Lay’sSofia Shoffner,
Wei Dai,Mariana Aristizabal,
Chandler Shipley
New Product Proposal
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
2
Nature of CompetitionClass: Food
Category: SnackType: Chips
Target MarketAge group: 18-25
Main CompetitorsDoritosTostitos
Positioning
Positioning Statement :Lay’s is the only classic chip that provides the widest variety of flavors to satisfy the snack cravings of millennials.
3
Mental MapsLay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
4
Emotional Descriptive Function
Classic: Lay’s has been perfecting its potato chips for more than 75 years and is perceived as very traditional. Its products and brand image have remained mostly unchanged throughout the years so their customers know to expect practiced quality.
Social: Lay’s are consumed mostly at social gatherings. Their most common purchase situations include parties, BBQ’s, and sports viewing events.
Snack: As opposed to a meal, Lay’s are meant to be eaten in between meals, for those times when you want something light, something that keeps your hunger at bay, something to be munched on, something to be shared among family, friends, and guests
Brand MantraLay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Opportunity Identification: Chips Market
● Chips and dip industry grew 7% between 2013-15 and it reached $16.4 billion in 2015.
● Mintel predicts chip industry will grow 17% from 2015-20, reaching $19.2 billion
● Those ages between 22-39 (Millennials) are more likely to buy chips
● 53% of respondents said the brands of chips they ate as a kid are still their favorite. This gives Lay’s an advantage because parents buying snacks will be more open to buying Lay’s new products → brand loyalty
● 66% of Chip and Dip consumers take nutrition into account when selecting chips → increasingly health conscious consumers
● 85% of consumers agree that it is okay to indulge from time to time → vegetable chips = perfect marriage between health trend & snack satisfaction(Topper)
Key Health Drivers When Buying Chips
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
5
(Topper)
6
Baked organic chips made with real vegetables
“Veggies never tasted so good”
Healthy, organic snack
Variety!
→
→
● Made from real whole vegetables
● Natural flavor, no additives● Gluten free● Baked instead of fried
● Offered in several types of vegetables
○ Beet, kale, carrot○ Mixed Bag
Attributes → Benefits
Lay’s Veggie ChipsLay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
7
70% of Respondents viewed it as a product Lay’s would offer
100% of Respondents would
purchase again if completely satisfied
Most consumers would consider purchasing
2x/month
86% of Respondents Would Consider Purchasing
9% Would Definitely Buy36% Would Probably Buy
41% Would Maybe Buy14% Would Probably Not Buy0% Would Definitely Not Buy
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Concept Evaluation: Primary Research1. 2.
3. 4.
8
Degree to which respondents associated Lay’s Veggie Chips with the following adjectives:
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Reasons respondents would purchase Lays Veggie chips over a competitor (POD’s)
6. 7.5.
Common likely purchase situations:
Concept Evaluation: Primary Research
9
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
3 Factor Model: Salience, Favorability, Uniqueness
KeyRed : Lay’s (Parent)Yellow : Veggie Chips (Ext)U: Unique to new category
U
U
U
10
4 Factor Model: CompellingLay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
After seeing Lay's Veggie Chips, your opinion of Lay's regarding the following:
1: Greatly Worsened → 5: Greatly Improved
KeyRed : Lay’s (Parent)Yellow : Veggie Chips (Ext)U: Unique to new category
U
U
U
11
4 Factor Model: RelevantAfter seeing Lay’s Veggies Chips how did these feelings about lays veggie chips change for you?
After seeing Lay’s Veggie Chips how did you opinions regarding the following statements change for you?
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Moderate Fit. 70% of respondents felt that this is a product Lay’s would offer.
This is most likely due to consumer awareness and expectation of the health
trend in food.
12
4 Factor Model
Parent Brand Mantra
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Consistent:
Strength:
Weak-moderate. Unfavorable mental map associations from parent brand were too strong (ie. unhealthy) and respondents rated “healthy” and “dieting” as the 2 weakest associations for Veggie chips in a list of
14. However, respondents averaged “somewhat agree” to the Lay’s brand for being perceived as more “socially acceptable” after seeing
Veggie Chips.
