Swot Analysis Of Lays

3. Segmentation, Targeting and Positioning
3.1 Psychographic Segmentation and Targeting
Lay’s segments the market based on its consumers psychographic profile. Chinese citizens’ interests, lifestyle, eating habits, and opinions affect the way it segment the market. Although potato chips are highly homogenized FMCG products, Lay’s differentiates itself with an energetic, fun-seeking, and happy brand image. It targets at consumers who are in pursuit of happiness and relaxation in their lives. In addition, Lay’s also tries to capture the attention of the fashion-seeking youths by collaborating with fashion icons and celebrities.

3.2 Demographic Segmentation and Targeting
Lay’s targets mainly on children, teenagers, and young adults. It insists

They vary from the American Classic to the very peculiar ones such as Yogurt and Grilled Squid flavor. Lay’s introduces flavors to target different regions in China. For instance, it sells Spicy Hot Pot flavor to cater to the central-middle area people who are in favor of spicy food. Lay’s also sells its Stax series which store the chips inside a jar. The jar is usually seen as an augmented product by the customers as they can use it to store other stuff or use it as a decoration. Apart from the classic potato chips, Lay’s uses product line extension strategy and sells French Fries series to attract more sales.

4.2 Price
Lay’s prices its product at a medium to high level. The prices range from 5.5 RMB to 9.9 RMB depending on the size of the package. Lay’s uses uniform pricing strategy across the country while allowing a slight change in certain cities. Very often the company uses promotional and competitive pricing to increase sales. Understanding that customers usually prefer more than one flavor, retailers usually give promotion at a deal like ‘Buy 3 at RMB 19.90’.

4.3

It invites the endorsed celebrities to shoot TV commercials, to recommend Lay’s’ products on their social media accounts, and to use Lay’s’ sponsorship for their movies or concerts. For instance, Lay’s sponsored one of its endorsed celebrity--- by giving out 100 packets of potato chips to Wu Lei’s fans. This type of advertising created attention and gained new customers from the celebrity’s fan base. Fans who believe in the lifestyle of the idol would very likely to buy the products. They are also more likely to believe in the quality of Lay’s’ products and the statements made by the