Consumer Behavior - Lays Potato Chips Hungary

5,946 views
5,501 views

Published on

MMM 07/08

Published in: Technology, Business
0 Comments
4 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
5,946
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
188
Comments
0
Likes
4
Embeds 0
No embeds

No notes for slide

Consumer Behavior - Lays Potato Chips Hungary

  1. 1. Lay´sPotato Chips in Hungary<br />CreatingAwareness and BuildingBrandImageat ProductLaunch<br />Group D<br />
  2. 2. Agenda<br />Marketing Objectives<br />Problem Statement<br />Situation Analysis<br />Alternative Courses of Action<br />Evaluation of Alternatives<br />Decision<br />Implementation plan<br />Risk Analysis<br />Program Monitoring<br />
  3. 3. Objective<br />How John F Stevenson, General Manager of PepsiCoSnacks in Hungarywillmake a successfullaunch of Lays chips. <br />
  4. 4. Marketing Objectives<br />SuccessfulLaunch of Lays in Hungary<br />What will the future environment be like?<br />Consumer spending will decrease<br />Chio will protect its Brand : packaging, increase spending, lower price<br />
  5. 5. Problem Statement<br />Howtosplitbudgetbetweenadvertising media and consumerpromotions?<br />Match Chio´s (44% to 56%)?<br />Whichspecificadvertising media shouldbeused?<br />Whatmessageshouldadvertisingconvey?<br />Whichpromotionactivitiesshouldbeincluded?<br />
  6. 6. Situation Analysis<br />Context<br />Competition<br />Consumer<br />Company<br />
  7. 7. Context<br />Hungary<br />Inflation28%<br />Unemployment 12%<br />Decreasingconsumerbuyinghabits<br />Population: 10,064,000 Hungrypeople<br />
  8. 8. Competition<br />Mktbudget: U$ 500,000<br />TV media & radio<br />$ 110% Lays<br />Price position<br />Price promotions<br />$ 95% Lays<br /><ul><li>Mktbudget: U$ 1 Mill
  9. 9. 44% mass media
  10. 10. 56% promos
  11. 11. Price discounts
  12. 12. $102% Lays
  13. 13. “Chioequals Chips”
  14. 14. Mktbudget: U$ 500,000
  15. 15. TV media & radio
  16. 16. $112% Lays</li></li></ul><li>Consumer<br />Price conscious<br />68% are taste sensitive<br />Target segment: 8 – 54 years old<br />Snack purchase driven by impulse buying and promos<br />Purchase of Potato Chips is based on impulsive behaviors, the emotions linked with the brand play an important role in impacting the buying behavior, leading to an increase in sales and brand awareness. <br />
  17. 17. Consumer Research<br />Blindtests<br />69% preferredLaysoverChio<br />Brandperception<br />Goodqualityevaluation:<br />Chio 81%<br />Lays 47%<br />Goodvalue<br />Chio 55%<br />Lays 17%<br />
  18. 18. Company SWOT<br />Strengths<br />Opportunities<br />Weaknesses<br />Threats<br />
  19. 19. Alternative Courses of Action<br />Advertising 60% - Promotion 40%<br />Advertising 40% - Promotion 60%<br />Advertising 50%- Promotion 50%<br />Chio: <br />Advertising 44% - Promotion 56%<br />
  20. 20. Alternative Courses of Action<br />Marketing Plan<br />Cross PromotionwithPepsibrands<br />2 Layspackages Get1 Pepsi<br />2 Pepsi Get 1 Layspackage<br />
  21. 21. Alternative Courses of Action<br />Objective of Campaign<br />Increasemarket share (12% - 32%)<br />Take SOM fromChio<br />Pepsi and brandconsumers<br />Increasebrandawareness<br />Increase trial toreinforce taste and quality<br />Link brandequitytoyounggeneration and fun<br />
  22. 22. Alternative Courses of Action<br />Nationalcampaign in alliancewithPepsibrands<br />Advantages<br />Doubletheresources (Pepsibrandspays)<br />Increaseawareness and leverageonestablishedbrandequity (Pepsi 30% SOM)<br />Leverageondistribution<br />Cross exhibitions<br />Disadvantages<br />Nottargeting Coca Cola consumers<br />
  23. 23. Evaluation of Alternatives<br />Needtoincreasemarket share to 32%<br />Needtoconcentrate more resourcesonpromotionthanonadvertising<br />
  24. 24. Evaluation of Alternatives<br />
  25. 25. Decision<br /><ul><li>Basedon ROI and qualitativeanalysis, weshouldallocateresources:
  26. 26. 60%forpromotion
  27. 27. 40%foradvertising</li></li></ul><li>Implementation Plan<br /><ul><li>Product:</li></ul>- Original Lays Chips<br />- Biggersizes<br />- Local taste<br /><ul><li>Paprikaflavor
  28. 28. Goulashflavor</li></li></ul><li>Implementation Plan<br /><ul><li>Price</li></ul>- Keepprice 98% Chio<br />- Price discounts in supermarkets and retails<br />
  29. 29. Implementation Plan<br /><ul><li>Place: leveragedistributionon SD
  30. 30. Supermarkets
  31. 31. RetailOutlets
  32. 32. Grocery/Convenience
  33. 33. Small shop
  34. 34. Vending Machines
  35. 35. Cinemas
  36. 36. Bars</li></li></ul><li>Implementation Plan<br /><ul><li>Advertising</li></li></ul><li>Implementation Plan<br /><ul><li>Promotion</li></li></ul><li>Implementation Plan<br />
  37. 37. Risk Analysis<br /><ul><li>Evaluateactivitywithmarketresearchtounderstandifitisincreasingbrandawareness
  38. 38. Evaluate sales increase</li></ul>Ifbrandawarenessisnotincreasing, but sales are<br /> Place more $ in advertising and moveto 50%-50% alternative<br />
  39. 39. Program Monitoring<br /><ul><li>ThroughMarketResearch
  40. 40. BrandAwareness
  41. 41. Market Share
  42. 42. Consumerperception in qualityimage and value
  43. 43. ROI</li></ul>- Initialinvestment done byLays and Peps, evaluate vs. increase in sales duringtheactivityperiod, toseewhodiditworkbetterfor<br />
  44. 44. Conclusions<br />How to split budget:<br />60% P – 40% Ad<br />Which specific advertising: <br />TV, Radio, Sports, Cinema, Outdoor<br />What message should advertising convey?<br />Focus on taste<br />Which promotion activities should be included?<br />Sampling, price discounts, subsidize activity<br />
  45. 45. Thanks!<br />

×