13
4 Factor Model: ConclusionsLay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Advantages: ● Reduce risk● Decrease cost● Refresh brand● Permit consumer variety seeking● Expand Meaning● Bring new customers● Increase market coverage● Avoid cost (and risk) for new
brand elements
Disadvantages: ● Cannibalize sales● Forgo the chance to develop a
new brand
14
Purchase Intent and ATAR ProjectionsDefinitely Buy 9%
Probably Buy 35%
Awareness 20%
Availability 100%
Repeat % 44%
Repeat Frequency
33.8
Households 131 Million
Penetration % 93%
Retail Price $1.75
Retail Margin 25%
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Trial Rate
(.09*.8)+(.35*.3)=17.7%
Repeat Rate
(.44*33.8)= 1487%
Trial Units
(.2*1*.177*131MM*.93= 4.3 MM
Repeat Units
(4.3 MM*14.87)=64.1 MM
Total Units
(4.3MM+64.1MM)=
68.4 MM
Retail Sales Volume
(68.4MM*1.75)=$119.75 MM
Wholesale Sales Volume
(119.75MM*.75)=$89.8 MM
15
Recommendation: Veggie Chips
Recommendation for Lay’s Veggie Chips:
The intent of this product was to expand brand meaning and change the consumer perception that Lay’s only offers unhealthy snacks. However, surveys showed
consumers still perceive the product and the brand as “unhealthy”. There was evidence of the parent brand being seen as more “socially acceptable” and “innovative” after
introducing this new product, but the impact was weak (averaged just under ”somewhat agree”). This leads us to believe that this product idea is a good but needs
more development and a refined positioning strategy for a greater impact and resonance.
We recommend that Lay’s conducts more extensive research to better develop a position that fulfills consumers’ preferences for a healthier snack, and establishes
market credibility and trustworthiness by improving packaging and promotion.
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Branding StrategySub-brand (Creates own identity and POD’s)
Extension TypeLine Extension (Same category-- Chips, different ingredients =
POD’s)
Extension strategyProducts that capitalize on the firm’s expertise
Products that capitalize on the distinctive prestige of the brandProducts that expand the meaning of the brand
Attracting new market segments
16
Recommendation: Veggie ChipsLay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Frozen Snack Market
● Sales of frozen food snacks are expected to reach $5.1 billion by 2020
● 64% of Millennials say snacks are an affordable way to replace meals
● Snacking is a guilty pleasure (69%), and it is a good way to reward yourself (63%)(Roberts)
17
Opportunity Identification
Lay’s Potato Skins Opportunities
● Over one third of households, especially those with children, think a familiar brand is one of the most important factors when buying frozen foods.
● Consumers would be more open to buying frozen snacks if they were convenient and tasty, which Lay’s is addressing by making prep time under 12 minutes and using fresh, well known ingredients.(Robberts)
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
18
Lay’s Potato Skins
“We Know Potatoes”
Frozen, unpeeled potato halves, hollowed and fully loaded with cheddar, bacon and chives.
● Bakes in just 12 minutes● Filled with real, genuine
ingredients (including Sargento cheese)
● Source of protein, fiber, and calcium
● 75 years of potato loving history and experience
Convenient →
→
Attributes → Benefits
Substantial food→
Quality
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
19
40% of Respondents viewed it as a product Lay’s would offer
100% of Respondents would
purchase again if completely satisfied
Most consumers would consider purchasing
1-2 times /month
63% of Respondents Would Consider Purchasing
9% Would Definitely Buy28% Would Probably Buy26% Would Maybe Buy
23% Would Probably Not Buy14% Would Definitely Not Buy
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Concept Evaluation: Primary Research1. 2.
3.4.
20
Degree to which respondents associated
Lay’s Potato Skins with the following adjectives:
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Reasons respondents would purchase Lay’s Potato Skins over a competitor (POD’s)
6. 7.5.
Common likely purchase situations:
Concept Evaluation: Primary Research
21
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
3 Factor Model: Salience, Favorability, Uniqueness
KeyRed : Lay’s (Parent)Yellow : Potato Skins (Ext)U: Unique to new category
U
U
U
22
4 Factor Model: CompellingLay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
KeyRed : Lay’s (Parent)Yellow : Potato Skins (Ext)U: Unique to new category
After seeing Lay's Veggie Chips, your opinion of Lay's regarding the following:
1: Greatly Worsened → 5: Greatly Improved
U
U
U
23
4 Factor Model: RelevantFeeling: Social approval
Stays the Same
Feeling: Excitement Stays the Same
Feeling: Gross Stays the Same
Feeling: Adventurous Stays the Same
Feeling: Happy Stays the Same
Feeling: Calm Stays the Same
Judgment: Credibility Stays the same
Judgment: Consideration
Stays the Same
Judgment: Quality Stays the Same
Judgment: Superiority Stays the Same
After seeing Lay's Potato Skins, how did these feelings about Lay's change for you?
