UNDERSTANDING CONSUMER PREFERENCES

FOR LAY'S

Marketing Research & Analytics

CLIENT PROBLEM

Lay's seeks to identify and respond to the needs of consumers in order to further strengthen its market domination.

BACKGROUND SUMMARY

According to statista, Lay’s emerged as the leading potato chips brand worldwide in 2023, capturing over 40% of the market shares.

STRENGTHS

• Brand popularity
• Marketing prowess
• Distribution network
• Variety of flavors

WEAKNESSES

• Healthier alternatives
• Change in consumers taste
• Non-recyclable packing
• Competitive Market

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OPPORTUNITIES

• New markets
• Healthier chips developments
• Immigration
• New localised flavours

THREATS

• High competition
• Health preferences of consumers
• Currency fluctuations
• Rising cost of raw materials

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RESEARCH OBJECTIVE

To learn about and study customer preferences for Lay's chips, as well as to gain insight into how Lay's constantly innovates the variety of products it offers to meet these desires.

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The GOAT eating the GOAT chips

FINDINGS FROM EXPLORATORY RESEARCH

Focus Group Session

FINDINGS FROM EXPLORATORY RESEARCH

As we analyzed the potato chips market, the importance of creative packaging, flavor, accessibility, quality and pricing with correlations to age and gender for successful brand positioning while actively engaging influencer marketing to influence the decision of the customers. Notably, the introduction of "Lay's @ Home" packaging and a focus on healthier alternatives and localization reflects the brand's commitment to appealing to a larger demographic.

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Participants of the Focus Group in the study revealed diverse preferences for Lay's chips, considering factors like spice level and crispiness. Lay's was commended for accessibility, quality maintenance, and a wide flavor variety. The brand's commitment to innovation was acknowledged. Lay's chips is enjoyed on various occasions, and opinions on packaging and price versus quality considerations varied among participants. Improvement suggestions encompassed introducing more flavors, providing healthier options, and increasing chip quantity in each package.

GRAPHS

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GRAPHS

RECOMMENDATIONS:

• Flavor Expansion:
• Introduce new flavours in the markets like Hot and spicy, country-specific flavours based on consumer suggestions.
• Healthier Options:
• Introduce and respond to the demand for healthier snacks including gluten-free and vegan chip options.
• Quantity and Packaging:
• Assess packaging strategies to find a balance between convenience, keeping the chips fresh and consumer perceptions of quantity.
• Regional Flavors:
• Consider bringing more options for regional flavors to provide for diverse consumer tastes and preferences.
• Spice Level Varieties:
• Since spice level has become an important factor in chip choice, continue to offer a variety of spicy flavors to satisfy different preferences.

APPENDICES

Cross Tabulation, Chi-Square & P-value of Gender Packaging Dynamics

Cross Tabulation, Chi-Square & P-value of

Willingness to Try New Flavours

APPENDICES

Cross Tabulation, Chi-Square & P-value of Healthier Options and New Flavor Exploration

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Cross Tabulation, Chi-Square & P-value of Gender - Price Dynamics

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APPENDICES - PROJECT SCHEDULE

APPENDICES - EXTERNAL LINKS

Link to Questionnaire

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Link to Codebook

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Link to Response Sheets

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Secondary Research References

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• Khan Khayru, R., Darmawan, D., & Munir, M. (2021). Analysis of product preference of Chitato and Lay's potato chips. Journal of Management, Accounting, General Finance and International Economic Issues, 1(1), 10–15. https://doi.org/10.55047/marginal.v1i1.7

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• Dodamani, M. D. B., Malali, M. V., & Parvati, M. V. (2019). A comparative study of consumer buying behavior towards chips with reference to Bingo and Lay's. Sustainable Marketing, 158.

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• Srivastava, Manish, & Tiwari, Abhay. (2014). A study of consumer behavior with reference to brand Lay's. Pacific Business Review International, 6.

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• Business Insider. (n.d.). Here’s how Lay’s is transforming its products with evolving consumer preferences. https://www.businessinsider.in/advertising/brands/article/heres-how-lays-is-transforming-its-products-with-evolving-consumer-preferences/articleshow/86067102.cms

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APPENDICES - FOCUS GROUP GUIDE

Focus Group Discussion Guide

Introduction and Icebreaker

Welcome everyone and thank you for participating in the focus group discussion. We're here today to learn about customer preferences for Lay's Chips and how Lay's is updating its product offerings to meet those desires. For starters, could everyone please introduce yourself briefly and share your favorite Lay's chip flavors if you have any?

Consumer choices

What factors influence your choice of potato chips and why do you choose Lay's over other brands?

When you think of Lay's, what flavors or varieties come to mind and what are your personal favorites?

Lay's Distinctive Options

Why do you believe Lay's chips are different from other types of chips?

Lay's Creative Approach

What do you believe is the importance of consumer input in their innovation process?

Other questions

If you had the opportunity to create a new Lay's chip flavor, what would it be, and why do you think it would be appealing to others?

Can you describe the occasions or settings where you're more likely to enjoy Lay's chips? Is it a regular snack, a party, a movie night, or something else?

Does the packaging of Lay’s play an effect on why you like it?

Would you still purchase if price increased but quality was still great?

Conclusion

Thanks for sharing your thoughts and insights today. Before we close, can you briefly summarize what you learned about Lay's customer preferences and innovation and what was most interesting?

Follow-Up Questions

Is there anything in particular you'd like to see Lay's do differently or improve on its chip offering based on what we've discussed today?

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