1.

EXECUTIVE SUMMARY

Lay’s chips brand is owned by PepsiCo since 1963 and they pioneered snacks market in India in
1995. Lay’s has most puissant voice in Indian snacks market due to its innovative flavors,
marketing, advertising, distribution labyrinth etc. Some of the leading players in this market are
PepsiCo, ITC, Parle, Haldirams, Prataap Snacks, Balaji Wafers, Bikanervala and DFM Foods. Lay’s
attention is on gaining the traffic from youngsters and they select the congruent Brand
Ambassadors who represent youth and vibrancy. Lay’s market segmentation is done on basis of
geography, demography, psychographic, behavioral. Lay’s has an astute distribution network as
it rides on the PepsiCo’s distribution network. Company’s unique value proposition is quality,
accessibility and availability. Lay’s generates stimulus among consumers by free sampling
processes, sponsoring influencers, availing exclusive strategic places at retail outlets etc. In
order to keep up with the evolving movement of the advertising, Lay’s has started focusing on
social media promotional techniques through Facebook, Twitter, YouTube and Blogs. We
conducted both online and offline research. The online research was performed via consumer
survey and the offline research was done by face to face investigation with the attention being
mainly on the retailers. We have suggested strategic innovations, implementations and control
methods which will help the brand in cementing its brand narrative and make its brand
resonance indelible and also to withstand various eccentric headwinds.
2. SWOT ANALYSIS

STRENGTHS

1. Established brand name- Frito Lay’s is a well-established brand having

extensive distribution network throughout the country.
2. Creative Marketing Campaigns help lay’s to constantly engage with its
customers.
3. Strong distribution network
4. Brand Ambassadors- Lay’s focus on gaining the attention of youngsters and
choose the right Brand Ambassador who represents Youth, energy and

WEAKNESSES

1. As Indian market is highly price sensitive, the company has to maintain a low-
price level to have a competitive advantage resulting in reducing the profit
margin of the company.

2. Brand cannibalization: Lay's is also in competition with other worldwide PepsiCo 
brands like Doritos, Kurkure, Fritos and Cheetos etc. This makes a hole in Lay's m

OPPORTUNITIES

1. Penetrating Rural market- Lay’s can introduce more localised flavours to cater the
need of rural people which can help the company increase its sales and profit. It
has the opportunity to develop and cater to the market with ethnic Indian tastes 

2. Position itself as Healthy snack- As there is a new target market who are health
conscious, Lay’s can add more flavours to its Baked goods product category.
 THREATS

1. It has a cut throat competition with well established brands like Haldirams, Parle,
Britannia, Balaji etc and local substitute snacks.

2. There is a growing health awareness of diseases caused by junk food so many health-
conscious people are moving away from high
calorie foods to healthier goods, which is a challenge to the company.

3. STP ANALYSIS

SEGMENTATION
Lay’s market segmentation is done on basis of geography, demography, psychography,
behavioral. It is available across the Hindi belt and down south and faces incessant threat from
indigenous local brands. Mostly ingested by teenagers, adults. Heavily consumed in parties,
social gathering, outdoors, socio-officio events, sports experience etc.
TARGETING
The most imperative target cohort is youngsters and millennials who are engaged and
exhilarated by sports, outdoor activities, party events etc.

POSITIONING
Lay’s is powerhouse of flavors and packaging and has resonated to consumers through various
touchpoints. Having galore of financial muscle at their end, they invested vertiginous amounts
in packaging, advertisement, marketing, distribution, supply chain and logistics, cobranding,
value co-creation etc.

Lay’s positions itself in consumers mind through these different strategies:

 Youth/Juvenile oriented Brand

 Youngsters are the target audience for Lay’s potato chips. Customer base who are heavy
in their consumption pattern are millennials but the brand is broad in their horizon.

 Pricing
Lay’s have positioned itself as robust brand by swimming in different pricing strategies
to gratify its economical and price sensitive consumers. They focus on high quality and
moderate pricing and also utilise promotional pricing to amplify sales volume.

4. PESTEL ANALYSIS

POLITICAL
 Publically listed company Frito Lay’s had to follow each rules shaped by
government
 As Lay’s sends its product around world, they need to essentially abide by cross
country laws of every country wherever Lay’s chips are sold

ECONOMIC
 Lay’s main worry seemingly comes from its competitors within the chips
 To increase its share in the chips market, Lay’s should adopt the product, selling
ways, analysis and develop initiatives, and alternative vital business aspects of
competitors

SOCIAL
 Consumers focuse on healthy snacks and sugar free beverages which had led to
reduction in consumption of potato chips
 The consumption of potato chips also depends upon lifestyle and demographics
of a particular place or country. as young people consume more potato chips
than older people
 TECHNOLOGY
 Lay’s must keep check on its competitor for any technological development,
while trying to make strategies to come up with own technology
 Lay’s should also show its presence in social media like Facebook, twitter etc.
and should create strong buzz on these platform

ENVIRONMENTAL
 As Lay’s use plastic material for packaging which is harmful for environment, so
may get into trouble if any new environmental policies altered by government
 Company should try not to throw waste in any river or lake as it would harm our
environment

LEGAL
 Frito-Lay’s must follow the health and safety guidelines issued by food and drug
department of India
 Government guidelines to reduce sodium and acrylamide in snack food can
increase the cost of chips manufactured
5. PORTER’S FIVE FORCES
6. COMPETITION ANALYSIS

 ITC(Bingo)- Lay’s faces the primary competition from Bingo which has an excellent
advertising and branding strategy on television ads and print media. The product line
comes under a strong backing of brand name – ITC. It also ensures spontaneous
purchase by offering variety of flavours with reasonable prices.
 Haldirams- Haldirams is a food and beverages company whose USP is to make a wide
range of authentic Indian tasty food. It has a strong brand awareness and recall amongst
its customers

 Parle (Parle Wafers)- Parle wafers enjoys a strong brand awareness with good
supply chain management and distribution system across the country. It has a low
pricing strategy as compared to Lay’s so it attracts a large number of price sensitive
customers