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Chips Food Industry: Marketing Analysis

Paper Type: Free Essay Subject: Marketing
Wordcount: 5193 words Published: 22nd May 2017

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Integrated marketing communication program for CHIPS:

Executive summary:

Various CHIPS industry such as Lays, Uncle chips, and fun pop etc. design various integrated marketing program. Although common objective of all IMC program is increase brand awareness, sale and design a unique image in customers mind. In order to address and attract customer all chips industry launch various campaign. To communicate with public and customers they advertise their campaign on TV, magazine, online and radio. Through their advertisement they want to design their brand image in customer mind. Besides advertisement, they also carried out promotion activity, public relation, direct marketing etc. Direct marketing is although time consuming but most effective tool for communication.

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Various chips industry also organizes various events in order to communicate properly with customers, for example Lays company was planning to launch a new taste called “GIVE US YOUR DILLICIOUS FLAVOR” for their customers. Main purpose of this event is to increase the variety of chips . Before designing IMC program this company carried out market research in order to judge customers behaviors and taste toward chips. For research they design the strategy for chips event. During the event they decided to get feedback from customer who visits retail outlet so that appropriate primary data can be collected for designing IMC strategy for “The HUB”.

Before designing integrated marketing communication program it is necessary to judge consumers behavior toward chips , it is necessary to known customers liking and disliking, these data provide various support during designing of IMC program.

Although there are various media available for communicating but Print ads in magazine and news paper is seen most effective medium followed by television. After Research survey done by various chips company, it has been found that oldest peoples were less brand conscious than youths. There is no particular taste trend about chips among oldest peoples, but youths are more conscious towards chips market. “Tastes” and “varieties” are the major attributes considered by customer while buying chips.

Marketing plan plan

Situation Analysis: Every organization faces a lot of problem at present time so it became necessary for every organization that before setting any objective carried out situation analysis in order to recognize strength, weakness, opportunities and threat present in our organization. According to Sally and John, marketing plans are “the written document or blueprint for implementing and controlling an organization’s marketing activities related to a particular marketing strategy”. A successful marketing plan is able to improve organizations’ profits and growth, uses in objective setting and monitors results.

So to gain a successful market plan it is necessary to understand the current situation comprehensively and trends affecting the future of the organization. There are two major reasons to explain why situation analysis plays a vital role in developing marketing plan.

Firstly, dynamic marketing environment will lead to uncertainty, threats and opportunities for marketers. Marketing managers who success to know changes in environment through situation analysis can lead their companies to capitalize on opportunities and cope with threats created by changes.

Then, systematically analyzing situational environments in order to identify our customers and understand their needs and taste. There are certain opportunities in chips industry, such as increase people taste, increase market and market share through integrated PR, and advertisement and promotional campaign. Besides opportunities there is a lot of threat that create barrier for entry in chips industry. These threats are as follow:

  • Too much competitors in the market
  • Mainly prefer to old brand.
  • High price and loyalty decrease loyalty toward brand

Main objective behind situation analysis is to known analyze customer, competitor and there strategy.

Marketing objective:

After situation analysis we became able to known our organization strength, weakness, opportunities and threat present in environment. It provides a lot of support in setting of objective. There may be a lot of marketing objective, some are as follow:

  • Increase market share
  • To Launch new variety chips with new flavors.
  • Increase sale by 50% in 6 month from the launch of public campaign
  • Create awareness among target audience. Use excessive advertising especially using media preferred by the target market.
  • Create product belonging and position among buyer’s mind

Marketing strategies :

To achieve these objective we implement various strategy.

Target market:

Urban personality:

  • Affluent institutes
  • Prosperous young professional
  • Students and cosmopolitan
  • Mainly for the youth

Gender: male and female

Age: 5 to 40 years

Marketing Mix Strategies :

  • Main aim of various chips industry to produce high quality chips in different-different ingredients such as SPICY, BUTTER, SALTED, LEMON. This is mostly done to capture youth attention. They produce chips in different ingredients to capture more market share. Must of chips brand such as lays, uncle chips, bingo, fun pop jump in to Indian market by producing high quality of chips. Form that alls lays captured very high share in the market.
  • Pricing range from 3 to 40.
  • Chips do not need too much promotion. It is done mostly by fair, E – commerce and agent
  • The distribution channels for chips industry are as follows.





