FINAL PROJECT

Consumer Behavior
LAYS SNACKS PAKISTAN

Submit to: Sir, Imran Sadiqe Syed Ali Yaser Bukhari 084621002 Naeem Sharif Mehmood Waheed

Submission Date:

Acknowledgement
At the completion of this project we are grateful to Almighty Allah who has bestowed upon us the vision to complete this assignment. We are also thankful to my honorable teacher Mr. Imran Sadiq & Brand Manager Lays MR, Saad Munawar who gave us clear guidance for completion of this assignment?

Executive Summary

This is the detailed report about PepsiCo Snacks products in Pakistan Lays, Cheetos, Kukure, Cravys. It covers the detailed product introduction with respect to the four Ps of the marketing, brief history of the company, marketing environment of the company in Pakistan, product & consumer evaluation that affect the workings of the company. It also includes the detailed competitors analysis. This report also covers the marketing objectives, marketing strategies such as target market, pricing and product strategies & SWOT analysis. At the end we gave some recommendations which may be useful in the growth and progress of the company. We have tried our best to cover all the topics of report and provide maximum information about the organization.

Frito-Lay, Inc. and PepsiCo, Inc.

In 1945, the Frito Company granted the H.W. Lay & Company an exclusive franchise to manufacture and distribute Fritos in the Southeast. The two companies worked toward national distribution and developed a close business affiliation. In September 1961, The Frito Company and H.W. Lay & Company merged to become Frito-Lay, Inc.

In February 1965, the Board of Directors for Frito-lay, Inc. and Pepsi-Cola announced a plan for the merger of the two companies. On June 8, 1965, the merger of Frito-Lay and Pepsi-Cola Company was approved by shareholders of both companies, and a new company called PepsiCo, Inc. was formed. At the time of the merger, Frito-Lay owned 46 manufacturing plants nationwide and had more than 150 distribution centers across the United States. Today, PepsiCo is organized into four divisions: Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. Although products sold in the United States under the Frito-Lay brand name are also sold internationally, international sales are reported by the PepsiCo International division.

PepsiCo Mission and Vision

At PepsiCo, we believe being a responsible corporate citizen is not only the right thing to do, but the right thing to do for our business.

Our Mission
Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

Our Vision
"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environment, social, economic creating a better tomorrow than today."

Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

OVERVIEW OF SNAKE INDUSTRY IN PAKISTAN

Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snack is described as a small quantity of food eaten between meals or in place of a meal. Snack food generally comprises bakery products, ready-to-eat mixes, chips, namkeen and other light processed foods According to the ministry of food processing; the snack food industry is worth over 150,000 tons in terms of volume. Though very large and diverse, the snacks industry is dominated by the unorganized sector. According to an SMEDA survey almost 800 snack items and 170 types of savories are sold across Pakistan. The branded snacks are sold at least 25% higher than the unbranded products. Savory snacks have been a part of Pakistani food habit, since almost ages. Though there is no particular time for snacks, normally they are consumed at teatime. The variety is almost mind-boggling with specialties from all regions, which have gained national acceptance. The industry has been growing around 30% for the last three years, while the branded segment is growing around 25% per annum, due to various reasons like Multiplex culture, snacking at home while watching TV, pubs and bars (where they are served free). AC Nielsen's retail audit shows that the large sales volumes are due to a marked preference for ethnic foods, regional bias towards indigenous snacks and good value-formoney perception. Of course the branded segment is much smaller, which is what makes it so attractive to food Companies that are looking at bigger shares. Growth rate of ready made snack (Potato chips / Namkeens) industry.
Year Potato Chips/ Namkeens Growth

rate 1990-91 1996-97 2001-02 2004-05 2009-10 to to to to to 1996-97 2001-02 2006-07 2009-10 2014-15 07.06 06.80 11.67 30.63 25.58

MAJOR PLAYERS
In case of chips manufacturing, Frito-Lay Pakistan is the market leader in the country with 85% market share in Potato snacks category. The Snack city, which has made a late entry in to chips processing market, has managed to get a market share of 08% with its potato chips "Kurleez". There are also the Kolson, Bunnys, Golden, super Crisp, etc in the competition.

CONSUMER BEHAVIOR

The job of marketer is to meet and satisfy target customers requirements and desires. Knowing customer" is not a simple task. Understanding the buying behavior of the target market for the product is the essential task of the marketing plan. The job of the marketers is to think customer and to guide the company into developing offers, which are meaningful and attractive to target customers and creating solutions that deliver satisfaction to the customers, profits to customer and benefits to the stakeholders. Marketers must study the customer taste, preferences, wants, shopping and buying behavior because such study provides the clues for developing the new products, price, product changes, messages and other marketing mix elements. Consumer has various types of behavior patterns. Few of them are explained as follows;

Picking involves a random choice, here the buyer picks a brand from the available brands,
and is indifferent to the brand he buys. Picking occurs when the consumer has (a) low involvement in the purchase, (b) there is little uncertainty with untried brands and (c) there are few differences between the brands.