After seeing Lay’s Potato Skins how did you opinions regarding the following statements change for you?
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
24
4 Factor Model: Relevant (Continued)
Inexpensive Lay’s has experience creating products that are accessible to consumers from varying economic backgrounds.
Yes
Easy to prepare Lay’s has experience with products that are convenient and good for quick snacks
Moderate
Durable Goods (Long lifespan before spoiling)
Lay’s makes products that do not expire quickly.
Moderate
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Category Extension:
25
Parent Brand Mantra
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
4 Factor ModelConsistent:
Moderate Fit. Only 60% of respondents felt that this is a product Lay’s that would
offer, and that Lay’s expertise with potatoes had
little impact: respondents averaged between “neither
agree or disagree” and “somewhat agree” when
asked if Lay’s potato expertise is a reason they would be inclined to buy Lay’s vs other potato skin
brands. Parent brand knowledge did not create
POD in the new category as we had hoped.Weak. Potato Skins have
little impact on the meaning or perceptions of
the parent brand.
Strength:
26
4 Factor Model: Conclusions
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Advantages: ● Refresh brand ● Permit consumer variety
seeking● Add Meaning (moderate)● Bring new customers,● Avoid cost (and risk) for
new Brand Elements
Disadvantages: ● Could Dilute brand
meaning● Create/Reinforce
negative associations (unhealthy)
27
Definitely Buy 9%
Probably Buy 28%
Awareness 20%
Availability 40%
Repeat % 37%
Repeat Frequency
28.1
Households 131 Million
Penetration % 66%
Retail Price $6.00
Retail Margin 25%
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Trial Rate
(.09*.8)+(.28*.3)=15.6%
Repeat Rate
(.37*28.1)=1040%
Trial Units
(.2*.4*.156*131MM*.66)= 1.1 MM
Repeat Units
(1.1MM*10.4)=11.22 MM
Total Units
(1.1MM+11.22MM)=12.3 MM
Retail Sales Volume
(12.3MM * 6)=$74.1 MM
Wholesale Sales Volume
(74.1MM*.75)=$55.58 MM
Purchase Intent and ATAR Projections
28
Recommendation: Potato Skins
Recommendation for Lay’s Potato Skins:
According to survey respondents, introducing Lay’s Potato Skins would have little impact on the perception of the parent brand. Similarly, the transfer of expertise brand equity from the parent to the extension was also weak. Only 9% answered “would definitely buy,” and 28%
answered “would probably buy,” leading to ~$18 million in profit. This response isn’t deplorable, however, it is not best. Therefore, we recommend that Lay’s does not pursue this
extension.
We do, however, recommend further research on creating a whole new brand for frozen snacks or research on a product such as frozen french fries which customers may see as
more closely associated with its current products, thus providing more equity transferred to the extension, and greater reinforcement of parent brand meaning.
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
29
Recommendation: Potato Skins
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Branding StrategySub-brand (Creates own identity and POD’s)
Extension TypeCategory Extension (New category - Frozen snack, new POP’s)
Extension strategyProducts that contain the brand’s distinctive taste, components, or ingredients
Products that capitalize on the firm’s perceived expertiseProducts that reflect the brand’s distinctive benefit, attribute or feature (easy, convenient, good for parties)
Products that capitalize on the distinctive image or prestige of the brandProducts that expand the meaning of the brand
Attracting new market segments
Lay’s Collisions Opportunities
● Millennial are more adventurous when eating chips so they prefer bolder flavors and new ingredients and non-traditional bases.
● Millennials are more likely to mix products together to get different flavors.
● Brands that encourage mixing of chips and dips or variety pack appeal to them.
● 52% of respondents are always looking for new chip flavors.(research citation)(Topper)
30
Opportunity Identification
Chips Market
● Chips and dip category grew 7% between 2013-15 and it reached $16.4 billion in 2015.
● Mintel predicts it will grow 17% from 2015-20, reaching $19.2 billion.
● People between 22-39 (Millennials) are more likely to buy chips.
● Potato chip segment represents half of the category’s market share.(Topper)
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Lay’s Collisions
31
● Come in various sizes● 2 flavors, 1 bag:
Flamin’ Hot + Honey BBQCheddar + Sour Cream & OnionBarbecue + Ranch
→
Attributes → Benefits
→
The awesome potato chip flavors you love, now packaged in heavenly pairings.
