Marketing Assignment on Lays Wajahat Ahmad Khan

PRINCIPLES OF MARKETING ASSIGNMENT

MISS MAIMOONA RIAZ

SUBMITTED TO:

WAJAHAT AHMAD KHAN

SUBMITTED BY:

BAHRIA UNIVERSITY DEPARTMENT OF MANAGEMENT SCIENES

Marketing Assignment on Lays Wajahat Ahmad Khan

Table o Co!"e!"#
1. Introduction to Marketing. 3 2. istory o! Lays. .. " 3. #ames and $iogra%hy .. & ". Marketing 'e%artment 'etai(s .. ) Page

Marketing Assignment on Lays Wajahat Ahmad Khan

Introduction to Marketing
Ma$%e"&!' is a socia( %rocess *hich satis!ies consumers+ *ants. ,he term inc(udes ad-ertising. distri/ution and se((ing o! a %roduct or ser-ice. It is a(so concerned *ith antici%ating the customers+ !uture needs and *ants. o!ten through market research. A market0!ocused. or customer0!ocused. organi1ation !irst determines *hat its %otentia( customers desire. and then /ui(ds the %roduct or ser-ice. Marketing theory and %ractice is justi!ied in the /e(ie! that customers use a %roduct or ser-ice /ecause they ha-e a need. or /ecause it %ro-ides a %ercei-ed /ene!it. ,*o major !actors o! marketing are the recruitment o! ne* customers 2ac3uisition4 and the retention and e5%ansion o! re(ationshi%s *ith e5isting customers 2/ase management4. 6nce a marketer has con-erted the %ros%ecti-e /uyer. /ase management marketing takes o-er. ,he %rocess !or /ase management shi!ts the marketer to /ui(ding a re(ationshi%. nurturing the (inks. enhancing the /ene!its that so(d the /uyer in the !irst %(ace. and im%ro-ing the %roduct7ser-ice continuous(y to %rotect the /usiness !rom com%etiti-e encroachments. 8or a marketing %(an to /e success!u(. the mi5 o! the !our 9Ps9 must re!(ect the *ants and desires o! the consumers in the target market. ,rying to con-ince a market segment to /uy something they don+t *ant is e5treme(y e5%ensi-e and se(dom success!u(. Marketers de%end on marketing research. /oth !orma( and in!orma(. to determine *hat consumers *ant and *hat they are *i((ing to %ay !or it. Marketers ho%e that this %rocess *i(( gi-e them a sustaina/(e com%etiti-e ad-antage. Marketing management is the %ractica( a%%(ication o! this %rocess. ,he o!!er is a(so an im%ortant addition to the "P+s theory. ,he !our Ps are:

Product: ,he %roduct as%ects o! marketing dea( *ith the s%eci!ications o! the actua( goods or ser-ices. and ho* it re(ates to the end0user+s needs and *ants. ,he sco%e o! a %roduct genera((y inc(udes su%%orting e(ements such as *arranties. guarantees. and su%%ort. Pricing: ,his re!ers to the %rocess o! setting a %rice !or a %roduct. inc(uding discounts. ,he %rice need not /e monetary 0 it

Marketing Assignment on Lays Wajahat Ahmad Khan can sim%(y /e *hat is e5changed !or the %roduct or ser-ices. e.g. time. energy. %sycho(ogy or attention. Promotion: ,his inc(udes ad-ertising. sa(es %romotion. %u/(icity. and %ersona( se((ing. and re!ers to the -arious methods o! %romoting the %roduct. /rand. or com%any. Placement: or distri/ution re!ers to ho* the %roduct gets to the customer; !or e5am%(e. %oint o! sa(e %(acement or retai(ing. ,his !ourth P has a(so sometimes /een ca((ed Place. re!erring to the channe( /y *hich a %roduct or ser-ices is so(d 2e.g. on(ine -s. retai(4. *hich geogra%hic region or industry. to *hich segment 2young adu(ts. !ami(ies. /usiness %eo%(e4. etc.

