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Project Report

ON

THE STUDY OF CONSUMER BUYING


BEHAVIOUR
OF LAYS A PRODUCT OF PEPSICO
Submitted for the partial fulfilment for the award
Of
Bachelor of Business Administration from
Chaudhary Charan Singh University, Meerut
2012-15
Submitted To:
Beacon Institute OF Technology

Under The supervision Of: -

Submitted By:-

Ms. SINJA GUPTA

VIJENDER SINGH

(Asst. Professor)

BBA VI SEM
Roll No. 9686627

DEPARTMENT OF MANAGEMENT
BEACON INSTITUTE OF TECHNOLOGY,
BYPASS PARTAPUR, MEERUT
BATCH-2012-15
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ACKNOWLEDGEMENT

We hereby take this opportunity to thank all those people including our friends and
colleagues who have helped us for the successful completion of this project.

We would also like to thanks Ms. SINJA GUPTA, H.O.D. of Management Dept,

Beacon Institute Of Technology Meerut for her continuous support and guidance
she have rendered for the successful completion of this project.

We express our gratitudes towards our parents for their encouraging support, incandescent
sprit and endurance towards the making of this project.

In the ends a special thanks to all members who are directly or indirectly associated with the
project.

VIJENDER SINGH
BBA VI SEM
Roll No. 9686627

DECLARATION
I VIJENDER SINGH hereby declare that the project certified THE STUDY
OF CONSUMER BUYING BEHAVIOUR OF LAYS A PRODUCT OF
PEPSICO is my original work, done by me.
Now it is Asset of NVP, Meerut of the right for using this project Guide Ms.
SINJA GUPTA, H.O.D. of Management Dept, Beacon Institute Of
Technology Meerut lie with institute unauthorized copying, hiring broadcasting
or rental of this project without permission from the institute will be considered
illegal.

VIJENDER SINGH
BBA VI SEM
Roll No. 9686627

CONTENTS
1.
2.
3.
4.
5.
6.
7.
8.
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11.
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15.
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18.

Acknowledgement
Table of the Contents
Declaration
Preface
Executive Summery
Objective of the Study
Introduction
Company Profile
Scope of the Study
Research Methodology
Data Analysis
Swot Analysis
Finding
Recommendation
Limitation
Conclusion
Bibliography
Questionnaire

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PREFACE
A summer internship program is a very essential part of a management program. It provides
us with the valuable exposure to the corporate culture and also how work is done in an
organization. Through this a student also learns how to conduct himself/herself in an
organization and how to tackle various situations that may arise during his/her work. A front
on experience of such things helps in developing his/her over all personality and enriches his
knowledge base, i.e., practical as well as theoretical.

Our institute NEELKANTH VIDYA PEETH has provided us with an opportunity to get such
an exposure in reputed organization. I have got the to do my internship project with Parle
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Agro Pvt. Ltd. And I have chosen new product development and its establishment in the
market as my project. During my tenure at Parle Agro Pvt. Ltd. I will be completing my
project by directly working on the on going work schedules along with the people who are
already working in the organization.

The project named new product development of Parle Agro Pvt. Ltd new product LMN
with the objective of establishing the product in the market after its launch and to make it a
preferred lemon drink over other competitors drink. Also the objective of the project is to
analyze the distribution channel adopted to place LMN in the market. Through market
mapping I have to analyze the location of the shops in which they place their product. What
are their terms and conditions for placing the production the shops? Along with that I have to
look after the promotional activities adopted by the company to promote LMN in the market.

EXECUTIVE SUMMARY
Present world is the world of competition. There is huge competition in each and every
sector. Every one wants to be ahead of their competitors. The competitive landscape,
rapidly changing technologies, increased complexity of products and services and more
aware and demanding customers are all pushing the Organization to adopt the customer
centric focus. This project was allotted to me by the marketing department of Lays Potato
Chips.
In the present dynamic business environment customer play a vital role and is of centric
value to the Organization. Hence satisfying a customer by providing excellent services is of
prime importance to the company.
First of all a proper outline of the entire survey work was decided like research objectives,
research approach. The main objective of the research was to find out the satisfaction level
of the customers from products offered by the company in the market.
The next step was decided upon other areas of research design. To meet the main objectives
of the research programme a proper sample size was decide upon, which represents the
entire population and help in getting results. Structured questionnaire was used as research
instrument and personal interview method was used for data collection in the whole survey.
Analysis and interpretation were drawn from the entire data so as to focus on the major
problems. Analysis and interpretation were further used to reach the results and findings of
the survey and were also helpful in making the suggestions.

OBJECTIVES OF THE STUDY

OBJECTIVES OF THE STUDY


1. To study the snacks industry as a part of food processing industry.
2. To study the company profile of FRITO_LAYS Ltd the makers of LAYS
3. To study the trends in snacks industry.
4. To analyse and interpret the results of sample collected.
5. To determine the future course of action by Frito lays
6. To find conclusions to our project.

INTRODUCTION

INTRODUCTION

Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snack is described as
a Small quantity of food eaten between meals or in place of a meal. Snack food generally
comprises bakery products, ready-to-eat mixes, chips, namkeen and other light processed
foods According to the ministry of food processing, the snack food industry is worth Rs 100
billion in value and over 4,00,000 tonnes in terms of volume.
Though very large and diverse, the snacks industry is dominated by the unorganized sector
According to an Apeda survey almost 1,000 snack items and 300 types of savories are sold
across India. The branded snacks are sold at least 25% higher than the unbranded products
Savory snacks have been a part of Indian food habit, since almost ages. Though there is no
particular time for snacks, normally they are consumed at teatime. The variety is almost
mind-boggling with specialties from all regions, which have gained national acceptance
industry. he been growing around 10% for the last three years, while the branded segment is
growing around 25% per annum to stand at Rs 5,000-Rs 5,500 crore, due to various reasons
like Multiplex culture, snacking at home while watching TV, pubs and bars (where they are
served free). AC Nielsen's retail audit shows that the large sales volumes are due to a marked
preference for ethnic foods, regional bias towards indigenous snacks and good value-formoney perception. Of course the branded segment is much smaller at Rs 2,200 crore, which
is what makes it so attractive to food Companies that are looking at bigger shares and in the
branded snacks market, to get down to basics, Frito Lay commands a share of 45%, followed
by Haldirams at 27% and LAYS at 16%. The

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rest is divided between a handful of new entrants, wannabes and many regional players
Of the wide range of snacks available, potato chips constitute a sizeable segment of the
Indian snack food industry, according to India Info line. The potato chip market is generally
an unorganized industry. Nearly all potato chip snack products are manufactured and sold
locally. There is also no uniform standard for packaging, as there is in Europe, the United
States and other more developed regions. Many snack foods are sold loose or packaged in
poly-pouches, which may only be folded, or in some cases, stapled closed. As the Indian
economy continues to grow, and production standards improve, many snack food companies
are making significant investments into plant equipment and packaging machinery.
Pepsi Foods Ltd., now known as Frito-Lay India Ltd., produces India's largest snack food
Manufacturers brands, including Ruffles, Hostess, Cheetos and Uncle Chips. Frito Lay's
story is an example of how American recipes were adjusted to satisfy local tastes. Procter &
Gamble's Pringles brand of potato crisp was launched in Meerut - Ghaziabad in 1999.
Pringles is also a baked potato crisp, unlike many other potato based Indian snack foods that
are fried. P&G currently imports the Pringles product and therefore the product has been
priced at a premium and is marketed to a micro-niche

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HISTORY

Lay's is the brand name for a number of potato chip varieties as well as the name of the
company that founded the chip brand in 1938. Lay's chips are marketed as a division of FritoLay, a company owned by PepsiCo Inc. since 1965. Other brands in the Frito-Lay group
include Fritos, Doritos, Ruffles, Cheetos and Rold Gold pretzels. Contents
In 1932 salesman Herman W. Lay opened a snack food operation in Nashville,
Tennessee and, in 1938, he purchased the Atlanta, Georgia potato chip manufacturer
"Barrett Food Company," renaming it "H.W. Lay & Company." Lay criss-crossed the

Southern United States selling the product from the trunk of his car. In 1942, Lay introduced
the first continuous potato processor, resulting in the first large-scale production of the
product.

The business shortened its name to "the Lay's Company" in 1944 and became the first
Snack food manufacturer to purchase television commercials, with Bert Lahr as a celebrity
spokesman. His signature line, "so crisp you can hear the freshness," became the chips' first
slogan along with "de-Lay-sious!" As the popular commercials aired during the 1950s, Lay's
went national in its marketing and was soon supplying product throughout the United States.

In 1961, the Frito Company founded by Elmer Doolin and Lay's merged to form Frito-Lay
Inc., a snack food giant with combined sales of over $127 million annually, the largest of any
manufacturer. Shortly thereafter, Lays introduced its best-known slogan "betcha you can't eat
just one." Sales of the chips became international, with marketing assisted by a number of
celebrity endorsers.

