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Marketing insight ( Lays chips)

23 Jan

Story in focus:

The brand named as Frito Lays relatively new in the market. In 2006 lays entered in Pakistan. It has capture about 70 percent of the snacks market till start of 2009. It gained market share by competing its segment competitor super crisp, kurleez, slanty. Lays first target segment of customer with age of 16 to 24 and living in the area of urban section.

After having success in the market places it than started to target on mass appeal. In April (2009) email start circulating showing that lays product containing element of E361. Element claimed to be obtained form the Pig fat. The email subjected with the name of Dr. Amjad Khan of Medical Research Institute at USA forbidding Muslim to not use lays product as element of HARAM and HALLAL. After the email on the net Bolger start posting the cautionary article about the issue raised by Dr. Khan. Email rumor has first impact on the customer segment of people aged 35 plus than it reached to younger which primary target segment is of lays brand. After that SMS were bombarded to hit mass customer to make them aware of the issue. Condition become worse when anonymous letters are generated and distributed to retailer and distributor about the product lays and allowing them to stop the distribution of product. Next month prove to be the night mare for the brand as in the first half of May 2009, Royal TV and other channels Al Huda, Aaj, Express and City42 starts series of negative report about the issue of lays brand.

Company Strategy against issue:

Frito lays, Corporate and Marketing Communication (CMC) awake and did steps  to resolve the issue that brand is facing.

First step they do is to make clear the customer about the element nature (HARAM or HALLAL). Intention was to prove it HALLAL. Frito lays traced back to Dr. Khan (and to Aurora did) but the Dr. Khan was untraceable. South African National Hallal Authority and Islamic Food and Nutrition finds no results related to email sender. Research was conducted showing that E361 is flavoring ingredient obtained from animal and plant too. But Lays E361 is obtained from plant starch and also other products in market like soups and chicken cubes have that element E361. Lays made series of pres releases showing proves from local and international scientific and Islamic authorities clarifying that lays chips are halal. After that series of burst marketing campaign was launched by poster and TV vehicles clarifying the issue. Letters were mailed to distributors and retailer clarifying the situation faced by them and allowing them to make the customer aware of the reality of issue. . Conditions allowing organization to take further steps regarding issue. Frito lays go for celebrity endorsement regarding the issue and brand ambassador chosen was Javaid Jamshaid former pop star. Advertisement was rune don radio and TV channels to help the confused customer regarding brand. This will click and sales began regained. Suggestion celebrity endorsement and Javaid Jamshaid was appreciated by some concerns.

outcome:

  1. Word of mouth a powerful medium of advertisement.
  2. Brands manager must be proactive in their decision
  3. Multinational organizations must take in the issues related to religious and emotional nature in the region and people they are operating
 
8 Comments

Posted by on January 23, 2010 in Brands

 

8 responses to “Marketing insight ( Lays chips)

  1. Mohit Sharma (Trendster)'s avatar

    Mohit Sharma (Trendster)

    October 1, 2011 at 6:38 pm

    Thanks for the information! 🙂 Here in India majority of Hindus, Jains don’t consume any kind of meat and there are over 200 Millions Muslims here. So, when I first read the circulated SMS it was disturbing.

    Like

     
    • Danish's avatar

      geneious

      October 6, 2011 at 1:34 am

      Thanks ……….

      Like

       

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