P R E S E N T E D BY
MUNTAHA IMRAN10
AREEJ MINAHIL 30
YUSRA RAHIM 33
FAJAR AKHTAR 57
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Agenda
01 History and Competitive Advantage
02 Product and Price Strategy
03 Location and Layout Strategy
Supply Chain Management, Forecasting
04 method
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History and Competitive
Advantage
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Lay's, the brand and company, was founded in 1938.
History In 1965 it merged with PepsiCo Inc. as a division of
foods under the umbrella of Frito-Lay. In 2007, Lay's
was launched in Pakistan. Within just two years,
Lay's was able to claim the title of :market leader in
the potato chips segment. In 2011, Lay's became the
biggest branded player in the salty snack segment.
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Lay's brand being recognized at various forums in 2011,
taking the brand to even greater heights.
ACHIEVEMENTS
• Lay's won the Super brands Award (for the 2nd
consecutive year)
• Consumer Choice Award (for the 2nd consecutive year)
• Brand of the Year Award (for the 2nd consecutive year)
• Ranked 5th in the Top 10 brands of Pakistan (by a re1carch
conducted by an independent research agency, Nielsen)
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Competitive Advantage
“
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They don’t follow the price war competitive strategy. They follow the
standard of product and quality in competition. Lay s Potato Chips
develops unique product design, name and features to stand out in
the competitive market. Therefore they are using the differentiation
strategies to compete with their competitors.
“
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Competitors
Major threats to LAY’S are Pringles, Kolson , which has almost 45% of
the market share. But as quality of the product play an important
role that is not up to the standard by the competitors. So, LAY’S is
outstanding in all ways to the competitors like quality, quantity, price
and variety of the products etc.
Product strategy and
Process Strategy
“
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“Product strategy defines what your product
should achieve and how that supports the
“
organization, and is brought to life through the
product road map.
“
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By keeping in mind the vision statement that is
“Be the global leader in convenient foods by winning
with purpose in the marketplace”
LAY’S company always follows the differentiation
strategy while introducing any new flavor.
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Brand Focused Quality Focused
Maintaining a positive, By maintaining a constant
Strategies highly respected and variety of product standards,
quality brand name has such as freshness, value and
helped LAY’S keep its repeatable product flavor.
products connected to
pop-culture.
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Product Attributes
Lays, Get your smile on !
• Quality is when customer come back and our product don’t
• They also not neglect the two dimensions of quality
(performance & conformance) to gain the satisfaction of
Quality consumer.
• All the characteristics of Lays is compiled by the company on
the need and want of the consumer.
• They pay special attention to the taste and l spiciness every
Feature time they launch a new product.
• Lays as the product (inside the pack and out side wrapper) has
much attractive and catchy colors style and design which
Style & attracts the customers a lot.
design
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Process Strategy
LAY’S company follows a product-focused strategy,
in which it builds and processes specific types of
products using durable and superior equipment and
technologies, and applies sequential processes.
High Volume, Low variety,
Continuous Process
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❑ Frito-LAY'SProcess Strategy invests time and effort to maximize
the production of plants so that the end products cost to
manufacture is minimized as much as possible without affecting
the final products quality.
❑ There process strategy allows them to focus on maximizing the
turnaround time of raw product to end sellable product,
allowing the most freshness to be kept in the sellable product
to extend their place as the market leader.
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❑ LAY’S Company oversees the proper,
standardized processes of manufacturing.
❑ The tolerance is must maintained for each
ingredient by each piece of equipment is
specified and procured.
❑ So, Behind every new flavor of LAY’S there
is a well-managed production process.
Location Strategy
Layout Strategy
Location
Strategy
Location
Strategy
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Pepsico Cola International Lahore
Sundar road, Plot 413 Industrial Estate
Raiwind Lahore
PepsiCo Multan Snacks Plant
Industrial Estate, Multan, Punjab
PepsiCola International (PVT) Ltd
37 Block C1, Gulberg III, Lahore Pepsico
Regional Head Office
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Why Raw material is easily available
Industrial
Locations? Low cost of production
Infrastructure exists
Easy & quick distribution
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Saves time Proximity to raw Enhanced
material efficiency
The time period of
importing the The raw material is The time span right
Plant in product is easily available in from production to
local markets in
Pakistan
eliminated. distribution also
cheap rates so it squeezed and
reduces the budget efficiency
for raw material enhanced.
and decreases the
overall cost of
production.
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Less shelf life
Location is very important
Proximate to supplier
Proximate to raw material
“
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Rapid delivery as criteria for
selection of it’s facility location
The company’s main aim is to
distribute fresh products.
Layout
Strategy
Layout
Strategy
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Layout
Strategy
o International standards are being
followed to make sure the processing
line should be equipped with highly
automatic machinery that can produce
premium quality potato chips.
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o At LAY'SProduct Oriented Layout is
Product being followed in the production process
O riented which keeps the system efficient and
running continuously without variations.
Layout
o The product layout is an Assembly Line.
These are are laid out to be easy to use
and a large number of product specific
tasks can be completed in one assembly
lines.
Advantages
o Efficient movement of people,
materials and information is the
operations management concern
in this strategic decision area.
o Production facilities is centered
on the principles of assembly
line production and total quality
management (TQM).
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Assembly Line Layout
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Washing & Peeling
Assembly Slicing
Line
Process Dehydration
Frying Packaging & Distriution
De-oiling
Seasoning
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Retail o LAY’S is a global brand and you can
Layout purchase these snacks from anywhere
with the utmost ease. There is no specific
targeted area for LAY'S as this food is
demanded and favorite of everyone so
you can find it at any grocery stores,
convenience stores and gas stations etc.
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o Snacks like Lay’s are generally considered
as Grab-and-Go Items so they are
Retail placed near the entrance of the grocery
Layout store.
Reason:
o Staples that people most often buy on
impulse are placed where they will
make the best lure.
Supply Chain Management
and Forecasting Methods
“Supply chain management
(SCM) is the optimization of
a product's creation and
flow from raw material
sourcing to production,
“
logistics and delivery to the
final customer.
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Supply Chain
Management of Lay’s
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Indirect Chain of
Supply:
Place your screenshot here
✓ LAY’S include indirect Chain
of Supply.
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Distributor
Manufacturer Retailer
Supplier Customer
Process view of Lay’s Supply Chain 39
Pull Customer
Process
Customer order arrives
Retailer
Push Distributor
Process
Manufacturer
Supplier
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Forecasting Method
Weighted moving
Quantitative
average method
Approaches
Consumer
Qualitative
Market Survey
Forecasting Method 41
Quantitative Approach
Quantitative Methods: Weighted moving average
It is an objective, data-based Method
process that businesses and
salespeople can use to make . Weighted moving average
accurate predictions to guide
method of forecasting can be
future business decisions. So, the
company can use quantitative used. Because it is not a new
methods of forecasting on the product or technology.
based of past data available in
order to forecast the future.
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Qualitative Approach
Consumer Market Survey
Qualitative Approach:
Customer market survey of
Qualitative forecasting methods are lay’s chips can be done to
gain critical customer
subjective, based on the opinion and feedback because due to
.
the judgment of consumers and experts. this firm can obtain critical
information about their
The company can also use consumer consumers so that existing
market survey method of forecasting in customers can be retained
and new ones can be got
order to know about the taste and choice onboard.
of customers.
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Thanks!