,hese !our e(ements are o!ten re!erred to as the marketing mi5. *hich a marketer can use to cra!t a marketing %(an. ,he !our Ps mode( is most use!u( *hen marketing (o* -a(ue consumer %roducts. Industria( %roducts. ser-ices. high -a(ue consumer %roducts re3uire adjustments to this mode(. <er-ices marketing must account !or the uni3ue nature o! ser-ices. Industria( or $2$ marketing must account !or the (ong term contractua( agreements that are ty%ica( in su%%(y chain transactions. =e(ationshi% marketing attem%ts to do this /y (ooking at marketing !rom a (ong term re(ationshi% %ers%ecti-e rather than indi-idua( transactions.

History of Lays
In 1>32. erman W. Lay /egan his %otato chi% /usiness in #ash-i((e /y de(i-ering snack !oods !rom his Mode( A 8ord touring car. Like Mr. 'oo(in. he a(so had tried his (uck in the ice cream /usiness. Mr. Lay and a !riend had %(anned to se(( ice cream a(ong the %arade route at the 1>2? 'emocratic #ationa( @on-ention in ouston. ,e5as. ,heir /usiness -enture !ai(ed *hen the %arade *as rerouted and their ice cream stand *as (e!t on a deserted street. A!ter a -ariety o! jo/s. the then 2"0year0o(d Mr. Lay *as hired as an e5tra route sa(esman to se(( and make de(i-eries !or the $arrett 8ood Products @om%any. an At(anta. Aeorgia manu!acturer o! Aardner+s Potato @hi%s. Later that year. he took o-er $arrett+s sma(( #ash-i((e *arehouse as a distri/utor. using his Mode( A car as a de(i-ery truck and B1CC in ca%ita(. Mr. Lay recei-ed a *eek(y a((otment o! %otato chi%s and a cash a((o*ance; the jo/ %aid no sa(ary. just an ad-ance against his commission on sa(es. e no* had a jo/. his o*n territory. and a /usiness to inde%endent(y run.

Marketing Assignment on Lays Wajahat Ahmad Khan As his territory e5%anded. his %ro!its rose. e hired his !irst sa(esman in 1>3". the same year that his .W. Lay 'istri/uting @om%any /ecame a major distri/utor !or the $arrett 8ood Products @om%any. ,hree years (ater. Mr. Lay had 2D em%(oyees and had mo-ed into a (arger manu!acturing !aci(ity *here he %roduced %o%corn and %eanut /utter sand*ich crackers. A re%resentati-e o! the $arrett 8ood @om%any contacted him in 1>3? *ith an o!!er to se(( Mr. Lay the com%any+s %(ants in At(anta and Mem%his !or B&C.CCC. Ena/(e to raise /ut BD.CCC !rom in-estors and associates. he /orro*ed B3C.CCC !rom a /ank and %ersuaded the $arrett @om%any to take the di!!erence in %re!erred stock. Mr. Lay mo-ed his head3uarters to At(anta. re%(aced the $arrett signs *ith 9 .W. Lay @o.. Inc.9 signs on 6cto/er 2. 1>3>. and remained as %resident and chairman o! the /oard unti( 1>&1. When he !ormed the .W. Lay @or%oration in 1>3>. Mr. Lay had !ourteen trucks co-ering the #ash-i((e 0 @hattanooga area. F5%ansion *as a(so a -ision !or Mr. Lay. *ho. o-er the ne5t !e* years. %urchased the $arrett manu!acturing %(ant in Gackson-i((e. 8(orida. and additiona( %(ants in Gackson. Mississi%%i. Louis-i((e. Kentucky. and Areens/oro. #orth @aro(ina. e retained the Aardner trademark o! $arrett 8ood Products unti( 1>"". *hen he changed the %roduct name to Lay+s Potato @hi%s and introduced 96scar H the a%%y Potato9 as its ad-ertising sym/o(. In 1>"D. Mr. Lay signed an e5c(usi-e !ranchise agreement *ith ,he 8rito @om%any to manu!acture and distri/ute 8=I,6< in most o! the sa(es territory co-ered /y ,he .W. Lay @om%any. In 1>">. the com%any esta/(ished a research (a/ to de-e(o% ne* %roducts. ,he %urchase o! t*o other snack !ood com%anies. the =ichmond 2Iirginia4 Potato @hi% @om%any and the @a%ito( 8rito @or%.. increased his %roduct (ine and distri/ution area in the 1>DC+s. $y 1>D&. .W. Lay J @om%any. no* %u/(ic(y0o*ned. *as the (argest manu!acturer o! %otato chi%s and snack !oods in the Enited <tates; it had more than 1.CCC em%(oyees. %(ants in eight cities. and /ranches or *arehouses in thirteen others. Its %rimary %roduct. LAK+<L Potato @hi%s. is America+s !a-orite %otato chi%. F$&"o(La)* I!+, I# Fo$-e. In 1>"D. the 8rito @om%any granted .W. Lay J @om%any an e5c(usi-e !ranchise to manu!acture and distri/ute 8=I,6< L @orn @hi%s in the <outheast. As the t*o com%anies *orked to*ard nationa( distri/ution. a c(ose /usiness a!!i(iation de-e(o%ed *hich e-entua((y resu(ted in a merger. In <e%tem/er 1>&1. just 2> years a!ter the 5

