The document presents a study on consumer behavior towards Lay's chips, highlighting the importance of understanding consumer actions in purchasing decisions. It details a survey conducted with 48 participants, focusing on demographics, purchasing patterns, and brand preferences, demonstrating a strong preference for Lay's over competitors like Uncle Chipps. The report concludes with suggestions for Pepsico to improve flavor richness, quantity, and product availability based on consumer feedback.

1. A STUDY OF CONSUMER BEHAVIOUR
TOWARDS LAY’S
SUBMITTED BY:
VEDANSH VARSHNEY (401703030)
SUBMITTED TO:
DR. HARJOT SINGH

2. CONSUMER BEHAVIOR AND IT’S IMPORTANCE
➢ CONSUMER BEHAVIOUR is the study of consumers’ actions while searching for,
evaluating, selecting and purchasing products and services that they expect will
satisfy their needs and requirements. It can be considered as a blend of human
psychology, sociology, social anthropology, marketing and economics. It attempts to
understand a consumer’s decision-making process, both when acting individually or
as a part of a group. It also tries to assess the different factors that can influence a
consumer i.e., psychological, social, cultural, personal, economical etc.
➢ WHY IS STUDYING CONSUMER BEHAVIOUR IMPORTANT?
1. Understanding market competition and gaining competitive advantage.
2. Predict shifting or newly emerging market trends.
3. Create effective marketing campaigns.
4. Retain old customers and attract new customers.
5. Innovate new products and services.
6. Catering to more diverse variety of individuals/ groups by understanding their
specific demands and requirements.

3. COMPANY AND PRODUCT CHOSEN
➢ PepsiCo is an American New York based global corporation that
manufactures, markets and distributes grain-based snacks, foods,
beverages and other products. It was found in 1965 with the merger
of the Pepsi-Cola Company and Frito-Lay. PepsiCo entered India in
1989 and has grown to become one of the largest MNC food and
beverage businesses in India. PepsiCo India's diverse portfolio
includes iconic brands like Pepsi, Lay's, Kurkure, Tropicana 100%,
Gatorade and Quaker.
➢ Frito-Lay is an American subsidiary of PepsiCo that manufactures,
markets, and sells corn chips, potato chips, and other snack foods. In
India, Frito-Lay uses its international brands as well as Uncle
Chipps, a homegrown brand that it bought out in 2000. Kurkure, an
Indian snack developed and produced by PepsiCo India, announced
on March 31 that it was now available in Canada, UAE, and the Gulf
region as well. Lay’s Potato Chips are one of the most well-known
snacks across the world available in a variety of different flavors.

4. TARGET MARKET
✓ Chart -I indicates that our participants consist of an equal proportion of adults (47.9%) and teenagers (48%).
✓ Chart -II indicates that majority of our participants are college students.
Chart -I Chart -II

5. QUESTIONNAIRE
(ANALYSIS AND RESULTS)

6. QUESTIONNAIRE STRUCTURE
1. The questionnaire consists of 20 questions in total and is divided into three sections.
2. Sections and their content:
• Section 1 – Demographics
• Section 2 – Mixture of marketing concepts
• Section 3 – Product Attributes (specifically)
✓ A total of 48 participants participated in the survey and filled in their responses.

7. MARKETING CONCEPTS COVERED IN QUESTIONNAIRE
S.NO. QUESTION MARKETING CONCEPT
1. Name, Age, Occupation Demographics
2. How frequently do you eat snacks? Consumption Behaviour
3. Which snack would you prefer the most out of the following? Market Competition
4. Which brand would you prefer the most to buy chips from? Market Competition
5. Which of the following Lay’s chips flavor do you like? Attitude towards product
6. How many Lay’s chips flavors do you like? Attitude towards product
7. Are you satisfied with the current flavor range of Lay’s chips? Consumer Satisfaction Level
8. How often do you consume Lays chips? Purchase Pattern
9. What compels you to buy Lay’s chips? Reasons to Buy
10. How well known is Lay’s as a brand for chips? Brand Awareness
11. How often have you come across advertisements or endorsements promoting
Lay’s chips?
Brand Advertising/ Promotion

8. S.NO. QUESTION MARKETING CONCEPT
12. How would you rate Lay’s chips as an overall product? Consumer Satisfaction Level
13. Would you recommend Lay’s chips to other people? Attitude towards product
14. Are Lay’s chips rich in flavour for your taste? Attitude towards product
15. Are you satisfied with the quantity of chips provided in a packet? Attitude towards product
16. What size of pack do you prefer the most? Attitude towards product
17. How would you rate the quality of Lay’s chips? Attitude towards product
18. How many calories do you think you consume after eating one packet of Lay’s chips? Attitude towards product

9. HOW OFTEN DO PARTICIPANTS CONSUME SNACKS?
✓ The chart indicates that our participants are frequent consumers of snacks as 60.4% of them selected “Often”.

