project report on lays potato chips
TRANSCRIPT
PROJECT AND QUESTIONNAIRE
ON
FRITO LAY’SLAY’S
Submitted to Submitted by RUCHIKA JAISWAL RAHUL (Faculty of marketing research) PREETI SINGH IMS Ghaziabad BBA IVsem.
Group “C”
CERTIFICATE
We Rahul and Preeti Singh of IMS Ghaziabad of BBA (semIV) hear by certify that the project made on “COMPARITIVE STUDY ON CONSUMER BUYING BEHAVIOUR OF LAYS POTATO CHIPS” in the Academic year 2007-2010 is true and original to the best of our knowledge.
SIGNATURE OF STUDENT Rahul
Preeti Singh
ACKNOWLEDGEMENT
We hereby take this opportunity to thank all those people including our friends and colleagues who have helped us for the successful completion of this project.
We would also like to thanks Mrs.Ruchuka Jaiswal (faculty of marketing Research) for her continuous support and guidance she have rendered for the successful completion of this project.
We express our gratitude’s towards our parents for their encouraging support, incandescent sprit and endurance towards the making of this project.
In the ends a special thanks to all members who are directly or indirectly associated with the project.
INDEX
Sr.no Topics
1) INTRODUCTION
2) HISTORY OF lay’s
3) STUDY OF SELECTED RESEARCH PROBLEM
4) QUESTIONNAIRE
5) ANALYSIS OF DATA
6) BIBLOGRAPHY
Frito lay’s
The project purports to decipher the satisfaction level as well as the preferences of consumers pertaining to the various flavors of Lay’s a new range of savory snacks launched by C. We aim to analyse the success, marketability and future growth prospects of LAY’S. Basically we intend to find out the most popular flavor of LAY’S in the market from our sample. Snacks as such are a very minor part of the food processing industry because snacks sample. Snacks as such are sector is largely unorganized. Here we will also look into the market For this a survey was conducted in Delhi, Ghaziabad where respondents were asked to fill a questionnaire. The data was collected and analyzed to obtain conclusions This report carries an introduction of the company profile, detail of the methodology followed detailed data analysis and the results so obtained with the variety of graphs along with given.
OBJECTIVES OF THE STUDY
1. To study the snacks industry as a part of food processing industry.
2. To study the company profile of FRITO_LAY’S Ltd the makers of LAY’S
3. To study the trends in snacks industry.
4. To analyse and interpret the results of sample collected.
5. To determine the future course of action by Frito lay’s
6. To find conclusions to our project.
INDIAN SNACKS INDUSTRY
Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snack is described as aSmall quantity of food eaten between meals or in place of a meal. Snack food generally comprises bakery products, ready-to-eat mixes, chips, namkeen and other light processed foods According to the ministry of food processing, the snack food industry is worth Rs 100 billion in value and over 4,00,000 tonnes in terms of volume.Though very large and diverse, the snacks industry is dominated by the unorganized sector According to an Apeda survey almost 1,000 snack items and 300 types of savories are sold across India. The branded snacks are sold at least 25% higher than the unbranded products Savory snacks have been a part of Indian food habit, since almost ages. Though there is no particular time for snacks, normally they are consumed at teatime. The variety is almost mind-boggling with specialties from all regions, which have gained national acceptance industry. he been growing around 10% for the last three years, while the branded segment is growing around 25% per annum to stand at Rs 5,000-Rs 5,500 crore, due to various reasons like Multiplex culture, snacking at home while watching TV, pubs and bars (where they are served free). AC Nielsen's retail audit shows that the large sales volumes are due to a marked preference for ethnic foods, regional bias towards indigenous snacks and good value-for-money perception. Of course the branded segment is much smaller at Rs 2,200 crore, which is what makes it so attractive to food Companies that are looking at bigger shares and in the branded snacks market, to get down to basics, Frito Lay commands a share of 45%, followed by Haldiram’s at 27% and ITC at 16%. The
rest is divided between a handful of new entrants, wannabes and many regional playersOf the wide range of snacks available, potato chips constitute a sizeable segment of the Indian snack food industry, according to India Info line. The potato chip market is generally an unorganized industry. Nearly all potato chip snack products are
manufactured and sold locally. There is also no uniform standard for packaging, as there is in Europe, the United States and other more developed regions. Many snack foods are sold loose or packaged in poly-pouches, which may only be folded, or in some cases, stapled closed. As the Indian economy continues to grow, and production standards improve, many snack food companies are making significant investments into plant equipment and packaging machinery.
