MMM 07/08

1. Lay´sPotato Chips in Hungary CreatingAwareness and BuildingBrandImageat ProductLaunch Group D

2. Agenda Marketing Objectives Problem Statement Situation Analysis Alternative Courses of Action Evaluation of Alternatives Decision Implementation plan Risk Analysis Program Monitoring

3. Objective How John F Stevenson, General Manager of PepsiCoSnacks in Hungarywillmake a successfullaunch of Lays chips.

4. Marketing Objectives SuccessfulLaunch of Lays in Hungary What will the future environment be like? Consumer spending will decrease Chio will protect its Brand : packaging, increase spending, lower price

5. Problem Statement Howtosplitbudgetbetweenadvertising media and consumerpromotions? Match Chio´s (44% to 56%)? Whichspecificadvertising media shouldbeused? Whatmessageshouldadvertisingconvey? Whichpromotionactivitiesshouldbeincluded?

6. Situation Analysis Context Competition Consumer Company

7. Context Hungary Inflation28% Unemployment 12% Decreasingconsumerbuyinghabits Population: 10,064,000 Hungrypeople

9. 44% mass media

10. 56% promos

11. Price discounts

12. $102% Lays

13. “Chioequals Chips”

14. Mktbudget: U$ 500,000

15. TV media & radio

17. Consumer Research Blindtests 69% preferredLaysoverChio Brandperception Goodqualityevaluation: Chio 81% Lays 47% Goodvalue Chio 55% Lays 17%

18. Company SWOT Strengths Opportunities Weaknesses Threats

19. Alternative Courses of Action Advertising 60% - Promotion 40% Advertising 40% - Promotion 60% Advertising 50%- Promotion 50% Chio: Advertising 44% - Promotion 56%

20. Alternative Courses of Action Marketing Plan Cross PromotionwithPepsibrands 2 Layspackages Get1 Pepsi 2 Pepsi Get 1 Layspackage

21. Alternative Courses of Action Objective of Campaign Increasemarket share (12% - 32%) Take SOM fromChio Pepsi and brandconsumers Increasebrandawareness Increase trial toreinforce taste and quality Link brandequitytoyounggeneration and fun

22. Alternative Courses of Action Nationalcampaign in alliancewithPepsibrands Advantages Doubletheresources (Pepsibrandspays) Increaseawareness and leverageonestablishedbrandequity (Pepsi 30% SOM) Leverageondistribution Cross exhibitions Disadvantages Nottargeting Coca Cola consumers

23. Evaluation of Alternatives Needtoincreasemarket share to 32% Needtoconcentrate more resourcesonpromotionthanonadvertising

24. Evaluation of Alternatives

26. 60%forpromotion

30. Supermarkets

31. RetailOutlets

32. Grocery/Convenience

33. Small shop

34. Vending Machines

35. Cinemas

38. Evaluate sales increaseIfbrandawarenessisnotincreasing, but sales are  Place more $ in advertising and moveto 50%-50% alternative

40. BrandAwareness

41. Market Share

42. Consumerperception in qualityimage and value

43. ROI- Initialinvestment done byLays and Peps, evaluate vs. increase in sales duringtheactivityperiod, toseewhodiditworkbetterfor

44. Conclusions How to split budget: 60% P – 40% Ad Which specific advertising: TV, Radio, Sports, Cinema, Outdoor What message should advertising convey? Focus on taste Which promotion activities should be included? Sampling, price discounts, subsidize activity

45. Thanks!