10. MARKET COMPETITION: SNACKSVS BRANDS
✓ Chart -I indicates that majority of our participants (72.9%) prefer eating “Chips” for snacks.
✓ Chart -II indicates that most of our participants (68.8%) would prefer buying Lay’s chips.
Chart -I Chart -II

11. WHAT FLAVORS OF LAY’S CHIPS DO PEOPLE LIKE?
✓ The graph indicates that the flavors most liked by the participants are Magic Masala (60.4%) and Cream and Onion (52.1%).

12. LAY’S CHIPS FLAVOR RANGE: LIKING AND SATISFACTION
✓ Chart -I indicates that majority of our participants like at least 3 flavors of Lay’s chips.
✓ Chart -II indicates that majority of our participants (72.9%) are satisfied with Lay’s current flavor range.
Chart -I Chart -II

13. PURCHASING PATTERN AND REASONSTO BUY
✓ Chart -I indicates that the frequency of purchasing Lay’s chips amongst our participants is moderate.
✓ Chart -II indicates that Availability, Quality and Variety in flavor are the top factors that compels our
participants to purchase Lay’s chips.
Chart -I Chart -II

14. BRAND AWARENESS AND MARKETING
✓ Chart -I indicates that majority of our participants (89.6%) believe that Lay’s is a very well-known brand.
✓ Chart -II indicates that our participants have often seen advertisements/ celebrity endorsements related to
Lay’s chips, in terms of frequency.
Chart -I Chart -II

15. PRODUCT RATING AND RECOMMENDATION
✓ Chart -I indicates that majority of our participants rate Lay’s chips as at least a “good” product.
✓ Chart -II indicates that majority of our participants (64.6%) would recommend Lay’s chips to other people
who enjoy eating snacks/ chips.
Chart -I Chart -II

16. PRODUCT ATTRIBUTE: FLAVOR
✓ The graph indicates that most of our participants rate Lay’s chips 4 out of 5 (Good) in terms of richness in flavor.

17. PRODUCT ATTRIBUTE: QUALITY
✓ The graph indicates that majority of our participants rate Lay’s chips at least a 4 out of 5 (Good) in terms of quality of chips.

18. PRODUCT ATTRIBUTE: COST AND QUANTITY
✓ Chart -I indicates that majority of our participants (64.6%) prefer buying the Rs. 20 pack the most.
✓ Chart -II indicates that majority of our participants (81.3%) are not satisfied with the quantity of chips
provided in a packet.
Chart -I Chart -II

19. PRODUCT ATTRIBUTE: NUMBER OF CALORIES
✓ The graph indicates that most of our participants rate Lay’s chips 4 out of 5 in terms of the number of calories present in a
single packet of chips. They believe that the calorie count in Lay’s chips is high.

20. MULTI-ATTRIBUTE ATTITUDE MODEL
(IDEAL POINT MODEL & IT’S APPLICATION)

21. WHAT IS IDEAL POINT MODEL?
• MULTI-ATTRIBUTE ATTITUDE MODEL: Marketers
measure and assess consumer attitudes, using the multi-
attribute attitude model, to improve the positioning of
products and brands and firms.
• IDEAL POINT MODEL: A type of Multi-Attribute Attitude
Model according to which a consumer buys a product based
on how closely it fits with the consumer’s attitude of how
the product “should be”.
• It takes into consideration beliefs, importance and ideal
performance of product attributes.
• Consumers indicate where they believe a product is located
on scales representing the various levels of salient attributes.
• The closer the ‘actual’ rating is to the ‘ideal’ ratings, the
more favorable the attitude.

22. BRANDS SELECTED FOR COMPARISON
LAY’S BINGO UNCLE CHIPPS

23. DETERMININGTHE MOST FAVOURABLE BRAND
• The IDEAL POINT MODEL serves as a tool for determining “Brand Favorability” as it matches our actual ratings with the
ideal ratings and helps determine the brand that fits our attitude in the most favourable manner.
• A separate and detailed survey was conducted in order to collect specific information regarding people’s beliefs, importance of
attributes and ideal preferences for attributes. 12 participants were selected at random from our existing sample space of 48
participants that filled out the General Questionnaire.
• Under the IDEAL POINT MODEL, lower scores indicate more favourable attitudes. Hence, the brand that would receive the
lowest score would be considered the most favourable for the participant based upon their ideal preferences.
• From the table, we can observe that Lay’s should be considered as the most favourable brand for our participant Srishty Bindal
when talking about her ideal preferences for attributes related to chips.

