Comparative

Analysis
Topic: Lays Vs Kurleez by
Ismail industries

Abdul Majeed
 Topic: Lays Vs Kurleez by Ismail industries

Comparative Analysis
Introduction
Pakistan’s snack market is expected to grow by the rate of 9.50 percent by the year 2024, the

total market is expected to reach at over 950-million-dollar market. From the customer

perspective, the customers are continuously looking for the options to the convenient snacking

from the giant market players of the industry. The snack customers of the country are constantly

preferring for the spicier ivory snakes in the country. Moreover, the invention in the field of

flavor is the detrimental factor for the success in the snake market of the country, hence the

snack customers of the country have seen numerous flavors launched by the prominent snack

market players in the country such as vinegar, honey, yogurt, pizza, spice, barbecue etc. There

are certain domestic brands which offering high quality and more affordable brands have

replaced the loose and off-brand chips providers around the countries chips market. The raised

disposable income, higher brand awareness, and the inclusion of the multiple flavors have

greatly contributed to the snack market growth rate in the country. It is pertinent to mention here

that the demand of the high quality and crispy snacks in the country is growing at the

breathtaking pace. Educated middle and upper middle class income holders urban population is

demanding for the snacks due to increased disposable income, living standards, preferences and

tastes, and the impacts of the national and the international media are greatly causing to it.

Savory snack manufacturers in the country are eagerly launching crispy and innovative products

with different flavors, packaging and the formats. In Pakistan the savory snack market’s target
customers are young population, teenager and the children and the customers ranging within that

particular age group.

Lay’s History
The Lays is one of the world’s well known potato chips brands around the corners of the world.

This versatile company of its nature was founded in the United States, the current owner of this

company are the PepsiCo through its frito-lay product division. The Lays was founded in 1932

by a salesman named as Herman Lay who struggled to open a venture of snack foods in the

Tennessee. Since 1944 the Lays prudently proved to be the only snack brand in the US market

which purchased television commercials with the Bert Lahr in their advertising model campaign.

Until 1965, Lays was operating with another distinctive name by the Herman Lay but since then

the company was merged with the Frito-Lay which was a giant player in the snack food market,

the company alone was being able to make a sales turnover of over $129 million annually. By

the early 1990s the company formed a new product line which encompassed over “Wavy Lays”

with the complete national roll out. Since then, Lays tried to introduce novel market offerings

with the aim to produce goods and services which are solely attracting the lower calorie indicted

customers. It is pertinent to mention here that the Frito-lay alone was contributing around 60% of

the snack market share around the United States of America. Moreover, the lays brands are the

least carriers of minerals and vitamins in almost all of their market offerings. Although vitamin C

can be traced in high rate other than other minerals and vitamins. Moreover, it is important to

mention here that the Lays potato chips alone produces its products in more than 200 varieties

around the world. The company held contests with the sole purpose to find the ways and means
of collecting ideas of flavors and offer over a million dollar to the one whose idea is novel and

tasty among all other participants. Depending on the varieties offered into the different countries

Lays alone offer different variants according to the country and region specific such as in

Pakistan Lays Yogurt and in Thailand as Lays crab curry and the basil chicken flavors.

Lay’s Packaging
As described earlier the Lays has market

offerings over 200 products around the globe, so

they are distinctive and different from one

another as well. The similarity of packaging is

only when they carry a scripture of potato chips

on its front presence. Moreover, Lays is available

in multiple packaging and variants around the

world. In Asian context the products are more

salty and more fried but for the US based

customer there are other variants available

according to the desired specification of the

customer preferences. Additionally, the Lays potato chips bags with smile was the idea that was

been driven from Egypt, it was basically

incorporated in order to make some

charitable cause. Moreover, the packaging

of lays for the customers from Thailand

and Malaysia is occupied with the number

of description and the touch from the culture of the state.

The infrastructural development in the times of

election has significant impact on the

consumer spending pattern for the customers of

Thailand, for the customers of potato chips

segment there is expected to grow by almost 9.2

percent in year to come.