12

In 1965, Frito-Lay merged with the Pepsi Cola Company to form PepsiCo, Inc. and a
barbecue version of the chips appeared on grocery shelves. A new formulation of chip was
introduced in 1991 that was crisper and kept fresher longer. Shortly thereafter, the company
introduced the "Wavy Lays" products to grocer shelves. In the mid to late 1990s, Lay's
modified its barbecue chips formula and rebranded it as "K.C. Masterpiece," named after a
popular sauce, and introduced a lower calorie baked version and a variety that was
completely fat-free (Lay's WOW chips containing the fat substitute olestra).

In the 2000s, kettle cooked brands appeared as did a processed version called Lay's Stax that
was intended to compete with Pringles, and the company began introducing a variety of
additional flavor variations.

Frito-Lay products presently control 55% of the United States salty foods marketplace
Flavors

Except for barbecue-flavor potato chips, which were introduced no later than 1958, up until
the last 20 years, the only flavor of potato chips had been the conventional one. Despite an
explosion of new flavors, the unadorned original is still the selection of 81% of consumers.

In the United States, Lay's offers a number of flavor combinations, in addition to the classic
chips. Flavored products in the traditional fried varieties include sour cream & Onion,
Barbecue, cheddar & sour cream, Hidden Valley Ranch, salt & vinegar, salt & pepper,
Flamin' Hot, dill pickle, Limon (Lime) and a thicker "Deli style" chip. Canadian sellers have
a number of varied flavors, with curry, ketchup, poutine, pizza, Fires Gravy, roast chicken,

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Smokey bacon, salsa, wasabi, spicy Indian masala and sea salt and pepper brands available.
The marketing success of these flavors in Canada sometimes leads to a limited time offering
of a flavor to the south, with the dill pickle recently appearing in the United States after a
successful run.

Interestingly the name 'sour cream' has got Lay's into a lot of confusion in some countries. In
India for instance the name was changed to American style cream and onion after consumers
reported their discomfort with the idea of 'sour' cream

In the baked products, there are classic, barbecue and sour cream & onion varieties. The
kettle cooked version includes original, sea salt & vinegar, mesquite barbecue and jalapeo
brands. Wavy Lay's have original, hickory barbecue, ranch and Au Gratin flavors while Lay's
Stax offers original, sour cream & onion, cheddar, barbecue, ranch, pizza and salt & vinegar.
The newest variety, Lay's Natural has thick cut barbecue and sea salt brands.

The WOW! Brand was rebranded in 2004 as Lay's light after the olestra formula was altered
and the U.S. Food and Drug Administration allowed removal of warnings about various
health consequences of the fat substitute.

Outside North America, Lay's in Greece and Cyprus are made and packed by Tasty Foods and
Carina Snacks LTD, with Mediterranean flavors which include Feta cheese flavor, Tzatziki
flavor, Olive and Tomato, Oregano, Sea Salt & Black Pepper and various more. There are
hundreds of sub-variations of the Mediterranean line and the company performs

14

Constant experimentations to create new flavors and adjust them to each country's liking. In
some countries such as Argentina variations of the Mediterranean tastes exist include Olive
Oil and Parmesan Cheese, Olive Oil and Tomato, Olive Oil and Basil, Greek Tzatziki Cheese
with onions, Lasagna, Beef Capriccio with Parmeggiano and Smoked Manchego Cheese. In
Belgium there is a version of Cucumber and Goats Cheese. Finally in Chile there is a version
of Lemon and Cilantro (Coriander) and Sour Cream and Onions.

In Australia, a cilantro version exists while a hot & sweet chili, sweet corn and cotija cheese
brand can be found in South America.

Another flavor sold primarily in southern Asia is called "Magic Masala." This flavor is very
popular in India, Pakistan, and Bangladesh. Flavors featured in Thailand include Nori
Seaweed, Basil, Squid, Spicy Chili Squid, Seafood and Mayonnaise, and Spicy Seafood.

There are a number of unique products in the United Kingdom sold under the Walkers label,
including prawn cocktail, beef & onion, Greek kebab and Marmite yeast extract. Under the
Smith's label in Australia, unique flavors include Greek Feta & Herb and Italian Tomato &
Basil.

Russia has "Lay's MAX" chips (Chicken, Sour cream & Onion, Sour cream & Cheese, and
Ham & cheese flavors) and some international "Lay's" flavors plus Russian "Lay's" flavor Mushrooms & Sour cream, Crab and Red caviar.

In Poland the chips flavors are: Green Onion, Mushrooms & Sour Cream, Chicken, Original,
Paprika, Hot pepper, Original, Ketchup, Forage, new potatoes with basil. Also there is Lays

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Appetite which is also part of lays and has the following flavors Kebab, Pepper and Cheese,
Onion and Cheese.

In parts of South America (notably Argentina and Uruguay), Lay's flavored products are sold
with the "Lay's Mediterranean" label, and include such flavors as ham, tomato and basil,
tomato Parmesan, and oregano. Peru has

"Lay's Sabores Peruanos" (Lay's Peruvian Flavors), with flavors like queso andino (Andean
cheese); also recently was released Lay's Dips, that includes a "Peruvian Criollo Chili" sauce
sachet.

In Ukraine there is crab, bacon, cheddar, and sour cream and green onion

In Thailand there is Classic, Sour Cream & Onion, Cheese & Onion, Mexican Bar-B-Q, and
And Japanese Nori Seaweed. Flavors also come and go usually with an international theme,
for example: French Mayonnaise, Balsamic Vinegar and Salt (England), Garlic Soft Shelled
Crab (Hong Kong), Soy Sauce, Salmon Teriyaki (Japan), Lobster, Bacon & Cheese
(America). Also traditional "Thai" flavors include Tom Yum, Thai Chili Paste, Thai Seafood
Dip, Chili and Lime. Popular flavors are often kept in circulation longer.

There are currently 12 regular Lay's flavors in Canada, though there are more, available only
in certain parts of the country. The flavors available nationwide are the following: Classic
(yellow), BarBQ (black), Salt & Vinegar (teal), Ketchup (dark red), Wavy Original (red), Dill
Pickle (bright green), Smokey Bacon (brown), Sea Salt & Pepper (silver), Sour Cream &
Onion (green), Roast Chicken (light brown) and finally Lightly Salted (bright blue). Also, in

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select Canadian markets (Toronto & Vancouver) Lay's has introduced international flavors
such as "Spicy Curry" and "Spicy Indian Masala" to appeal to a wider consumer group.

Lays have entered the German market with some success in the last couple years. All 3 key
Lay's brands are distributed with 2 flavors for each brand. The following flavors are marketed
in Germany.

17

COMPANY PROFILE

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COMPANY PROFILE
FRITO LAYS
The project purports to decipher the satisfaction level as well as the preferences of consumers
pertaining to the various flavors of Lays a new range of savory snacks launched by C. We
aim to analyse the success, marketability and future growth prospects of LAYS. Basically we
intend to find out the most popular flavor of LAYS in the market from our sample. Snacks as
such are a very minor part of the food processing industry because snacks sample. Snacks as
such are sector is largely unorganized. Here we will also look into the market For this a
survey was conducted in Meerut - Ghaziabad, Ghaziabad where respondents were asked to
fill a questionnaire. The data was collected and analyzed to obtain conclusions This report
carries an introduction of the company profile, detail of the methodology followed detailed
data analysis and the results so obtained with the variety of graphs along with given.

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Lay's
Lay's is the brand name for a number of potato chip (crisps in British English) varieties as
well as the name of the company that founded the chip brand in 1938. Lay's chips are
marketed as a division of Frito-Lay, a company owned by PepsiCo Inc. since 1965. Other
brands in the Frito-Lay group include Fritos, Doritos, Ruffles, Cheetos and Rold Gold
pretzels.
History
In 1932 salesman Herman W. Lay opened a snack food operation in Nashville, Tennessee
and, in 1938, he purchased the Atlanta, Georgia potato chip manufacturer "Barrett Food
Company," renaming it "H.W. Lay & Company." Lay criss-crossed the southern United
States selling the product from the trunk of his car. In 1942, Lay introduced the first
continuous potato processor, resulting in the first large-scale production of the product.
The business shortened its name to "the Lay's Company" in 1944 and became the first snack
food manufacturer to purchase television commercials, with Bert Lahr as a celebrity
spokesman. His signature line, "so crisp you can hear the freshness," became the chips' first
slogan along with "de-Lay-sious!" As the popular commercials aired during the 1950s, Lay's
went national in its marketing and was soon supplying product throughout the United States.
In 1961, the Frito Company founded by Elmer Doolin and Lay's merged to form Frito-Lay
Inc., a snack food giant with combined sales of over $127 million annually, the largest of
any manufacturer. Shortly thereafter, Lays introduced its best-known slogan "betcha you
can't eat just one." Sales of the chips became international, with marketing assisted by a
number of celebrity endorsers.