“Why just one, when you can have two”
Great for parties or as an individual snackTasty
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
32
86% of Respondents viewed it as a product Lay’s would offer
100% of Respondents would
purchase again if completely satisfied
Most consumers would consider purchasing 1-2
times /month
74% of Respondents Would Consider Purchasing
14% Would Definitely Buy37% Would Probably Buy23% Would Maybe Buy
16% Would Probably Not Buy9% Would Definitely Not Buy
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Concept Evaluation: Primary Research1. 2.
3. 4.
33
Degree to which respondents associated Lay’s Collisions with the
following adjectives:
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Reasons respondents would purchase Lay’s
Collisions over a competitor (POD’s)
6. 7.5.
Common likely purchase situations:
Concept Evaluation: Primary Research
34
3 Factor Model: Salience, Favorability, UniquenessLay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
KeyRed : Lay’s (Parent)Yellow :Collisions (Ext)U: Unique to new category
U
U
U
35
KeyRed: Lay’s
Yellow : Potato Skins
KeyRed : Lay’s
Yellow : Lay’s Collisions
4 Factor Model: CompellingLay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
KeyRed : Lay’s (Parent)Yellow : Collisions (Ext)U: Unique to new category
After seeing Lay's Veggie Chips, your opinion of Lay's regarding the following:
1: Greatly Worsened → 5: Greatly Improved
U
U
U
36
Equity Impact
Feeling: Social approval Stays the Same
Feeling: Excitement Stays the Same
Feeling: Gross Stays the Same
Feeling: Adventurous Slightly Increases
Feeling: Happy Stays the Same
Feeling: Calm Stays the Same
Judgment: Credibility Stays the same
Judgment: Consideration Slightly Increases
Judgment: Quality Stays the Same
Judgment: Superiority Stays the Same
After seeing Lay's Collisions, how did these feelings about Lay's change for you?
After seeing Lay’s Collisions how did you opinions regarding the following statements change for you?
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
4 Factor Model: Relevant
37
Parent Brand Mantra
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
4 Factor ModelConsistent:
Strength:
Fit rating: High. 86% of respondents felt that this is a product that Lay’s would offer. A strong association that the parent brand has a
“variety of flavors” which fits hand in hand with this
extension.
Moderate-high level of influence. Collisions successfully reinforced Lay’s image of having a great variety of flavors (rating 4.14 on a
scale to 5 on how it improves Lay’s image), as well as its expertise in flavors.
38
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Disadvantages:
● Could possibly create/Reinforce negative associations (unhealthy weird flavors)
● Cannibalize sales
4 Factor Model: Conclusion
Advantages:
● Permit consumer variety seeking
● Reinforce Meaning● Avoid cost (and risk) for
new Brand Elements
39
Definitely Buy 14%
Probably Buy 37%
Awareness 20%
Availability 100%
Repeat % 51%
Repeat Frequency
39.3
Households 131 Million
Penetration % 93%
Retail Price $1.00
Retail Margin 25%
Trial Rate
(.14*.8)+(.37*.3)=22.3%
Repeat Rate
(.51*39.3)=2004%
Trial Units
(.2*1*.223*131MM*.93)=5.4 MM
Repeat Units
(5.4MM*20.04)=108.9 MM
Total Units
(5.4MM+108.9MM)=114.3 MM
Retail Sales Volume
(114.3MM*1)=$114.3 MM
Wholesale Sales Volume
(114.3MM*.75)=$85.7 MM
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Purchase Intent and ATAR Projections
40
Recommendation: Collisions
Recommendation for Lay’s Collisions:
We would advise Lay’s to begin distributing Lay’s collisions. According to Mintel, flavor is the highest weighted factor when selecting chips. A regional, small scale release to test to the market would be best. Then,
with feedback from consumers, a national and eventually worldwide release would be appropriate.
Important to its success is a strong Integrated Marketing Campaign (IMC), detailed in the following pages.
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Branding StrategyModified (Does not create own identity differentiated from parent brand)
Extension TypeLine Extension (same category-- Chips)
Extension strategy● Same product in a different form.
● Products that contain the brand’s distinctive taste, components, or ingredients.● Products relevant to the customer franchise of the brand. ● Products that capitalize on the firm’s perceived expertise.