Internal Process

It is as follows.

Import Potato



Wrapped flavors

Withdraw wastage


Dispatched to store

Packing and containers

Samples of Product;

Implementation tactics :

  • Launch a blind ad campaign on billboards and magazines in all A class areas of major cities and magazine.
  • Heavy advertising on TV, newspapers and magazines
  • Set displays in buses and major dealer outlets in all cities.
  • Reduce number of billboards, television and magazines advertisements.
  • Continue Advertising

Evaluation, Monitoring and Control:

Goal of marketing plan is to achieve market objective that are established before implementation of marketing plan. We evaluate and control our strategic tactic by comparing our result with standard established before setting of plan, by measuring customer satisfaction and brand loyalty. If result is less than our standard than there any is default in implementation and monitoring.

The people who are responsible for the monitoring and control of the marketing plan involves, the Marketing Executives, Sales Managers, Media Managers, Market Research Departments, and the Production Managers.

Some activities must be carried out for precisely and closely evaluating the effectiveness of the strategies and tactics for example the gathering and structuring of data regarding market, product, consumers and the pricing trends, then the generation of daily sales report should be maintained and then in the end continuous reconfirming of the marketing budget and activities by the managers of different divisions.

The Integrated Marketing Communication Plan

Integrated Marketing Communications is a term used to describe a holistic approach to marketing communication. It aims to ensure consistency of message and the complementary use of media. The concept includes online and offline marketing channels. Online marketing channels include any e-marketing campaigns or programs, pay-per-click, affiliate, email, banner to latest web related channels for webinar, blog, micro-blogging, RSS, podcast, and Internet TV. Offline marketing channels are traditional print (newspaper, magazine), mail order, public relations, industry relations, billboard, radio, and television.

A company develops its integrated marketing communication programme using all the elements of the marketing mix (product, price, place, and promotion)

So Integrated marketing communication is integration of all marketing tools, approaches, and resources within a company which maximizes impact on consumer mind and which results into maximum profit at minimum cost. Promotional activities include Advertising, sales promotion, and personal selling activities. It also includes internet marketing, sponsorship marketing, direct marketing, database marketing and public relations. And integration of all these promotional tools along with other components of marketing mix to gain edge over competitor is called Integrated Marketing Communication.

Situational analysis :

First of all we carried out we carried out situation analysis in order to understood problem. In this we identify our competitors and their strategy for example Lays carried out competitor analysis and find out various strategy adopted by other chips companies e.g. lays, uncle chips, kurkure , Fun pop, oho yes . After situation analysis Lays company found that customer wants a new taste in chips and needed a change in strategic direction. Management responded to the increase its manufacturing plants offshore and by introducing a new taste of chips in the market.

Under situation analysis we also analyze financial position of company.

IMC objective :

There are various IMC objective set by jeans company after situation analysis in order to accomplish their goal. Some of objective are as follow:

  • To Increase sale by 50% in six month
  • To Increase brand awareness
  • To Increase customer loyalty
  • To Increase desire of customer
  • To Increase repeat purchase
  • To measure customer satisfaction
  • To create relationship with customer on personal level
  • To control and observe public opinion
  • To receive feedback from customer on regular basis

Media objectives state the impact that you expect to have on an audience in terms of reach and frequency. Objectives must meet the following criteria:

  • Measurability
  • Quantifiability
  • Realism
  • time-specificity

Budget determination:

We need to establish what amount of money will be needed to achieve the IMC objectives.Although there is various methods present to determine what amount of money invest on IMC. These methods are as follow:

  • Affordable Method
  • Percentage of Sales Method
  • Unit of Sales Method
  • Zero Budgeting Method

In affordable method we invest money on IMC as soon as we can afford. However in Percentage of Sales Method amount of money invest on IMC tool depend on what amount of sale we expect to achieve during course of year. These percentages are mostly adhoc and sometime based on judgment. In Unit of Sales Method Company allocate a certain proportion of cost of product to promotion. Thus say if ex factory cost of the product is say Rs 10/ – the company will allot Rs.100/- toward promotion cost. Hence if company expects sale 30000 unit of the product, thus allocated IMC budget will be Rs.30,00,000/-. In Zero Budgeting Method, company determine what need to achieve in term of sale and then rework backward in term of what money will be needed to be allocate to deliver those customers. Thus if company believe that in order to achieve their sales, 30,000 customers need to purchase their chips once during the planning period than it will work out what number of prospective customers will needed to be targeted through ATL and BTL activity, in order to achieve that result.