20

In 1965, Frito-Lay merged with the Pepsi-Cola Company to form PepsiCo, Inc. and a
barbecue version of the chips appeared on grocery shelves. A new formulation of chip was
introduced in 1991 that was crisper and kept fresher longer. Shortly thereafter, the company
introduced the "Wavy Lays" products to grocer shelves. In the mid to late 1990s, Lay's
modified its barbecue chips formula and rebranded it as "K.C. Masterpiece," named after a
popular sauce, and introduced a lower calorie baked version and a variety that was
completely fat-free (Lay's WOW chips containing the fat substitute olestra).
In the 2000s, kettle cooked brands appeared as did a processed version called Lay's Stax that
was intended to compete with Pringles, and the company began introducing a variety of
additional flavour variations.
Frito-Lay products currently control 55% of the United States savory snack-food market.[1]
International

Walkers is a snack food manufacturer in the United Kingdom best known for manufacturing
crisps. PepsiCo has owned the Walkers crisp label in the United Kingdom since 1991 and
distributes Lay's product via this brand name. The logo for the British version is notably

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similar to the American brand, featuring a red ribbon around a yellow sun. The other FritoLay brands are also distributed through the Walkers label.
In The Netherlands Lay's are sold in three varieties: Lay's, Lay's Light and Lay's Sensations
(Thai Sweet Chili/Red Paprika/Oven Roasted Chicken and Thyne - [available in
Cologne/Aachen only through the German locations of Delhaize). Lay's Super Chips (Heinz
Ketchup/Mexican Pepper/Perfect Pickles/Salt 'n' Pepper [all through Delhaize) and Lay's
Baked Chips (Mediterranean Herbs/through Delhaize). As with Doritos, Lay's are
manufactured, distributed and imported in Germany by Frito Lay's Benelux division, Smith's
Food Group.
In India, Bollywood superstar Saif Ali Khan and Indian cricketer Mahendra Singh Dhoni
endorse Lays.
In Argentina, Lays was commercialized before 2001 with the name Frenchitas and Chizitos
for the Cheetos.
In Australia, Pepsico acquired the The Smith's Snackfood Company in 1998 and marketed
Frito-Lay products under that label, using the name Thins. After Thin's was sold to Snack
Brands Australia (Owned by Arnotts), Smith's produced a line of potato chips under the
Lay's brand for a brief period of time. The Lay's line was eventually rebranded in 2004 as
Smith's Crisps, while the traditional Smith's line was renamed Smith's Crinkles. Thins is still
sold in Australia as a direct competitor to Smith's Crisps.
In Canada, the chips are distributed through the Lay's label.
In Mexico, Pepsico acquired Sabritas S. de R.L. in 1966. Lay's along with other products
such as Cheetos, Fritos, Doritos and Ruffles are marketed under the Sabritas brand. The logo
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for the Mexican company sports the red ribbon, but it has a stylized smiling face instead of
the sun. It controls around 80% of the market there.
In Israel, the Lay's label is distributed with the name Tapochips ()'
In France, the famous singer Sbastien 'Angel' De Sousa from the Arthur Crew is sponsored
by Lay's corp.
In Germany, Lay's are sold in three varieties: Lay's, Lay's Light and Lay's Sensations (Thai
Sweet Chili/Red Paprika/Oven Roasted Chicken and Thyne - [available in Cologne/Aachen
only through the German locations of Delhaize). Lay's Super Chips (Heinz
Ketchup/Mexican Pepper/Perfect Pickles/Salt 'n' Pepper [all through Delhaize) and Lay's
Baked Chips (Mediterranean Herbs/through Delhaize). As with Doritos, Lay's are
manufactured, distributed and imported in Germany by Frito Lay's Benelux division, Smith's
Food Group. Several flavors as noted above are only available through Delhaize (Belgian
supermarket chain)] which has opened 2 locations in Cologne and Aachen (Delhaize
Germany locations, Lay's Flavors Benelux).

In September 2007, Lays changed their logo. It is similar to the previous one, but with
more of a 3D look and the letters 'a' and 'y' connected. The bags themselves were also
redesigned.

In Brazil, chips are distributed under a Lay's sister-company, Elma Chips.

Happiness is Simple. (2009)

Simply Made. Simply Good. (2009)

That's another reason to smile! (2007)

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Food for the fun of it! (2007)

Lay's, get your smile on! (2006-)

Lay's. Want some?

Betcha can't eat just one (1960s-2006)

! (Nobody can eat just one) (Lay's Greece)

Lays ka mazaa lo(Lay's Pakistan) meaning- Have fun with Lay's

You can't eat just one....Lagi bet! (Lay's India)

Har programme ka main food (Lay's India) meaning "The main food for every
programme"

No one can eat just one (Lay's India)

impossvel comer um s (Brazil) "It's impossible to eat just one"

A que no puedes comer solo una? (Lay's Spain, Peru, Mxico, Chile and Argentina)
meaning "You can't eat just one, can you?"

Lay's. Vrei si tu? (Lay's Romania) meaning "Want some?"

Lay's MAX - More for me,better for me!(Romania)

- , !(Russia)

Kart paragavs negali sustot! (Lithuania)

(Lay's China) meaning "Can not stop the joy!"

Lay's. Krsz? (Hungary) meaning "Want some?"

Lets get high on Lay's (Indonesia)

You got Lay's(laid). (Thailand)

Flavours
Except for barbecue-flavor potato chips, which were introduced no later than 1958, up until
the last 20 years, the only flavor of potato chips had been the conventional one. Despite an
24

explosion of new flavors, the unadorned original is still the selection of 81% of consumers.
[2]
In the United States, Lay's offers a number of flavor combinations, in addition to the classic
chips. Flavored products in the traditional fried varieties include sour cream & Onion,
Barbecue, Cheddar & sour cream, Hidden Valley Ranch, salt & vinegar, salt & pepper,
Flamin' Hot, dill pickle, limn (Lime) and a thicker "Deli style" chip. Canadian sellers have
a number of varied flavors, with curry, ketchup, poutine, pizza, Fries'n Gravy, roast chicken,
smokey bacon, salsa, wasabi, spicy Indian masala and sea salt and pepper brands available.
The marketing success of these flavors in Canada sometimes leads to a limited time offering
of a flavor to the south, with the dill pickle recently appearing in the United States after a
successful run.
Interestingly the name 'sour cream' has got Lay's into a lot of confusion in some countries. In
India for instance the name was changed to American style cream and onion after consumers
reported their discomfort with the idea of 'sour' cream
In the baked products, there are classic, barbecue and sour cream & onion varieties. The
kettle cooked version includes original, sea salt & vinegar, mesquite barbecue and jalapeo
brands. Wavy Lay's have original, hickory barbecue, ranch and Au Gratin flavors while
Lay's Stax offers original, sour cream & onion, Cheddar, barbecue, ranch, pizza and salt &
vinegar. The newest variety, Lay's Natural has thick cut barbecue and sea salt brands.
The WOW! brand was rebranded in 2004 as Lay's Light after the olestra formula was altered
and the U.S. Food and Drug Administration allowed removal of warnings about various
health consequences of the fat substitute.

25

Outside North America, Lay's in Greece and Cyprus are made and packed by Tasty Foods
and Corina Snacks LTD, with Mediterranean flavors which include Feta cheese flavor,
Tzatziki flavour, Olive and Tomato, Oregano, Sea Salt & Black Pepper and various more.
There are hundreds of sub-variations of the Mediterranean line and the company performs
constant experimentations to create new flavors and adjust them to each country's liking. In
some countries such as Argentina variations of the Mediterranean tastes exist include Olive
Oil and Parmesan Cheese, Olive Oil and Tomato, Olive Oil and Basil, Greek Tzatziki
Cheese with onions, Lasagna, Beef Carpaccio with Parmeggiano and Smoked Manchego
Cheese. In Belgium there is a version of Cucumber and Goats Cheese. Finally in Chile there
is a version of Lemon and Cilantro (Coriander) and Sour Cream and Onions.
In Australia, a cilantro version exists while a hot & sweet chili, sweet corn and cotija cheese
brand can be found in South America.
Another flavor sold primarily in southern Asia is called "Magic Masala." This flavor is very
popular in India, Pakistan, and Bangladesh. Flavors featured in Thailand include Nori
Seaweed, Basil, Squid, Spicy Chili Squid, Seafood and Mayonnaise, and Spicy Seafood.
There are a number of unique products in the United Kingdom sold under the Walkers label,
including prawn cocktail, beef & onion, Greek kebab and Marmite yeast extract. Under the
Smith's label in Australia, unique flavors include Greek Feta & Herb and Italian Tomato &
Basil.
Russia has "Lay's MAX" chips (Chicken, Sour cream & Onion, Sour cream & Cheese, Ham
& cheese flavors) and some international "Lay's" flavors plus Russian "Lay's" flavor Mushrooms & Sour cream, Crab and Red caviar.