24. IDEAL PREFERENCESVS REALITY?
• After obtaining the results from the IDEAL POINT MODEL for the 12 randomly selected participants, each of
them was personally contacted and interviewed to confirm whether the theoretical results matched their preferences
in reality or not.
• It was surprising to observe that 7/12 participants reported a deviation from the theoretical results whereas 5/12
participants confirmed that the theoretical results were accurate.
• In cases where deviation in preferences were observed, participants were asked to provide specific reasons which
according to them could account for the difference in results.
• In cases where the theoretical results matched with their real life preferences, participants were asked to provide
specific reasons (if any) for preferring that particular brand over others.
• All the necessary information was combined in a tabular format and inferences were drawn.
NOTE: All the participants were contacted in order to obtain their consent for disclosing their name and the
information they provided for the survey. The spreadsheet containing the calculated results under the IDEAL POINT
MODEL for all the 12 participants has been attached in the last slide.

25. DEVIATION IN PREFERENCES:THEORETICALVS REALITY

26. THEORETICAL RESULTS MATCHING REAL-LIFE PREFERENCES

27. INFERENCES DRAWN FROM PERSONAL INTERVIEWS
➢ A brand/product might fit all the ideal preferences a person is looking for, but their mindset while choosing a product and
making the purchasing decision might be influenced by a variety of factors.
1. “ I’ll prefer Lay’s over Uncle Chipps because the taste factor usually overpowers the mindset.”
Majority of our participants have confirmed that it was either a single factor or small set of factors that dominated their
brand preference and purchasing decision. In our case, we observe Taste/ Flavour to be the deciding factor for most of our
participants.
2. “I tend to buy Lay’s more because it’s conveniently available.”
A specific set of attributes cannot always accurately determine a person’s brand preference. Their preferences can be
impacted by many other factors that were not taken into consideration in the survey due to it’s limited scope. These factors
can include availability of product, convenience of travelling to nearest store, sense of nostalgia etc.
3. “Although I like one particular flavor of Lay’s (Chile Limon) too much but overall Lay’s is pretty bland, so I prefer Uncle
Chipps.”
Sometimes people prefer a particular product from a brand rather than their whole product range. Ideal Point Model
considers input keeping in mind the overall brand and not a specific product, and hence provides results accordingly.
Participants’ opinion regarding a brand can vary from product to product.
➢ In order to obtain more accurate results from the Ideal Point Model, it can be achieved by increasing the sensitivity of the
linear rating scale by expanding it’s input range and asking the participants to be more specific about their ratings.

28. SUGGESTIONS & LEARNINGS
(ALONG WITH ATTACHED LINKS)

29. SUGGESTIONS MADETO MANAGEMENT -I
➢ FLAVOR: It is quite essential for Lay’s to maintain the richness in their chip’s flavor as flavor/ taste has been the pre-
dominant factor responsible behind people choosing Lay’s chips over other brands, hence it’s important for
maintaining competitive advantage in the market. . As majority of the people have rated the flavor aspect a 4 out 5, it
tells us that there’s still room for improvement.
➢ VARIETY IN FLAVOR: Although 72.9% of our participants are satisfied with it’s current flavor range, but
experimenting with and introducing new flavors on a trial basis can help them attract more customers by providing
more variety to choose from. “Variety in flavor” was considered to be the 3rd most important reason that made people
buy Lay’s chips, also being a trusted and well established brand in the industry, it makes it easier for them to opt the
“hit-and-trial” approach when it comes to expanding their flavor range.
➢ QUANTITY: 81.3% of the participants are not satisfied with the quantity of chips provided in a single packet. This
also reminds us of the popular joke around the brand that “Lay’s has more air than it has chips”. Even though most of
the people are attracted to the brand because of it’s rich flavor, Lay’s should definitely work upon providing more
quantity of chips in their product.