Variety seeking, another example, also involves low consumer involvement, but it
requires significant differences between the brands. Variety seeking was also found when (a) purchases are made for more than one consumption period and (b) when the timing of purchase and the timing of consumption were different.

Impulse buying: Impulse buying occurs when a consumer experiences a sudden, often
powerful and persistent urge to buy something immediately. It is more likely to involve grabbing a product than choosing one.

Habitual behaviour: Habit generally forms when the consumers are satisfied with the
outcomes of the earlier purchases. Habitual buying is characterised by absence of information search and evaluation of alternate brands.

Extended problem solving: This occurs when the purchase is of importance to the
buyer. Assael found this process to occur during the purchase of complex, high priced

products where brands are perceived to be different and are associated with high degree of uncertainty. Under the complex decision making, the buyer evaluates the brands using choice criteria. Various types of choice criteria are used to evaluate the different brands. O'Shaughnessy (1988) classified the various choice criteria under technical performance criteria or generated functions.

Pakistani consumer buying behavior analysis

Before 1990, most of Pakistani was in Picking or impulsive buying behavior regarding the snack industry, as there was not many choices around. I recall that during my childhood potato chips was considered as Fasting Food (people used to eat during the day when food was not available). After economic liberalization, multinational companies such as Pepsi Co and Coke have entered into Pakistani FMCG market and changed the equation. The major task to market items as potato chips is to bring Consumer from Picking to Variety seeking and then to Problem solving behavior, to change fasting Food to Fast Food . Specially Pepsi Co launched Lays in Pakistan in June 2005 and creates a sense of snacking and also made the consumer flavor conscious.

Picking/Imp ulse

Variety Seeking

Extended Problem Solving

Habitual

Pepsi Snacks Pakistan

PepsiCo established its snacks business operations in Pakistan in June 2005 and has grown to become one of the countrys leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in Pakistan. PepsiCo Pakistan has invested more than USD1 billion since the company was established in the country. PepsiCo Pakistan provides direct and indirect employment to 50,000 people including suppliers and distributors. PepsiCo's food division Frito-Lay is the leader in the branded salty snack market and all Frito-Lay's products are free of trans-fat and MSG. It manufactures Lay's Potato Chips; Cheetos extruded snacks, Kukure and Cravys. The companys high fiber breakfast cereal, Quaker Oats enhances the healthful choices available to consumers.

PEPSICO SNACKS BRANDS IN PAKISTAN

1. Lays

2. Kurkure

3. Cheetos

4.

Cravys

We are taking here only one brand (Lays) of PepsiCo snacks Pakistan and our whole project will on this brand.

LAYS Flavors in Pakistan

French Cheese Masala Ketchup Tango Salt & Vinegar Salted

External Influences
4 P,s of Marketing
1. 2. 3. 4. Product Promotion Price Place (Channels of distribution)

Product
Product Attributes:
1. Quality: Lays are following the concept of Siemens (quality is when customer come back and our product dont) as far as quality is concerned. They also not neglect the two dimensions of quality (performance & conformance) to gain the satisfaction of the consumer.

2. Features: 3. All the features (like spiciness) and characteristics of Lays are compiled by the company on the need and want of the customer. 4. Design: 5. Style and design matter a lot on the outcome and response of the product (inside the pack & outside the wrapper) has much attractive and catchy color style and design which attract customer. Different product varieties have been given different designs and styles according to their flavor and ingredients. 6. Branding: 7. Lays has a strong brand image and also brand name is very easy. 8. Size: 9. Lays is available in five different sizes. Lays 10 gm in Rs, 5 Lays 19 gm in Rs, 10 Lays 48 gm in Rs, 25 Lays 120 gm in Rs, 50 Lays 200 gm in Rs, 75

Nutritional Information
Energy 218 kj, Protein 0.9 gm, Carbohydrate 4.9 gm, Of which sugar 0.2 gm, Fats 3.2 gm, Fiber 0.4 gm, Sodium 0.1 gm.

Pricing
When Lays launched in Pakistan in 2005, there was the Rs, 5 price points in potato chips category but 1st time Lays introduced the Rs, 15 price points. This price point became failed and PepsiCo had been changed its price and came at Rs, 10. So this price point became successful. After it company introduced bulk packs and family packs in the price point of Rs, 25 to Rs, 75 but 80% contribution of Rs, 10 products.

