Marketing Mix of Lays and 4Ps (Updated 2023)

The Marketing mix of Lays analyses the 4Ps of Lays, including the Product, Price, Place, and Promotion of Lays. Lays is a famous brand associated with the snack food industry. It was founded in 1932 by an American, Herman Lay. Over the years, ownership of the company has changed hands several times. Years 1961-65 saw the merger of Lays with Frito Company to become Frito-Lay, and in 1965, it once again merged with Pepsi-Cola company to become PepsiCo, Inc. Some of its competitors in the consumer market are as follows-

• Piknik
• Diamond wafers
• Parle Wafers
• Haldirams
• Bingo
• Kurkure
• Pringles

About Lays

• Type: Potato chip brand
• Industry: Snack food
• Founded: 1932
• Founders: Herman Lay
• Headquarters: Purchase, New York, USA
• Area served: Worldwide
• Current CEO: Ramon Laguarta
• Number of employees: 23,000
• Major products: Potato chips, tortilla chips, and other snacks

Lays Product Strategy

Lays is a famous brand offering several variants of potato chips in the consumer market. It believes in introducing variants at regular intervals to attract its customers on a chronic basis. In the 1990s, it offered its consumers a fat-free variety with a low-calorie version.

Additional flavors were also added to its products to increase its customer share. Some of the variants in the Lays product portfolio are as follows-

• Lays Barbecue Flavored Potato Chips
• Lays Chile Limon Flavored Potato Chips
• Lays Deli style Original Potato Chips
• Lays Classic Potato chips
• Lays Cheddar & Sour Cream Flavored Potato Chips
• Lays Wavy milk Chocolate Covered Potato Chips
• Lays Wavy Ranch Flavored Potato Chips
• Lays Wavy Cheddar Flavored Potato Chips
• Lays STAX Xtra Flamin’Hot Flavored Potato Chips
• Lays STAX Sour Cream & Onion Flavored Potato Chips
• Lays STAX Salt & Vinegar Flavored Potato Chips
• Lays Dill Pickle Flavored Potato Chips
• Lays Flamin’Hot Flavored Potato Chips
• Lays Honey Barbecue Flavoured Potato Chips
• Lays Lightly Salted Potato Chips
• Lays Limon Flavored Potato Chips
• Lays Pico de Gallo Flavoured Potato Chips
• Lays Salt and Vinegar Flavored Potato Chips
• Lays Southern Biscuits and Gravy Flavored Potato Chips
• Lays Kettle Cooked jalapeno Flavored Potato Chips

Lay’s, a famous brand of potato chips, offers a diverse range of flavors and products globally. The product mix of Lay’s varies by region, but here are some of the common categories and flavors.

The product mix of Lays in 2023 is as follows (Source)

1. Classic Flavors: This includes the original, salted variety, as well as universally recognized flavors such as Sour Cream and onion, Barbecue, and Salt and vinegar.
2. Wavy Chips: These ridged chips often come in flavors like Ranch or Hickory BBQ, offering a different texture from the classic flat chips.
3. Stax: Similar to Pringles, Lay’s Stax are stackable potato chips in various flavors like Original, Sour Cream & Onion, and Cheddar.
4. Baked: A healthier alternative, Lay’s Baked chips have less fat than regular chips. Flavors include Original, Barbecue, Sour Cream, and onion.
5. Limited Edition/Regional Flavors: Lay’s often releases limited edition flavors or flavors specific to certain regions. For instance, in India, they offer flavors like Magic Masala, while in America, they’ve had flavors like Chicken & Waffles.
6. Collaboration Flavors: Occasionally, Lay’s collaborates with other snack food products, brands, or events to create unique flavors. For example, they might introduce a flavor in partnership with a popular restaurant chain or for a sports event.
7. Kettle Cooked: These are thicker and crunchier chips, often considered a premium offering. Flavors might include Jalapeño, Original, Sea Salt, and vinegar.
8. Popables: A light and airy option, small, round, and popped chips, available in flavors like Sea Salt, White Cheddar, and Honey BBQ.

It’s important to note that the availability of these products and flavors can vary greatly depending on the region and market trends.

Lays Place Strategy

Lays has gained international recognition, and its products are easily available in most countries. Its founder started snack-food operations in Dorset in the United States; with time, the brand has expanded to include most global countries like Australia, Argentina, Brazil, Colombia, Egypt, India, Indonesia, Italy, Mexico, Pakistan, UAE, Canada, United Kingdom, and South Africa. Lays has a strong distribution network that includes the services of manufacturers, distributors, and retailers to reach consumers via corner shops, discount stores, convenience stores, hypermarkets, and supermarkets.

