Lay’s

Sofia Shoffner,
Wei Dai,
Mariana Aristizabal,
Chandler Shipley
Positioning
Nature of Competition
Class: Food
Category: Snack
Type: Chips
Target Market
Age group: 18-25
Main Competitors
Doritos
Tostitos

*Attribute → Benefit

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 Variety of Flavors
Perceptual Map 6

(4.4,4.4)
(1.4,4.3)

Trendy 0 (3,3) 6 Classic

(4.1,2.5)

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Mental Maps

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Brand Mantra

Emotional Descriptive Function

Classic: Lay’s has been perfecting its potato chips for more than 75 years and is perceived as very
traditional. Its products and brand image have remained mostly unchanged throughout the years so
their customers know to expect practiced quality.

Social: Lay’s are consumed mostly at social gatherings. Their most common purchase situations
include parties, BBQ’s, and sports viewing events.

Snack: As opposed to a meal, Lay’s are meant to be eaten in between meals, for those times when
you want something light, something that keeps your hunger at bay, something to be munched on,
something to be shared among family, friends, and guests

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Product: Creates Value

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Price: Captures Value Price

Economy Pricing Strategy

Ideal for Lay's target market of 18-24 year olds - a market comprised
primarily of students and young, entry level professionals who want
inexpensive snack food.
Value

$2.60 $3.02 $3.15

7.75 oz 10.5 oz 13.75 oz

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Placement: Carries Value

Indirect Channels: Pull Strategies

Manufacturer/ Distributor: - Wholesale retailers: - Event marketing: Lay’s Summer
Frito-Lay Costco, Sam’s Club Events 2015 (Cyprus)
- Discounters: Wal- - Coupons
Mart, Target
- Retailers: grocery
stores, convenience
Direct Channels: stores, gas stations, Push Strategies
delis, office supply
Shop online at fritolay. stores - Merchandising
com/snacks/buy-online.html - E-retailers: Amazon, - Quantity discounts
Google Express - Stocking support for retailers
- Vending machines
- Schools

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Promotion: Communicates Value
Flavor Contests TV Commercials Print Ads

2012-2015
Product Placement

2016
The Hangover

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Brand Element: Logo
Analysis Score

Meaningful 100% of respondents were able to tell that this logo belonged to a chip company 9

Memorable Facilitates recognition and recall, all respondents knew the logo and 72% said it was 10
recognizable as a chip brand

Appealing Increased burden on IMC because only 28% of respondents found it inviting and only 4
35% of respondents perceived it as happy

Transferable Very transferable. Logo is used in many circumstances and is kept constant globally 8

Adaptable It is adaptable. Has changed seamlessly through time with major and minor stylistic 8
changes; periods of different logos = 1965–1986, 1986–1996, 1996-2003, 2003-2007

Protectable It is trademarked so it is protectable. 8

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Brand Element: Packaging
Analysis Score

Meaningful -53% of respondents perceived the packaging as pertaining to a food that is “easy to 10
eat” therefore establishing its membership in the “snack food” category
-Further establishes category membership through metalized plastic bag material →
snack food
-Establishes membership type through images and descriptions of chips on face of
package

Memorable - Facilitates recognition, Logo is printed largely on front of packaging and packaging is 8
consistent across variety of flavors
- Yellow color of Classic bag is especially easy to recall and recognize

Appealing - 25% of respondents said that the packaging was inviting 4

- 21% of respondents said that the packaging was fun
- 25% of respondents said that the packaging was happy

Transferable Material and design is transferable across the world and across flavor varieties 8

Adaptable As product changes and evolves, packaging is able to adapt (through major or minor 8
changes)

Protectable Not protectable, is similar to many other chip packages 2

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Brand Element: Do Us a Flavor Contest
Analysis Score

Meaningful Yes, contest highlights one of Lay’s largest (wide variety of flavors) 9

Memorable Not a lot of consumers associated Lay’s with variety of flavor - therefore as of now, 4
this contest does not facilitate recall or recognition

Appealing Reduces burden on IMC, interesting, fun, rich in visual and engaging therefore it 10

Transferable Transferable because Lay’s can implement contest internationally 9

Adaptable - Contest will naturally adapt to changes in consumer flavor preferences over time; 7
consumers come up with flavors that they want to see
- Contest main idea and rules are also adaptable in order to maintain consumer
excitement and avoid boredom - in 2016, Lay’s evolved it to become the “Flavor
Swap” contest