Marketing Assignment on Lays Wajahat Ahmad Khan !ounding o! /oth com%anies. ,he 8rito @om%any and .W. Lay J @om%any merged to /ecome 8rito0Lay. Inc.. the (argest snack se((ing com%any in the Enited <tates. F$&"o(La) a!. Pe/#& Jo&! In 8e/ruary 1>&D. the $oard o! 'irectors !or 8rito0(ay. Inc. and Pe%si0 @o(a announced a %(an !or the merger o! the t*o com%anies. 6n Gune ?. 1>&D. the merger o! 8rito0Lay and Pe%si0@o(a @om%any *as a%%ro-ed /y shareho(ders o! /oth com%anies. and a ne* com%any ca((ed Pe%si@o. Inc. *as !ormed. At the time o! the merger. 8rito0Lay o*ned "& manu!acturing %(ants nation*ide. had more than 1DC distri/ution centers across the Enited <tates. and *as (isted on the #e* Kork <tock F5change. In 1>>?. Pe%si@o ac3uired ,ro%icana; and in 2CC1 ac3uired ,he Muaker 6ats @om%any. F$&"o(La) To.a) ,oday. 8rito0Lay has more than !i!teen B1CC mi((ion /rands: LAK+<L. 8=I,6<L. @ FF.,6<L. $AKF#0F,<L. =E88LF<L '6=I,6<L. 8E#KE#<L. ,6<,I,6<L. $AKF' LAK+<L. W6WNL. <E#@ IP<L. ME#@ IF<L. 6$F=,6L. =6L' A6L'L. A=A#'MA+<L @ookies and Muaker @he*y $arsL. MuakesL and 8ruit J 6atmea( $arsL.

Names and Biography

Marketing Assignment on Lays Wajahat Ahmad Khan Ala! He!.e$#o! Aenera( Manager <nacks 2Lays and Kurkure4 Pakistan.
$orn: 1>D> Aender: Ma(e 6ccu%ation: $usiness #ationa(ity: American Fducation M$A !rom uni-ersity o! London $$A !rom Eni-ersity o! London

Sa2&b Ha$oo! Marketing ead o! Lays @hi%s Pakistan

Marketing Department
,he marketing de%artment+s acti-ities range !rom de-e(o%ing marketing %ro!i(e !or an ad-ertising cam%aign to creating the %osters and ho(ding %ress con!erences. It is im%ortant !or the marketing de%artment set o/jecti-es *hich !it the o-era(( aims o! the /usiness. ,he marketing o/jecti-es shou(d re!(ect the aims o! the *ho(e organi1ation and they shou(d attem%t to aid the achie-ements. Lays is the (argest #orth American /rand o*ned /y Pe%si@o. generates 3? %ercent o! its %arent com%anys %ro!its. <i5ty %ercent o! the com%anys marketing e!!orts go to de-e(o%ing ne* %roducts and "C %ercent go to*ard e5isting /rands. ,he marketing de%artment at Lays *orks at its -ery /est to achie-e as many highest sa(es as %ossi/(e. ,he !irst %art o! this %rocess is /y creating a good marketing mi5 Ma$%e"&!' M&0 o La)1#

Marketing Assignment on Lays Wajahat Ahmad Khan Marketing Mi5 consists o! !our !actors

Product: It concerns *ith the actua( %roduct itse(! and in this case (ays chi%s. Peo%(e at (ays chi%s try their /est to /e as inno-ati-e and creati-e as %ossi/(e /y introducing ne* %roducts and !(a-ors. At the moment (ays chi%s o!!ers !our !(a-ors *hich are <a(ted. /ar/e3ue. masa(a and 8rench @heese and they are %(anning to (aunch ne* and e5citing !(a-ors in the !uture. ,he %acking o! the %roduct a(so maters. thats *hy Lays has designed a /right co(ored %acking *hich is sure to attract customers