26

In Poland the chips flavors are: Green Onion, Mushrooms & Sour Cream, Chicken, Original,
Paprika, Hot pepper, Original, Ketchup, Fromage, new potatoes with basil. Also there is
Lays Apettite which is also part of lays and has the following flavors: Kebab, Pepper and
Cheese, Onion and Cheese.
In parts of South America (notably Argentina and Uruguay), Lay's flavored products are sold
with the "Lay's Mediterraneas" label, and include such flavors as ham, tomato and basil,
tomato Parmesan, and oregano. Peru has "Lay's Sabores Peruanos" (Lay's Peruvian Flavors),
with flavors like queso andino (Andean cheese); also recently was released Lay's Dips, that
includes a "Peruvian Criollo Chili" sauce sachet.
In Ukraine there is crab, bacon, Cheddar, and sour cream and green onion
In Thailand there is Classic, Sour Cream & Onion, Cheese & Onion, Mexican Bar-B-Q,
Japanese Nori Seaweed. Flavors also come and go usually with an international theme, for
example: French Mayonnaise, Balsamic Vinegar and Salt (England), Garlic Soft Shelled
Crab (Hong Kong), Soy Sauce, Salmon Terriyaki (Japan), Lobster, Bacon & Cheese
(America). Also traditional "Thai" flavors include Tom Yum, Thai Chili Paste, Thai Seafood
Dip, Chili and Lime. Popular flavors are often kept in circulation longer.
There are currently 12 regular Lay's flavors in Canada, though there are more, available only
in certain parts of the country. The flavors available nationwide are the following: Classic
(yellow), BarBQ (black), Salt & Vinegar (teal), Ketchup (dark red), Wavy Original (red),
Dill Pickle (bright green), Smokey Bacon (brown), Sea Salt & Pepper (silver), Sour Cream
& Onion (green), Roast Chicken (light brown) and finally Lightly Salted (bright blue). Also,
in select Canadian markets (Toronto & Vancouver) Lay's has introduced international flavors
such as "Spicy Curry" and "Spicy Indian Masala" to appeal to a wider consumer group.
27

Lay's have entered the German market with some success in the last couple years. All 3 key
Lay's brands are distributed with 2 flavors for each brand. The following flavors are
marketed in Germany:

Lay's
o

Lay's Natural

Lay's Paprika (Bell Pepper)

Lay's Light
o

Lay's Paprika (Bell Pepper)

Lay's Salted/Natural

Lay's Sensations
o

Lay's Red Sweet Paprika (Bell Pepper)

Nutritional information
As a snack food, the Lay's brands contain very few vitamins and minerals in any variety. At
ten percent of the daily requirement per serving, vitamin C is the highest. Salt content is
particularly high, with a serving containing as much as 380 mg of salt.
A one ounce (28 gram) serving of Lay's regular potato chips has 130 calories and contains
ten grams of fat, with three grams of saturated fat. Kettle cooked brands have seven to eight
grams of fat and one gram of saturated fat but are 140 calories. Lays Natural has nine grams
of fat, two grams of saturated fat and 150 calories. Stax typically contain ten grams of fat,
2.5 grams saturated fat and are 160 calories per serving. Wavy Lays are identical to the
regular brand except for a half-gram less of saturated fat in some combinations. The various
brands do not contain any trans fats.
28

The baked variety, introduced in the mid 90's, feature 1.5 grams of fat per one ounce serving,
and have no saturated fat. Each serving has 110 to 120 calories. Lay's Light servings are 75
calories per ounce and have no fat.
Lay's Classic Potato chips were cooked in hydrogenated oil until 2007. Currently, the chips
are made with 100% pure sunflower oil.
There are many flavors of Baked Lays as well. Baked Lays are produced in Cheddar,
barbecue, sour cream and onion, and original.

29

COMPANY MEMBERS
Leadership

TOM GRECO
President
Frito-Lay North America
Tom Greco is president of Frito-Lay North America, where he leads PepsiCos $13
billion snack and convenient foods business.

Marc Guay
President
PepsiCo Foods Canada
Marc Guay is president of PepsiCo Foods Canada, which includes the Frito Lay
Canada and Quaker Foods and Snacks businesses. He has held this role since
2008.

30

Marc Kesselman
Senior Vice President & General Counsel
Frito-Lay North America
Marc is Senior Vice President and General Counsel of PepsiCo Americas Foods
(PAF) and Frito-Lay North America. As General Counsel, Marc oversees a wide
variety of legal, regulatory, government affairs, and policy issues relating to
PepsiCos food and snack business in North and South America. In addition to FritoLay, this portfolio of businesses includes Quaker Foods & Snacks, Sabritas, Gamesa
and Latin America Foods. PAF employs more than 120,000 people, generates more
than $23 billion in revenue, and earns $5.5 billion in profits annually.

George Legge
31

Senior Vice President & Chief Financial Officer


Frito-Lay North America
George Legge is senior vice president and chief financial officer of Frito-Lay North
America, responsible for driving the continuous annual growth and overseeing
finance, productivity, control, transformation and SAP implementation for PepsiCos
$13 billion snack and convenient foods business. He assumed this role in
December 2010.

Patrick McLaughlin
Senior Vice President of Human Resources, Chief Human Resources Officer
Frito-Lay North America
Patrick McLaughlin is senior vice president of human resources and chief human
resources office for Frito-Lay North America, leading the field and headquarters
structure with a focus on building organizational health and capability, developing
talent and strengthening employee relations.

Randy Melville
Senior Vice President & General Manager of East Division
Frito-Lay North America

32

Randy Melville is senior vice president and general manager of Frito-Lays east
division, which includes the companys Northeast, Atlantic, Carolinas, Southeast,
Central Gulf and Mid America regions.

Jaime Montemayor
Senior Vice President & CIO

Anindita Mukherjee
Senior Vice President & Chief Marketing Officer
Frito-Lay North America

33

Daniel Naor
Senior Vice President & General Manager of Growth Ventures
Frito-Lay North America
Daniel Naor is senior vice president and general manager of Growth Ventures for
Frito-Lay North America, where he leads Frito-Lays expansion in new snacking
occasions, from product development to operational execution.

He also leads the

collaboration of Growth Ventures with PepsiCo Foods Canada, Quaker Foods &
Snacks, PepsiCo Mexico Foods and South America Foods as well as the Global
Snacks Group and Growth Ventures Beverages.

Vivek Sankaran
Senior Vice President & Chief Customer Officer
Frito-Lay North America
34

Vivek Sankaran is senior vice president and chief customer officer for Frito-Lay North
America, responsible for leading the companys sales and partnerships with national
customers and channels.

Dave Scalera
Senior Vice President of Go-to-Market Capability and Productivity
Frito-Lay North America
Dave Scalera is senior vice president of go-to-market capability and productivity and
is responsible for leading the development of next-generation tools and systems that
will continue Frito-Lays leadership as the premier direct-store delivery (DSD) sales
force.
Dave assumed this role in February 2012, after serving as senior vice president and
general manager of north business unit since January 2011, which included the
companys Northeast, New York, Mid-Atlantic and Mid-America regions. Before this
appointment, he served as division vice president of sales for Frito-Lay since 2006.
His other roles in his 25 years with Frito-Lay have included region vice president of
sales for New York and region vice president of sales for North Texas. He joined
Frito-Lay in 1986 as a sales operations leader after serving as a captain in the U.S.
Army.
Dave has been instrumental in leading Frito-Lays diversity and inclusion efforts and
serves as executive sponsor of Valor, PepsiCos employee resource group for
military

veterans

and
35

their

supporters.

Dave holds a bachelor's degree in biology from Seton Hall University and an MBA in
finance from Fairleigh Dickinson University.

Stephanie

Smart

Senior Vice President & Market Supply Officer North America Foods
Stephanie M. Smart, C.P.M. is senior vice president and market supply officer for
PepsiCos food and snack business in North America. In this role, she is responsible
for procurement within PepsiCos Frito-Lay division. Stephanie has held this position
since June 2012.

HISTORY OF THE COMPANY


2009
Restructuring Scheme approved by all concerned including shareholders, creditors and
the High Courts at Allahabad, Meerut - Ghaziabad

and Chandigarh and came into force

on 23rd June, 2009 with retrospective effect i.e. 1st April, 2006.
Major Expansion Plan envisaging an outlay of Rs.157 crore initiated in ABC Paper
Ltd.
36

2006
Restructuring Scheme envisaging demerger of the paper business of the Company into
ABC Paper Ltd. and demerger of

the edible oil business with Lays Enterprises Ltd.

approved by the Board of Directors subject to necessary

consents/approvals of the

regulating agencies, including the High Courts.

2005
Installed a 9 MW captive power plant at the Paper Division
Developing Gagan Enclave township at Ghaziabad for residential plots

2001-03
Scheme for Financial Restructuring sanctioned by BIFR and Company de-registered
from BIFR.

1998
ABCL filed reference with BIFR consequent to erosion of its net worth as on
31.12.1997;
Vanaspati plant at Ghaziabad dismantled and shifted to Rajpura. As a result,
Vanaspati capacity at Rajpura rose to 155 TPD.

1991
APFL amalgamated with ABCL with the sole objective to service the institutional debt of
APFL as all the Soya milk projects

came up at that time failed to take off primarily

because of lack of consumer awareness of soya milk.

37

Ventured into dairy milk and milk products.


1987
Paper divisions capacity enhanced to 26, 400 TPA Modernisation of the Vanaspati &
refining plants undertaken

1986
ABCL promoted separate company, viz. Lays Protein Food Ltd. (APFL) to produce and
market soya-milk and other

soyamilk based beverages at Ghaziabad.