Protectable Contest slogan is protectable but the contest idea is easy to replicate by other 5
brands

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Brand Element: Brand Name “Lay’s”

Analysis Score

Meaningful Name does not imply class, category or type 1

Memorable 87% of respondents recalled Lay’s as a chip brand, and 96% said they were familiar with 9
the Lay’s brand

Appealing Lay’s is considered classic, however it is not very interesting (no meaningful root word or 3
suffix), or fun (not a play on words, does not induce imagery)

Transferable Not transferable. Frito Lay changes the name for this brand in almost all new geographical 1
regions

Adaptable Most likely will not be changed because it has brought so much equity to the brand 1

Protectable Its trademarked so it is protectable 9

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Secondary Sources of Equity

People Things Other Brands

Endorsers Sponsorship:
Causes
- Eva Longoria - NHL Team -the
- Love Has No
- Celebrity Chef Winnipeg Jets
Labels = Lay’s is
Michael Simon a partner
Company:
- Frito-Lay
- PepsiCo

Ingredient:
- Sriracha: Sriracha
flavored chips

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Salience
Breadth
- 67% of respondents eat Lay’s
less than once a month
- Lay’s are consumed less
frequently than any of its biggest
competitors
- No respondents consumed it
more than once per week

Depth
Recall: 84% unaided recall

Recognition: 100% were

familiar with and classified Lay’
s as Chips

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Performance

Secondary Features
Primary Characteristics 1. Portion control, snack Product Reliability,
2. Can be used for a variety
1. The chip size Durability
of recipes, pairs well
2. Different flavors with certain dips (as
3. Comes in a bag Only 34% of respondents said
recommended online) that they associated “good
4. Different ingredients 3. Can be eaten on the go
within chip flavor quality” with the brand Lay’s
4. Satisfies dietary/ allergy
variety restrictions

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Performance
Service Effectiveness, Empathy:
Lay’s Marketing “Do us a flavor
contest”
Effectiveness: customer is given control
over flavor variety/choices and thus
perceives high level of service and
dedication to customer satisfaction
Empathy: consumers understand that
the brand greatly values their input and
understands consumers’ desire for
flavors that align with their preferences,
favorite foods, fantasies, etc.
Style & Design
● 81% of respondents think of Lay’s and its image as a
classic. Their logo and packaging are simple, very colorful,
and easy to recognize
● On a scale of 1 to 5, respondents gave Lay’s chips an
average rating of 2.7 on “dipability”
Price
● 69% of respondents believed Lay’s were
priced fairly
● 21% thought they were priced high or too
high,
● 10% thought they were priced low or too
low
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Imagery

User Profiles
Respondents view the common Lay’s
consumer as:
● Children & 18-25 year olds,
males and females
● Couch potato, lazy
● Sports fans
● Social young adults (people at
parties/bbqs)

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Imagery
Purchase & Usage Situations
The three most popular consumption occasions for
Lay’s chips are:
○ Parties
○ Snacks
○ BBQ’s

Personality & Values

Percent of respondents that associated Lay’s and
these values:
○ Classic: 81%
○ Family friendly:45%
○ Trustworthy: 21%
○ Likable: 38%

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Judgment
Quality

Texture, Saltiness, Tastiness and Variety of flavors were all

qualities that respondents believed Lay’s satisfied.

Credibility

● Trustworthiness: only 21% of respondents associated

“trustworthiness” with the Brand Lay’s
● However, the vast majority of respondents (81%)
described Lay’s as “classic”, the highest rating of all
competitors, implying a form of credibility

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Judgment
Superiority

● Lay’s was not considered superior to its

competitors in any of the most important chip
qualities, except for for saltiness.

● Tastiness and variety of flavors were its more

superior qualities but Doritos received similar
ratings in both of these areas.