Pepsi Foods Ltd., now known as Frito-Lay India Ltd., produces India's largest snack foodManufacturer’s brands, including Ruffles, Hostess, Cheetos and Uncle Chips. Frito Lay's story is an example of how American recipes were adjusted to satisfy local tastes. Procter & Gamble's Pringles brand of potato crisp was launched in Delhi in 1999. Pringles is also a baked potato crisp, unlike many other potato based Indian snack foods that are fried. P&G currently imports the Pringles product and therefore the product has been priced at a premium and is marketed to a micro-niche
HISTORY
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 in 1938. Lay's chips are marketed as a division of Frito-Lay, a company owned by PepsiCo Inc. since 1965. Other brands in the Frito-Lay group include Fritos, Doritos, Ruffles, Cheetos and Rold Gold pretzels. Contents
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 criss-crossed the
Southern United States selling the product from the trunk of his car. In 1942, 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 the 1950s, Lay's went national in its marketing and was soon supplying product throughout the United States.
In 1961, 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.
In 1965, 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 in 1991 that was crisper and kept fresher longer. Shortly thereafter, the company introduced the "Wavy Lays" products to grocer shelves. In the mid to late 1990s, 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 the 2000s, 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
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 United States, Lay's offers a number of flavor combinations, in addition to the classic chips. Flavored products in the traditional fried varieties include sour cream & Onion, Barbecue, cheddar & sour cream, Hidden Valley Ranch, salt & vinegar, salt & pepper, Flamin' Hot, dill pickle, Limon (Lime) and a thicker "Deli style" chip. Canadian sellers have a number of varied flavors, with curry, ketchup, poutine, pizza, Fire’s Gravy, roast chicken, Smokey bacon, salsa, wasabi, spicy Indian masala and sea salt and pepper brands available. The marketing success of these flavors in Canada sometimes leads to a limited time offering of a flavor to the south, with the dill pickle recently appearing in the United States after a successful run.
Interestingly the name 'sour cream' has got Lay's into a lot of confusion in some countries. In India for instance the name was changed to American style cream and onion after consumers reported their discomfort with the idea of 'sour' cream
In the baked products, there are classic, barbecue and sour cream & onion varieties. The kettle cooked version includes original, sea salt & vinegar, mesquite barbecue and jalapeño brands. Wavy Lay's have original, hickory barbecue, ranch and Au Gratin flavors while Lay's Stax offers original, sour cream & onion, cheddar, barbecue, ranch, pizza and salt & vinegar. The newest variety, Lay's Natural has thick cut barbecue and sea salt brands.
The WOW! Brand was rebranded in 2004 as Lay's light after the olestra formula was altered and the U.S. Food and Drug Administration allowed removal of warnings about various health consequences of the fat substitute.
Outside North America, Lay's in Greece and Cyprus are made and packed by Tasty Foods and Carina Snacks LTD, with Mediterranean flavors which include Feta cheese flavor, Tzatziki flavor, Olive and Tomato, Oregano, Sea Salt & Black Pepper and various more. There are hundreds of sub-variations of the Mediterranean line and the company performs
Constant experimentations to create new flavors and adjust them to each country's liking. In some countries such as Argentina variations of the Mediterranean tastes exist include Olive Oil and Parmesan Cheese, Olive Oil and Tomato, Olive Oil and Basil, Greek Tzatziki Cheese with onions, Lasagna, Beef Capriccio with Parmeggiano and Smoked Manchego Cheese. In Belgium there is a version of Cucumber and Goats Cheese. Finally in Chile there is a version of Lemon and Cilantro (Coriander) and Sour Cream and Onions.
In Australia, a cilantro version exists while a hot & sweet chili, sweet corn and cotija cheese brand can be found in South America.
Another flavor sold primarily in southern Asia is called "Magic Masala." This flavor is very popular in India, Pakistan, and Bangladesh. Flavors featured in Thailand include Nori Seaweed, Basil, Squid, Spicy Chili Squid, Seafood and Mayonnaise, and Spicy Seafood.
There are a number of unique products in the United Kingdom sold under the Walkers label, including prawn cocktail, beef & onion, Greek kebab and Marmite yeast extract. Under the Smith's label in Australia, unique flavors include Greek Feta & Herb and Italian Tomato & Basil.
Russia has "Lay's MAX" chips (Chicken, Sour cream & Onion, Sour cream & Cheese, and Ham & cheese flavors) and some international "Lay's" flavors plus Russian "Lay's" flavor - Mushrooms & Sour cream, Crab and Red caviar.
In Poland the chips flavors are: Green Onion, Mushrooms & Sour Cream, Chicken, Original, Paprika, Hot pepper, Original, Ketchup, Forage, new potatoes with basil. Also there is Lays Appetite which is also part of lays and has the following flavors Kebab, Pepper and Cheese, Onion and Cheese.