PepsiCo cant follow the single strategy straightly because in FMCG product markets their fluency of competitors based pricing along with a bit effect of customer value. Their cost includes: Manpower Machinery Electricity Raw Material

Lays has priced its product to achieve certain percentage return on its sale.

Promotion
Advertising:
Lays advertises through various channels: Media (FM Media, TV channels, etc) News Papers & Magazines Billboards & Banners Sponsoring various & Matches Free Samples

Sales Promotions:
Lays does sales on following promotions. Trade promotions Consumer promotions

Place
Lays is available almost in all over the Pakistan. Lays distribution channels are very strong. Lays is operating by the directly PepsiCo. Distributors supply the finished goods to the market.

SWOT Analysis: Lays STRENGTH

Distribution Pepsi Co has launched Lays potato chips in 2005 in Pakistan. By that time, Pepsi Co has strong distribution network of Pepsi Cola beverages. So PepsiCo snacks have a very strong distribution network in Pakistan. Experience Pepsi Co is backed by vast experience in snack industry world wide. In Pakistan, PepsiCo had already experience of beverages. Brand Promotion PepsiCos Lays brand is a very popular brand globally. The visibility and position as Family Product of Lays in Pakistan. Range PepsiCo has a very vast range of its snacks in Pakistan. Lays is available in all price points Rs, 5 to Rs, 75. R&D / Quality PepsiCo has a very unique research and development department. Second thing that quality of product which is the best quality in the snacks category.

WEEKNESS
White Space Term White space is referred to area where parent organization has never ventured before. Pakistan food market was white space product for Pepsi Co. Market Appeal With Lays is promoted as law fat snack. It is uncertainty about Law fat appeals credibility to traditional Pakistani consumer, for whom Lays is made. Availability of raw material and season Being made by agricultural items as potato, Lays supply chain depends on irregular monsoon. Price PepsiCos products are expensive the regional snack products due to its high production and marketing costs. Brand Loyalty Typically Pakistani consumer is having la ow brand loyalty for ready made food products.

OPPORTUNITIES
Changing life styles Families have become nuclear. Double income earning families have led to higher penetration of the snacks in food eating habits, packaged ones though.

Globalization
Due to market globalization, PepsiCo is operating in 55 countries. Product such as Lays can be launched in other potential countries as Sri lanka, Pakistan, Morrocco, Chili.

Emerging Pakistan
Internet and TV media has increased the awareness of different world culture and their food habits. Pakistani consumer is started looking for new tastes and willing to pay bit extra price for that. Expanding Mall culture multiplexes and other avenues create new marketing opportunities for snack industry.

Brand awareness
Due to innovative marking strategies and available platforms for advertisement (TV channels, news media, Commercial radio channels), Pakistani consumer is slowly changing, his buying behavior from seeking to problem solving. Brand awareness in FMCG marketing is increasing.

THREAT
Multinational Product Being a MNC product, Lays has impact of relationship between host and parent country. Bad relationship may have adverse impact on Lays brand. Government legislation Any harsh government legislation/tax/policy change can disturb the PepsiCos products business case and profit.

Energy Constraint
In Pakistan there is constraint of energy as well. We can see that there is no electricity and gas properly available in Pakistan. These both things are the back bones of any industry.

MARKET UNIVERSE
Market universe defines the targeted audience for the product. It is very essential for marketer to target specified audience/consumers for the product to keep the product away from picking buying behavior. For this product should be positioned as brand differentiator to its competitors. Product should bring some kind of functional/technical/others advantage to consumer then its competitors. In our example, following are the attributes that have impact on consumer decisionmaking process, while buying snack product. ITC and Pepsi Co have to study each of these attributes.

1. Free from pesticides 2. Freshness 3. Good for health 4. Clean place of sale 5. Value for Money 6. Overall quality 7. Taste 8. Variety Products availability at same place 9. Seasonality 10. Flavor 11. Good display of products 12. Nearby Availability 13. Good ambience 14. Locally Produced 15. Packaging 16. Advertising 17. Personally known by shopkeeper 18. Shape 19. Promotional offer 20. Country of Production

PROFILE
The Pakistani consumers are noted for the high degree of value orientation. Such orientation to value has labeled Pakistanis as one of the most discerning consumers in the world. Even, luxury brands have to design a unique pricing strategy in order to get a foothold in the Pakistan market. Pakistani consumers have a high degree of family orientation. This orientation in fact, extends to the extended family and friends as well. Brands with identities that support family values tend to be popular and accepted easily in the Pakistani market. Pakistani consumers are also associated with values of nurturing, care and affection. These values are far more dominant that values of ambition and achievement. Product which communicate feelings and emotions gel with the Pakistani consumers.