1985
Separate facilities to produce refined oils were set up with a capacity of 20,000 TPA each
at Ghaziabad and Rajpura.
Physical refinery was set up at Ghaziabad.
Solvent extraction plant capacity also added at Rajpura

38

1982
The capacity of the Vanaspati plant raised to 125 TPD at both the locations.
Soap plants of 4000 TPA capacity also set up at Ghaziabad & Rajpura.
Glycerine plant of 1 TPD set up at Ghaziabad.

1980
ABCL set-up its Paper Division in Sailakhurd (Punjab) to produce 10,000 TPA of
cultural varieties of papers from

agricultural residues like rice straw, wheat straw, kana

grass, bagasse etc.

1969
ABCL set up second Vanaspati plant at Rajpura (Punjab) to manufacture 100 TPD of
Vanaspati.
The capacity of the Ghaziabad Vanaspati plant raised to 100 TPD.

1962
Textile mill sold to M/s Sayaji Mills Ltd.

1953
The Vanaspati factory at Bombay shifted to Ghaziabad.

39

1946
ABCL purchased the entire shareholding of M/s New Prahlad Mills Ltd., a composite
textile mill having 1022 looms and

43,000 spindles. New Prahlad became a subsidiary of

ABCL.

1943
ABCL acquired Ahmad Oomarbhoy Mills, Bombay, having Oil Expeller, Vanaspati,
Refinery & Hydrogenation plant.

1941
ABCL got listed

1940
Lays Group promoted its first industrial venture, Lays Banaspati Company Ltd. (ABCL)
by setting up a Vanaspati

(hydrogenated vegetable oil) plant at Ghaziabad (UP) with an

installed capacity of 25 TPD.

40

Lays Food is a division of Lays Corp Limited. Lays Food was established in the year 1991,
and is recognized as one of the leading producers of UHT Milk, Premium range of
Flavoured Milk, Pasteurized Milk, UHT Tonned Milk, Double Tonned Milk and Milk
Products. Lays Food is conscious of providing consistent product quality and services to it's
valued customers to their entire satisfaction and delight.

41

For Health Professionals


Are you a health professional? If so, Frito-Lay has two great resources that you
can use to educate yourself and your patients and clients about the nutrition of
your favorite Frito-Lay snacks.
Frito-Lays commitment to health and wellness and sustainability has been
and continues to be demonstrated by its extensive offerings and through the
positive steps weve taken to help change the way America snacks. Consumers
want and expect from Frito-Lay great tasting, convenient, high-quality
choices that meet a variety of snacking needs, and we are committed to
meeting this challenge.

Snack Sense
Snacksense.com is a website, designed for health professionals, which provides
nutrition information about Frito-Lay products, including the benefits of
snacking, healthier* vegetable oils, whole grains, and facts about sodium. This
website offers a variety of downloadable educational materials, two continuing
professional education modules and much more!
* Healthier vegetable oils contain
> 80% mono- and polyunsaturated fat, < 20% saturated fat, and 0g trans fat.

42

SnackSense.com

License to Snack
Snacking is an important part of a healthier diet, but often times it is difficult to
decide what to choose for a snack and where and when to eat it. This site is a
non-branded website that offers the information, tips and tools consumers need
to make healthier snack choices.
Have more questions about Frito-Lay nutrition? Email us at

43

THE MANAGEMENT TEAM


The overall management of Lays Corp. vests with the Board of Directors comprising of
eminent persons with wide experience in business and industry. The day to day management
of the Company is looked after by the Chairman & Managing Director and the Managing
Director under the overall guidance of the Board.

Board of Directors
Shri N.K.Bajaj
Chairman & Managing Director

Shri J.K.Khaitan
Vice-Chairman

Shri G.N.Mehra
Director - Independent

Shri Romesh Lal

44

Director - Independent
Shri K.R.Ramamoorthy
Director - Independent
Shri Praveen Kumar
Director - Independent
Shri Mohit Satyanand
Director - Independent
Shri Vikram Bajaj
Director Non-Independent
Shri Pavan Khaitan
Director - Non-Independent
Shri A.K.Bajaj
Managing Director

Key Personnel
Shri J.C.Rana
Executive Director, CFO & Company Secretary
45

Shri Mahesh Mittal


President (Finance & Audit)
Shri A.K.Bagga
President (Tax & CR)
Shri Viveck Batra
Vice-President
B.P.Maheshwari
Sr. General Manager (Finance & Admin.)

46

Lays Food achieves this through:

Complying with customer's as well as statuory & regulatory requirements

Establishing monitoring and reviewing quality & food safety objectives.

Continually improving skills of it's employees as well as updating processes and


systems

Implementing HACCP principles to produce safe milk & milk products.

Receiving inputs (Raw Materials) complying to external as well as our stringent


internal quality standards.

47

VISION AND MISSION

What happens when 48,000 people focus on a single vision?


Something wonderfula company thats all about good fundoing good
things when it comes to making snacks and caring for the environment.
You get a company called Frito-Lay, a proud member of the PepsiCo
family.
For more than 75 years, we have enjoyed making the best snacks on
earth, starting with simple, farm-grown ingredients.
And we're not stopping now. We continue to innovate, so we can provide
tasty products that are good as well as fun.
And we're reducing our environmental footprint by conserving natural
resources as well as harnessing renewable energy technology that reduces
harmful emissions.
We know we still have a lot of work to do, but were up to the challenge.
We've had a lot of good fun along the way, and we'll continue that as we
look to the future.
Because that is what Frito-Lay is all about.
Choose a story at left to learn more.

48

QUALITY & FOOD SAFETY POLICY


Lays by nature of its definition reflects purity, safety and surety which is the essence of our
mission .
We are dedicated towards producing pure and wholesome products that are safe for human
consumption, which is also our moral and social responsibility.
We are conscious of providing consistent product quality and service of our valued
customers to their entire satisfaction and delight.
LAYS FOOD shall achieve this through

Complying the customers as well as statutory & regulatory requirements.

Establishing and reviewing quality & food safety objectives.

Continually improving skills of the employees, Processes and systems.

Applying ISO 9001:2000 & HACCP principles that result in production of quality
and safe milk & milk products.

Receiving inputs (Raw materials) complying to our internal as well as external


quality standards.

Control of process through system and ensure dispatch of finished goods as per
specifications strictly.

49

QUALITY OBJECTIVES
Total fat losses maximum 0.40% (80% cases) to be achieved by end of financial year 20092008.
Total SNF losses Maximum 0.50% (80% cases) to be achieved by end of financial year
2009-2008
Reduction in inventory cost by 10% (includes Stores and Spares only but does not include
critical sparcs, crates, wire trays, cans raw materials, packaging materials and finished goods
) to be achieved by end of financial year 2009 2008.
To ensure no product is recalled Food Safety reasons by end of financial year 2009-2008.

50

QUALITY MANAGEMENT SYSTEM


At Lays, utmost importance is given to quality management systems. Lays's raw milk and
other ingredient acceptance procedures are one of the most stringent and rigid in the
industry. Lays gives due emphasis to food safety tools such as GMP (good manufacturing
practices) & HACCP (Hazard Analysis and critical control points) programs on regular and
ongoing basis. Lays Food is an ISO-9001 & HACCP certified unit. SGS, has granted the
certification.

At Lays Food there is an in-house fully equipped laboratory that monitors, inspects and
conducts

Tests on raw materials

Products in process and Finished Products

Microbiological analysis of raw and finished products

Thus ensuring that final product going into the market is absolutely safe for consumption to
further our commitment to produce top quality products through rigorous control and
monitoring of Materials and Processes.

51

PROCESS CAPABILITIES
* State-of -art dairy processing equipment from Denmark and France.
* Deploys modern technique of Ultra Heat Treatment (UHT) with direct steam infusion. The
only of it's type in the India.
* Aseptic packaging in co-extruded multi layer PE & EVOH film.
* The UHT process and aseptic packaging ensures that liquid milk are bacteria free.
* Milk & milk products absolutely safe to use directly from the pack.
* Long shelf life Milk & milk products with no need of refrigeration till pack opened.

