Lay´sPotato Chips in HungaryCreatingAwareness and BuildingBrandImageat ProductLaunchGroup D
AgendaMarketing ObjectivesProblem StatementSituation AnalysisAlternative Courses of ActionEvaluation of AlternativesDecisionImplementation planRisk AnalysisProgram Monitoring
ObjectiveHow John F Stevenson, General Manager of PepsiCoSnacks in Hungarywillmake a successfullaunch of Lays chips.
Marketing ObjectivesSuccessfulLaunch of Lays in HungaryWhat will the future environment be like?Consumer spending will decreaseChio will protect its Brand : packaging, increase spending, lower price
Problem StatementHowtosplitbudgetbetweenadvertising media and consumerpromotions?Match Chio´s (44% to 56%)?Whichspecificadvertising media shouldbeused?Whatmessageshouldadvertisingconvey?Whichpromotionactivitiesshouldbeincluded?
Situation AnalysisContextCompetitionConsumerCompany
ContextHungaryInflation28%Unemployment 12%DecreasingconsumerbuyinghabitsPopulation: 10,064,000 Hungrypeople
CompetitionMktbudget: U$ 500,000TV media & radio$ 110% LaysPrice positionPrice promotions$ 95% LaysMktbudget: U$ 1 Mill
 44% mass media
 56% promos
 Price discounts
 $102% Lays
 “Chioequals Chips”
Mktbudget: U$ 500,000
 TV media & radio
 $112% LaysConsumerPrice conscious68% are taste sensitiveTarget segment: 8 – 54 years oldSnack purchase driven by impulse buying and promosPurchase 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.
Consumer ResearchBlindtests69% preferredLaysoverChioBrandperceptionGoodqualityevaluation:Chio	81%Lays	47%GoodvalueChio	55%Lays	17%
Company SWOTStrengthsOpportunitiesWeaknessesThreats
Alternative Courses of ActionAdvertising 60% - Promotion 40%Advertising 40% - Promotion 60%Advertising 50%- Promotion 50%Chio: Advertising 44% - Promotion 56%
Alternative Courses of ActionMarketing PlanCross PromotionwithPepsibrands2 Layspackages Get1 Pepsi2 Pepsi Get 1 Layspackage
Alternative Courses of ActionObjective of CampaignIncreasemarket share (12% - 32%)Take SOM fromChioPepsi and brandconsumersIncreasebrandawarenessIncrease trial toreinforce taste and qualityLink brandequitytoyounggeneration and fun
Alternative Courses of ActionNationalcampaign in alliancewithPepsibrandsAdvantagesDoubletheresources (Pepsibrandspays)Increaseawareness and leverageonestablishedbrandequity (Pepsi 30% SOM)LeverageondistributionCross exhibitionsDisadvantagesNottargeting Coca Cola consumers
Evaluation of AlternativesNeedtoincreasemarket share to 32%Needtoconcentrate more resourcesonpromotionthanonadvertising
Evaluation of Alternatives
DecisionBasedon ROI and qualitativeanalysis, weshouldallocateresources:
60%forpromotion

Consumer Behavior - Lays Potato Chips Hungary