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

1
 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 gratitude’s 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

2
 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

3
 CONTENTS

1. Acknowledgement 2

2. Table of the Contents 3

3. Declaration 4

4. Preface 5

5. Executive Summery 6

6. Objective of the Study 7

7. Introduction 9

8. Company Profile 18

9. Scope of the Study 63

10. Research Methodology 64

11. Data Analysis 75

12. Swot Analysis 92

13. Finding 94

14. Recommendation 95

15. Limitation 99

16. Conclusion 101

17. Bibliography 103

18. Questionnaire 105

4
 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

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 competitor’s 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.

5
 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.

6
OBJECTIVES OF THE STUDY

7
 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_LAY’S Ltd the makers of LAY’S

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 lay’s

6. To find conclusions to our project.

8
INTRODUCTION

9
 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-for-

money 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 Haldiram’s at 27% and LAYS at 16%. The

10
 lay's
Haldiram
ITC
Others

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

Manufacturer’s 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

11
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 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. 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, Fire’s Gravy, roast chicken,

13
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 jalapeño

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

15
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

16
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

18
 COMPANY PROFILE

FRITO LAY’S

The project purports to decipher the satisfaction level as well as the preferences of consumers

pertaining to the various flavors of Lay’s a new range of savory snacks launched by C. We

aim to analyse the success, marketability and future growth prospects of LAY’S. Basically

we intend to find out the most popular flavor of LAY’S 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.

19
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

21
version is notably similar to the American brand, featuring a red ribbon around a yellow sun.

The other Frito-Lay 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

22
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 (‫)תפוצ'יפס‬

In France, the famous singer Sébastien '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)

 Food for the fun of it! (2007)

23
  Lay's, get your smile on! (2006-)

 Lay's. Want some?

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

 Κανείς δεν μπορεί να φάει μόνο ένα! (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)

 É impossível comer um só (Brazil) "It's impossible to eat just one"

 ¿A que no puedes comer solo una? (Lay's Spain, Peru, México, 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)

 Лэйс - захрустишь,не устоишь!(Russia)

 Kartą paragavęs negali sustot! (Lithuania)

 停不了的乐事！ (Lay's China) meaning "Can not stop the joy!"

 Lay's. Kérsz? (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, limón (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 jalapeño

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

27
flavors such as "Spicy Curry" and "Spicy Indian Masala" to appeal to a wider consumer

group.

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

o Lay's Paprika (Bell Pepper)

 Lay's Light

o Lay's Paprika (Bell Pepper)

o 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

28
regular brand except for a half-gram less of saturated fat in some combinations. The various

brands do not contain any trans fats.

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 PepsiCo’s $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
PepsiCo’s food and snack business in North and South America.  In addition to Frito-
Lay, 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 PepsiCo’s
$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-Lay’s east
division, which includes the company’s 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-Lay’s 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 company’s 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-Lay’s 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
company’s 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-Lay’s diversity and inclusion efforts and
serves as executive sponsor of Valor, PepsiCo’s employee resource group for
military veterans and their supporters.

35
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
PepsiCo’s food and snack business in North America. In this role, she is
responsible for procurement within PepsiCo’s 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 division’s 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-Lay’s commitment to health and wellness and sustainability has been –

and continues to be – demonstrated by its extensive offerings and through the
positive steps we’ve 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 wonderful—a company that’s all about good fun—doing 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 we’re 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 2009-

2008.

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.

54
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.

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 high-

yielding, 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.

55
 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

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. That’s why we’re always

working to bring you new products, whether it’s new flavors of the snacks you

love or a whole new snack choice. Here is what’s 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.

60
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 Haldiram’s at 27% and LAYS at 16%. The rest is divided between a handful of

new entrants, wannabes and many regional players. Out of these LAYS’s 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

don’t. 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 Company’s 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.

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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:

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(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 competitor’s 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 are-

Questionnaire – 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-to-

face 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

74
 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.

75
ANALYSIS OF DATA

76
 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 don’t.

Yes
No

YES 98%

NO 2%

Pie chart shows that 49 of our respondent like snacks while 1 don’t.

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

preferred.

Chips
Biscuits
Namkeen
Bhujia
Others

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
No

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
Afternoon
Evening
Night

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.

Haldriam wafers
Uncle Chips
Lays chips
Bingo

HALDIRAM 6%

UNCEL CHIPS 10%

LAY’S 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 lay’s chips people like the Most.

Plain salt
American flavor
Tangy tomato
Chat Street

AMERICAN FLAVIOUR 10%

PLAIN SALT 8%

TANGY TOMATO 60%

CHAT STREET 22%

This shows that more people like American flavor of lay’s.

Question find out which all places do the people consume lay’s chips most.

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 COLLAGES
RAILWAY STATION
PUBLIC PLACE
BUS STOP

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 lay’s chips in

collage

Question:find what compels them to buy lay’s chips.

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 Brand name
Quality
Variants
Price
Any other

BRAND NAME 24%

QUALITY 56%

VARIANTS 6%

PRICE 6%

OTHERS 8%

This shows that the quality of lay’s chips is best as people buy lay’s chips because of its

quality.

Question: find out how people rate the lay’s chips.

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 Excellent
Good
Average

EXCELLENT 26%

GOOD 52%

AVERAGE 22%

Most of the people rate it as a good product.

Question: which size of lay’s chips people generally prefer the most.

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 Large
Medium
Small

LARGE 10%

MEDIUM 52%

SMALL 38%

Most people like to consume medium size of lay’s chips.

Question: finding out how often people consume lay’s chips.

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 Very often
Often
Sometimes
Rarely

VERY OFTEN 22%

OFTEN 24%

SOMETIMES 40%

RARELY 14%

It seems that eat lay’s chips very alternative days.

Question: find out who all in respondent’s family prefer lays chips.

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 All
children
Parents

ALL 60%

CHILDREN 36%

PARENTS 4%

GRANPARENTS 0%

As it seems that every member in the family eats lay’s chips but it is not so familiar with

grandparents.

Question: find the opinion about the lay’s market position in the commutative

market.

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 Yes
No
Can't say

YES 92%

NO 6%

CAN’T SAY 4%

Most of the people think that lay’s acquire a good name in the market.

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

Yes
No

YES 84%

NO 16%

This shows that people is eager to grab the new flavor of lay’s chips.

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Question: Finding the sources of information regarding lay’s chips.

Advertising
Live demonstration
Retail outlets
Home shopping

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
No

YES 58%

NO 42%

This pie diagram shows that all though people consume lay’s 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 company’s margins.

5. The company‘s 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 can’t 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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 Company’s 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
company’s 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

96
 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 wafers.

99
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.

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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. Round Chips
c. Lays chips d. spring chips
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

107
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 me2me chips?

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. Can‘t say

Q12. Would you suggest other person to buy lays chips?

a. Yes
b. No
c. can’t 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.

109