Apart from psychology and economics, the role of history and tradition in shaping the Pakistani consumer behavior is quite unique. powder existing with shampoos and toothpaste. Perhaps, only in Pakistan, one sees For example, hair oils and tooth traditional products along side modern products.

Consumer Evaluation

Marketing Segmentation

1. Geographic Segment:
Concerning geographical factor, Frito-Lay is trying to expand its wings to cover towns, villages, cities; making it available to everybody. The product Frito-Lay Snacks are specially designed for the Gulf & South Asian region specially India & Pakistan considering the taste & style of the traditional foods & flavors.

2. Demographic Segment:
Concerning demographical environment, Frito-Lay will focus on several variables such as age, gender and income level. Age: Frito-Lay will focus heavily on children and young people. Gender: Frito-Lay is generalized product for any sex, male or female. Income level: Frito-Lay packs are easily affordable and company is trying to give more for less making it best value of money.

3. Psychographic Segment:
Considering psychographic factors, Frito-Lay will heavily focus on customers life style, tastes, and personal values that best math with the product usage and distinctive from competitors. Making an image of style, standardized taste and variety of flavors, Frito-Lay will impact positively on individual customer satisfaction.

Cultural Factors

As Pakistan is the agriculture based country, 70% of our population is connected directly or indirectly with the agriculture sector. Potatoes, rice, Corn, Gram & Spices are the main & basic ingredients of our food. In fact Frito-Lay is such type of item which is specially designed for this region but it does not have any threat from the subculture of this region. Market in this region and its culture is extremely favorable for such type of snacks, which come in the head of extruded item, and people buy snacks frequently in this region. By understanding the culture company is advertising their product for all age groups because their product is for everybodys use. This understanding is also very important for their purchasing patterns and use. The company is mainly concentrating on upper & middle class.

Social Factors
The target market of Frito-Lay is generalized including children, young and old people. In precise target market, Frito-Lay is focusing heavily in children and young segment. Frito-Lay is such kind of product which is easily affordable for every class of the market either quality conscious or price conscious, excluding lower lowers and upper lowers. The main focus of the company is the middle class along with a bit of elite class and also working class. Middle class is the best responding class for Frito-Lay products.

Economic Factors
The price of the small Frito-Lay products pack is Just Rs.5/-, so it is affordable to every class of the country although those are not who are below working class (labors).

Political Factors

Frito-Lay is a legally registered company and applying labor laws and market laws of Pakistan. But it is known to them that Government interaction got much importance in every business and if there are some restrictions on them then it may be a hurdle in their way to success. Thats why some harsh Government rules may influence a wrong impact on companys goals and achievements in future.

Technological Factors
Lays being the product of PepsiCo International and having a good repute in international market are already using modern technology to enhance the production and the quality.

Buying Decision Process (Five Stage Model)

CONSUMER BEHAVIOUR ON LAYS

There are several factors affecting consumer behavior. Consumer behavior is major challenge for every product. Some factors which affect the consumer behavior on Lays are:

Consumers & Buyers

Basically the Lays is launched for children and teen age but because of its taste and variety, everyone is fan for Lays. It has fats, soft and crisp. The older people like those cant eat hard snacks, are prefer to Lays. The consumer of Lays is not only for children and also everyone. The buyers are almost parents. They prefer the

Lays rather than other chips. Parents believe that Lays is not bad for health, which does not mean that, it is good for health.

Influencer& factors
Even though Lays is suitable to everyone, the children are major influencer. The children mainly influenced by social factors that are friends, family. Perception is also one of the influencing factors. In this, the people perceived as, its made up of corn, rice meal and others. So that it is not bad for health. Brand is one of the factors. It is come from PepsiCo. So that people have confident about quality. The following data shows the influencer. Influencer Children Parents Yes 80 % 55 % No 13 % 40 % No Idea 7% 5%

From the above table we can understand the influence of children rather than parents. It implies that t h e c h i l d r e n h a v e p e s t e r e d p o w e r . W e c a n u n d e r s t a n d t h a t , a c c o r d i n g t o F o o d c o m m i s s i o n a n d Advertisement Board, the Lays doesnt full the children by its advertisement. Its advertisement is major part of its success. It believes that, parents are the main factor and buyer. It is come with different advertisement for each flavor.