IMC Methodologies

There are various component of integrated marketing communication that is as follow:


Advertisement is any paid form of non-personal presentation and promotion of ideas or products by an identified sponsor. Objective of any ads is to increase brand awareness.


There are mostly three objective of advertisement campaign, that are as follow:

– Inform

– Persuade

– Remind

1. Inform:

Informative advertising, seeks to tell the market about the chips, explain the new quality added in chips, provide information on pricing, and build awareness of both the chips quality and the company. Such objectives are normally pursued at the launch of a new quality chips, or re-launch / up-date of an existing chips.

2. Persuade:

Here objectives are to encourage the target audience to switch brands, make the purchase, and create a preference in the market for the chips as opposed to its competition. Advertising of this nature is required in highly competitive markets, where a ingredient of chips flavor competes directly with each other. In such circumstances businesses often seek to differentiate theirs chips through Comparison Advertising – either directly or indirectly comparing its chips to that of its competitors.

3. Remind:

Reminder Advertising, is used to maintain interest and awareness of a well established chips brand in the market, often in the latter stages of its product life cycle. It is often used at the Point-of-Purchase to remind consumers of the Brand.

Advertisement budget:

Having identified advertising objectives, the advertising budget must be set. Determining exactly how much a business should spend on advertising to achieve the desired level of sales. Commonly, the decision is based on past experience of expenditure on advertising, and the sales subsequently achieved. There are however a number of factors that can be considered in setting the advertising budget

Factors influencing the setting of advertising Budgets:

  • Product life cycle stage: New products in the ‘Launch’ stage of their Product Life Cycle, will normally require greater expenditure on advertising to create product awareness, and encourage consumers to trial the product. Whilst products that have reached ‘Maturity’ in their product life cycle, will often require smaller advertising budgets to achieve the level of sales required.
  • Competition: The number of competitors in the market, and their expenditure on advertising competing products, will influence a business to spend to a similar or higher degree.
  • Product Differentiation: A product very similar to other products on the market may require greater expenditure on advertising to differentiate it from its competitors.

Advertising Strategy:

Developing an Advertising Strategy to achieve the objectives of a campaign, requires that consideration be given to both the ‘Message’ which will be communicated and the ‘Media’ through which it will be sent

Advertising Message

An advertising campaign, no matter how much money is spent, no matter what media is used, will only be successful if the Message appeals to the target audience. Given the level of advertising which bombards the average consumer, a successful advertising message must stand out amongst the advertising clutter. Thus marketing professionals are required to be creative, imaginative and innovative in developing the advertising message, both in terms of what is said, and How it is said?

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What is said…

This is often referred to as the ‘Big Idea’, and will normally address the key benefits sought by the target audience, motivating the audience to pay attention. Given the constant search for new ways to appeal to target audiences, it is difficult to categories the content of advertising messages which a business may send..

How they say it…

During delivery of advertisement massage in customer mind take the taste symbol, and various flavors as consideration.

In addition the tone of the advertisement will need to be established, which can be either positive or negative. The advert may therefore promote positive feelings of fun, contentment, and happiness or take on a more negative, somber, or even threatening tone.

Selecting Advertising Media: In addition to deciding upon the content, style and tone of the advertising message, the media through which the message will be communicated to the target audience must also be selected. Mostly for chips advertisement we select media such as magazine, newspaper and outdoor. TV rarely used for advertisement of chips.

In order to select the most appropriate media, consideration must should be given to various advantage and disadvantage of various media. Strengths and weakness of various media are as given below:

Television :


  • Dynamic attention getting media, combining visual, sound and animated stimulus.
  • Strong potential Impact & High market coverage
  • Good at demonstrating products


  • Highly expensive
  • Poor at communicating lengthy technical information



  • Targeting is possible through profiling readership
  • Good level of market coverage


  • Static media, not suitable for product demonstration
  • Potential for poor reproduction, sometimes limited to black and white print
  • Short-life span, i.e. today’s newspapers become tomorrow’s rubbish



  • High quality reproduction, of color images
  • Targeting is possible through specialist publications
  • Good pass on readership


  • Static media, not suitable for product demonstration
  • Lengthy lead-time between advert being placed and magazine being published



  • High repeat exposure to advert
  • Relatively low cost
  • Low levels of competition, in terms of advertising clutter


  • Limited audience selectivity / targeting possible
  • Static media, not suitable for product demonstrations
  • Difficult to monitor effectiveness

Sale promotion:

Sale promotion is collection of various consumers and trade promotional tool such as rebate, discount, gift, contest, coupons, price deal, contest game, sampling etc. to increase sale of products. There are certain objectives of sale promotion. However main objective is to increase immediate sale because Sales Managers are under great pressure to produce results quickly.


