Consumer behavior on

Lays
 Project on Consumer Behavior

Topic: Consumer behavior

towards Lays

Course Instructure: Mr. Aamir Waheed

Group Members:

Zainab Khatoon BBS-14-05

Zain Kashif BBS-14-17

Maham Javaid BBS-14-33

Hassan Tahir BBS-14-54

BBA 6th Morning

Table of contents

History. 1

Introduction... 2

Slogans 3

Flavors. ...... 4

Major Players. 5

Lays Target Market 6

Techniques used by the lays to attract their consumers. 7

Factors that influence consumer towards lays 8

Consumer behavior towards lays. 9

Acknowledgement

All praise and glory to Almighty ALLAH who help us to finish our project. Our
deep appreciation goes to our Lecturer Mr. Aamir waheed for his help,
guidance and the hours to attention he devoted throughout the course.

We would also like to thank our parents for their support, prayers and
encouragement to us. We also thankful to our colleagues who help us to
design the questionnaire and the respondents who help us by giving their
precious time to fill the questionnaire.

Thank you
Abstract:

In this project we studied about the consumer behavior towards lays. Firstly,
we started from the background of the lays, its slogans, its flavors. After that
we discussed its major competitors, its target market and the techniques
(Advertising, sales promotion, public relations, style & design and quality)
which is used by the lays to attract their target market. We also discussed
the factors (social, cultural, personal and psychological factors) that
influence the consumer towards lays.

In the end we conduct a research on consumer behavior towards lays, for

this purpose we use questionnaire and filling up the questionnaire from the
consumers. After getting the result we enter the data into SPSS(software)
and get the result.

History

Native American chef George Crum invented potato chips in1853 while
working in a New York hotel. The snack food became popular during
the1920s following the mechanical potato peeler. As distribution increased, a
number of small companies began manufacturing and selling the product. In
1932 salesman Herman W. Lay opened a snack food operation in Nashville,
Tennessee and in 1938 he purchased the Atlanta Georgia potato chip
manufacturer "Barrett Food Company, renaming it "H.W. Lay & Company."
Lay crisscrossed the southern United States selling the product from the
trunk of his car. In1942, lay introduced the first continuous potato processor,
resulting in the first large-scale production of the product. The business
shortened its name to "the Lay's Company" in 1944 and became the first
snack food manufacturer to purchase television commercials with Bert Lahr
as a celebrity spokesman. His signature line, "so crisp you can hear the
freshness," became the chips' first slogan along with "de-Lay-sious!" As the
popular commercials aired during the1950s, Lays went national in its
marketing and was soon supplying product throughout the United
States.In1961, the Frito Company founded by Elmer Doolin and Lay's merged
to form Frito-Lay Inc., a snack food giant with combined sales of over $127
million annually, the largest of any manufacturer. Shortly thereafter, lays
introduced its best-known slogan "betcha you can't eat just one." Sales of
the chips became international, with marketing assisted by a number of
celebrity endorsers. In1965, Frito-Lay merged with the Pepsi Cola Company
to form PepsiCo, Inc. and a barbecue version of the chips appeared on
grocery shelves. A new formulation of chip was introduced in1991 that was
crisper and kept fresher longer. Shortly thereafter, the company introduced
the "Wavy Lays" products to grocery shelves. In the mid to late1990s, Lay's
modified its barbecue chips formula and rebranded it as "K.C. Masterpiece,
named after a popular sauce, and introduced a lower calorie baked version
and a variety that was completely fat-free (Lay's WOW chips containing the
fat substitute olestra). In the2000s, kettle cooked brands appeared as did a
processed version called Lay's Stax that was intended to compete with
Pringles, and the company began introducing a variety of additional flavor
variations. Frito-Lay products presently control 55% of the United States salty
foods marketplace.

Introduction

Lay's is the brand name for a number of potato chip varieties as well as the
name of the company that founded the chip brand in1938.Lay's chips are
marketed as a division of Frito-Lay, a company owned by PepsiCo
Inc.since1965.Other brands in the Frito-Lay group include Fritos, Doritos,
Ruffles, Cheetos and Rold Gold pretzels.