52

RESEARCH AND DEVELOPMENT


LAYS is committed to delivering world-class products and services. This requires a clear
focus on continuously striving to create a higher value to customers by achieving excellence
in all Company's operations. Business excellence calls for a passionate focus on technology,
products, services, processes and an operating environment firmly anchored to an
impregnable foundation of Quality.
LAYS firmly believes that quality is not a specifically
assignable task. It needs to be firmly rooted and
institutionalized in the culture and value system of the
Company. LAYS nurtures a culture of striving for
continuous improvement in quality, be it in products,
services, systems or performance. The Company is committed to the establishment of
systems and processes to promote organisational creativity and innovation.
LAYS's development of its Integrated Quality Management System (IQMS) is based on
its strong foundation of implementing ISO 9001:2000, ISO 14001, OHSAS 18001, SA
8000, HACCP (for Foods) and IQRS (performance rating and benchmarking of the quality
management system). Likewise, LAYS's strategic initiatives for developing its people have
been based on participative management concepts like QC (Quality Control), TQM (Total
Quality Management), KSS (Kaizen Suggestion Scheme), 5S, Six Sigma.
All LAYS manufacturing units have ISO quality certification. Almost all contract
manufacturing units in the Foods Business and all large hotels have food safety and quality
systems certified by accredited 'third party' in accordance with 'Hazard Analysis Critical
Control Points' (HACCP) standards. Additionally, the quality of all FMCG products of the
53

Company is regularly monitored through 'Product Quality Rating System' (PQRS). The Leaf
Tobacco and Printing & Packaging businesses have achieved world-class ratings in the
'International Quality Rating System' (IQRS) for business excellence in which key processes
are rated against international benchmarks and certified by accredited 'third party'
independent assurance providers.
LAYS's Research & Development Centres
At LAYS's Research & Development Centres at
Bengaluru,

Hyderabad,

Bhadrachalam

and

Rajahmundry, the Company has assembled a pool of


world-class scientists focused on providing the requisite
R&D support to its established and new businesses
enabling the Company to consistently attain internationally benchmarked quality standards
and constantly offer product innovations.
LAYS R&D Centre at Bengaluru provides systemised service to the entire range of LAYS's
businesses through Product Technology Cells, Common Service Modules, Advanced
Research Initiatives and networking with national and international R&D centres.
Product Technology Cells (PTCs) are product-specific. Each PTC caters to the needs of
the businesses through Market Intelligence, Product Testing & PQRS services, Prototyping
services through advanced pilot plants, flavour and fragrance development services,
periodic audit of factory quality systems and Product Knowledge and Training Workshops.
PTCs assist businesses through sensory evaluations by highly trained and specialised
panelists. Common service modules like Packaging and Advanced Analytical labs offer their
services across all businesses.
54

LAYS R & D Centres are manned by highly qualified


and trained scientists specialised in their fields. The labs
and pilot plants have ultra modern, state-of-the-art
testing and prototyping facilities. The laboratory at
Bengaluru has obtained accreditation from NABL (National Accreditation Board for
Testing & Calibration of Laboratories) for ISO 17025 for key testing protocols.
The latest LAYS R&D hub in Hyderabad focuses on agri-sciences. This R&D facility, the
first of its kind for the Company, will work on multiple businesses built on a common set of
core competencies. The initial set of core competency areas identified are: Plant Breeding
and Genetics, Agronomy, Biotechnology, Molecular Biology and Silviculture. The
facility aims to create 'Centres of Excellence' in these areas.
LAYS's R&D programme at Bhadrachalam is the core
of the Company's fibre strategy for its Paperboards and
Specialty Papers business. This state-of-the-art research
centre is consistently striving to improve the productivity
of several tree species, in order to give attractive land-use
alternatives to traditional farmers and wasteland owners. So far, more than 100 highyielding, fast-growing and disease resistant 'Bhadrachalam' clones have been produced
on a commercial scale, including 23 site-specific clones adapted to problematic soils. The
productivity of these saplings is 6-9 times that of normal seedlings.
LAYS's

comprehensive

R&D

facilities

at

Rajahmundry in Andhra Pradesh cover all aspects of


tobacco crop cultivation. In collaboration with the
Central Tobacco Research Institute and the Tobacco
55

Board, LAYS pioneered FCV tobacco cultivation in India and introduced the Burley and
HDBRG varieties. LAYS's continued focus on crop development has resulted in new
varieties of seeds and hybrids in Andhra Pradesh and Karnataka, which have significantly
improved farm yields and helped fulfill the demands of a dynamic global market.
The Company's R&D team collaborates with other centres of excellence, and leverages
expertise from several leading institutes including the University of Agricultural Science,
Bengaluru; Indian Institute of Science, Bengaluru; CSIOR, Australia and CSIR, South
Africa.
Catering to the need of LAYS's Lifestyle Business is a contemporary master Design
Facility at Gurgaon. It offers R&D facilities that have enabled the Company to offer
internationally benchmarked fashion collection every season.

56

CAREERS IN LAYS
At LAYS, we build business leaders who create value. Who believe that the future belongs
to those who are able to create it.
Which is why we value integrity, creativity, passion, a 'will do' attitude and the will to
succeed above all else.
Together, these empower our people to take risks, to experiment, to set their own goals and
win in the market place. In turn, we encourage those who are eager to take the initiative to
continuously learn and experiment. These are the qualities which will help us remain
contemporary and relevant at all times. We believe that the most enduring way to retain
talent is to enable our people to continuously add value to themselves.
So what does LAYS have in store for you
At LAYS we believe that our mission to enhance value creation for the stakeholder can only
be achieved through the quality and commitment of our people. Towards this end, we
continuously strive to unleash the potential of each individual.
We leverage human capital for competitiveness by nurturing knowledge, entrepreneurship
and creativity. We believe it is these strengths that will help us successfully compete in a
globalised environment and exploit emerging opportunities. We reward the will to succeed
and the desire to compete with the best in the world. We stimulate the drive to be the best
and take immense pride in being Indian.
We take an integrated view of structures, competencies, tasks and processes and link all
these to our long-term goals. Our performance management systems focus on performance,
57

meritocracy, equity and the upholding of company values. We keep our work environment
simple, informal and flexible with a strong emphasis on human values. We value ideas and
give people the space to execute them.
We keep our people intellectually stimulated and give them the freedom to take their own
decisions. And the responsibility to make LAYS grow through innovation and
experimentation.
We have remained a vibrant company for nearly ten decades now because of our ability to
manage change proactively and to reinvent ourselves continuously without compromising
the ideals and values that have sustained us over the years.

58

WE FOCUS ON VALUE ADDITION


We focus on value addition to enhance competencies. We believe professional growth is the
responsibility of both the individual and the organisation. We provide opportunities for value
addition through:
Exposure to World Class Manufacturing Facilities and Practices
Exposure to Internationally Benchmarked Marketing Practices
Formal Training and Development programmes in India and overseas
Membership of Multidisciplinary Task Forces and Project Teams
Focused Leadership Development Initiatives
Cross Functional and Cross Business Opportunities
THE KIND OF PEOPLE WE LOOK FOR
We do not believe in stereotypes. We believe diversity is essential for building a wholesome
work environment. But there are certain basic attributes we look for :

Integrity

Ability to think strategically

Intellectual rigour

High energy

A 'will do' attitude

Creativity

Team skills

Leadership

59

Our Latest Snacks

We believe snacking should be good and fun. Thats why were always
working to bring you new products, whether its new flavors of the snacks you
love or a whole new snack choice. Here is whats new from Frito-Lay.

To find these items or any other Frito-Lay snacks in a store near you,click
here to use our Where to Buy feature.

DORITOS JACKED

Bigger. Bolder. Thicker. DORITOS Jacked, tastes like Awesome feels.

Check Them Out

RUFFLES Ultimate

Grab a helmet. The new Ruffles Ultimate chips have deeper, heartier ridges.
Hardcore ridges for hardcore dips.

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MARKETING
DOMESTIC MARKETING
The company has been in domestic marketing since last 25-30 years, They have variety of
clients based on the product mixes that is they have clients from all the classes of the society
except lower class. Domestic sales procedure is straight
forward through distribution to retailers Distributors provide the company security.
Distributors are enjoying the advantage of 3% damage.
Premium Products : Premium class Economic Class
Upper Middle Class
ADDITIONAL IN DOMESTIC SALES
Domestic sales procedure is straight toward through distribution to retailers distributors
provides the company security distributors are enjoying the advantage of 3% damage.
INSTITUTIONAL MARKETING:
The institutional marketing division in a new born baby in the organization. The
company have recently introduced it self to the institutes.
INSTITUTE DEFINITION:
Any place which has a requirement in bulk & in regular concern & customer is not changed
in short intervals is called as an institute. Example: Hostels, Hotels etc.
A restaurant can not be an institute as their requirements are erratic & they to go
for cheaper products instead of quality products &: hence have a tendency to
change the brand of products in short intervals of time.
61

62

63

SCOPE OF THE STUDY


To know perception regarding these dairy products among both retailers as well as in
the customers.
To Understand the terminologies used in market by retailers.
Develop the usefulness in enhancing the usability of the product.
To know different selling skills at various situation of market.
To gain knowledge about distribution network of Amul and Parag.
To learn different strategies which are used by retailers in market to convince the
customers.

64

RESEARCH METHODOLOGY

65

RESEARCH METHODOLOGY

STATEMENT OF RESEARCH PROBLEM


In the branded snacks market, to get down to basics, Frito Lay commands a share of 45%,
followed by Haldirams at 27% and LAYS at 16%. The rest is divided between a handful of
new entrants, wannabes and many regional players. Out of these LAYSs is a new entrant in
the market, which was launched in 2009. LAYS has launched in a wide variety of flavours
and formats, ranging from potato chips to finger snacks. Because of its different and catchy
advertisements has created a buzz in the market. Therefore, our aim was to find out the most
popular flavour of among all the offerings.
We began our analysis by dividing people into those who like to eat snacks and those who
dont. We based our study on the survey of people who like to eat snacks. This survey was
conducted in Meerut - Ghaziabad. To collect the data we designed a questionnaire.
Statement Of Research Objectives
The main objectives of our research were as follows
To find out what percentage of population likes to eat snacks.
To find out which flavor of is most preferred.
To analyze the reason for the popularity of the most preferred snack.
To know the satisfaction level of people who eat .
To find out how much people spend on snacks weekly.
To find out the preferences of people for different brands.