Depends on Availability of product to customers

It is food products. So the product should be very hygienic and available to everywhere. It is major task for every product. In this case, Lays is available everywhere in market. That is the major success factor. Lays is available from small petty shop, small bakery to big malls and multiplexes. When I met the people for survey, I can realize that it is available everywhere. I met the people who purchase the product from reliance fresh and small bakery shop. There is no specific season or time for to purchase the Lays. Most of the people purchase as the daily evening snakes. But, during any special program like watching cricket matches, then the sale may increase. Otherwise it is available product to everyone.

Perception about the product

The perception is different for everyone. Perception means that how the person receive the data and how he use in different situations. In this case, the perception varied according to people, culture, demographic. Some people believe that, it is made up of corn, rice meal. So, it is healthier than other products.

Social factors on product

The social factors are mainly family and friends. According to me, the initial advertisement and promotions were attracting the parents and all age peoples. But, the product is more dependent on the children. From that we can understand the influence of the family on product. S i m i l a r l y , f r i e n d s a r e a l s o m a j o r s o c i a l i n f l u e n c e f a c t o r s . T h e y a r e t h e r e a l p r o m o t e r s o f t h e product.

Life style influences the product

According to us the life style must influence the product. W h e n I w e n t t o s t o r e , t h e o l d e r generation people go for low cost snacks, more quantity products. But, younger generation does not w o r r y a b o u t t h e p r i c e o r quantity. They always prefer taste. Even though old generation like Lays than other packed snacks, they give first preference to local or other product which satisfies the needs.

Demographic factors
We already mentioned that different flavors like French Cheese, Salted, Tango and etc. why they give different things because of demographic factors. Normally the people in Karachi prefer very spicy and hard. For them, plain Masala or Tomato Tango is suitable. Similarly, the Punjabi people prefer differ from others. Lays is mostly fulfilling the needs according to demographic this not only for those state people, its also uses all other people Launched as a national brand, it was a challenge for the company to d e v i s e f l a v o r s t h a t w o u l d appeal to regional taste buds. However, the focus on developing hot and tangy flavors that suit Pakistani taste palettes has helped win the hearts of Pakistani consumers.

MOTIVATION

Maslow's hierarchy of needs

As a consumer we put our product Lays in two stages of Maslow's hierarchy. 1st is Belonging / Love & 2nd is Self Actualization.

Love and belonging

After physiological and safety needs are fulfilled, the third layers of human needs are social and involve feelings of belongingness. The need is especially strong in childhood and can over-ride the need for safety as witnessed in children who cling to abusive parents which is sometimes called Stockholm syndrome. The absence of this aspect of Maslow's hierarchy - due to hospitalize, neglect, shunning, ostracism etc - can impact individual's ability to form and maintain emotionally significant relationships in general, such as:

Friendship Intimacy Family

Self-actualization
What a man can be, he must be. This forms the basis of the perceived need for selfactualization. This level of need pertains to what a person's full potential is and realizing that potential. Maslow describes this desire as the desire to become more and more what one is, to become everything that one is capable of becoming. This is a broad definition of the need for self-actualization, but when applied to individuals the need is specific. For example one individual may have the strong desire to become an ideal parent, in another it may be expressed athletically, and in another it may be expressed in painting, pictures, or inventions. As mentioned before, in order to reach a clear understanding of this level of need one must first not only achieve the previous needs, physiological, safety, love, and esteem, but master these needs. Lays is an impulse buying product and we often consume it or eat it on picnic or entertainment. When we go out with family or children we show our love or cool belonging with them. So with our friends during the studies when we eat snacks (Lays) we show again our love or belonging. Before 2000 AC there is no much trend of snacking in Pakistan. But with the passage of time public places developed in Pakistan and the awareness of snacks product became happened so, now its become the part of hospitality which shows thee love and belonging as well. Due to freshness of Lays and being a multinational brand of PepsiCo we feel self actualization when we eat it. Almost all the potato snacks are available in Rs, 10 but when we buy a best brand of the world we feel proud on it and self actualization.

A Trio of Needs
Here are the three elements of Trio Needs Theory.

Power

Power need relates to an individuals desire to control his or her environment.

Affiliation
Affiliation is a well-known and well-researched social motive that has far-reaching influence on consumer behavior.

Achievement
The achievement need is closely related to both the egoistic need and selfactualization need. We see as a consumer that Lays is matching with Affiliation. In Pakistan Lays is market leader in the potato snacks category. Physiologically every person wants to buy premium product. Lays is a best product of the world in the snacks so, we are affiliated with this product as well.

