Arun Verma- Lays Potato Chips
EXECUTIVE SUMMARY 'In revitalising the brand, the goal is not only to generate added sales levels but to have them based upon enhanced equity, a move which involves improved recognition, enhanced perceived quality, changed associations, an expanded customer base and increased loyalty. '
David A. Aaker – Professor of Marketing Strategy at University of California at Berkeley.
This is a story of risk and reward. About having the guts to effectively withdraw the Hostess Brand from the market, even though it was Canada’s largest snack food trademark and the company 's flagship brand – in favour of replacing it with an old, weak brand – and then making that old brand the national leader, in its first year. The salty snacks market is notorious for its myriad brands, line extensions, flavours, and snacking variants, each striving to hook consumers with something new. It is fiercely competitive, and in 1996 (the base year for this case) Hostess, the market leader, had just over a 10% share. How do you relaunch an old weak brand into this snacking frenzy, when it has no product news, and is merely a good, old-fashioned potato chip? This paper describes how. The Lay 's relaunch exceeded all objectives, and catapulted the brand to market leader in only 12 weeks. The relaunch is so recognized by Frito–Lay that the same strategy and creative, adapted to local needs, is being used throughout Mexico and Latin America. The paper will demonstrate strategic evolution. After Year I, Lay 's grew further in Year II – by finding a previously untapped distribution advantage and transforming it into a benefit via advertising and packaging. This not only grew the brand, but established it as the superior quality chip. Frito–Lay 's distribution and merchandising strength was a factor in this success. But history has proven that this alone is not enough. We will prove via tracking that advertising was the key factor driving attitudinal shifts for Lay 's. The measure of success is that
David A. Aaker – Professor of Marketing Strategy at University of California at Berkeley.
This is a story of risk and reward. About having the guts to effectively withdraw the Hostess Brand from the market, even though it was Canada’s largest snack food trademark and the company 's flagship brand – in favour of replacing it with an old, weak brand – and then making that old brand the national leader, in its first year. The salty snacks market is notorious for its myriad brands, line extensions, flavours, and snacking variants, each striving to hook consumers with something new. It is fiercely competitive, and in 1996 (the base year for this case) Hostess, the market leader, had just over a 10% share. How do you relaunch an old weak brand into this snacking frenzy, when it has no product news, and is merely a good, old-fashioned potato chip? This paper describes how. The Lay 's relaunch exceeded all objectives, and catapulted the brand to market leader in only 12 weeks. The relaunch is so recognized by Frito–Lay that the same strategy and creative, adapted to local needs, is being used throughout Mexico and Latin America. The paper will demonstrate strategic evolution. After Year I, Lay 's grew further in Year II – by finding a previously untapped distribution advantage and transforming it into a benefit via advertising and packaging. This not only grew the brand, but established it as the superior quality chip. Frito–Lay 's distribution and merchandising strength was a factor in this success. But history has proven that this alone is not enough. We will prove via tracking that advertising was the key factor driving attitudinal shifts for Lay 's. The measure of success is that