66

RESEARCH DESIGN & METHODOLOGY

Research design is the basic framework which provides guidelines for the rest of research
process. It specifies the methods for data collection and data analysis .In this research project
we have used the survey method of data collection, to be more specific questionnaire method.
We conducted a survey in Meerut - Ghaziabad. Out of the universe of 500 our sample size is
50. Respondents in the sample size were asked to fill the questionnaires to gather the data

SCOPE
The study of consumer buying behaviour of lays.

Ghaziabad

Record feed back from the market and recommended future plan for the operation.
Through the survey, it is trying to know, what is the basic difference between our company
and other fast moving Consumer goods Companys product in quality, price, packaging etc.
Through the survey, it would be able to ascertain the weak point of salesman, distributors
and other product related in this way may would be able to create effective training package
or can give some instructions to make them more effective.
1: RESEARCH DESIGN USED:
Research is an art of scientific, investigation and systematic research for pertinent
information on a specific .I have used descriptive type of research. Descriptive research
designing can be used to study: consumer profiles, market potential studies, product usage,
attitude surveys, sales analysis, media research and price surveys etc.]

2:DATA COLLECTION METHOD:


I have used survey method for data collection. Survey is the most commonly used method.

67

3: DATA SOURCE:
Primary data: The objectives of primary data are formulated on the basis of research
objectives. Primary data has been collected personally from various consumers as well as
retailers.
Secondary data: I collected data from magazines, newspaper and different websites.
4: RESEARCH INSTRUMENT:
A. Questionnaire for consumers: a questionnaire consist a questions presented to
respondents for their answers. Because of its flexibility, the questionnaire is the most
common instrument used to collect primary data.
B. Schedule for retailers: Schedule is a device in social research, which frequently used in
collecting field data especially where the survey method is employed. It contains questions
and blank tables, which are to be filled by the investigators themselves after getting
information from the respondents.
5: TYPE OF QUESTIONNAIRE:
Structured, Non-disguised- In this types of questioning the researcher setup a formal list of
questions Answers are frequently limited to a list of alternatives which is stated or implied.
6: TYPE OF QUESTIONS:

Multiple choice

Dichotomous

Close-ended

Ranking item questions

7: ATTITUDE MESSUERMENT TECHNIQUES:

68

(A)Direct Personal Interview- A direct personal interview is face-to-face communication


with the respondents. The interviewer gets in touch with the respondents ask the questions,
and records the answers obtained.
(B)Rating Scales-The rating scale involves qualitative description of a limited number of
aspects of a thing or traits of a person.
(C) Ranking scales-Under ranking scales (or comparative scales) we make relative
judgments against other similar objects. The respondents under this method directly compare
two or more objects and make choice among them. I have used method of rank order, under
this method of comparative scaling, the respondents are asked to rank their choices. This
method is easier and faster than method of paired comparisons.
8: SAMPLING PLAN
A sampling plan is a definite plan determined before any data are actually collected for
obtaining a sample from given population.
(A)Sample Size-100(The standard sample size had chosen by me.)
(B)Sampling Technique-I have used Probability sampling for my research report. Under
this sampling design every item of the universe has equal chance of inclusion in as ample.
(C)Place of the Study-Meerut and Ghaziabad.
(D)Survey Period-June, 2009

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SAMPLING METHOD
In many marketing research project making a census study of the entire universe will be
impossible on account of limitation of time and money. Hence sampling become inevitable.
Sampling is used to collect primary data when source of data for too many to be
exhaustively handled. Sampling is an integral part of data collection process. A sampling is
only a portion of universe of population. The success of sampling depends on the extent to
which characteristics of the sample truly represent these of the universe.
According to Yule, a famous statisticians, the objective of sampling is to get maximum
information about the parent population with minimum effort. Properly done, sampling
produces representative data on the entire population.
Term commonly used in sampling population or universe:
In marketing research population research population means the aggregate of all elements
that are relevant to the scope of the problem under the study. All of them process the
characteristics under investigation. When the research defines the characteristics under
investigation, automatically it delimits the population. Population need not necessarily
means living persons, It may denotes nonliving objects like companies, event or dealers.
Sample is a part of universe that is being studied and which generally reflects most of the
traits that universe had.
Method of Sampling:

Probability Sampling Method.

Systematic sampling

Area Sampling

Non Probability Sampling

Convenience sampling
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Quota Sampling

Judgement sampling

Panel Sampling

In My Project Report I Used Random Sampling Method

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DATA COLLECTION
The data collection process is the predefined task that I have to undergo. The data collection
process starts right from the first day till the final day on the field. During the whole period a
list of different retailers scattered around whole of the South Lucknow gets visited on the
regular basis. The main task is to analyze the market potential, study of the market share of
the company and analyzing the competitors strategies.
The survey process is not complete without consulting the Distributor & Retailers. The
distributors are the key nodes that make the chain moving effectively. So the response made
by them is also an essential criterion to involved and reaching for certain decisions.
There are several ways of collecting appropriate data that differ considerably in the context of
money costs, time, and other resources at the disposal of the researcher. The tools used for
data collection are as:

Primary Data
The primary data are those data, which are collected afresh and for the first time. And happen
to be original in character. The primary data to be collected for the study areQuestionnaire A set of questionnaire is prepared for the cause of collecting different
information related to the pre-determined objectives. The questionnaire prepared is in two
forms & targeted towards the doctors and chemists differently. The format of questionnaire is
structured and non-disguised.
1) Direct Personal Interview Under this method of collecting data there is face-toface context with the person from whom the information is obtained. The data
collected are from the respective selected doctors and chemists visited regularly. The
pattern used is Structured and Indirect Interview.

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Secondary Data
Secondary data means data that are already available i.e., they refer the data, which have
already been collected and analyzed by someone else. When the researcher utilizes secondary
data, then he has to look into various sources from where he can obtain them, IN this case he
is certainly not confronted with the problems that are usually associated with the collection of
original data. Secondary data may either be published data or unpublished data. Usually
published data are available in:
1 Various publications of the central, state and local governments;
2 Various publications of foreign government or of international bodies and their
subsidiary organization;
3 Technical and trade journals:
4 Books, magazines and newspapers;
Reports and publications of various associations connected with business and industry, banks,
stock, exchanges etc.;
5 Reports prepared by research scholars, universities, economists etc.

In different

fields, and
6 Public records and statistics, historical documents, and other sources of published
information. The sources of unpublished data are many; they
7 May be found in diaries, letters, unpublished biographies and autobiographies and also
may be available with scholars and research workers, trade associations, labor bureaus and
other public/private individuals and organizations.
The data collected from the various efforts and sources are presented in tabular form and as
shown distinctively from the next page.

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SWOT ANALYSIS

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SOWT ANALYSIS
STRENGTH
Wide range of products
Brand loyalty
Standardized product
Extensive distribution network
Product are known for providing true value for money

WEAKNESS
AMRIT has a goodwill, but few product need more advertisement.
Due to large product line the company is unable to pay adequate attention to some of
its product.

OPPORTUNITIES
Growing market due to increase population, income and changing habit.
If AMRIT bring product for higher income group. The demand for its product may in
that area.

THREAT
There are fours brand of food Product in the market but other leading companies are
also thinking to approach in this segment.
Aggressive advertisement of the competitors.

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ANALYSIS OF DATA

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DATA ANALYSIS
In order to extract the meaningful information from the data collected an analysis of data is
done using pie charts, bar graphs etc.
The first objective of the research project is concerned with finding out
Question :- what Percentage of people likes to eat snacks.
The pie chart given below is clear on the percentage of people who like to eat snacks. Out of
50 respondents 49 like to
While 1 dont.

YES

98%

NO

2%

Pie chart shows that 49 of our respondent like snacks while 1 dont.

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Question :- Our second objective is concerned with finding out which snacks they
preferred.

CHIPS

34%

BISCUITS

22%

NAMKEEN

14%

BUJIA

22%

OTHERS

8%

The pie chart shows the responses of the people. It is clear that chips dominate the market.
The second spot is shared by Namkeens and third spot by Bhujia.
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Question :- The third objective was to analyse the preference of chips by the people.
Following pie chart shows their responses.

YES

84%

NO

16%

From the above pie chart we can see that people like the chips most i.e. they like to eat
lays, , uncle chips.

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Question :- Fourth objective was to find out how which time of the day you prefer the
Most. Following pie chart shows the time.

MORNING

64%

AFTERNOON

14%

EVENING

6%

NIGHT

14%

This shows that chips are eaten by the respondent mainly at evening.

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Question :- The fifth objective was to analyze the reasons for the popularity of the most
preferred chips. For this the respondents were asked various brands of chips. Following pie
chart shows their responses.

HALDIRAM

6%

UNCEL CHIPS

10%

LAYS

82%
2%

In the above pie chart we can see the popularity of lays.

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Question :-

find out how which flavor of lays chips people like the Most.

AMERICAN FLAVIOUR

10%

PLAIN SALT

8%

TANGY TOMATO

60%

CHAT STREET

22%

This shows that more people like American flavor of lays.

