Introduction

Lay's:
PepsiCo's food business started in 1932 at the birth of both, the Frito-Lay Company, a producer of corn-chips and H.W. Lay Company, a producer of potato chips. In 1961, the Frito-Lay company merged with the H.W. Lay Company to form Frito-Lay, Inc. Today, Frito-Lay Inc., is a major division in PepsiCo's corporate structure. The Frito-Lay Inc., is the worlds number one snack food company in the US and in most of its 39 international markets. Frito-Lay manufactures, distributes and markets snacks all over the world. In 1995, Frito-Lay Company marketed more than 150 varieties of snack food products worldwide and representing over half of the sales of snack chips in the United States. Some of their products include: Lay's and Ruffles brand potato chips, Doritos and Tostitos brand tortilla chips, Frito's brand corn chips, Cheetos brand cheese flavored snacks, Rold Gold brand pretzels. Since 1990, in the United States alone, volume has grown 9 percent annually. In 1966, PepsiCo launched its international snack foods operations. Currently, Frito-Lay's snack products are available in 81 countries and territories outside North America.

History:
Native American chef George Crum invented potato chips in1853 while working in a New York hotel. The snack food became popular during the1920sfollowing the mechanical potato peeler. As distribution increased, a number of small companies began manufacturing and selling the product. 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 crisscrossed the southern United States selling the product from the trunk of his car. In1942, 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 duringthe1950s,Lay's went national in its marketing and was soon supplying product throughout the United States.In1961, 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.In1965,

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 in1991that was crisper and kept fresher longer. Shortly thereafter, the company introduced the "Wavy Lays" products to grocer shelves. In the mid to late1990s, Lay's modified its barbecue chips formula and rebranded it as "K.C. Master piece, 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 the2000s,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.

Company Perspectives:
Mission Statement: To be the world's favorite snack and always within arm's reach.

Lays Pakistan
Company Profile:
Plot no 413, Sunder industrial Estate, Raiwind Road, Lahore

Production:
Company was importing KURKURE from China and Lays chips from Saudi Arab through its supplier Saudi Snack Food. Company has started its production at its New Plant at Raiwind road Lahore on 14th August, 2006. That improves the performance of the company. The time period of importing the product is eliminated. Raw material can be available in local market, so it would reduce the budget for raw material. The time span right from the production to distribution will squeeze and efficiency will be enhanced.

Suppliers

Company was importing Lays chips from Saudi Arab from 1st June 2005 through its supplier Saudi Snack Food and has a strong bond with them but now LAYS CHIPS is produced in Pakistan

Customers
The strategic focus of a business or a marketing plan of lays Company is that they are targeting Youth, Girls and housewives (opinion leaders).The company needs to study five types of customers like consumers, business, resellers, international and government. But in the case of lays only consumers are exist.

Slogans:
That's another reason to smile! Lay's Potato Chips (2007) Food for the fun of it! (2007) Lay's, get your smile on! (2006-) Lay's. Want some? Betcha can't eat just one (1960s-present) Lays ka mazaa lo(Lay's Pakistan)meaning-Have fun with Lay's You can't eat just one....Lagi bet! (Lay's India) Har programme ka main food (Lay's India)meaning- The main food for every programmme No one can eat just one (Lay's India)

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 Pakistan, Lay's offers a number of flavor combinations, in addition to the classic chips. Flavored products in the traditional fried varieties include Barbeque Salted

 French cheese Magic Masala Ketchup tango Salt and Vinegar

New Arrivals:

