The marketing strategy behind Lays potato chips: a look at how the company became the world’s favourite brand of potato chips
The marketing strategy behind Lays potato chips: a look at how the company became the world’s favourite brand of potato chips
The brand Lays quite popular worldwide. It is currently the most consumed chip because it sells delicious chips and because it launches new themed flavours often. In addition, it is affordable for people. During the early 1930s, Mr Lays came up with the best idea.
Marketing and market mix are essential to success in the food industry. Success in any organization is the result of a combination of hard work, patience, and excellent ideas. That’s what Lay’s does. Several other chips brands competed with Lay’s and emerged victoriously.
About Lays
The packaging and the great variety of Lays chips’ flavours make them famous. They are available in many different flavours in different countries. Lays offers limited-edition flavours to entice customers. Since it was founded in 1940, it has been in the food business for more than eighty years.
Barrett Food Company, a chip manufacturer in Georgia, was acquired. Two people owned the company. Herman Lay held it from 1940 to 1961. The company is renamed ‘H.W. Lay Lingo & Company’. The product was sold from the trunk of Lay’s car in the southern United States.
As early as 1961, the Lays and Frito Company brands were owned by Charles E. Doolin. In 1984, Frito-Lay merged with Lays. With its production units spread worldwide, the brand quickly became the most famous brand of chips.
An Overview of Lays’ Marketing Strategy
It took exceptional planning for Lay’s marketing strategy. A small brand, Harman Lay Lays, was the idea of Mr Harman Lay Lays. The brand was sold from the trunk of his car by Mr Harman Lay, Lays himself. This was his breakthrough. PepsiCo acquired the company after partnering with Frito. Among the marketing strategies are:
- The Target and Position Strategy: You can calculate where this brand has a more significant following using the target and position strategy. This leads to establishing more production facilities there.
- Getting Celebrities to the Campaign: The brand of chips is promoted by several celebrities, which makes people purchase them more often.
- Affordability: The prices of these chips are very affordable. They are accessible to everyone in society.
- Diverse flavours: There are a variety of flavours available, so every person can find something that suits their taste buds.
- Advertising: Lay’s advertises its great taste through great advertising. Consumers become interested in trying it.
Target Audience
All segments of society are targeted by lay products, including all ages and genders. Everyone loves these snacks. The different flavours give its diverse audience an excellent opportunity to pick from a wide range of choices.
Chips became a staple diet of everyone in America when they became a staple diet. Meanwhile, chips quickly became everyone’s favourite tea-time snack in other countries.
SWOT Analysis of Lays
This brand’s SWOT analysis reveals:
Brand strength includes:
- Lays come in a variety of flavours to suit everyone’s tastes.
- The partnership with Frito was Lays’ most profitable venture.
- This is a widely distributed product.
- Campaigns at the local level: They can capture the hearts of a high percentage of people.
Weaknesses include:
- Health concerns have caused people to reduce snack consumption.
- Popularity is also increasing for many other brands.
- Lays is threatened by competition from other chip brands as well as lays.
Brand Positioning
In the market, the popularity of a brand is determined by its position. As a brand, Lays occupies a top position. Having a good job will build trust for the brand. Brands that score well in terms of positioning are also challenging to compete with.
Maintaining the position of a brand is imperative. Several strategies are employed by Lay’s to stay on top. Several methods push its work to the top, such as advertising, campaigns, and introducing new flavours in every country.
Inbound Strategy
Several Paytm codes are included in the chips packets in the inbound strategies. The perks include Lucky Draws and the opportunity to meet celebrities.
Customers have enjoyed the cafe’s free packets of chips given along with the coke on occasion. The extra quantity of chips in each box is visible. The display is one of the major attractions and a great way to get people to purchase the chips.
Social Media Campaigns
People who enjoy this snack would access online images, videos, and shorts when they use mobile campaigns. Advertising-these products are made possible by platforms such as Instagram, Twitter, and Facebook. Mobile phone advertising has become more effective since people use them more. A giveaway of foreign flavours is offered as part of the ‘Flavour trip.’ Participants with mobile phones could easily participate in this event for social media users.
Celebrity-Endorsed Advertisements
This distinctive characteristic characterizes lays. The brand has been able to secure the endorsement of celebrities in diverse countries.
The Lays brand ambassadors in India are Ranvir Kapoor and Alia Bhatt. Celebrities like these will make people buy these chips in more numbers when they see them in advertisements. Since 2014, Lionel Messi has been featured in most of its campaigns. This campaign also featured Indian cricketer Muhammad Kaif.
Outbound Strategy
Despite its high production and supply chain complexity, this brand’s production and supply chain are pretty high. Most of its units have many employees. Trustworthy distributors also contribute to the brand’s success. This chips brand can be found on online stores like Amazon pantry, Reliance fresh, and big basket. A sound transportation system is essential, as is timely stock replenishment. A trustworthy owner controls supply throughout every country where the units are located.
Marketing Mix
The marketing mix comprises all the strategies that a company or brand uses to be competitive in the market. Packaging is one of them, along with positioning, people, and processes. A complete marketing strategy can only be achieved when these four factors are considered.
This brand thrived because of its marketing strategy. All brand parameters were taken into consideration. Over time, it became recognized as a trustworthy brand and climbed to the top. A company’s campaigns, advertising, and production and distribution units contributed to its success.
Promotion Strategy
For a brand to grow, it is the most crucial factor. Various marketing strategies exist to promote brands. As a marketing strategy, celebrities may act as brand ambassadors, social media can be used for campaigns, attractive packaging is used, and a large variety of flavours and offers are available.
As a result, people buy more chips when they see these strategies. Commercials today have a more significant influence on people. That is Lays’ guiding principle. Furthermore, its availability and expansion worldwide, plus its affordability, have made it one of the top competitors. Lays’ clever marketing strategy led it to become one of the biggest brands in the world from a trunk in a car shop.
People
In determining how a brand is perceived, people are crucial. It is a name that nearly everyone has tasted, from kids to adults, because it can be found in many counties and offers so many flavours.
Physical evidence
There are lays factories all over the world. There is the iconic Frito Lays logo on the package, which is instantly recognizable. Frito Lays chips can be found in supermarkets as well as small stores. They can also be purchased online. Online you can find different flavours.
Pricing Strategy
In addition to telling about what segment of society can afford a product, its price also tells about its availability. Lays, for instance, is an affordable brand of chips. It is readily available to people from all walks of life. A limited edition pack may contain Paytm codes as part of the pricing strategy.
Place and Distribution Strategy
The strategy indicates where the brand function should be recognized. The company began as a small store in Georgia and today has several locations worldwide.
There are over a hundred countries where Lays sells its products. The company produces more than 16 billion packets per year. Production units are linked to distributors by a complex chain. These chips are available at nearly all snack stores. It has been a long, hard road. Several factories are located around the world.
Conclusion
A successful business relies on an intelligent marketing mix and a solid marketing strategy. The Lays brand offers both. It is popular with kids, adults, and seniors. He came up with the idea for Mr Lays in the early 1930s, Lays is one of the world’s most recognizable brands.
The story of Lays reminds us that nothing is impossible. In barely a year, it became a well-loved brand among all, even attracting the attention of celebrities. The brand enjoys high production and distribution as well as high demand. These factors make it a success.
