LAYS

PROJECT SUBMITTED IN PARTIAL FULFILMENT

OF THE COURSE IN
RESEARCH METHODOLOGY
AT
M.COM MANAGEMENT PART- II, SEM 3
DIV A, ROLL NO - 06
2016-17

KOMAL JADHAV

GUIDING TEACHER
PROF. PRAJNA SHETTY
UNIVERSITY OF MUMBAI
RAJASTHANI SAMMELANS
GHANSHYAMDAS SARAF COLLEGE
OF ARTS AND COMMERCE
S. V. ROAD, MALAD (W)
MUMBAI- 400064
1

RAJASTHANI SAMMELANS
GHANSHYAMDAS SARAF COLLEGE
OF ARTS AND COMMERCE
S. V. ROAD, MALAD (W)
MUMBAI- 400064

CERTIFICATE

This is to certify that Miss. KOMAL JADHAV of MCom Part II

(2016-2017) has successfully completed the project on Lays under
the guidance of Prof. PRAJNA SHETTY

Course Co-ordinator

Principal

Project Guide/ Internal Examiner

External Examiner
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DECLARATION

I KOMAL JADHAV the student of Master in Commerce Part II

(2016 -2017) hereby declare that I have completed the project on
TOMAS BATA.
The information submitted is true and original to the best of my
Knowledge.

Signature
KOMAL JADHAV

ACKNOWLEDGEMENT
Selection of this project topic and in depth study on it gave momentum to our
subdued and dormant brain and it was an opportunity to learn more and expand
our horizon.
During the course of our project work being carried out at Ghanshyamdas Saraf
College, we are receiving the valuable support and kind co-operation of number
of people. We are deeply indebted to our guide, our subject teacher, and group
members, for their continuous and priceless suggestion without which we
would not have been able to succeed in our project work carried on until now.
We are also obliged to our Prof. Ms. PRAJNA SHETTY who extended their
sincere help in present study.
We are also thankful to our internal guide, for their valuable suggestion and
guidance we also support. We express our gratitude towards our principal
Dr. Sujata Karmarkar, for their continuous support

SR.N
O

CONTENT

PAGE NO

INTRODUCTION TO COMPANY

OBECTIVES OF THE STUDY

10

SWOT ANALYSIS

11

POSTERS FIVE FORCES MODEL

13

STATEMENT OF RESEARCH OBJECTIVES

15

RESEARCH DESIGN & METHODOLOGY

16

QUESTIONNAIRE

17

ANALYSIS

19

CONCLUSION

26

10

BIBLOGRAPHY

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1. Lays

INTRODUCTION
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 the U.S. in 1932. Lay's has been owned by PepsiCo since 1965.
Lay's is the company's primary brand with the exception of limited markets where other brands
are utilized (Walkers in the United Kingdom and Ireland, Smith's in Australia, Chipsy in Egypt,
Poca inVietnam, Tapuchips in Israel, Margarita in Colombia, Sabritas in Mexico and,
formerly, Hostess in Canada).

HISTORY
In 1932, salesman Herman Lay opened a snack food operation in Dorset, Ohio; and, in 1938, he
purchased the Atlanta, Georgia, potato chip manufacturer "Barrett Food Company", renaming it
"H.W. Lay Lingo & Company." Lay criss-crossed the southern United States, selling the product
from the trunk of his car.
The business shortened its name to "the Lay's Lay Lingo Company" in 1944 and became the first
snack food manufacturer to purchase television commercials, with Bert Lahr as a celebrity
spokesman.
In 1961, the Frito Company founded by Derrick Lothert 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 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. 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 grocery shelves. In the mid to
late 1990s, Lay's introduced a lower calorie baked version and a variety that was completely fatfree (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 currently control 59% of the United States savory snack-food market.

