Question

Case Analysis

Lay’s had $800 million in sales within the $2.7 billion U.S. potato chip market. But, it had no product to compete directly with Procter & Gamble's Pringles, which had a 60% share of the "pre-formed, stacked, potato-chip-in-a-can" market segment.

In August 2003, Frito-Lay launched its Lay’s STAX potato crisps, which are stacked in a portable, resealable, crush-resistant container.

Frito-Lay identified premium snack consumers in the United States who were young adults as their target market. Frito-Lay's STAX promotional objectives were two-fold:

1. Create awareness.
2. Achieve sales by reaching both retailers, and ultimately, consumers.

Frito-Lay developed a major IMC effort directed at its retailers to encourage and support them in their decision to stock and sell the new line of Frito-Lay’s STAX potato crisps. At product launch, there were four flavors. However, by early 2010, there were six flavors sold in the United States. In 2017, there are 13 flavors of STAX chips. As the product moves through the product life cycle, the goals (inform, persuade, remind and connect) should change as well as the the integrated marketing campaign.

Assignment Directions

Part 1

Building upon the background you just read, conduct additional research, which should include Frito-Lay, Frito-Lay's STAX potato crisps, marketing campaigns conducted by Frito Lay, as well as IMC programs. Visiting the Frito-Lay (Links to an external site.) website may be a good place to begin your research.

Part 2

Based upon the synthesis of your research, please develop an IMC program for the Frito-Lay STAX potato crisps that addresses where the product currently is on the Product Life Cycle. Using the following matrix as a guide, be sure to describe in detail your "BIG IDEA" and recommendations for specific actions (e.g., advertisements, coupons, POP displays, etc.) and why you believe these actions will help you reach your IMC objectice. Be sure to explain how these work as part of an IMC program and not as stand-alone elements. What is the cohesive message you are trying to portray?

Elements of the IMC	IMC action	How the action produces sales
Advertising
Personal selling
Public relations
Sales promotions
Direct marketing

  

Answer 1

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Frito-Lay's STAX Marketing Strategies

Part 1: Marketing Campaigns

Frito-Lay's STAX has used the integrating Marketing communication to create awareness and reach many people in the market to make better sales in the global market (Percy, 2014). Integrating Marketing Communication is the approach to achieving the objectives of a marketing campaign through the promotional methods. Use of consistent messages on the company’s website has helped Frito-Lay's STAX to reach the retailers and the consumers. The website is a social media that has enabled the company to arrive at a significant number of individuals in the world. The site displays various samples of the crisps that are distributed by Frito-Lay's STAX to the market. For example, the Frito-Lay's STAX used the football superstar Leo Messi to advertise the crisps which gave the company a global promotion of the crisps. Through the website, information about the jobs is displayed, and hence the Frito-Lay's STAX can reach the jobbers globally. Messi says that he enjoys a bag of crisps with family and friends when watching a match and he has helped in campaigning for the crisps.

The company should consider the use of public relations to strengthen relationships with the public which builds the reputation of the company. Frito-Lay's STAX should use this method to campaign using the social media to link exchanges on other sites rather than the website and posting the customer testimonials and making announcements of a new product (Percy, 2014). Frito-Lay's STAX can also apply making advertisements on magazines, newspapers, televisions and the radio stations. Designing methods such as using different colors, and visual elements that help to reinforce campaign messages used to strengthen the campaign. This methodology helps in attracting consumers to the company.

Part 2: Integrating Marketing Communication

Targeted Audience

The target of the crisps market is the young people who highly use the crisps to snack in most of the events they carry on. This group of individuals prefers the salty crisps, and therefore there is need to make unique salty crisps will attract the young people to buying from the Frito-Lay's STAX. To reach the targeted audience, the Frito-Lay's STAX needs to reach the young people in places like the tournaments and the youth’s conferences to reach a significant number of individuals (Percy, 2014). Making the advertisements in sites that involve the young people like the websites will attract the targeted consumers of the crisps.

Objectives

The objectives of Frito-Lay's STAX crisps company are to increase the sales globally by making movements around the country to make the sales. To achieve these goals, Frito-Lay's STAX advertises by making advertisements coupon such as ‘get 15% off Frito-Lay products with free delivery at Jet. Com.’ (Haviv, 2014). This strategy has enabled the company to make better sales since customers will be attracted by the free offer. The Pop displays from the company have allowed it to achieve the desired goals of attracting many targeted consumers hence achieving the objectives.

Budget

The Integration Marketing Communication requires some money for effectiveness. A budget is set to meet the advertising requirements in the social media. The budget takes into account the unexpected events that occur in the market due to competition. The publicity of the snacks consumes a lot of cash to reach the consumers targeted. These strategies have given the Company to have a competitive advantage in the global market.

References

Haviv, A. (2014). Dynamic Models and Methods in the Consumer Packaged Goods Industry (Doctoral dissertation, University of Toronto).

Percy, L. (2014). Strategic integrated marketing communications. Routledge.

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