Lays Place Strategy is:

1. Global Distribution Network: Lay’s utilizes a widespread distribution network that spans various countries, ensuring its products are available in many retail outlets, including supermarkets, convenience stores, and vending machines.
2. Localized Manufacturing: To cater to regional tastes and reduce transportation costs, Lay’s often establishes manufacturing units in local markets, allowing for the production of region-specific flavors and quicker supply to local retailers.
3. Online Presence and E-Commerce Platforms: Lay’s leverages online platforms and e-commerce websites for sales, catering to the growing trend of online shopping and providing convenience to consumers who prefer to shop from home.
4. Strategic Placement in Stores: Lay’s employs strategic shelf placement in stores, often positioning their products at eye level or in high-traffic areas to maximize visibility and encourage impulse purchases.
5. Collaborations and Partnerships: Lay’s frequently collaborates with large retail chains and local stores for promotional activities and exclusive releases, which helps capture a wider audience and enhances brand visibility.

Lays Pricing Strategy

Lays has adopted several pricing strategies to satisfy its price-conscious customers. The company’s value-based prices reflect its position as a brand with distinctive features like effortless accessibility, easy affordability, great taste, and high quality.

Lays remains wary of its competitors and has reserved a competitive pricing plan to keep its product prices at par with rival companies to maintain customer loyalty. It also uses a promotional pricing plan at regular periods to increase its short-term sales volume. The company offers incentives like bulk deals, discounts, and price packs. This helps maximize sales in minimum time and garner extra profits.

Lay’s pricing strategy is a sophisticated blend of competitive pricing, perceived value, and market segmentation designed to attract customers and maximize market penetration and consumer loyalty. Here’s a detailed breakdown:

1. Competitive Pricing: Lay’s strategically prices its products in line with its competitors in the snack food industry. This approach ensures that they remain attractive to price-sensitive customers while maintaining a perception of quality.
2. Psychological Pricing: Lay’s often employs psychological pricing tactics. For example, pricing products just below a whole number (like $2.99 instead of $3.00) can make them appear more affordable, encouraging impulse purchases.
3. Tiered Pricing for Different Sizes and Varieties: Lay’s offers a range of product sizes – from small, individual packets to large, family-sized bags. This tiered pricing structure caters to different consumption needs and occasions, allowing consumers to choose based on their budget and requirements.
4. Promotional Pricing: Regular promotions, discounts, and bundle offers are a staple of Lay’s pricing strategy. These tactics boost short-term sales and help attract and retain customers who perceive they are getting more value for their money.
5. Regional Pricing Strategy: Understanding the economic variations across different regions, Lay’s adapts its pricing to align with the local purchasing power and competitive landscape. This means the same product might be priced differently in different countries or even within different areas of a country.

This multifaceted pricing and distribution strategy enables Lay’s to compete effectively in diverse markets, appeal to a broad consumer base, and maintain its position as a leading brand in the snack food industry.

Lays Promotion Strategy

Lays is one of the companies that realized the importance of advertising at its onset. In 1944, it bought television commercials. It appointed Bert Lahr as its celebrity spokesman, becoming the first manufacturer of a snack food market whole-food items to do so. Currently, it has utilized every possible advertising tool to create brand visibility. Its ads are funny and attractive with catchy taglines. Ads are shown in popular television channels, radio, magazines, newspapers, hoardings at popular places, and vehicles like buses, trams, and auto-rickshaws.

It has started campaigning in social media portals via Twitter, Facebook, Blogs, and YouTube to move with changing times. Lays has realized the importance of celebrity endorsement and roped in several famous personalities to act in its ad campaigns. Actors Ranbir Kapoor, Saif Ali Khan, and cricketer Mahendra Singh Dhoni endorse Lays in India. In Pakistan, pop star Ali Zafar supported the product. Several famous taglines are associated with lies, like Bet you can’t eat just one and be a little dialogical.

Lay’s promotion strategy involves engaging advertising campaigns featuring celebrities and influencers, innovative social media marketing to connect with younger audiences, and in-store promotions and collaborations with retailers to drive impulse purchases and brand visibility. This multifaceted approach helps Lay’s maintain a strong brand presence and appeal to many consumers.

Some Recent Video ads and Print ads of Lays are:

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