FLAVORS
Lay's Barbecue-flavored potato chips, which appeared in 1958, was the only flavor available in
the United States other than the conventional salted chip until the introduction of Sour Cream &
Onion in the late 1970s.
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 & Pepper, Flamin' Hot, Limn,
and a thicker "Deli style" chip. 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. Other potato chip flavors
offered by Lay's are Garden Tomato and Basil, Honey Barbecue, Sweet Southern Heat Barbecue,
Tapatio Limon, Simply Sea Salt Thick Cut, and Dill Pickle Brand (Only found
in Arizona, Arkansas, Georgia, South Carolina, Pennsylvania, Utah, Wisconsin, and Minnesota).
Lay's has occasionally solicited new flavor ideas through its 'Do Us a Flavor' promotions.
The 2013 contest produced three new flavors: sriracha, chicken and waffles, and cheesy garlic
bread. Cheesy garlic bread was chosen as the winner and was added to the lineup, however the
other flavors remain on sale in some regions.
Another round of 'Do Us a Flavor' was launched in 2014. The flavors include Cheddar Bacon
Mac & Cheese, Kettle Cooked Wasabi Ginger, Wavy Mango Salsa, and Cappuccino. Kettle
Cooked Wasabi Ginger was chosen as the winner.
The 2015 finalists include Kettle Cooked Greektown Gyro, New York Reuben, Southern Biscuits
& Gravy, and Wavy West Coast Truffle Fries. Southern Biscuits & Gravy was crowned the
winner.
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The 2016 'Do Us a Flavor' was rebranded 'Passport to Flavor' for the 2016 Summer Olympics.
The four finalists are Chinese Szechuan Chicken, Greek Tzatziki, Brazilian Picanha, and Indian
Tikka Masala.
The following Lay's flavors are available nationally in Canada: Classic, Lightly Salted, Wavy
Original, Dill Pickle, BBQ, Ketchup, Salt & Vinegar, Smoky Bacon, Sea Salt & Pepper, and
Cheddar & Sour Cream. There are also a number of regional flavors, including Fries & Gravy
and Roast Chicken (available in Atlantic Canada), Sour Cream & Onion (available in Ontario,
Atlantic Canada, and Western Canada) and Wavy Smoky BBQ and Wavy Old Fashioned
Ketchup (available in Western Canada). Other varieties available nationally include Baked Lay's,
Lay's Kettle Cooked and Lay's Stax.
In 2013, Lay's ran a 'Do Us a Flavour' contest in Canada, with four flavors chosen as finalists:
Creamy Garlic Caesar, Perogy Platter, Grilled Cheese & Ketchup, and Maple Moose. Maple
Moose was chosen as the winner, but discontinued in February 2014 due to low sales.
In 2014, Lay's ran a second 'Do Us a Flavour' contest in Canada, with a new batch of finalists:
Bacon Poutine, Cinnamon Bun, Jalapeo Mac n' Cheese, and Tzatziki. Jalapeo Mac n' Cheese
was chosen as the winner.
In 2015, Lay's ran their third 'Do Us a Flavour' contest in Canada, with four new flavors chosen
as finalists: Cowboy BBQ Beans, Butter Chicken, Montreal Smoked Meat, and PEI Scalloped
Potatoes. The winning flavour was PEI Scalloped Potatoes.
The following Lay's (called Sabritas) are available nationally in Mexico: Original, Ruffles,
Tostitos, Doritos, Cheetos, Pake-Taxo, Japoneses (peanuts), Cheetos Poffets, Rancheritos,
Adobados, Frit-os, Churrumais, Caseras, Sabritones, Crujitos and Chicharrn Clsico.

2. OBECTIVES OF THE STUDY

1. To study the snacks industry as a part of food processing industry.

2. To study the company profile of FRITO_LAYS Ltd the makers of LAYS
3. To study the trends in snacks industry.
4. To analyze and interpret the results of sample collected.
5. To determine the future course of action by Frito lays
6. To find conclusions to our project.

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3. SWOT ANALYSIS

11

Strength

High brand image

Market dealer

Maximum level of satisfaction

Incentives are given

Worldwide distribution

Good Advertisement

Cost advantage, flavor range

Innovative capability

12

Weakness

Low supply remote area

Elite class is not consuming it

Rumors e.g. that lays has pig fat in them

Less quantity

Opportunities

Supply could be extended to rural areas

Room for improvement

New local flavors e.g. cricket flavors were introduced

Reach to the elite class

Advertise more in shops and rural areas

Threats

Competitors

New entries

Substitutes of snack food

Government policies
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Customer demand

4. POSTERS FIVE FORCES MODEL

Porters five forces analysis is a framework to analyze level of competition within an industry and
business strategy development.
Forces are

Threat of new entrants

Threat of substitute products or services
Bargaining power of customers (buyers)
Bargaining power of suppliers
Intensity of competitive rivalry

Rivalry among the existing players (High)

Many businesses are competing against Lays and planning to take over the supremacy the
company has for several years.
Companies such as Kurkure, Balaji etc. are Lays main rivals.
Rivalry will always be strong among these companies because they sell form the same
types of stores and their products are similar in some respects.

Entry of competitors (LOW)

The entry of competitors will be difficult because there are already well established
companies within this market.
These include Kurkure, Balaji, Bingo, parle.
This makes the barriers for entry very hard for another new company to start.
They need high initial capital requirements.
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Threat of substitute (Moderate)

Supermarkets tend to copycat popular chips (for example nestle Kit Kat) and provide
their own brand on the shelves at a cheaper price.
Confectionary is brought for snacks and gifts. In this way, large no. of substitute exists,
like chocolate, fruits, beverages, etc.
Still chips scores higher than the substitution as they are easy to preserve.

