REPORT:

PRINCIPLES
OF
MARKETING
by:
Usman
Arshad

THE ISLAMIA UNIVERSITY OF

BAHAWALPUR
 Submitted by:
Usman
Arshad

Submitted to:
Dr. Shahid Yaqoob

Roll.No:
S23BMRkT1M01023

Semester:
1st Semester


Principles of Marketing:

IN THIS MARKETING MIX

REPORT, WE WILL EXPLORE
LAY'S OFFERINGS AND
SERVICES, CONDUCT AN
ENVIRONMENTAL ANALYSIS,
DISCUSS ITS STDP
(SEGMENTATION, TARGET
MARKETING,
DIFFERENTIATION, AND
POSITIONING) DECISIONS,
AND ANALYZE THE FOUR PS
OF MARKETING.


INTRODUCTION:
LAY'S, A SUBSIDIARY OF
PEPSICO, IS A WELL-KNOWN
AND LEADING SNACK FOOD
COMPANY IN PAKISTAN. WITH
A RICH HISTORY AND STRONG
BRAND PRESENCE, LAY'S
OFFERS A WIDE RANGE OF
POTATO CHIPS AND OTHER
SNACK PRODUCTS THAT
CATER TO THE DIVERSE
TASTES AND PREFERENCES

OF CONSUMERS
Product and Company Overview:
Company: PepsiCo
Product: Lay's potato chips

Lay's is a prominent brand that specializes in

producing high-quality and flavorful potato
chips. The brand has established itself as a
trusted choice among consumers in Pakistan
due to its consistent quality, extensive
product range, and strong brand reputation.
Lay's offers a variety of flavors, including
classic salted, masala, barbecue, sour cream
and onion, and many more.

 Relevant History:
Lay's has a long history of
providing delicious snacks to
consumers worldwide. The
brand's commitment to innovation
and quality has allowed it to
become a market leader in the
potato chip industry. With its
extensive experience and
expertise in snack production,
Lay's has built a strong
foundation and brand equity that
led us to choose it for this
analysis.
 Environmental Analysis:
To assess the external environment,
several tools can be used, including
SWOT analysis, PESTEL analysis, value
chain analysis, and industrial analysis.

SWOT Analysis:
Strengths: Strong brand recognition, diverse
product range, effective distribution network.
Weaknesses: Intense competition,
dependency on potato availability, changing
consumer preferences.
Opportunities: Growing
snacking trend, expanding market
segments, increasing health-conscious consumers.
Threats: Rising raw material costs, regulatory challenges,
substitute products.
 PESTEL Analysis:
Political: Government regulations on food
labeling, import/export policies.
Economic: Disposable income levels,
inflation rates, exchange rates.
Social: Changing consumer preferences,
snacking culture, health consciousness.
Technological: Advancements in packaging
and manufacturing processes.
Environmental: Sustainable sourcing of raw
materials, waste management.
Legal: Food safety regulations, advertising
and labeling laws.
 Value Chain Analysis:
Lay's focuses on every stage of
the value chain, from sourcing
high-quality potatoes to efficient
production, packaging, and
distribution. The brand maintains
strong relationships with local
farmers for potato sourcing and
ensures a streamlined supply
chain to meet market demand.
 Industrial Analysis:
The snack food industry in Pakistan
is highly competitive, with both local
and international players vying for
market dominance. Lay's faces
competition from brands like
Kurkure, Poppins, and local potato
chip manufacturers. The industry is
experiencing growth due to
changing consumer preferences
and increasing disposable incomes.
 STDP: Segmentation, Target Marketing,
Differentiation, and Positioning
Decisions:
Lay's adopts a market segmentation strategy
based on demographic, psychographic, and
behavioral factors. The brand targets a wide
range of consumers, including children,
teenagers, and adults, 5/9*+ enjoy snacking.
Lay's differentiates itself through its
extensive product line, diverse flavors, and
consistent quality. The brand positions itself
as a reliable and enjoyable snack option for
various occasions.
 Four Ps of Marketing:

Product:
Lay's addresses the need for convenient and flavorful snack options. The product fulfills
the desire for a quick and tasty snack to satisfy hunger and cravings. Lay's potato chips
encompass three levels: the core product (snacking satisfaction), the actual product
(packaged potato chips in various flavors), and the augmented product (brand reputation,
quality, and customer service). Lay's offers a wide product line with different flavors and
packaging sizes to cater to consumer preferences. Currently, Lay's falls in the maturity

stage of the product life cycle due to its strong market presence and competition.

Placement:
Lay's strategically places its products in prominent locations within retail outlets,
ensuring high visibility and easy accessibility. The physical location of Lay's
products is often near its closest competitors on store shelves. This placement
reflects a strong marketing strategy, emphasizing the brand's confidence in its
product quality and competitive positioning.

Pricing:

Lay's adopts various pricing strategies based on market dynamics. The pricing is
influenced by factors such as production costs, market demand, and competition.
Lay's aims to offer affordable prices to consumers while maintaining profitability
and value.
Promotion:
Lay's utilizes diverse promotional strategies to create brand awareness and drive
sales. The brand employs television and digital advertising campaigns, sponsors
sports events, implements point-of-sale displays, and leverages social media
marketing. Lay's often collaborates with popular celebrities and influencers to
endorse its products, utilizing their reach and influence to enhance brand visibility
and appeal.
 Other Factors:

In addition to the Four Ps, Lay's

has implemented an efficient
distribution system, ensuring
widespread availability of its
products across various channels,
including supermarkets,
convenience stores, and online
platforms..

The brand also focuses

on sustainability by
sourcing potatoes from
local farmers and
implementing
environmentally friendly
practices in its
operations.
Conclusion and Recommendation:
Lay's has effectively utilized the
marketing mix elements to establish a
strong market presence and
customer loyalty in Pakistan. Through
its diverse product range, competitive
pricing, strategic placement, and
innovative promotion, Lay's has
positioned itself as a leading snack
brand. The brand's commitment to
quality, customer satisfaction, and
continuous innovation has contributed
to its success.
To further enhance its market
position, Lay's can explore
opportunities in healthier
snacking options, expand
distribution channels, and
continue to engage with
consumers through digital
marketing and personalized
experiences. By leveraging
the four Ps of marketing,
Lay's has strived to ensure
the success of its products
and maintain its competitive
edge in the Pakistani snack
market