Price: It %(ays a major !actor in the success o! a %roduct. When a %roduct has a (o* %rice. %eo%(e !rom more and more (i-ing standards can /uy that %roduct. Lays is doing the e5act same thing. @urrent(y Lays has !our di!!erent si1e %acks o! chi%s. ,he (o*est one at Drs and the /iggest one o! 2Crs. $uy this strategy %eo%(e *ith (o* income can a!!ord to /uy (ays chi%s as *e(( as the %eo%(e *ith high incomes.

Marketing Assignment on Lays Wajahat Ahmad Khan

Promotion: Lays does e5tensi-e ad-ertising and uti(i1es a(( the media resources a-ai(a/(e *hich inc(ude ,I. radio. %osters and /i((/oards. Ad-ertising on ,I is the /est *ay to attract customers es%ecia((y *hen you ha-e a !amous ce(e/rity in your ad. Gust =ecent(y Lays @hi%s (aunched an ad-ertising cam%aign in *hich they had the !amous A(i Oa!ar on /oard. ,his ad-ertising cam%aign *orked out good !or Lays and it %aid o!! *ith a (arge increase in sa(es.

Placement: ,his re!ers to ho* the %roduct is distri/uted to the consumer. I! the %roduct is not a-ai(a/(e at the right time in the right %(ace then e-en the /est %roduct in the *or(d *i(( not /e
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Marketing Assignment on Lays Wajahat Ahmad Khan /ought in 3uantities e5%ected. Lays uses a -ersati(e -a(ue chain to get the %roduct !rom the !actory to the consumer. ,he !actory o! Lays chi%s is in Lahore and Karachi. ,he chi%s are %acked and distri/uted to the rest o! the cities !rom here in trucks. ,he 3uantity o! the chi%s distri/uted is so (arge that since no* there has ne-er /een a shortage in any o! the cities.

Product %re%ared at 8actory then ,rans%orted in ,rucks /uys the %roduct

to <ho%s *here customer

C3a!'e &! T$e!.# 10

Marketing Assignment on Lays Wajahat Ahmad Khan ,oday. *ith hea(th concerns /ecoming a gro*ing %riority !or many consumers. e-o(-ing demogra%hics and a changing retai( en-ironment. Lays rea(i1es the time has come to address its re%utation as a junk !ood (eader and cha((enge the con-entiona( *isdom. We-e got a %erce%tion %ro/(em that *e-e got to change. We *ant our customers to kno* that they can !ee( good a/out eating Lays snacks. I! "3e !ea$ 4"4$e @hi%s containing sun!(o*er oi( ha-e seen great success in @anada and other regions in the Enited <tates and (ays is %(anning to /ring these chi%s containing sun!(o*er oi( to Pakistan. And educate consumers a/out the ne* and im%ro-ed %roduct. ,o achie-e this goa(. the ne* Lays %ackaging *i(( sho* sun!(o*ers /ursting o!! the /ag to con-ey the hea(thier image. ,he com%any *i(( a(so (aunch a strong ad-ertising and %u/(ic re(ations cam%aign to educate consumers a/out the chi%s. and /ring science0/ased hea(th in!ormation to the consumers a/out the di!!erences /et*een good !ats and /ad !ats. In the !uture Lays *ou(d (ike a(( o! its %roducts to contain !i-e or !e*er ingredients. Lays a(so is %(anning to esta/(ish <un @hi%s as its num/er one hea(thy %roduct /rand *ith a ne* marketing cam%aign educating consumers a/out the chi%s *ho(e grain and *heat ingredients. ,he com%any is *orking on un-ei(ing !ruit and -egeta/(e chi%s in the (ate !uture. Whi(e ne* %roduct de-e(o%ment and recreations arent chea% or easyH!or instance. it cost the com%any in mi((ions to take trans !ats out o! its chi%s /ut taking risks is essentia(.

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Marketing Assignment on Lays Wajahat Ahmad Khan

References
Pe%si@o Is(ama/ad: CD1"">C">1 Pe%si Lahore: 111)2")2D

***.%e%sico.com ***.!rito(ay.com

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