Lay’s, known as Walkers in the UK and Ireland, is the brand name for a number of crisps varieties as well as the name of the company that founded the chip brand in 1932. Over 90% of the population is familiar with the brand-name and with more than 50% of the market shares, we can definitely call them the market leader. It’s for this company that we will briefly clarify the product- and promotion policy.
The brand name
For the brand’s name Lay’s uses a combination of group-brand and a individual brand. It’s a group-brand because PepsiCo doesn’t use its own name to sell the products, but they use the brand Lay’s to distribute them. Further more, Lay’s makes use of individual brands for the different flavours like there are: Lay’s Light, Lay’s Oven and Lay’s Sticks.
Even though all the products belong to Lay’s, they sell them according to their different characteristics by a different name. By making use of market segmentation, Lay’s creates the possibility to expand its assortment and itself. In this way each product will receive its own identity.
Lay’s often expands their assortment by adding new flavours and new sub-groups. For example: Lay’s developed Lay’s Light and Lay’s Oven. With these groups they tried to penetrate a new group of consumers who worry about the percentage of fat that crisps contain. Lay’s Light contains 33% less fat and in the sub-group Lay’s Oven, the crisps contain 70% less fat.
Lay’s completes their assortment of existing products by adding new varieties to the different groups. Since 2011, for example, they have a product variant called “Black Pepper & Sea Salt”. In this way they obtain a more complete assortment and can they satisfy more consumers.
Lay’s as a market leader doesn’t have strong competition because they have a strong promotional campaign. The company also makes different price actions...
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