Market Share
The aggrigate
Market Concerntrati on rati o
35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00% market is
PepsiCo Capital HaldiRam's Nimco's Shahi Ismail Others
Group of Industries
Companies
expected to be

counted for 271.28 million dollars by the end of year 2021. This market share has many affects

to consider such affects are the level of customer buying process. The major players for snack

market in Pakistan are Capital group of companies, PepsiCo Inc., Shahi’s, Nimco’s, Haldiram,

United Snacks, Ismail Industries and the Bhaya Foods Industries are some of the competitive

players of the market.

Price ranges
In Pakistan Lays is being priced according to the flavor, pack type, and the market in which it is

being served. Karachi and Lahore are geographically very lucrative markets in Pakistan where

snack producers are being able to generate million of dollars in terms of revenues. Furthermore,

following table gives a synopsis of pricing Lays pricing in Pakistan.

Sr Description Pricing
1 Lays Masala 13-gram pack which contain 24 packs 399
2 Lays Salted 13 gram of 24 packs 380
3 Salt and the Vinegar 6.5 1550
4 Honey Barbecue 1550
5 Stacks Original 775
6 Mix Flavors 1399

Distribution Channels
In Pakistan the snack are handed over to customers in three stages predominantly among them, at

first the manufacturing player is supposed to send the manufactured product to the distributing

networks either owned by the third party or by the company itself, then that inventory is shifted

towards the retailors with ample inventory and later in the period the snack inventory is moved

towards the smaller specialty, discounted, periodical and super stores according to the

convenience of customers.

Point of parity and the point of difference

The point of parity is the center of an area where the businesses are almost similar to the

competitor such as on identifying the consuming patterns of the customers around the market

where both of the players are competing to acquire a market share. On the other hand, the point

of difference is the area where a company establishes unique proposals than of its competitors. It

is pertinent to mention here that the point of difference is mostly called as the differentiation
point between the competing firm, point of differentiation assures the competitive advantage of a

company than its competitors. Furthermore, the point of parity between the Lays and the Kurleez

by Ismail industries is the process of operations, both are the prominent producers of the potato

chips, both are tasty, both of them offer multiple variants and both are available in different

pricing for different packs. Moreover, it is important to understand that the point of parity is

recognized from the company strengths and competitive advantages. So the parity analysis of

this report are recognized from the size of packs, pricing, geographical market share and the taste

of the snacks. In contrast to it, the point of difference between the Kurleez and lays is the

customer market approach, supply chain networks, distributional units and the warehousing

facilities of the companies.

Kurleez Company History

Ismail industries established snack city as a distinct division which solely operates to cater the

needs of customers who demands more spicy, foundational made up of Pakistani version of

potohari potato. In June 2006 alone the snack city was inaugurated with the sole purpose of

founding the stone of a company which has to be reliable for the production of potato chips

namely as the Kurleez. After determining the unparallel success of the marketing offering, the

Ismail industries immediately planned to install another production facility in Lahore as the first

production facility was in Hub, Baluchistan but the customers were mainly from Karachi and

Lahore, hence the snack city idealized to install second production facility in Punjab in year

2010. Furthermore, the strategic decision of installing second production facility in Lahore was

mainly backed to entertain the market demand of northern region (Swat, Peshawar, Kashmir,

Islamabad, Rawalpindi, DG Khan, Sibhi and Potohar) and central region (Lahore, Ghotki,
Multan, Rahim Yar Khan and Kohat) customers. Meanwhile, the production plant of Hub

Baluchistan was supposed to cater the market demand of Southern (Karachi, Hyderabad, Sukkur,

Quetta, Gwadar and other lower areas of Baluchistan and Sindh province) customers. The Ismail

industries are determined towards the customer satisfaction by incorporating the best ever

machines for producing potato chips imported from the US, moreover the company has engaged

the highly qualified technicians for producing the lucrative and best ever potato chips for the

customer from Pakistan only. Furthermore, since the foundation of the Ismail industries flagship

project of snack city’s Kurleez has shown exponential growth and has become the prominent

market player of the snacks category of the crinkle chips, though the company has heavily

invested into the other categories of the same industry. The other brand of the snack city called

as Chillz also prudently proved to be the market leader in its less spicy market category. It is not

over yet the snack city’s other two brands nimko and the peanut are also showing the exponential

growth in their respective market categories as well. The snack city project of the Ismail

industries has the profitable and promising future, as the company is heavily and continuously

investing into developing the product line of the company.