Bargaining power of buyers (Moderate High)

Lays buyers are scattered all around the world and they are in billions.
The increasing number of competitors that offers the same type of products at a lower
cost might be the cause of customer loyalty alteration.
No switching cost for buyers.

Bargaining power of suppliers (Low)

Large number of suppliers.

Lays has higher bargaining power than its suppliers.
Lays can buy their raw materials for cheaper and more in bulk than a medium sized
business could.

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5. 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 Lays is most preferred.

To analyze the reason for the popularity of the most preferred snack.

To know the satisfaction level of people who eat Lays.

To find out how much people spend on snacks weekly.

To find out the preferences of people for different brands.

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6. 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 my area. Respondents in the sample size were asked to fill the
questionnaires to gather the data

Objective of the study: To create awareness of the product.

Research method: Survey.
Tool of data collection: Questionnaire.
Sample: No. of units 8.
Product: Lays.

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7.

QUESTIONNAIRE

Q1.Do you prefer chips?

a. Yes
b. No

Q2.when do you prefer snacks time in a day

b. Morning
c. Evening

b. Afternoon
d. Night

Q3. Which snacks do you prefer?

a. Haldriam wafers

b. Uncle Chips
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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
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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

Q11. Do you think it acquire a good name in the market?

a. Yes
b. No
c. Cant say

Q12. Would you suggest other person to buy lays chips?

a. Yes
b. No
c. cant say

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8. ANALYSIS
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 dont.

Yes

YES

No

98%

NO

2%

Pie chart shows that 49 of our respondent like snacks while 1 dont.
Our second objective is concerned with finding out which snacks they preferred.

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Chips Biscuits Namkeen Bhujia Others

CHIPS

34%

BUJIA

22%

BISCUITS

22%

OTHERS

8%

NAMKEEN

14%

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

YES

84%

No

NO

16%
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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

Afternoon

Evening

Night

MORNING

64%

EVENING

6%

AFTERNOON

14%

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.

Haldriam wafers

Uncle Chips

Lays chips

Bingo

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HALDIRAM

6%

LAYS

82%

UNCEL CHIPS

10%

BINGO

2%

In the above pie chart we can see the popularity of lays.

Sixth objective was to find out how which flavor of lays chips people like the most.

Plain salt

American flavor

Tangy tomato

Chat Street

AMERICAN FLAVIOUR

10%

TANGY TOMATO

60%

PLAIN SALT

8%

CHAT STREET

22%

This shows that more people like American flavor of lays.

Our seventh objective was to find out which all places do the people consume lays chips most.

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COLLAGES

RAILWAY STATION

COLLAGES
RAILWAY STATION

62%
16%

PUBLIC PLACE

BUS STOP

PUBLIC PLACE
BUS STOP

10%
12%

From the above pie chart we can draw a conclusion that the respondent eats lays chips in collage
The eighth objective was to find what compels them to buy lays chips.

Brand name

Quality

BRAND NAME
6%

Variants

Price

Any other

24%

QUALITY

56%

VARIANTS

6%

PRICE
OTHERS

8%

This shows that the quality of lays chips is best as people buy lays chips because of its quality.

Ninth objective was to find out how people rate the lays chips.
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Excellent

Good

EXCELLENT

26%

GOOD

52%

AVERAGE

22%

Average

Most of the people rate it as a good product.

The tenth objective was to analyse which size of lays chips people generally prefer the most.

Large

Medium

LARGE

10%

MEDIUM

52%

SMALL

38%

Small

Most people like to consume medium size of lays chips.

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The eleventh objective of the research project is concerned with finding out how often people
consume lays chips.

Very often

Often

Sometimes

Rarely

VERY OFTEN

22%

SOMETIMES

40%

OFTEN

24%

RARELY

14%

It seems that eat lays chips very alternative days.

The twelfth objective was to find the opinion about the lays market position in the
commutative market.

Yes

No

YES

92%

NO

6%

Can't say

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CANT SAY

4%

Most of the people think that lays acquire a good name in the market.

9. CONCLUSION

Lays has been segmented at different levels with attributes. It chooses its distribution channels
sensibly, while its cost-based pricing strategy is profit maximizing. With the promotion being
done through advertising and sales promotion and according to our analysis, lays is yet to
remain at the highest rank in the world of potato chips.
Lays, gets your smile on!!!

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10. BIBLOGRAPY

https://en.wikipedia.org/wiki/Lay%27s

http://economictimes.indiatimes.com/

http://www.lays.com/

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