Question find out which all places do the people consume lays chips most.
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COLLAGES

62%

RAILWAY STATION

16%

PUBLIC PLACE

10%

BUS STOP

12%

From the above pie chart we can draw a conclusion that the respondent eats lays chips in
collage

Question:find what compels them to buy lays chips.

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BRAND NAME

24%

QUALITY

56%

VARIANTS

6%

PRICE

6%

OTHERS

8%

This shows that the quality of lays chips is best as people buy lays chips because of its
quality.

Question: find out how people rate the lays chips.

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EXCELLENT

26%

GOOD

52%

AVERAGE

22%

Most of the people rate it as a good product.

Question: which size of lays chips people generally prefer the most.

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LARGE

10%

MEDIUM

52%

SMALL

38%

Most people like to consume medium size of lays chips.

Question: finding out how often people consume lays chips.

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VERY OFTEN

22%

OFTEN

24%

SOMETIMES

40%

RARELY

14%

It seems that eat lays chips very alternative days.

Question: find out who all in respondents family prefer lays chips.

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ALL

60%

CHILDREN

36%

PARENTS

4%

GRANPARENTS

0%

As it seems that every member in the family eats lays chips but it is not so familiar with
grandparents.

Question: find the opinion about the lays market position in the commutative
market.

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YES

92%

NO

6%

CANT SAY

4%

Most of the people think that lays acquire a good name in the market.

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Question: find out the opinion of the people as they need lays chips in some more flavor.

YES

84%

NO

16%

This shows that people is eager to grab the new flavor of lays chips.

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Question: Finding the sources of information regarding lays chips.

ADVERTISING

68%

LIVE DEMONSTRATION

4%

RETAIL OUTLETS

14%

HOME SHOPPING

14%

Here advertisement is having lion share while live demonstration least share.

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Question: What people opinion about the health. We asked do lays is a junk food.

YES

58%

NO

42%

This pie diagram shows that all though people consume lays chips around 44%
People think it is a junk food and bad for health. They also specified that consuming very
often may lead to health problem.

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SWOT ANALYSIS
Strengths
1. Being one of the largest companies in India the company has achieved a degree
of focus in its core business of its products.
2. It has a strong brand name, superior quality products and an enviable
distribution network.
3. It has a clear and well-defined organization structure and limits of financial
authority.
4. Increase in advertisement spends affect the companys margins.
5. The companys bottom line falls victim to the bloated and highly paid
workforce, which affects its margins.
Weakness:

Little efforts over the Advertising of products.

Distribution channel is not accurately categorized.

Premium priced products, hence cant compete in low price segment.

No separate strategy for rural market.

Opportunities:

The company's financial performance can receive a major boost from its cost
reduction efforts.

There is a lot of scope of product and market diversification.

Exports of products will also have huge chances in the coming years.

Bingo Chips business has ample scope for gaining market share from the
unorganized sector. Rural penetration too holds vast potential to bring about
growth.
Threats

The slowdown in the economy has restricted topline growth of most FMCG majors
and for Bingo also it will be difficult to maintain historical growth rates in such a
depressed scenario.
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Companys major raw materials are influenced by government policies / controls as


well as vagaries of the monsoons.

Fluctuations in the prices of raw materials

would have significant impact on costs and margins of the company.


Moreover, inordinate hike in Broad Band Internet products would also increases
companys production and distribution cost.

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FINDINGS
1. 16 people out of 36 people who like to eat snacks feel that as compared to other
brands Bingo is much better.
2. Other 12 feel that Bingo is somewhat better and 8 feel that Bingo is about the same
as other brands.
3. None feel that Bingo is somewhat worse or much worse than other brands.
4. When asked how often they eat Bingo 22 people said once a week or more often, 11
people said everyday and 3 people said 2-3 times a month.

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RECOMMENDATIONS
&
SUGGESTIONS

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RECOMMENDATIONS & SUGGESTIONS

1: Companies distributors and representatives must make the retailers


aware about their Product and try to place the product on each and every
shelf on the strength of their distribution.
2: Company should advertise its food Product through appropriate media.
3: Company should keep MRP slightly lower than other and provide better
service and margin to retailers, so that they push the product.
4: Company should also target the consumer by offering discount coupons
or pens /spoon free offer or some other innovative viable for attracting
them.
5: Company should use top of space selling or display contest in major
markets to create product awareness.

More visibility
The visibility should be increased. Innovative display will catch the attention of consumer
very easily. More boards should be used because more the visibility more will be the
awareness about the brand.

Provide an effective advertisement on newspapers


Provide an advertisement in newspaper with popular personality through like cricketer,
flimstar etc. this certainly will have an impact on the peoples to go for the confectionery.

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Dealers awards distribution annually


The retailers who have best maintained the display should be awarded in front of the crowd
.his also encore other retailer to maintain the display at their shops and in turn the work of the
trade-marketing specialist becomes less. They can take care of other jobs also.

Schemes should be maintained


It should be done so that retailer can avail of the full scheme being offered for
them. And the full scheme should be reached to retailer properly.
Wall painting
Wall painting is an effective and economical medium for advertisement. A
speech of film comes to an end but wall painting stays as long as the
whether allowed.
Attractive margin for retailers
It is compulsory for every company that the company must provide attractive
margin. We know very well that retailer is the key player for selling a product
and in LAYS low margin is the main cause for low sale because retailers want
to sale other products due to high margin.

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Favorable price for consumers


It is very necessary that the company will available the products at a reasonable
price that the consumer will purchase within its purchasing power and each and
every class of people can taste the Lays

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wafers.

LIMITATIONS

100

LIMITATIONS

1. Time duration was short.


2. Due to non-availability of mode of transport lots of inconvenience was
faced by the investigator.
3. A large sample could not be taken and systematic probability was not
conducted due to the lack of time.
4. During the course of survey some unavoidable error are faced such as no
response, inaccuracy in response.
5. The findings are totally based on respondents prediction and hence can be
biased to some extent.

101

CONCLUSION

102

CONCLUSION
1. The brand awareness for Lays Product is less. It is not good for the company.
2. Quality, date of manufacturing, price brand image are the major factor
considered for the customer while buying a particular brand.
3. Consumption rate of food Product is high in winter and low in summer.
4. Retailer are interested for quality or customer oriented product rather then
having the brand with more margin.
5. Food Product is consumed in breakfast mostly.
6. The percentage of salt in Lays Product is more then other which is not desirable
by consumer.

103

BIBLIOGRAPHY

104

BIBLIOGRAPHY
Marketing Research (Author- G C Beri)
(Publish by Tata McGraw Hill Publishing Co. LTD., New Meerut Ghaziabad)
Third Edition (2002)
Marketing Management (Author- Rajan Sexana)
(Publish by Tata McGraw Hill Publishing Co. LTD, New Meerut Ghaziabad)
Second Edition (2001)
Marketing Management (Author- R S Sexana)
(Publish by Himalaya Publication, New Meerut - Ghaziabad)
Ninth Edition (2000)
Marketing Management (Author- Philip Kotler)
(Publish by Pren Tice-hall of India PVT. LTD., New Meerut - Ghaziabad)
Ninth Edition (2002)
Research Methodology (Author- Bhandrai)
Print 2004, second edition
WEB SITE:
www.lays.com
www.google.com

105

QUESTIONNAIRE

106

QUESTIONNAIRE
We are Km. Neera, pursuing my MBA III SEM from KIRAS, a division of.
Please fill up the form for a market survey on The Study of Consumer Buying
Behaviour Of Lays
Name..
Age.....
Qualification .....
Gender
Q1.Do you prefer chips?
a. Yes
b. No
Q2.when do you prefer snacks time in a day
b. Morning

b. Afternoon

c. Evening

d. Night

Q3. Which snacks do you prefer?


a. Haldriam wafers

b. Uncle Chips

c. Lays chips

d.

e. Any other
Q4. Which flavor do you like most?
a. Plain salt

b. American flavor

c. Tangy tomato

d. Chat Street

Q5.On which places it got maximum consumer?


a. In colleges.

b. Railway station

c. Bus stop

d. Public places

Q6. What compels you to consume it?


a. Brand name

b. Quality

c. Variants

d. Price

e. Any other
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Q7. How would you rate as a product?


a. Excellent

b. Good

c. Average

d. Poor

Q8. What size you prefer most?


a. Rs. 5

b. Rs. 10

c. Rs. 20
Q9. How often you consume it?
a. Very often

b. often

c. Sometimes

d. Rarely

e. Never
Q10. Who all in your family prefer lays?
a. Children

b. Parents

c. Grandparents

d. All

Q11. Do you think it acquire a good name in the market?


a. Yes
b. No
c. Cant say
Q12. Would you suggest other person to buy lays chips?
a. Yes
b. No
c. cant say
Q13. Are you satisfied with the number of flavors it has provided?
a. Yes
b. No
Q14. Do you think lays should come up with more flavor?
a. yes specify
b. No
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Q15. What is your source of information regarding the purchase of it?


a. Advertising
b. Live demonstration
c. Retail outlets
d. Home shopping
Q16. Lays comes in a junk food. Do you think it is healthy to consume?
a. Yes
b. No
Date..
Place..
Thank you for filling up this questionnaire and giving your valuable time to us.

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