Lay’s Product & Promotion Policy

displaces, known as Walkers in the UK and Ireland, is the mail name for a number of crisps varieties as well as the name of the company that founded the chip stigmatize in 1932. Over 90% of the population is familiar with the patsy-name and with more than 50% of the trade sh atomic number 18s, we can definitely c only them the market leader. Its for this company that we will briefly clarify the convergence- and promotion policy. Product sics The brand name For the brands name sets uses a compounding of group-brand and a singular brand.Its a group-brand because PepsiCo doesnt use its own name to sell the products, alone they use the brand Lays to distribute them. Further more, Lays makes use of individual brands for the different flavours like there are Lays Light, Lays Oven and Lays Sticks. Even though all the products belong to Lays, they sell them according to their different characteristics by a different name. By making use of market segmentation, Lays creates the pos sibility to expand its kind and itself. In this way each product will receive its own identity. Assortment strategiesLine stint Lays often expands their assortment by adding parvenue flavours and new sub-groups. For example Lays developed Lays Light and Lays Oven. With these groups they tried to penetrate a new group of consumers who worry about the percentage of fat that crisps contain. Lays Light contains 33% slight fat and in the sub-group Lays Oven, the crisps contain 70% less fat. Line filling Lays stay put alongs their assortment of existing products by adding new varieties to the different groups. Since 2011, for example, they slang a product descriptor called Black Pepper & Sea Salt.In this way they obtain a more complete assortment and can they satisfy more consumers. Promotion Lays Promotional campaign Lays as a market leader doesnt have strong competition because they have a strong promotional campaign. The company also makes different price actions for the introd uction of new products. after the price is lowered to capture the market. The consumer pays less for the same product and receives a sort of reduction. This is one of the gross revenue promotions techniques Lays uses. The sales are stimulated at short term by impermanent improvement of the price-value ratio.Sometimes Lays offers sampling and free crisps. Lays also organises cash-refund actions where you get your money back by sending back the barcode of your package of Crisps. The main advantages are the low cost, the consumers info is saved in database and the involvement of the retailer is not necessary . This may lead to a swimming effect or market expansion. At first place, Lays wants the customer to meet and refine its product. When the customer is satisfied and buys the product again, we call it a repeat. Sometimes Lays also has a supererogatory offer where you get a 3rd bag for free.They realise this by offering special promos to customers. This also is a kind of sales p romotions where they offer a bigger quantity of goods for the same price. This results in an advantage in goods. Within these promotions, we can speak of a vertical effect or market effect. One will try to create more market share by creating a higher(prenominal) brand loyalty, user intensity and revenues. Moreover the consumers will be blocked to other brands of crisps. Possible risks are that the consumer will store their products and it wont lead to extra consumption. Lays also organises preservation campaigns. They have a savings campaign called Lays Chip Trips.The point of this campaign is that consumers define a code on the bag of Lays. They can go to the site of the company and assent this code. People can save points online this way, and when they have saved enough, they can exchange there points in all kind of prices like free entrance to a theme park and free stay at a hotel. Lays will try to stimulate the revenues on the shorter term and bind the consumers to the brand this way. The company also organises contests. In many countries like the Netherlands, Lays has started a competition where hatful can make new flavours and present them to Lays. flavours are chosen by Lays and the consumer has to decide by voting which flavour is the best. Every consumer that votes, has the chance to win a Mini. This campaign was a great success. The finale flavours were sold 6 million times. In the Netherlands, Patatje Joppie was the eventual winner and has appeared in the shops populate February. These promotions can lead to higher revenues because one creates more users. These users can be people who buy the product for the first time or people who buy the products of the competitor.