Slogans

Happiness is Simple. (2009)

 That's another reason to smile! (2007)
Food for the fun of it! (2007)
Lay's, get your smile on! (2006)
Betcha can't eat just one (1960s-2006)
Nobody can eat just one (Lay's Greece)
Lays ka mazaa lo (Lay's Pakistan) meaning- Have fun with Lay's
You can't eat just one....Lagi bet! (Lay's India)
Har program ka main food (Lay's India) meaning "The main food for
every program"
No one can eat just one (Lay's India)
Lay's. "Want some?" (lays Romania)
"It's impossible to eat just one" (Brazil)
Lay's MAX - More for me, better for me! (Romania)
"Once tasted you can't stop!"
"So natural you cannot control yourself!"

Flavors

Except for barbecue-flavor potato chips, which were introduced no later than
1958, up until the last 20 years, the only flavor of potato chips had been the
conventional one. Despite an explosion of new flavors, the unadorned
original is still the selection of 81%of consumers. In the Pakistan, Lay's offers
a number of flavor combinations, in addition to the classic chips. Flavored
products in the traditional fried varieties include
 Barbeque

Salted

Magic Masala
French cheese

Salt and Vinegar

 Sour Cream & Onion

Ketchup Tango

Honey Butter

Major players

In case of chips manufacturing, Frito-Lay Pakistan is the market leader in the

country with 85% market share in Potato snacks category. The Snack city,
which has made a late entry in to chips processing market, has managed to
get a market share of 08% with its potato chips "Kurleez". There are also the
Kolson, Golden, super Crisp, kurkure etc. in the competition.

LAYS Target Market

LAYS is such kind of product which is designed for the region of south Asia
specially the sub-continent (Pakistan and India) where the people like spicy
kinds of food and snacks including urban and suburban areas. LAYS is not
concerned with any religion, race, occupation, family life cycle or gender and
has a target market in every social class. Main concerned segment is youth
who have experienced high product consumption level. But they are also
targeting families, as they understand this influence factor in this region.
Except lower classes of our society, every social class and income level is
favorable for the company. LAYS is usually consumed on occasionally basis,
providing the better quality at economical price along with the convenience
to consume. We deeply focus on non-users, potential users and first time
users in readiness stage they are unaware, desirous, interested and
intending to buy. LAYS expecting the positive response from the customers.
Techniques used by the lays to attract their
consumer

1. Advertising:
Lays advertises through various channels

Media (FM media, TV channels, Internet links etc.)

News Papers & Magazines
Billboards & Banners
Sponsoring various Shows and Matches

TV Advertisement Bill board advertisement

2. Public Relations:

Frito-Lays sponsors a number of professional sports teams as well as special

events Do Us a Flavor Campaign, where Eva Longoria and Michael Symon
teamed up to encourage consumers to create a new chip flavor. This
campaign, generated lots of buzz on the web about Lays, especially on
social media sites like Facebook and Twitter. Frito-Lay maintains a healthy
image on its website (www.fritolay.com), where the company portrays itself
as being committed to producing snacks of the highest quality while
minimizing negative environmental effects.
3. Sales Promotion:

Frito-Lay offers a number of common grocery store sales promotions

(consumer promotions) such as Do Us a Flavor Campaign which offer cash
prizes to the winner. In this way consumers attract towards lays and
purchase lays in order to win the prizes.

4. Style & Design:

Style and design matter a lot on the outcome and response of the product.
LAYS as the product (inside the pack and outside wrapper) has much
attractive and catchy colors style and design which attracts the customers a
lot.
5. Quality:

LAYS CHIPS are following the concept of Siemens (Quality is when customer
comeback and our product dont) as far as the quality is concerned. They
also not neglect the two dimensions of quality (performance & conformance)
to gain the satisfaction of consumer.

Factors that influence consumer towards lays

There are four factors that influence the consumer towards lays and these
are as follows

1. Cultural Factor
2. Social Factor
3. Personal Factor
4. Psychological Factor
1. Cultural Factor:

Cultural factors are fundamental determinants for consumer needs and

behavior such as values, perception, preferences differ from family to family,
region to region, country to country. Lays designed its product according to
tradition and culture of the society. Each culture has subculture such as
religion.

