Lays company final

Week 1.7 Marketing planning and forecasting sales potential 

Market potential means ‘the total amount a products that the customer will purchase within a specified period of time at a specific level of industry-wide marketing activity’(Dibb, 2012). That is really important information for the company, because the company can decide how many products they will produce. In term of sales potential which means ‘the maximum percentage of market potential that an individual company with an industry can expect to obtain for a specific products or service’(Dibb, 2012). The company can expect that how many products they will sale. For Lays company, I will use the build-up approach to estimate the market potential and the sale potential in the Netherlands in the year 2015. Firstly, I will analyze that how much of a Lays chips a potential buyer in the Netherlands. In other words, I can do investigate about how many Dutch people are willing to buy potato chips, and then how many Dutch people are willing to buy Lays chips. The data can be collected through each Lays retrial stores. The Netherlands is a total market, which can be divided into several areas. For example, it can be divided into the North area, the South area, the East area and the West area. In each area to do specific research, which could be more accurate.

The marketing plan is really important for a company. Firstly, through the marketing plan, the company can enter the market step by step. The marketing plan as a good preparation for a company to do business. Secondly, the marketing plan can help company to avoid risk when the company enter the market. Last but not least, the marketing plan can figure out which kind of product meets the market needs. In contrast, there are also some limitations for company to do marketing plan. Firstly, the market environment will change all the time, so that when you completed a marketing plan then to enter the market which could resulting in this marketing plan already has lost value. In addition, we cannot make sure the process of marketing plan is prefect, it could also have some errors. 

In order to develop a sale forecast for Lays chips in the years 2016, 2017 and 2018. I will use the Time series analysis, which consist of trend analysis, cycle analysis, seasonal analysis and random analysis. Using this forecasting methods has some advantages and disadvantages. The advantage is this method operate through four steps, which can make sure conducted the accurate data. In addition, this method is not difficult to do for forecaster, because this methods uses the company’s historical sales data. However, in term of disadvantages, this method uses the past data, which cannot make sure the effects continue to future. Moreover, this method has some limitations, which only suitable for a product has reasonable stable demand.  

References:

 Lays Chips logo, Vector Logo of Lays Chips brand free download (eps, ai, png, cdr) formats. (2016). Logotypes101.com. Retrieved 14 September 2016, from http://www.logotypes101.com/logo/lays-chips 

Dibb, S. (2012). Marketing concepts and strategies. Andover: Cengage Learning. 

Lays chips

Week 1.6 Marketing in international markets and globalization

The brand of Lays belongs to international brand, which is the level of global marketing. The Lays company already has exported to the worldwild. The company made marketing strategies based on the global market. According to different requirement of markets, the company is adapted the local needs. For example, the different Lays chips market, where were provided different tastes of potato chips for local people. The Lays chips is available in many countries. For example, India’s Lays chips had high market share in potato chips market. According to the table, the market share of Lays accounts to 50% approximately. 

(Market share of Lay's potato chips India 2015 | Statistic, 2016)

 Lays company uses a lot of marketing strategies to enter India market. For example, the prices strategies, which Lays company provides varies prices to customer. In addition, Lays offers different packet sizes. Lays also started giving 20% extra on few of its packets(Marketing Strategy Frito Lays In India Marketing Essay, 2016) For India market, Lays also provides promotion strategies, which ‘its campaigns are supported by mega 360-degree communication medium on TV, Radio, Print, Viral, Outdoor and Cinema’ (Marketing Strategy Frito Lays In India Marketing Essay, 2016). 

According to the research, ‘PepsiCo Inc. warned the global economy appears to be weakening, singling out South America and Eastern Europe in particular, even as its first-quarter results topped Wall Street expectations’(Esterl, 2016). The economic situation has effected on Lays’s products. The recovery of economy has good influence on the sales of Lay chips. 

The US. Food&Drug  administration announces some regulations for potato chips. They gave the new definition for potato chips.The name "potato chips" may be used without qualification to describe the article made by frying thin slices of potato in deep fat(CPG Sec. 585.710 Potato Chips, Ingredients - Labeling, 2016). To be honest, I did not found some relevant national or international  laws about Lays chips. 

Here is my blogger link

References:

1. Lays Chips logo, Vector Logo of Lays Chips brand free download (eps, ai, png, cdr) formats. (2016). Logotypes101.com. Retrieved 14 September 2016, from http://www.logotypes101.com/logo/lays-chips 

2. Market share of Lay's potato chips India 2015 | Statistic. (2016). Statista. Retrieved 12 October 2016, from https://www.statista.com/statistics/562659/market-share-of-lays-in-the-potato-chip-segment-in-india/ 

3. Marketing Strategy Frito Lays In India Marketing Essay. (2016). https://www.ukessays.com. Retrieved 12 October 2016, from https://www.ukessays.com/essays/marketing/marketing-strategy-frito-lays-in-india-marketing-essay.php 

4. Esterl, M. (2016). PepsiCo Warns of Weakening Global Economy. WSJ. Retrieved 12 October 2016, from http://www.wsj.com/articles/pepsico-earnings-top-expectations-1460978140 

5. CPG Sec. 585.710 Potato Chips, Ingredients - Labeling. (2016). Fda.gov. Retrieved 12 October 2016, from http://www.fda.gov/ICECI/ComplianceManuals/CompliancePolicyGuidanceManual/ucm074634.htm

Lays company

Week 1.5 Environmental analysis

According to my research, I found the recent statements about environmental factors is the Pepsico sustainability report in 2014. As we all know, the Lays company belongs to Pepsico cooperation, so that I can found some useful information about Lays company. The macro environmental factors includes six items, which are the demographic development, the economic and competitive force, political and regulatory forces, the ecological forces, the social culture forces and the technological forces(Dibb, 2012). Nowadays, the political and regulatory forces has a major impact on marketing policies. For Lays company, they innovate the packaging to make it increasingly sustainable, minimizing our impact on the environment(sustainability report 2014, 2016). The organization in orders to meets the regular of  recycling. 

Table1 

(CBS StatLine, 2016)

According to the table 1, the amount of environmental investments was increased dramatically comparing with 2012 and 2015. That means people pay more attention on environmental issues. For the Lays company, they work to achieve an absolute reduction in greenhouse gas (GHG) emissions across our global businesses (sustainability report 2014, 2016).

(CBS StatLine, 2016)

According to the table 2, the waste issues still are serious problem. The waste of environmental investments by domain has dramatically increased from 39 to 80. Lays company work to eliminate solid waste to landfills from our production facilities(sustainability report 2014, 2016).

There are two tables can showing the   

The Netherland markets has some effects from religions factor. For example, some Dutch people is Muslin, so that they cannot accept the pork. In contrast, some tastes of Lays chips are containing the pork. On another hand, the people in Netherlands have habit of eating potatoes, which belongs to social and culture factors effect on market.    

Here is my blogger link

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References:

 1. Lays Chips logo, Vector Logo of Lays Chips brand free download (eps, ai, png, cdr) formats. (2016). Logotypes101.com. Retrieved 14 September 2016, from http://www.logotypes101.com/logo/lays-chips 

2. Dibb, S. (2012). Marketing concepts and strategies. Andover: Cengage Learning.  

3. Sustainability Report 2014. (2016). pepsico. Retrieved 10 October 2016, from http://www.pepsico.com/docs/album/sustainability-reporting/pep_csr14_sus_overview.pdf  

4. CBS StatLine. (2016). Statline.cbs.nl. Retrieved 10 October 2016, from http://statline.cbs.nl