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Feelings
Ratings of How Respondents Felt After Eating The Following Chips (Scale of 1-5)

Lay’s

Lay’s develops little equity in this dimension:

● Lay’s received an average rating of 2.7 for the feeling “happy”
by respondents after eating
● However, Lay’s also leads the competition in feelings of guilty,
disappointed with self, self conscious, and gross after eating

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Resonance
Attitudinal Attachment
Lay’s has small but significant attachment from consumers
● Only 14% respondents felt emotional attachment and
said that their life would be worse without lays

● 32% of respondents were slightly/moderately/very

interested in merchandise with the Lay’s name on it

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Resonance
Community (Brand + Consumer + others)

Lay’s develops little community based equity

● Only 2% of respondents felt
probably/ definitely felt a deep
connection with others that eat Lay’s.

● Likewise for those that like to talk

about Lay’s with others

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Resonance
Engagement
Lays struggles to create consumer involvement via
social media:
● 14% of Respondents follow Lay’s on
social media.

Loyalty
Consumers showed high consideration for
substitutes:
● Only 8% of respondents were
either somewhat or extremely
unlikely to buy another brand of
chips if Lay’s were unavailable

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Equity Rating
What’s in consumer’s mind + brand marketing = equity
Weight (%) Rating (1-10) Score
(Rating x weight)

4 P’s 15 7.5 1.13

Positioning 30 9 2.7

Brand Elements 15 7 1.05

Secondary Sources 10 4 .4

Brand Resonance 30 6 1.8

Pyramid Model

Total 100 n/a ~7.1

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Appendix
Primary Research Overview

● Target Market: Students between the

ages of 18 and 25.
● Methods used:
○ Interview (8 responses)
○ Survey (129 started surveys, 77 total
responses)

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Survey Responses

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Survey Questions

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Interview Questions
1. Do you eat chips? Why, why not?
2. How often do you eat chips? For what occasions do you purchase them?
3. What do you eat with chips?
4. Do you eat Lay’s potato chips?
5. Who are Lay’s biggest competitors?
6. What makes lays different than other chips?
7. What makes it the same?
8. What brand do you purchase most often? Why?
9. Describe Lays in 5 words.
10. Describe (competitor) in five words.
11. Describe how you feel when you eat lays.
12. What kind of person eats Lays (gender, age, occupation, hobbies)?
13. What kind of person eats (competitor)?
14. What do you look for in chips when you purchase them? (Variety of flavor, natural flavor, crazy flavors, price, etc.)
15. What foods would you eat as an alternative to chips?
16. What new options would you like to see in the chips market?
17. What is the biggest negative about lays?

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Interview Findings
1. Most people do eat chips because they taste good and they are a convenient snack to eat on-the-go.
2. Usually less than once per week. Are mostly consumed at social gatherings and bought for parties rather than personal
consumption.
3. Most respondents eat chips with salsa and different dips.
4. Half of our interview respondents said they ata Lay’s, the other half said they didn’t.
5. Lay’s, Doritos, Tostitos, Sunchips, Ruffles, Pringles
6. Classic, original flavors, thinner,
7. More air than chips in the bag, crunchy texture, size of chip and packages, price, classic flavors.
8. Corn chips (such as Tostitos, Doritos, and Mission Chips) because they are more versatile and can be eaten with meals.
9. Classic, yummy, salty, plain, round, weak, fragile, thin, variety of flavors, thin, small, oily
10. Tostitos: Mexican, tortillas, flour, scoops, party
a. Doritos: triangle, multi-flavored, cheesy, creative, Locos Tacos, flavorful, great commercials, savory, orange,
cheesy
b. Ruffles: strong, wavy, thick, dry, “dippable” (need to be paired with dip)
c. Sun Chips: wavy, healthier, tasty, limited flavors

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Interview Findings
11. Satisfied, fat, unhealthy, guilty, happy, angry, gross
12. 10-35, both genders, who likes junk food, attend social gatherings
13. Tostitos: 16-24, mexican food lovers, both genders
Doritos: Football fans, students, party goers,
Ruffles: People who watch sports, such as at a super bowl party, eating them with dip, more mature audience
Sunchips: expensive, care about taste a little more, college students and up
14. Good taste, good value for what I pay (price)
15. Crackers, granola bars, peanuts, chex-mix, fruits, popcorn, hummus, veggies and dip
16. Healthier chips, more favors (but not too crazy), less air in the chip bags.
17. Unhealthy, oily, too thin.

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Sources:
http://www.fritolay.com/snacks/product-page/lays

http://www.fritolay.com

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