30. SUGGESTIONS MADETO MANAGEMENT -II
➢ QUALITY: Lay’s is a brand essentially known for it’s flavor
and quality and majority of our participants also agree with the
same. It was also the 2nd most important reason which compels
them to buy the product. Most of them rated the quality of Lay’s
chips as 4 out 5,hence there’s still scope for improvement.
➢ AVAILABILITY: Availability was considered to be the most
important reason that makes people buy Lay’s chips. Hence,
Lay’s should exert more importance upon the distribution of
their products across the country and ensure that it’s easily
available and accessible to the general public, by making it
available in shops, stores and at local vendors that are
frequently visited by customers. This will not only help increase
sales but also brand awareness.

31. INNOVATIVE PRACTICES USED IN PROJECT
➢ CONDUCTING PERSONAL INTERVIEWS: It made me realized that
personal interviews served as a more powerful tool in comparison to General
Surveys for understanding Consumer Behaviour. Usually, a survey tends to
provide us with an overall and “generalized” understanding of the
consumers’ mind but personal surveys provide a deeper insight into
individual preferences and attitude and also the specific factors responsible
behind them.
➢ USING IDEAL POINT MODEL: Learning about the Ideal Point Model
and then practically using it in order to calculate scores for participants and
finding out the brands that matched their ideal preferences, was indeed an
intriguing and fascinating activity.
➢ ASKING FOR FEEDBACK ON SURVEY: Participants were asked to
provide feedback on the survey forms explicitly (there wasn’t any question
for feedback in the survey) and many of them commented that it was short,
easy to fill, interesting, fun, fascinating and some of them even asked me that
“I could contact them again in the future for the purpose of filling out similar
surveys”.

32. REFLECTIONS
➢ Looking at my project, I believe that I learned a lot about different concepts of Marketing and mainly about the
aspect of Consumer Behaviour in great detail and depth. It helped me gain insight into consumers’ mind and
understand the psychology involved behind the different decisions and actions they take. It made me feel more
aware about my own position as a consumer and made me revisit my attitude, beliefs and perceptions towards
certain products/ brands.
➢ This project provided me with an opportunity to conduct a professional survey and research work, and helped me
learn about the different steps that have to be undertaken in order to conduct and research properly and hence
obtain meaningful results and inferences.
➢ I feel that the major limitations faced during the project were the time constraint and limited number of responses
achieved on the survey. Increase in the number of participants would have definitely provided us with more
accurate results and a greater understanding of Consumer Behaviour towards the brand. The ongoing COVID-19
pandemic also posed restrictions on movement which deprived me of the opportunity to conduct in-person personal
interviews.
➢ This individual project enabled me to explore and express a lot of skills as I had the complete freedom to use my
creativity from designing the questionnaire to conducting the research in my own way by applying my own logic,
analytical skills and reasoning. Overall, it was a knowledgeable and great learning experience for me.

33. SUMMARY OF PROFESSIONAL/ BUSINESS RELATED
POINTS LEARNED
Undertaking this project helped me learn the importance of conducting Primary Research i.e. your own marketing
survey. Conducting your own research provides you will the freedom of exploring different aspects of Marketing,
utilizing your innovativeness and creativity while creating questionnaires and planning the research procedure and
also eliminates any restrictions or limitations that you are likely to face in your project if you choose to solely depend
upon Secondary Research.
It also helped me understand that it’s essential for any brand to conduct frequent/ periodical Market Research in
order to be at the top of their game in the industry and also gain competitive advantage over other brands during
times of shifting or newly emerging trends. Consumer Behaviour is related our human psychology which cover
aspects like attitude, behaviour, belief, perception, values etc. which are susceptible to change under different
circumstances. Hence, Market Research helps us keep a track of these changing trends & preferences and can help
organizations prepare and adapt accordingly.
Conducting “Personal Interviews” provided greater insight and understanding about individual attitude and
preferences. It teaches us that interacting with people personally for receiving feedback regarding any product/
service is always beneficial because it provides us with a more “clear and detailed picture”.
Being an individual project, it was important to be organized and have a clear vision regarding the methodology of
conducting the research. Time management had to be employed in order to meet project related deadlines.

34. LINKTO QUESTIONNAIRES AND SPREADSHEET
➢ LINK TO GENERAL QUESTIONNAIRE:
https://forms.gle/KT6veJZ34na5Cfa4A
➢ LINK TO SPECIFIC QUESTIONNAIRE (CREATED FOR IDEAL POINT MODEL) :
https://forms.gle/dqPiYgT7xM16xqbd8
➢ LINK TO SPREADSHEET CONTAINING RESULTS FROM IDEAL POINT MODEL:
https://drive.google.com/file/d/1BPnEL4NgXwG4HbkPDfk4q68cOCqR_Zm9/view?usp=sharing

35. THANKYOU !