In past years lays faced a conspiracy that it carries harm food enzymes. This
conspiracy has affected the consumer behavior towards lays. To reduce this
conspiracy lays develop a justification ad by Junaid Jamshed on providing
lays as halal product. The outcome of this ad influenced the people and their
attitude towards lays became positive.
2. Social Factor:

Social factors like references groups, family, roles and status affect consumer
buying behavior.

Buying behavior of consumer towards snacks lays is affected by primary

groups, as usually the buying of this product is influenced by even
interacting with family, friends, neighbors, co-workers.

Family is most important consumer buying organization in society, number of

members constitute the most influential primary reference group, age group
of members are all the factors to be taken into consideration by lays for
marketing its product.

3. Personal Factor:

Personal factors such as occupation and economic circumstances, lifestyles

and values affect buying of lays.

i. Economic circumstances such as spend able income, saving and

market situations i.e. like recession brought steep down in sales of
product because people lost their jobs, cut off their salaries so, the
buying decision was greatly affected.
ii. Customer perceived value
 Image value: Image value refers to the brand value of the product.
Lays is very old and international brand which give consumers image
value.
Product value: Products value refers to the functionality of the
product and the feature of product. Lays is available in lots of flavors
and price points like as French cheese, salt, masala and barbeque.
4. Psychological Factor
i. Perception:

Perception is different for everyone. Perception means that how the

customers receives the data and how they use in different situations. In
this case consumer perceived the lays from different points of views, they
perceived its packaging, price or quality. On the basis of these factors
they can purchase the lays.

Perceived Price: How a consumer perceives a price

as high, as low, as fair has a strong influence on both purchase
intentions and purchase satisfaction. Like what did the lays customers
think about the price of lays whether it is high or low price. Before
2005nthere is almost 90% contribution of RS. 5 price points but Lays
came into RS, 15 price points. Lays realized that he should come back
on RS, 10 and then it clicked. Now almost 70 % shares in the snacks is
RS, 10 price point. Lays positioned itself at the low price or economical
price with premium product.
 Perceived Quality: Consumer often judges the
quality of a product on the basis of a variety of informational cues that
they associate with the product. Lays positioned on the premium
product. Lays freshness and crispiness is the key of success. Consumer
wants good and quality product. Lays ran his advertisement on different
channels in which production process had been shown. Lays use 100%
halal raw material, fresh potato, Malaysian palm oil etc. As a consumer
quality is very important and it act positive role on buying behavior.
ii. Motivation:
Motivation is activating the internal needs and requirements of the
consumer. It can also be described as goals and needs of the consumers.
Motivation arouses and directs the consumers towards certain goals.
These needs can be psychological needs, needs of security, social needs,
esteem needs and also self-actualizing needs.

Maslow's hierarchy of needs

As a consumer we put our product Lays in two stages of Maslow's hierarchy.

1. is Belonging I Love & 2. is Self-Actualization.
Lays is an impulse buying product and we often consume it or eat it on picnic
or entertainment. When we go out with family or children we show our love
or cool belonging with them. So with our friends during the studies when we
eat snacks (Lays) we show again our love or belonging. Before 2000 AC there
is no much trend of snacking in Pakistan. But with the passage of time public
places developed in Pakistan and the awareness of snacks product became
happened so, now its become the part a hospitality which shows the love
and belonging as well.

Due to freshness of Lays and being a multinational brand of PepsiCo we feel

self-actualization when we eat it. Almost all the potato snacks are available
in RS. 10 but when we buy a best brand of the world we feel proud on it and
self-actualization.