There are certain objectives of sale promotion that are as follow:

To increase immediate customer sale

To increase support among the marketer’s sales force.

To gain the support of the trade in marketing the product

Reasons for Growth of Sales Promotion:

There are number of reason for growth of company in sale promotion some are as follow:

1. Increasing Competition

Due to increase in competition, companies are finding it increasingly difficult to compete on quality. They are therefore resorting to more innovative methods of sales promotion. In order to have a competitive advantage over its competitors like lays, uncle chips, kurkure, oho yes, fun pops once a year has a grand sale of up to 50%.

2. Customers Have Become More Price Sensitive:

The increase price sensitivity is direct result of rampant inflation. Economic support this trend further, as a result customers and dealer became more sensitive toward price. If the customers believes in on lays then he definitely buy the new chips but customer buy it when our product provide high quality with cheap rates.

3. Sales Promotions Generally Create an Immediate Positive Impact on Sales:

Advertising, personal selling and other methods of promotion produce slower impact on sales in compared to sales promotion. Sales promotions are mostly for short duration, for a specified period, leading to a sense of urgency in consumers to buy now. This creates an immediate positive impact on sales.

4. Products have become more standardized:

In many product categories there is proliferation of brand or line extension and me too many brands. Most of brand perceived by consumer varies little in price. Due to this it became very difficult for advertiser to reposition their product in customers mind. Due to which they focus on more and more on sale promotion to get immediate result.

6. Advertising Has Become More Expensive and Less Effective:

All the advertising media have become quite expensive. Audio-visual medium, which is considered as the most effective for short-duration ads, may cost in excess of Rs. 1 lakh for a 10 second exposure during prime time. In many cases, consumers have reached a point of boredom due to excessive advertising on TV. Firms with small budgets cannot compete with big companies, which spend huge sums of money on advertising. For these small budget firms, sales promotion is a more cost-effective promotion method to produce sales results.

7. Trade Has Become More Powerful:

At present time Retailers and wholesalers have became more powerful and demand extra facility from company to promote their product. Company has no other alternative.

Besides these there are also various kind reason such as Excess Stocks, Impulse Buying Is Increasing, Sales Promotions Maximize Profits etc.

Promotion Strategies:

Promotional strategy is mostly run to change consumers’ behavior, to increase brand image, to increase profit, to increase sale of various good. There are mostly two kind of sale promotion, one is directed toward consumer and other one is directed toward trade such as dealer, supplier, retailer etc.

Consumer sale promotion tool:

there are a lot of promotional tool used to increase sale. Consumer sale promotion is directed toward consumer. It stimulate consumer to purchase their product rapidly. There are a lot of tool that are as follow:

Price deal:

Price deal is temporary reduction in price of product. There are two type of deal: one is buy in bulk and second is extra quantity.


A coupon is typically a printed certificate giving the bearer a stated price reduction or special value on a specific product, generally for a specific period. Various company issue various kind of coupon that contain various discount price , customer get the advantage of this discount and get chips at free of cost.


There are various kind of offers given by various chips industry. For example buy 2 chips and get 1 free. or buy 3 and pay for 2. That types of schemes provided by the chips industries.


sometime various companies like Lays, kurkure etc. offer some gift inside the chips packet or at bargain price to encourage customer buying.


Some companies when launch a new taste of chips in the market, before the launching, sample of chips is to be taste in the market. If that sample is being liked by the peoples then it launch in the market.

Advertising Specialities:

Advertising specialities also call a promotional product. It mostly given to our loyal customers. It includes various card like birthday card, New Year card. It is mostly done to retain old customer. And this cards is provide to retailers for the customers.