PERCEPTION

Positioning
In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. Positioning: the essence of successful marketing is the image that a product has in the minds of consumer. That is its positioning. Positioning is more important to the ultimate success of a product then or its actual character. Although the product that are poorly made will not succeeded in the long run on the basis of image alone. The core of effective positioning is unique position that the product occupies in the minds of the consumer.

As for as the lays is concerned, we position it under the umbrella positioning technique. Where a product can be featured individually, its ingredients product and packaging. PepsiCo is a company and Frito-Lay its business unit. PepsiCo is using Frito-Lay as an umbrella brand, under this there is lot of brands in different countries. For example in India and Pakistan LAYS, in South Africa SIMBA, in England WALKERS and in USA there is DORITOS. In Pakistan Lays position it self Khao or ruk k dikhao. Its main focus on quality and freshness.

2 Packaging as a positioning element:

Packaging conveys the image that the brand communicate to the buyer, like color, weight, attractive packaging, and shape or all important. Lays packaging is very convenience for the customers and specially the colors scheme of the package is very attractive and customer feel very familiar with the packaging of the lays. Lays give different colors for different flavors. For example French Cheese in Orange color, Salted in Yellow color, Masala in Redish Maroon color, etc. If any illiterate person wants to buy Lays he or she can judge the flavors on the color basis. Second the sizes of packaging are different according the price point. It also play very important role in this element.

3 Perceived price and perceived quality:

Perceived Price

How a consumer perceives a price as high, as low, as fair has a strong influence on both purchase intentions and purchase satisfaction. like what did the lays customers think about the price of Lays whether it is high or low price. Before 2005 AC there is almost 90% contribution of Rs, 5 price points but Lays came in to Rs, 15 price points. Lays realized that he should come back on Rs, 10 and than it clicked. Now almost 70% share in the snacks is Rs, 10 price point. Lays positioned it self at the low price or economical price with premium product.

Perceived quality:
Consumer often judges the quality of a product on the basis of a variety of informational cues that they associate with the product. Lays positioned on the premium product. Lays freshness and crispiness is the key of success. Consumer wants good and quality product. Lays ran his advertisement ad on different channels in which production process had been shown. Lays use 100% Hilal raw material, fresh potato, Malaysian palm oil, etc. As a consumer quality is very important and it act positive role on buying behavior.

LEARNING

Reinforcement
Reinforcement increases the likelihood that a specific response will occur in the future as the result of particular cues or stimuli. If a consumer is reward, by enjoying a product or service purchase, that consumer has learned to associate the purchase with a pleasant felling and therefore, is likely to repeat the learned behavior and become a loyal customer Now we relate above concept with our product like lay, initially in Pakistan lays come with few flavors like salt and Masala so these flavors give better enjoyment to the customers and in return good response to company sale thats why lays launch new flavors like French cheese ketchup, vinegar,etc as a reward and for positive reinforcement

Classical conditioning

Classical conditioning is consist of Unconditioned stimulus (food) Conditioned stimulus (bell) Unconditioned response (salivation

In Consumer behavior context an unconditioned stimulus might consist of a well known brand symbol and conditioned response would be consumer trying these products because of the beliefs that embody the same attributes Now we apply classical conditioning concept on lays, as we discus lays is used mostly all types of people like children, Parents and old age people. When matches series started all segments mostly children and teen agers enjoying matches or events with lays so when matches starting children and teen agers need for Lays with Pepsi or Coke So we can say lays is an unconditioned stimuli while match is conditioning stimuli Same case with teen agers when they meet together in their friends home or in an other enjoy able places So finally if we talk about the after repeated pairings when matches series or events start (conditioned stimulus) then conditioned response (salivation) starts.

Instrumental (operant) conditioning

A behavioral theory of learning based on trial and-error process, with habits forced as the result of positive experience (reinforcement ) resulting from certain response or behavior In consumer behavior context, the consumer who tries several brands that fits with consumer and he or she will continue to buy e.g. lays, now we are going to relate this theory with our brand like lays

We apply

lays in above model let suppose Ahmed is a customer, health plus quality conscious and need for snakes so he try fist brand which is not crispy so he will try second brand which is not having good taste, he will shift towards third brand which having huge amount of fats and showing threat for his health so finally he decided to purchase lays snakes and it full fill his requirement and he give preference and repeat purchase in future.

PERSONALITY
Consumer Innovativeness
Some consumers are who that open to new ideas and be among the first to try new product. For example when Lays launch any new flavor or new product in the market than almost customer buy it and this is the innovation by the customer because Lays is impulse buying product. Consumer Ethnocentrism Lays is non Muslim company brand. Pakistan is a Muslim country but our nation is not more Ethnocentric. But in some factors we can see the case of Telenor in Pakistan when we boycotted the Danish products. Another element in our nation that we are too much brand conscious so we feel proud and self satisfaction when we buy any imported brand as like Nike, Levies, etc. we observed that the consumer takes Lays with open mind.

