Chapter 7  Business marketing

 

Lays’ major business customers are reseller such as retailers and wholesalers..which buy Lay’s finished goods  and resell them for a profit. Lays directly sell to large retailers and retail chains and through wholesalers to smaller retail units. Lays itself also the Big business customers of other companies .. for example  in 2007 it change 650 sales cars to hybrid vehicles..., So the company itself is the big customer of the car company.Business marketers usually have far fewer customers than consumer marketers. The advantage is that it is a lot easier to identify prospective buyers, monitor current customers’ needs and levels of satisfactions, and personally attend to existing customers. Lays has extended and expanded worldwide while it’s been in the marketing business. In the business market, a single customer can account for a huge volume of purchase. They spend more, buy higher-margin products, have a well-known name, or have the potential of becoming a bigger customer in the future.

 

 

Ch 8  Segmenting and Targeting Markets

 

Lay's Chip  targeted high schools, knowing that children were driving Frito-Lay's growth in US. One of the major target market of  Lays is children and young audiences of sports and entertainments such as consumers  in theaters or stadiums even at home. "Most businesses today use a mass-marketing approach designed to increase market share by selling their products to the greatest number of people". They know the benefit of market segmentation strategy which is much better than a formal marketing strategy. Its major distribution is within teens and generation Y. They produce different style for different group..For example,  women who don’t want the fat…they make Baked ones. And they make Tostitos for who don’t want strong taste and salty.

Chapter11 - Developing and Managing Products

 

 As we all know Lay’s Potato Chip is known for one of the best snack in the world. The Compnay  has 33 different snacks already and 4 new products have introduced  in 2012.

Both  Smokehouse Style BBQ Flavored Potato Chips and
Baked Three Cheese Queso Flavored Tortilla Chips are the best among the new products.

 The products have an amazing taste . The most important factor in successful new product introduction is a good match between the product and market needs- as the marketing concept would predict.
Developing new products goes through many stages before going to the market. The first stage is new product strategy that is the roadmap of future product. The second stage is generation of ideas coming from customers, distributors, competitors, research and development.. then product goes to another stage Business analysis. Lays  does research of competition and market to determine future profitability. The next stage is development when Lays  tested of the product performance and safety. Then its products are  introduced in test market to evaluate consumers response. Finally Lays brings the product to commercialization. Lays has experienced sales force that presents new product to the market.