Kurleez Packaging
Kurleez by the Ismail industries does not offer in a larger

variety and has not fully penetrated into the entire market of

Pakistan hence their limited market offerings of snack are

Kurleez special salt paper, Kurleez Barbecue.

The packaging of the Kurleez Mexican Chili is the saltiest and most spicy market offering of the

Ismail industries’ snack city. Furthermore, Kurleez special

salt is made up of the salt specially imparted from the mines

of Khewra, this

offering is

catering the

needs of the

customers who

utilize salt and

salty products at the fullest level. In comparing the

packaging

with the Lay’s, Kurleez

packaging is specially

made for the public

from the two major

cities of Pakistan

mainly Karachi and Lahore. Additionally, unlike Lay’s there

is no impediment message or a campaign is yet started by the

Kurleez through its packaging and advertising.

Market Share of Kurleez
As the Kurleez by the Ismail industries is the latest entry into the snack industry of the country

but its commitment of fulfilling the latent demand of spicier and saltier snack is being

ascertained, there fore the Kurleez has become a potential threat to many international off

brands. It is equally important to mention here that the companies in Pakistan are eagerly trying

to launch innovative and crisp products within the multiple formats, packaging and the flavors.

The market share of the Kurleez is very much minimal of around 6%, but the company has got a

good corporate image in the customer’s perception. It can be understood from this rapid growth

and raising customer demand the Ismail industries’ Kurleez might surpass the major players of

the snack industry in the country.

Advertising campaigns of Kurleez

The promotional strategies of the Kurleez are not very different than other players of the

industry. Kurleez mostly focuses on the event-based advertisement for their market offerings.

Since the cricket world cup held jointly in India, Sri Lank and Bangladesh Wasim Akram has

remained the brand ambassador of the Snack city products. Furthermore, for a cricketing event

(Pakistan Super League) Kurleez attract new customers by offering multiple gifts and presents

by purchasing their market offerings.

Pricing

Sr Description Pricing
1 Kurleez Masala Jumbo pack 350
2 Kurleez Salted 13 gram of 24 packs 325
3 Mexican Chili 6.5 1400
4 Swiss Cheese 1450
5 Kurleez Barbecue 700
6 Kurleez Ketchup 1200

Point of parity and the point of difference

The point of parity is the center of an area where the businesses are almost similar to the

competitor such as on identifying the consuming patterns of the customers around the market

where both of the players are competing to acquire a market share. On the other hand, the point

of difference is the area where a company establishes unique proposals than of its competitors. It

is pertinent to mention here that the point of difference is mostly called as the differentiation

point between the competing firm, point of differentiation assures the competitive advantage of a

company than its competitors. Furthermore, the point of parity between Ismail industries’ flag

ship project of Kurleez and the Lay’s is the process of operations, both are the prominent

producers of the potato chips, both are tasty, both of them offer multiple variants and both are

available in different pricing for different packs. Moreover, it is important to understand that the

point of parity is recognized from the company strengths and competitive advantages. So the

parity analysis of this report are recognized from the size of packs, pricing, geographical market

share and the taste of the snacks. In contrast to it, the point of difference between the Kurleez and

lays is the customer market approach, supply chain networks, distributional units and the

warehousing facilities of the companies.

Conclusion
There are certain point where the Lay’s and Kurleez differ from one an other on the process of

communicating message with the customer, prominent among them is the advertising message,

time of communicating with customer and the medium of visual and communication

incorporated into their marketing strategies.