Trade sale promotion tool:

Objectives of Trade Sales Promotion:

  • Gain/maintain distribution
  • Influence resellers to promote product
  • Influence resellers to offer price discount
  • Increase reseller inventory
  • Defend against competitors
  • Avoid reduction of normal prices

There are various sale promotion tools that stimulate trade to promote company product. There are a lot of trade sale promotion tools some are as discussed below:

Trade Allowances:

Trade allowances are short-term special allowances, discounts, or deals granted to resellers to stimulate reseller to rapid purchase of their product.

Point-of-Purchase Display:

Point-of-purchase displays are generally used at the retail level to call customer attention to a featured product. In this company employees observe every retail shop and those retail shop that display more company product will be winner of special gift or prizes.

Trade Shows:

A trade show is periodic, semi periodic public event at which supplier displays their chips product and provides information about chips quality and price to buyers.

After implementing these different techniques of sale promotion we monitor result and evaluate these by comparing with objective set before implementation of plan.

Public relation

Public relation is nothing but creating a favorable relation for organization and product which is done through used of various communication channel and tool. So public relation is mostly done to improve the image of company and build good image in customers mind.

So public relation may be define as “Public Relations is a set of management, supervisory, and technical functions that foster an organization’s ability to strategically listen to, appreciate, and respond to those persons whose mutually beneficial relationships with the organization are necessary if it is to achieve its missions and values.”


like other aspect of marketing, public relation is also used to address several broad aspect of marketing like:

  • Building Product Awareness – When introducing a new product or relaunching an existing product, marketers can use a PR element that generates consumer attention and awareness through media placements and special events.
    • Creating Interest: Public Relation create public interest to used the product at least for once time.
    • Providing Information: Through the Public relation we can provide a lot of information about company activity and their product feature and service provided by company. This information is delivered to public through newspaper, article website, collateral material; PR helps in delivering information that helps to public in understanding the product feature.
  • Stimulating Demand: A positive article in a newspaper, on TV, news show or mentioned on the Internet, often results in a discernable increase in product sales.
    • Reinforcing the Brand: In many companies like lays, kurkure company the public relations function is also involved with brand reinforcement by maintaining positive relationships with key audiences, and thereby aiding in building a strong image.

Direct Marketing

Direct marketing is business of selling company product directly to customers through mail order, telephone, fax, e-mails, or web selling, rather than through retailers.


There are mostly to objective for which direct marketing is carried out these are as follow:

  • Convert not user to user. It is mostly done to obtain new client. The identification of new potential clients is very crucial when it comes to recruit new prospects and transformed them into your clients.
  • The perpetual loyalty of customers. A loyal consumer cost less than new customers.


Various chips industry like Lays, kurkure involved in direct marketing to get more market share. These companies sent a mail-order catalog to approximately prospective customers.

100-page catalog, developed in-house, targets children’s, men and women and also contains 10 pages devoted to home products.

There are various tools for direct marketing these are as : Direct mail, Telemarketing, Email Marketing ,faxing, Voicemail, Couponing, Direct response television marketing.

Measuring and Evaluate the Planning process:

Reason for measuring IMC performance:

There are various reason, due to which it became more necessary to measure performance of IMC. These reasons are as follow:

  • Since a lot of money is required for advertisement and promotion and other marketing activity. So it became necessary to evaluate whether such invest generate any return or not.
  • After measuring the performance it became able to understand where I am. So it help in choosing the most effective alternative.
  • We carried out IMC performance evaluation to eliminate unproductive strategy.
  • It also helps in estimating whether objectives are achieved or not.

Evaluation of IMC planning process:

Evaluation of an IMC plan is not easy because often communications effects are difficult to measure. At times they may not even have a direct impact on sales or profitability; effects may be delayed, etc. Therefore it is important to set the objective or “standards for measuring performance” in specific, measurable terms to make the evaluation possible.

After doing all these now its time to evaluate the performance, the performance is satisfactory as they have imagined because its quit difficult to enter into the chips industry but after this they have achieved their objectives and satisfy their customer by providing the new taste with reasonable price, different flavors, and ingredients. Manager has to measure the actual performance either through consumer surveys or sales figure.

  • Sales have been increasing day by day.
  • Their market share also increased.
  • Brand image is increasing because their strategies are up to the mark so they got success to satisfy their customer towards their new product

Manager got to know these outcomes by comparing actual performance with set standards of new product. These steps also helped out to take further decision or plans.


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