aged between 13 to 26. The company always selects brand ambassadors who represent the youths of the society, which further helps in taking the young image forward. To make Lays more popular among sports enthusiasts, it sponsors major sports events to make it popular among the youth.


2) Price and Promotional Strategy:

To please its price-conscious customers, Lays has implemented many pricing approaches. Not only does it come with packets of Rs 5, 10, 20, and 25, but also uses a promotional pricing plan at regular periods to increase its sales volume.


3) Distribution Channels:

In terms of the delivery network, Lay’s has a great edge as it operates on PepsiCo’s distribution network, which is one of the strongest networks in the country. They have extended their existing distribution network to reach out to 3 tier towns and villages in India.


4) Infrastructure:

In India, Lay's has automated plants in 5 different states. All of these plants are audited and accredited for various quality criteria. It helps the company to increase its production volume in case of higher demands.


A History of Marketing Campaigns

Lay’s has been known for its captivating & innovative promotions and campaigns. In the past, these marketing campaigns have not only helped in building a stronger brand image but also boosted its sale. I will be sharing a few of its major campaigns:


Fight for your Flavor Campaign

Frito Lay came up with a TV commercial featuring brand ambassadors Saif Ali Khan and MS Dhoni getting down to some ‘netagiri’, seeking votes for their preferred flavor of Lay’s chips. The voting was a part of the campaign titled ‘Fight for your Flavor’, wherein consumers got to vote for the flavor of their choice, with the flavor garnering the maximum votes getting to continue in the market.


Campaign Dillogical:

This innovative idea was about the tussle between the heart and the head that young people go through with all the decisions they make every day, with the brain winning often. Lay's, with its melt in the mouth and taste, encouraged its customers to avoid listening too often to the brain and tap into their souls. In other words - 'Be somewhat dillogical'



Do Us a Flavor Campaign:


For this initiative, the brand invited customers to come up with their dream combination for Lay's next flavor. It didn't alter the core ingredient to allow the chips to work with prized millennial consumers but instead modified the way people looked at it. This was a clear example of giving power in the hands of the consumer.




The Real Flavors of Life Campaign:


Lay's marketing campaign, 'The Real Flavors of Life' hits a balance with ‘living the magic now.’ It stressed the importance of making every experience matter. Every moment has possible flavors it can be full of surprises, memories, anticipation, and much more! Its moments such as these that form the heart of this movement of Lays.



Smile Campaign:


Released on 4th October, World Smile Day, it was a strategically timed campaign by Lay’s. The brand roped in Alia Bhatt and Ranbir Kapoor as brand ambassadors and the launch of the TVCs only added to the buzz. It mapped each influencer’s smile and matched it to the various flavor

variants. Personalized packs were produced, featuring the smiles of influencers that further promoted this campaign.



Digital Marketing Campaign Post Covid-19: #Heartwork



The ongoing crisis due to the coronavirus outage has affected every aspect of our lives and has made social distancing the new normal. It has completely changed the purchasing pattern of consumers, which even the most efficient demand forecasting tools failed to predict. This has

also shifted the way marketers promote and sell their goods. With most of the businesses going online, brands now have the opportunity to build solutions that boost their online media connections.


The intent of online marketing has always been attracting the customer’s attention to sell a product, but this time Lay’s has taken a sincere initiative to focus not on the sale, but its collaborations. This has considerably been one of the best marketing campaigns during these uncertain times.


Let’s take a deep dive into this further. The newly launched digital marketing campaign by Lay’s, the potato chips brand from PepsiCo

has created a lot of buzz on every social media platform. The brand has taken its collaborations to a more humane level by expressing gratitude towards India’s unsung heroes during these challenging times. Rightly titled #Heartwork, it’s a heartfelt ode to every trading partner involved in its supply chain who are working tirelessly against all odds to ensure that the company delivers its products to millions across the country.


They have acknowledged the contribution of a total of 23 brands from different sectors on their official Twitter and Instagram handles, who have helped Lays to keep up with their operations and manage the overall supply chain. They have released virtual packets branded with Lay’s #Heartwork and featuring customized messages for each of the stakeholders as a part of this social media engagement.


The list included Flipkart, Dunzo, KFC, Big Basket, Spotify, Ariel, Urban Company, Zomato, Cadbury, Whisper, Pizza Hut, ABP News among others. Some of these brands responded to Lay's gesture by thanking the supply chain members. This initiative was not just good-natured but also creative and a visual treat at the same time. Below are a few illustrations

of the same:


In addition to the virtually launched packets, Lay’s has also released a 30-second-long video to thank its staff at every level who have helped the company to run its business during the uncertain times. The film showcases the efforts of the individuals who have continued to work through the difficult times, without finding attention or patting on their backs.

It added that the brand expresses its heartfelt appreciation and gratitude for this film to unknown heroes like producers, factory employees, truck drivers, dealers, sales staff, suppliers, and executive distribution on behalf of the organization and any customer who loves Lay's. Here is a link to the video: https://www.youtube.com/watch?v=oR7zpcitFh8


Author:

Akash Deep

IIT Kanpur

LinkedIn Profile: https://www.linkedin.com/in/akashdeep05/

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