iii. Learning:
Reinforcement: Reinforcement increases the likelihood that a specific
response will occur in the future as the result of particular cues or stimuli.
If a consumer is reward, by enjoying a product or service purchase that
consumer has learned to associate the purchase with a pleasant felling
and therefore, is likely to repeat the learned behavior and become a loyal
customer Now we relate above concept with our product like lay, initially
in Pakistan lays come with few flavors like salt and Masala so these flavors
give better enjoyment to the Customers and in return good response to
company sale that's why, lays launch new flavors like French cheese
ketchup, vinegar, etc. as a reward and for positive reinforcement
 Classical Conditioning: In Consumer behavior context an unconditioned
stimulus might consist of a well-known brand symbol and conditioned
respond. would be consumer trying these products because of the beliefs
that embody the same attributes NOW we apply classical conditioning
concept on lays, as we discus lays is used mostly all types of people like
children; Parents and old age people. When matches series started all
segments mostly children and teen agers enjoying matches or events with
lays so when matches starting children and teen agers need for Lays with
Pepsi or Coke So we can say lays is an unconditioned stimuli while match
is conditioning stimuli Same case with teen agers when they meet
together in their friend's home or in another enjoy able places So finally if
we talk about the after repeated pairings when matches series or events
start (conditioned stimulus) then conditioned response (salivation) starts.
Instrumental (operant) Conditioning: A behavioral theory of learning
based on trial -and-error process, with habits forced as the result of
positive experience (reinforcement) resulting from certain response or
behavior.

In consumer behavior context, the consumer who tries several brands

that fits with consumer and he or she will continue to buy e.g. lays, now
we are going to relate this theory with our brand like lays. Lets suppose
Ahmed is a customer, health plus quality conscious and need for snacks
so he tries which is not crispy so he will try second brand which is not
having good taste, he will shift towards third brand which having huge
amount of fats and showing threat for his health so finally he decided to
purchase lays snacks and it fulfill his requirement and he give preference
and repeat purchase in future.

iv. Attitude
In the context of consumer behavior, we are studying the attitude of buyers
towards all the relevant attributes of a product or services as well as the
marketer and the market. The study includes the following major areas.

Tri-Component Model

According to the tri-component model, attitudes consist of three major

components

a) Cognitive (knowledge, Learning)

b) Affective (feelings, Emotions)
c) Co native (intention, Inclination)

Cognitive Component: The first part of tri-component attitude model

cognitive component consists of persons cognition i.e. the knowledge and
perception.

The tri-component model is good for lays because its explain every aspect of
it from the consumer side and from the marketer side. If we see in the model
in the first of cognition they are telling about the knowledge and experience,
people have a good knowledge about lays and also have a good experience.
Lays advertise him very well and the customer has a good experience
because they provide everything what they communicate to his customer in
the ad and they provide the taste which the customer likes.
 Affective Component: The second part of the tri-component attitude
model affective component consists of a persons emotions or feelings
about a particular product or a brand.

The customer feelings and emotions mean what the customer feel and what
is the emotion of him about the product or brand so the customer feeling and
emotion are very positive about the lays because they provide according to
the choices and taste of customer mean what the customer want and like
they provide it they study customer preference, what kind of taste they
prefer, these are all thing which is doing by lays and getting a good feedback
from the customer. We can take a recent example of lays that someone start
propaganda against that they are not using halal which affect them very
much but they replied in a very polite way and offer his formula on net and
also bring some religious people on media to tell about it which show that
what they are doing for customer and how they are handling it.

These are the model which is best suited with lays and them using it for
achieving his goal and getting good result.

Co native Component: The third part of tri-component attitude model

co native component consists of a persons likelihood or tendency to
undertake a specific action or behavior towards the object.

In this model they are telling about the consumer mood mean attitude
about the purchasing of a product. That when consumer like the product he
purchases it and use it frequently so if we relate with lays, you see that the
consumer attitude toward lays is positive. Consumer like it and purchase it
frequently in a routine life. The main advantage of lays is that it is available
in different packaging and in different taste, and you can purchase that on
which you want and which is need for you.

Consumer behavior towards Lays

 We conduct a research on consumer behavior towards lays by using the
following steps

i. Methodology of Research
Research Design:

We use descriptive research design. Descriptive research design is used to

determine the satisfaction level & customers perception about the Lays. We
collect data from secondary sources. We use 5 point Likert scale in our
research to collect data. We develop questionnaire by using secondary data
& getting feedback.

The population we select are mostly young customers of Lays & use random
sampling technique. In this design we used the survey questionnaire for
getting results.

ii. Data Analysis

To analyze data, we distributed 35 questionnaires among the customers of

lays but three respondents did not return the questionnaire. From 35
questionnaires two questionnaires are rejected due to incompleteness. So,
we analyzed the responses of 30 respondents from which 79% are males and
more than 62% respondents have degree above graduation. For data
analysis, we determined the mean, standard deviation and apply one sample
statistics on scale items. For analysis we set the test value=3, alpha
value=5%, and confidence interval=95%.