Brand Personality
Lays is a brand of PepsiCo. Lays has a strong brand image in all over the world. Almost we copy the culture of India and also in India the Lays is very strong brand in the snacks category. Tag line of lays in Pakistan is Khao or ruk k dikhao. Lays is focusing on quality and freshness. So Lays has a very strong image in the Pakistan. In a recent research by Ac Nilsson the Lays is 5th largest brand in Pakistan in all over the categories. The affiliation of customer with this brand is very high.

Lays Personality and Gender

Lays is a strong brand and have a healthy personality. Lays is a product which is for all genders. Even children, male or female all types of gender eat it.

Product Personality and Geography

Lays product matches with the geographically condition of Pakistan. Pakistani culture almost matches with India so geographically its raw material also available in Pakistan as like potato.

Personality and Color

We can take the example of Pepsi Max which had been flopped in Pakistan due to the color of bottle. Its color was black and in our culture it is our habit that when we drink any thing we see it. But in Max Pepsi it was not possible. Lays colors are very attractive and beautiful and also matches with our culture. So there is no issue regarding the colors of lays packaging.

Self-Image
There are four kinds of self images. 1. Actual Self-Image 2. Ideal-Self Image 3. Social Self-Image 4. Ideal Social Self-Image Lays is falls in to the Actual Self-Image. Lays is a food item and in food we often like to eat what we want. So customer or consumer see them infect they want to see them.

ATTITUDE

Attitude of consumer toward Lays

To understand the buyer and to make a customer out of him is the main purpose of the study of consumer behaviors. Though this problem has been analyzed from different view points under different premises, it still remains a complex one. On the other hand the buyer is a riddle. He is a highly complex entity. His needs & desires are innumerable. Some are latent, some manifest and some others are highly dominant. These have different priorities in the scheme of things. The buyer has his own ideas & plans about realizing these needs & desires. The first & foremost task of the marketer is to get close to the buyer and understand his need-structure & priorities.

Attitude Definition:
Attitude is defined as a mental, emotional or rational predisposition with regard to a fact, state, person or an object. In the context of consumer behavior we are studying the attitude of buyers towards all the relevant attributes of a product or services as well as the marketer and markets. The study includes the following major areas.

Tri-component model
According to the tri-component model, attitudes consist of three major components (1) cognitive (knowledge, leering), (2) affective (feelings, emotions), & (3) co native (tendency, intention or inclination)

1. Cognitive component
The first part of the tri-component attitude model cognitive component consists of a persons cognitions,

i.e., the knowledge & perceptions that are acquired by a combination of direct experience with the attitude object & related information from various sources. This knowledge & resulting perceptions commonly take the form of beliefs, i.e., the consumer believes that the attitude object processes various attributes and that specific behavior will lead to specific outcomes. The tri component model is a good for lays because it explains every aspect of it from the consumer side and from the marketer side. If we see in the model in the first of cognition they are telling about the knowledge and experience people have a good knowledge about lays and also have a good experience. Lays advertise him very well and the customer has a good experience because they provide every thing what they communicate to his customer in the aid and they provide the taste which the customer likes.

2. Affective component
The second part of the tri-component attitude model affective component consists of a persons emotion or feelings about a particular product or a brand. These emotion & feelings are frequently treated by consumer researchers as primarily evaluative in nature, i.e., they can be rated with degrees of an attribute good/bad, favorable / unfavorable. Additionally the state of mind (emotionally charged states like happiness, sadness, anger, disgust, distress, shame, guilt, surprise etc.) also affects the attitudes by enhancing positive or negative emotions or feelings. In the second case they are telling about the customer feeling and emotion .mean what the customer feel and what is the emotion of him about the product or brand so the customer feeling and emotion are very positive about the lays because they

provide according to the choices and taste of customer mean what customer want and like they provide it they study customer preferences mean what they want and what they like ,what kind of taste they prefer, these are the all thing which is doing by lays and getting a good feed back from the customer we can take a recent example of lays that some one start propaganda against that they are not using Halal which effect them very much but they replied in a very polite way and offer his formula on net and also bring some religious people on media to tell people about it which show that what they are doing for customer and how they are handling it These are the some model which is best suited with lays and them using it for achieving his goal and getting good result.