Wavy Lays Salt and Black pepper Cream and Onion

(Appendix # 2) Nutritional information

(1 Bag of Lays Baked Chips) As a snack food, the Lay's brands contain very few vitamins and minerals in any variety. At ten percent of the daily requirement per serving, vitamin C is the highest. Salt content is particularly high, with a serving containing as much as 380 mg of salt. A one ounce (28gram) serving of Lay's regular potato chips has 130caloriesandcontains ten grams of fat, with three grams of saturated fat. Kettle cooked brands have seven to eight grams of fat and one gram of saturated fat but are 140 calories. Lays Natural has nine grams of fat, two grams of saturated fat and 150 calories. Stax typically contain ten grams of fat, 2.5 grams saturated fat and are 160 calories per serving. Wavy Lays are identical to the regular brand except for a half-gram less of saturated fat in some combinations. The various brands do not contain any Trans fats. The baked variety feature 1.5 grams of fat per one ounce serving, and have no saturated fat. Each serving has 110 to 120 calories. Lay's Light servings are 75 calories per ounce and have no fat. Lays Classic Potato chips are cooked in 100% pure sunflower oil (originally hydrogenated oil until January 1st, 2007). A one ounce serving has 150 calories, 90 of which are from fat, 10 grams of fat, and 1 gram of saturated fat. They have many flavors in the baked lays as well. Baked lays are produced in cheddar, barbecue, and original.

Level and Type of Competition:

Their competition strategies are based on the competitors strategy. They dont follow the price war competitive strategy. They follow the standard of product and quality in competition. Their competition type is oligopoly.

Competitors:
One cant imagine about a business without competition. Lays has also some competitors. Major threats to Lays are Pringles Kolson Golden Tripple Em (which has almost45% 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, Lays is outstanding in all ways to the competitors like quality, quantity, price and variety of the products etc.

Competitors Products & Activities:

Following Competitors products are being sold in the market but their product availability is not that good. The only reason for their presence is the Credit facility and high margins. Niralla Smith Bunny Sherry Sadiq Dry Fruit PACE (Rancher)

 Golden Pak Food (Maxo) Market share: Lays = 45% Kolson = 15% Golden = 8% Smit = 5% Tripple Em = 15% Others = 12%

Nature of business:
Snacks are of two types: Potato Chips: Lays Extruded: KURKURE lies in the extruded item which comes under FMCG Products (fast moving consumer goods).

Key Objectives of Lays:

Like every business the primary objective of LAYS Company is to be flourishing and earn more profits. But its possible only when the company understand the environment of the market, where: 1. Different types of customer in this region who consider low price but still want for high quality. 2. Currently weak competition for a multinational company regarding quality with price. 3. A handsome share of the market is still vacant. 4. Companys own profit orientation by producing in bulk quantity and reducing cost.

5. Strong distribution channels are helpful to distribute and sale quickly and can generate high turn over. Therefore they pursue following objectives: Produce high quality product at reasonable low price. Facilitate as maximum share of market as they can. Customer satisfaction is the top priority. Acquire the strong distribution channel so the product is made available on the shelf.

Marketing Objective of Lays Pakistan:

Company is having very clear perception about the target market which is explained as follows: 1. Company wants to capture as many share of the market so that the company maximize its market share. 2. Customer attraction towards the product is very important and without this phenomena company cant fulfill its targets. 3. Strong distribution channel is the foremost element and is required more when the need increases, so the company should also focus on them and will give then certain benefits as well as the retailers. Profit maximization is always prior magnitudes for every company for that purpose they reduce the cost of production to enhance the turnover of the company.

Conspiracy about Pig Fat in lays

Few years back some internet propagandists launched a cowardly campaign against Lays Pakistan - manufacturers of delicious Lays chips in Pakistan. Emails were mass-circulated to a large number of people informing them that Lays chips contain pig fat which is haram in Islam. Emails were sent to thousands or possibly millions of people this created confusion among people and caused financial loss to the company. Lays has been facing the prevalent and incensed crisis ever struck a food product in Pakistan. The issue of using E631 flavor enhancer and pig fat has really declined the sales and image of Lays. It has become a favorite brand in no time when introduced in Pakistan. Methods used by lays to overcome the conspiracy

To prove that Lays is not Haraam, the Pepsi-Cola International Company casts Junaid Jamshed in their advertisement. In the ad J.J quote a verse from Holy Quran and says that Lays chips are Halal. Junaid Jamshed endorsed the brand for the first time. He urges people to eat lays as he found that they are HALAL. Daily Ummat has published around 12 stories about the Product and created hype for it insisting that Lays are Haram. That was a good move by the company as J.J in the ad to give his opinion about this issue.