In parts of South America (notably Argentina and Uruguay), Lay's flavored products are sold with the "Lay's Mediterranean" label, and include such flavors as ham, tomato and basil, tomato Parmesan, and oregano. Peru has "Lay's Sabores Peruanos" (Lay's Peruvian Flavors), with flavors like queso andino (Andean cheese); also recently was released Lay's Dips, that includes a "Peruvian Criollo Chili" sauce sachet.
In Ukraine there is crab, bacon, cheddar, and sour cream and green onion
In Thailand there is Classic, Sour Cream & Onion, Cheese & Onion, Mexican Bar-B-Q, and And Japanese Nori Seaweed. Flavors also come and go usually with an international
theme, for example: French Mayonnaise, Balsamic Vinegar and Salt (England), Garlic Soft Shelled Crab (Hong Kong), Soy Sauce, Salmon Teriyaki (Japan), Lobster, Bacon & Cheese (America). Also traditional "Thai" flavors include Tom Yum, Thai Chili Paste, Thai Seafood Dip, Chili and Lime. Popular flavors are often kept in circulation longer.
There are currently 12 regular Lay's flavors in Canada, though there are more, available only in certain parts of the country. The flavors available nationwide are the following: Classic (yellow), BarBQ (black), Salt & Vinegar (teal), Ketchup (dark red), Wavy Original (red), Dill Pickle (bright green), Smokey Bacon (brown), Sea Salt & Pepper (silver), Sour Cream & Onion (green), Roast Chicken (light brown) and finally Lightly Salted (bright blue). Also, in select Canadian markets (Toronto & Vancouver) Lay's has introduced international flavors such as "Spicy Curry" and "Spicy Indian Masala" to appeal to a wider consumer group.
Lays have entered the German market with some success in the last couple years. All 3 key Lay's brands are distributed with 2 flavors for each brand. The following flavors are marketed in Germany.
STUDY OF SELECTED RESEARCH PROBLEM
STATEMENT OF RESEARCH PROBLEM
In the branded snacks market, to get down to basics, Frito Lay commands a share of 45%, followed by Haldiram’s at 27% and ITC at 16%. The rest is divided between a handful of new entrants, wannabes and many regional players. Out of these ITC’s Bingo is a new entrant in the market, which was launched in 2007. ITC has launched Bingo in a wide variety of flavours and formats, ranging from potato chips to finger snacks. Because of its different and catchy advertisements Bingo has created a buzz in the market. Therefore, our aim was to find out the most popular flavour of Bingo among all the offerings.We began our analysis by dividing people into those who like to eat snacks and those who don’t. We based our study on the survey of people who like to eat snacks. This survey was conducted in Delhi. To collect the data we designed a questionnaire.
STATEMENT OF RESEARCH OBJECTIVES
The main objectives of our research were as follows
To find out what percentage of population likes to eat snacks.
To find out which flavor of Bingo is most preferred.
To analyze the reason for the popularity of the most preferred snack.
To know the satisfaction level of people who eat Bingo.
To find out how much people spend on snacks weekly.
To find out the preferences of people for different brands.
RESEARCH DESIGN & METHODOLOGY
Research design is the basic framework which provides guidelines for the rest of research process. It specifies the methods for data collection and data analysis .In this research project we have used the survey method of data collection, to be more specific questionnaire method. We conducted a survey in Delhi. Out of the universe of 500 our sample size is 50. Respondents in the sample size were asked to fill the questionnaires to gather the data
QUESTIONNAIRE
We are Rahal and Preeti singh, pursuing my BBA from IMS Ghaziabad, a division of IMS group of institutions.
Please fill up the form for a market survey on “…………………”
Name…………………………..Age………………………..…...Qualification ………………..... Gender…………………………
Q1.Do you prefer chips? a. Yes b. No
Q2.when do you prefer snacks time in a dayb. Morning b. Afternoon
c. Evening d. Night
Q3. Which snacks do you prefer? a. Haldriam wafers b. Uncle Chips c. Lays chips d. Bingo e. Any other Q4. Which flavor do you like most? a. Plain salt b. American flavor c. Tangy tomato d. Chat Street
Q5.On which places it got maximum consumer? a. In colleges. b. Railway station c. Bus stop d. Public places
Q6. What compels you to consume it? a. Brand name b. Quality c. Variants d. Price e. Any other Q7. How would you rate as a product? a. Excellent b. Good c. Average d. Poor
Q8. What size you prefer most? a. Rs. 5 b. Rs. 10 c. Rs. 20
Q9. How often you consume it? a. Very often b. often c. Sometimes d. Rarely e. Never
Q10. Who all in your family prefer lays? a. Children b. Parents c. Grandparents d. All
Q11. Do you think it acquire a good name in the market? a. Yes b. No c. Can‘t say Q12. Would you suggest other person to buy lays chips? a. Yes b. No c. can’t say Q13. Are you satisfied with the number of flavors it has provided? a. Yes b. No Q14. Do you think lays should come up with more flavor? a. yes specify b. No Q15. What is your source of information regarding the purchase of it? a. Advertising b. Live demonstration c. Retail outlets d. Home shopping Q16. Lays comes in a junk food. Do you think it is healthy to consume? a. Yes b. No
Date…………..Place…………..