3. Co native component
The third part of the tri-component attitude model co native component consists of a persons likelihood or tendency to undertake a specific action or behavior towards the attitude object. Often this means the actual action or behavior itself, or the intention to buy a particular product. Buyer intention scales like How likely one is to buy or The chance that one will buy are used to assess the likelihood / chances that a person buying a product. In the third model they are telling about the consumer mood mean attitude about the purchasing of a product. that when consumer like the product he purchase it and use it frequently so if we relate with lays you see that the attitude is like positive it and consumer toward lays consumer purchase it

frequently in

a routine life .the main advantage of lays it that it is available in different packaging and in different t taste and you can purchase that one which you want and which is needed for you

Factors Affecting Consumer Buying Behavior

Consumer purchase is influenced strongly by the following three factors. Cultural Social Personal

Above mentioned factors are explained in the details as fallows.

Cultural factors

Cultural factors are fundamental determinants for consumer needs and behavior such as values, perceptions; preferences differ from family to family, region to region, country to country. Cultural factors include three important factors which affect making decision. There are: 1. Culture 2. Sub Culture 3. Social Class

Culture & sub culture factors as explained above also include social class factors such as occupation, Income, wealth, education, brand preferences, leisure activities/habits and media preferences. All these factors effect the buying decision of buyer and marketing decision of marketer, as Lays is a snack food product and there are huge varieties are available in the market for the customer.

Social Factors
Social factors like references groups, family, roles and status affect consumer buying behavior. Buying behavior of consumer toward snacks Lays is affected by Primary Groups, as usually the buying of this product is influenced by even interacting with family, friends, neighbors, co-workers. Family is most important consumer buying organization in society, number of members constitute the most influential primary reference group, Age group of members are all the factors to be taken into consideration by Lays for marketing its product.

Personal Factors

Personal factors such as occupation and economic circumstances, lifestyles and values affect buying of Lays. Economic circumstances such as spend able income, saving and market situations i.e. like recession brought steep down in sales of product because people lost their jobs, cut off their salaries so, the buying decision was greatly affected. Life style is a pattern of living in the world as expressed activities, interests and opinions, price conscious shoppers i.e. whole person interacting with the with the environment, so the buying decision is affected greatly.

Customer Perceived Value

Customer perceived value is the difference between the total customer benefits and total customer cost.

Total consumer value is to the perceived monitory value of the bundle of economic,
functional and physiological benefit expects from product service, personnel and image involved.

Total customer cost is the perceived the bundle of costs customer expect to incur in
evaluating, obtaining, using and disposing of the product.

Image value
Image value refers to the brand value of the product. Lays is very old and international brand which give consumers image value.

Personnel Value

Social value given by product or brand to the consumers. Lays is preferred outing snacks or tea time snacks as well. Lays has no brand ambassador in Pakistan but in India Saif Ali Khan and Dhoni are their brand ambassadors. But when there were the issue of Hilal Haram than Lays endorsed the Junaid Jamshed. In Pakistan Lays made its ad in which all the Lays making process had been shown. It also develops a personnel value in the mind of customer and consumer.

Product value
Products value refers to the functionality of the product and the feature of product. Lays is available in lot of flavors and price points like as French Cheese, salted, Masala, and Tango, also available in World Cup flavors.

Monitory Cost
Monitory cost refers to the price paid to buy a product. Lays is available in Rs, 5, 10, 25, 50 and 75 so it is monitory cost for consumer.

Customer Development Process Potentials

Those customers who are willing and have capacity to buy product. For lays all are customers who can afford to buy.

Prospectus
As the price of Lays are available to wide range, so it is the rare that prospectus are disqualified. They are accepted.

First Time Customer

As the person who are willing to have Lays and trying the first time is first time customer for the company.

Repeat Customer
Once the customer had started consuming the Lays snacks and again buys then he or she is repeated customer.

Clients
To who Lays give some special treatment are the clients of the company.

Pre-Purchase Decision
We observed from these following stores. 1. Rehman Mart 2. Askari Store 3. Ahsan Mart 4. Ibrar Store 5. Rasheed Store 6. Grocers 7. Ammys Bakers 8. Raheem Store 9. Akbari Store 10. Sachi Chaki Khokar Chowk College Road M Ali Chowk M Ali chowk College Road PIA Society Samnabad Allama Iqbal Town Allama Iqbal Town Allama Iqbal Town

Lays is the best option for salty snacks customer due to its attributes.

Post-Purchase Behavior
After the purchase, the consumer might experience dissonance, or may be not happy with the product which he actually wants. As Lays is a FMCG product, after sales services is not available for these products but the company provides forums and consumer care on toll free number on which the consumer can present their views or complaints regarding quality, price and packaging. And the company would be able to come up with the best product as preferred by the customer.