● Products that reflect the brand’s distinctive benefit, attribute or feature (easy, convenient, good for parties)
● Products that capitalize on the distinctive image or prestige of the brand.
41
Recommendation: CollisionsLay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Winning Concept: Lay’s Collisions
42
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Rationale:
Lay’s Collisions offers high profit opportunities and low risk. Additionally, of the three extensions,
Collisions gave greatest influence to expanding and reinforcing brand meaning.
Positioning
43
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Classic Trendy
(3,3)
Variety of Flavors
6
6
0
0
(3.84, 4.14)
Positioning Statement :Lay’s Collisions is the only combination chip product that provides the widest variety of flavors to satisfy the snack cravings of millennials.
Nature of Competition:
Class: Food Category: Snack
Type: ChipsTarget MarketAge group: 18-25Main Competitor
Doritos
.
43
Positioning
44
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Attribute Associations to CollisionsStrongly Disagree→ Strongly Agree
Product
45
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
→
→
→
→
→
→
→
-Flavor Combo → complimentary/enhanced taste
Chips-Flavor Variety→ to meet a
plethora of flavor preferences-Small, round chip shape→ easy to eat in one bite, kid
friendly-Salty→ makes for a perfect
side to your savory dish
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Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
$1.00Classic7.75 oz
$3.00Family 10.5 oz
$3.50Party
13.75 oz
Price
Value
PriceEconomy Pricing Strategy:
Ideal for Lay's target market of 18-24 year olds - a market comprised primarily of students and young, entry level professionals who want
inexpensive snack food. Lay’s Collision will be sold at the same price as regular Lay’s potato chips.
Placement
47
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
Pull Strategies
- Advertising and mass media - Sales promotions (coupons)
Push Strategies
- Merchandising- Quantity discounts
- Stocking support for retailers
Indirect Channels:
- Wholesale retailers: Costco, Sam’s Club- Discounters: Wal-
Mart, Target- Retailers: grocery stores, convenience stores, gas stations, delis, office supply
stores- E-retailers: Amazon,
Google Express- Vending machines
- Schools
Manufacturer/ Distributor:
Frito-Lay
Direct Channels:
Shop online at fritolay.com/snacks/buy-online.html
● Social network campaign: “Mix your Flavors”Select your favorite combos and see how many people share thesame idea and what your friends think. The most popular combo to be released subsequent year.
● TV commercials: “Why have one, when you can have two”User Profile: Someone facing the challenge to choose between two different flavors, suddenly the collision appears and solves the problem.Commercials to air during prime-time television hours and major TV events (Super Bowl)
● Targeted Online Advertising: social media websites, online web/music streaming sites (Pandora, Spotify)
● Radio commercials : Audio version of the TV Commercials.
● Print Media: Magazine advertisements
● Support media: billboards, large posters at bus stops
Promotion: Integrated Marketing Communication
48
Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
“Why have one, when you can have two?”
Promotion: Integrated Marketing Communication
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Lay’s Brand Audit Info
Veggie Chips Opportunity ID Concept Generation Concept Evaluation Recommendation
Potato Skins Opportunity ID Concept Generation Concept Evaluation Recommendation
Collisions Opportunity ID Concept Generation Concept Evaluation Recommendation
5P’s for Collisions Positioning Product Price Placement Promotion
● Television/music/movie personalities, Kevin Hart and Ice Cube, will co-star in strategic integrated marketing campaigns.
● As in hit film, “Ride Along,” both strong personalities will epitomize “distinct yet complimentary” flavor profiles of the Lay’s Collisions bags
● Campaigns will be comedic and will be shown across online, television, movie, mobile, and print platforms
Celebrity Endorsers
SourcesRoberts, William, Jr. "Frozen Snacks - US - April 2016." Mintel. N.p., Apr. 2016. Web. 16 Apr. 2016.
Topper, Amanda. "Chips and Dips - US - February 2016." Mintel. N.p., Feb. 2016. Web. 16 Apr. 2016.
United States. Census Bureau. Quick Facts United States. N.p.: n.p., n.d.United States Census Bureau. Web. 19 Apr. 2016.
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Appendix
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Primary Research Overview
● Target Market: Students between the ages of 18 and 25.
● Methods used:○ Focus Groups (8 participants)○ Survey (43 qualified responses)
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Survey Responses: Filter Questions
*All unqualified and unfinished surveys were deleted for simplicity and clarity.
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Survey Questions
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Focus Groups
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