Research by Dr Amjad Khan (Medical Research Institute, United States) has proved that many products of multinational firms have PIG FATS in them as ingredients. Word PIG FAT is replaced by E-Codes because they decided to start a coding language, so that only their Departments of Food Administration should know what they are using, and the common man is left lurking in the dark. The code E631 Now, company was facing a severe drought of money because major portion of their income comes from selling their goods to Muslim Countries, and these earn BILLIONS OF DOLLARS of Profit from their exports to the MUSLIM WORLD. So this conspiracy should have to resolve. E631 can be generated in 3 different ways: It can be obtained from sardines (fish).

 It can be made from brewer yeast extract which is a by-product of beer making process. It can be extracted from pig meat. If method #1 is used then it is Halal. If method #2 is used then it is not Haram but it is better to avoid it. However if method #3 is used then most certainly it is Haram. SO, the Jamia Ashrafia, Pakistan has made sure that Lays produced by Pepsi Pakistan should use the E631 from Halal source.

IMPACTS OF ADVERTISEMENTS OF PAKISTAN TELEVISION ON THE EATING HABITS

Television belongs to the family of audio-visual communication medium. It is able to transmit sounds and images carrying message of a varied nature and for a variety of purpose. It has strong influence on people, in the culture and on other media. It is a widely used telecommunication system for broadcasting and receiving moving pictures and sound over a distance from all around the world. The term may also be used to refer specifically to a television set, programming or television transmission. Television commercials have become one of the most effective, most persuasive, and most popular methods of selling products of many sorts. Within Pakistani culture we need to look deeper at the role of television and advertisements, to assess why they hold such a valuable position. Pakistan Television is a permanent fixture in childrens lives. The television set is as familiar to children as the faces of family members. Television set is always there, to entertain and to give company to children, especially when no one else in the mood to play, chat or interact with them. They are increasingly being exposed to different cultures, absorbing new ideas and impressions about other cultures. Many television advertisements are catchy jingles or catch-phrases that generate sustained appeal, which may remain in the minds of television viewers long after the span of the advertising campaign. Nowadays advertising spread in our entire culture influences in society and our fundamental patterns of life. Advertising can be seen as one of the factors that contribute to shape peoples life, their basic values, and attitudes. But actual picture is different, according to Edger Advertising is the art of making whole lies out of half truth. Fat? Fats, or lipids, are nutrients in food that childrens body uses to build nerve tissue (like the brain) and hormones. The body also uses fat as fuel. If fats that children have eaten are not burned as energy or used as building blocks, they are stored by the body in fat cells. This is body's way of thinking ahead: By saving fat for future use, the body plans for times when food might be scarce. Fat gives food flavour and texture, but it's also high in calories, and excess amounts of fatty foods as with excess amounts of any food can cause many health risks. For children and adolescents, desserts and snacks including potato chips, chocolate, cakes, doughnuts, pastries, and cookies are a significant source of fat. Children also get fat from whole milk products and high-fat meats, such as fried and spicy meat. Of course, fast-food and take-out meals tend to have more fat than home cooking; and in restaurants, fried dishes are the highest in fat content. Fat also often "hides" in foods in the form of creamy, cheesy, or buttery sauces or dressings. Still, though, fat is an important part of a healthy diet when the children eat the right kinds of fats especially those from certain kinds of fish in recommended amounts. Like carbohydrates in recent

years, fats have been wrongly accused of being bad. Although some definitely better than others, certain kinds of fat are actually good for teenager and children an important part of a healthy diet. Obesity increases the risk of developing disease. According to the National Institute of Diabetes and Digestive and Kidney Diseases, almost 70 percent of heart disease cases in the United States are linked to excess body fat, and obese people are more than twice as likely to develop hypertension. The risk of medical complications, particularly heart disease, increases when body fat is distributed around the waist, especially in the abdomen. This type of upper body fat distribution is more common in men than in women.