We found that people are satisfied with the quality, flavor, advertisement,
taste and brand name because the significant values are (0.002,
0.000,0.000, 0.000,0.000) and mean values are (3.53,3.73,4.27,4.23,3.77)
respectively. On the other hand, we found people are dissatisfied with the
price, ingredients and marketing strategies of lays because the significant
values are (0.062,1.000,0.096) and mean values are (2.57,3.000,3.16)
respectively.
 We also found people suggest others to purchase lays & satisfied with the
providing hygiene food, conspiracy against lays, ads of Junaid jamshed and
celebrity endorsement because the significant values are
(0.02,0.000,0.000,0.0000) and mean values are (3.50,3.97,4.16,3.93)
respectively.

iii. Conclusion

At the end, we conclude that the customers are satisfied with the quality,
flavor, advertisement, taste and brand name, we also find out that the
people suggest others to purchase lays and the celebrity endorsement
encourage them to purchase lays. But on the other hand we conclude that
the people are dissatisfied with the price, ingredients and marketing
strategies of lays. So we recommend that lays should focus on its marketing
strategies and endorse celebrities in its ad.
 One-Sample Statistics
Std. Std. Error
N Mean Deviation Mean
Satisfaction level with quality of
30 3.5333 .86037 .15708
Lays
Satisfaction level with flavors of
30 3.7333 .82768 .15111
Lays
Satisfaction level with price of Lays 30 2.5667 1.22287 .22326
Satisfaction level with ingredients
30 3.0000 1.33907 .24448
of Lays
Satisfaction level with
30 4.2667 .58329 .10649
advertisement of Lays
Satisfaction level with marketing
30 3.1667 .53067 .09689
strategies of Lays
Satisfaction level with taste of Lays 30 4.2333 .56832 .10376
Satisfaction level with brand name
30 3.7667 .81720 .14920
of Lays
I suggest other to purchase Lays 30 3.0000 .58722 .10721
Lays providing health and hygiene
30 3.5000 .82001 .14971
food
Satisfaction level with conspiracy
30 3.9667 .76489 .13965
against Lays
The conspiracy is affecting the
30 3.6333 .66868 .12208
behavior of consumer
Satisfaction level with ads of Junaid
30 4.1667 .83391 .15225
jamshed
Satisfaction level with cash offer 30 2.4000 .77013 .14061
Satisfaction level with celebrity
30 3.9333 .69149 .12625
indorsement
 One-Sample Test
Test Value = 3
95% Confidence
Interval of the
Sig. (2- Mean Difference
t Df tailed) Difference Lower Upper
Satisfaction level with quality
3.395 29 .002 .53333 .2121 .8546
of Lays
Satisfaction level with flavors
4.853 29 .000 .73333 .4243 1.0424
of Lays
Satisfaction level with price of -
29 .062 -.43333 -.8900 .0233
Lays 1.941
Satisfaction level with
.000 29 1.000 .00000 -.5000 .5000
ingredients of Lays
Satisfaction level with 11.89
29 .000 1.26667 1.0489 1.4845
advertisement of Lays 4
Satisfaction level with
1.720 29 .096 .16667 -.0315 .3648
marketing strategies of Lays
Satisfaction level with taste of 11.88
29 .000 1.23333 1.0211 1.4455
Lays 6
Satisfaction level with brand
5.139 29 .000 .76667 .4615 1.0718
name of Lays
I suggest other to purchase
.000 29 1.000 .00000 -.2193 .2193
Lays
Lays providing health and -
29 .002 -.50000 -.8062 -.1938
hygiene food 3.340
Satisfaction level with
6.922 29 .000 .96667 .6811 1.2523
conspiracy against Lays
The conspiracy is affecting the
5.188 29 .000 .63333 .3836 .8830
behavior of consumer
Satisfaction level with ads of
7.663 29 .000 1.16667 .8553 1.4781
Junaid jamshed
Satisfaction level with cash -
29 .000 -.60000 -.8876 -.3124
offer 4.267
Satisfaction level with celebrity
7.393 29 .000 .93333 .6751 1.1915
endorsement