Thank you for filling up this questionnaire and giving your valuable time to us.
ANALYSIS OF DATA
In order to extract the meaningful information from the data collected an analysis of data is done using pie charts, bar graphs etc.
The first objective of the research project is concerned with finding out what
Percentage of people likes to eat snacks. The pie chart given below is clear on
the percentage of people who like to eat snacks. Out of 50 respondents 49 like to
While 1 don’t.
YES 98%
NO 2%
Pie chart shows that 49 of our respondent like snacks while 1 don’t.
Our second objective is concerned with finding out which snacks they preferred.
CHIPS 34%
BISCUITS 22%
NAMKEEN 14%
BUJIA 22%
OTHERS 8%
The pie chart shows the responses of the people. It is clear that chips dominate the market. The second spot is shared by Namkeens and third spot by Bhujia.
The third objective was to analyse the preference of chips by the people. Following pie
chart shows their responses.
YES 84%
NO 16%
From the above pie chart we can see that people like the chips most i.e. they
like to eat lays, bingo, uncle chips.
Fourth objective was to find out how which time of the day you prefer the
Most. Following pie chart shows the time.
MORNING 64%
AFTERNOON 14%
EVENING 6%
NIGHT 14%
This shows that chips are eaten by the respondent mainly at evening.
The fifth objective was to analyze the reasons for the popularity of the most preferred
chips. For this the respondents were asked various brands of chips. Following pie chart
shows their responses.
HALDIRAM 6%
UNCEL CHIPS 10%
LAY’S 82%
BINGO 2%
In the above pie chart we can see the popularity of lays.
Sixth objective was to find out how which flavor of lay’s chips people like the
Most.
AMERICAN FLAVIOUR 10%
PLAIN SALT 8%
TANGY TOMATO 60%
CHAT STREET 22%
This shows that more people like American flavor of lay’s.
Our seventh objective was to find out which all places do the people consume lay’s
chips most.
COLLAGES 62%
RAILWAY STATION 16%
PUBLIC PLACE 10%
BUS STOP 12%
From the above pie chart we can draw a conclusion that the respondent eats lay’s chips in collage
The eighth objective was to find what compels them to buy lay’s chips.
BRAND NAME 24%
QUALITY 56%
VARIANTS 6%
PRICE 6%
OTHERS 8%
This shows that the quality of lay’s chips is best as people buy lay’s chips because of its quality.
Ninth objective was to find out how people rate the lay’s chips.
EXCELLENT 26%
GOOD 52%
AVERAGE 22%
Most of the people rate it as a good product.
The tenth objective was to analyse which size of lay’s chips people generally prefer
the most.
LARGE 10%
MEDIUM 52%
SMALL 38%
Most people like to consume medium size of lay’s chips.
The eleventh objective of the research project is concerned with finding out how often people consume lay’s chips.
VERY OFTEN 22%
OFTEN 24%
SOMETIMES 40%
RARELY 14%
It seems that eat lay’s chips very alternative days.
Our twelth objective was to find out who all in respondent’s family prefer lays chips.
ALL 60%
CHILDREN 36%
PARENTS 4%
GRANPARENTS 0%
As it seems that every member in the family eats lay’s chips but it is not so familiar with grandparents.
The thirteenth objective was to find the opinion about the lay’s market position in the
commutative market.
YES 92%
NO 6%
CAN’T SAY 4%
Most of the people think that lay’s acquire a good name in the market.
Fourteenth objective was to find out the opinion of the people as they need lay’s chips
in some more flavor.
YES 84%
NO 16%
This shows that people is eager to grab the new flavor of lay’s chips.
Our fifteenth objective is concerned with the sources of information regarding lay’s
chips.
ADVERTISING 68%
LIVE DEMONSTRATION 4%
RETAIL OUTLETS 14%
HOME SHOPPING 14%
Here advertisement is having lion share while live demonstration least share.
Our sixteenth and last objective was concerned people opinion about the health. We
asked do lays is a junk food.
YES 58%
NO 42%
This pie diagram shows that all though people consume lay’s chips around 44%
People think it is a junk food and bad for health. They also specified that consuming very
often may lead to health problem.
