Lays stacks promotion8/12/2023 ![]() They have a savings campaign called Lay’s Chip Trips. Possible risks are that the consumer will store their products and it won’t lead to extra consumption. Moreover the consumers will be blocked to other brands of crisps. One will try to create more market share by creating a higher brand loyalty, user intensity and revenues. Within these promotions, we can speak of a vertical effect or market effect. This also is a kind of sales promotions where they offer a bigger quantity of goods for the same price. They realise this by offering special promos to customers. Sometimes Lay’s also has a special offer where you get a 3rd bag for free. When the customer is satisfied and buys the product again, we call it a repeat. At first place, Lay’s wants the customer to meet and try its product. This may lead to a horizontal effect or market expansion. The main advantages are the low cost, the consumers information is saved in database and the involvement of the retailer is not necessary. Lay’s also organises cash-refund actions where you get your money back by sending back the barcode of your package of Crisps. Sometimes Lay’s offers sampling and free crisps. ![]() The sales are stimulated at short term by temporal improvement of the price-value ratio. This is one of the sales promotions techniques Lay’s uses. The consumer pays less for the same product and receives a sort of reduction. Subsequently the price is lowered to capture the market. The company also makes different price actions for the introduction of new products. Promotion: Lay’s Promotional campaign Lay’s as a market leader doesn’t have strong competition because they have a strong promotional campaign. In this way they obtain a more complete assortment and can they satisfy more consumers. Since 2011, for example, they have a product variant called “Black Pepper & Sea Salt”. Line filling Lay’s completes their assortment of existing products by adding new varieties to the different groups. ![]() Lay’s Light contains 33% less fat and in the sub-group Lay’s Oven, the crisps contain 70% less fat. With these groups they tried to penetrate a new group of consumers who worry about the percentage of fat that crisps contain. For example: Lay’s developed Lay’s Light and Lay’s Oven. Line stretching Lay’s often expands their assortment by adding new flavours and new sub-groups. In this way each product will receive its own identity. By making use of market segmentation, Lay’s creates the possibility to expand its assortment and itself. Even though all the products belong to Lay’s, they sell them according to their different characteristics by a different name. ![]() Further more, Lay’s makes use of individual brands for the different flavours like there are: Lay’s Light, Lay’s Oven and Lay’s Sticks. It’s a group-brand because PepsiCo doesn’t use its own name to sell the products, but they use the brand Lay’s to distribute them. Product: Lay’s The brand name For the brand’s name Lay’s uses a combination of group-brand and a individual brand. It’s for this company that we will briefly clarify the product- and promotion policy. ![]() Over 90% of the population is familiar with the brand-name and with more than 50% of the market shares, we can definitely call them the market leader. Lay’s, known as Walkers in the UK and Ireland, is the brand name for a number of crisps varieties as well as the name of the company that founded the chip brand in 1932. ![]()
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