Monday, 23 January 2012

Lays launches its baked chips in India



"Get Healthy",  Seems to be the new year's resolution for even Frito lay. The launch of Lays baked lends credence to the statement. Lays has launched its baked chips in India sensing the growing concern for health among the consumers. The company claims that the baked version is having 50% less fat compared to regular fried offering. The baked variety has been for now launched in three flavors viz. original salted, cream herb and onion and sunkissed tomato ( I would try the sunkissed one first, the name interests me). The price also commensurates the added benefit. While the existing assortment is available within a bracket of rs.5 to rs.20, the baked avatar would be available in two prices, rs.15 and rs.30. The company says they are targeting health conscious women with this launch. They are playing circumspectly, since the product has been launched so far only in urban areas. It would be interesting to see how they attempt to position the brand and how the target prospects actually perceive it. A possible SWOT analysis from my side-

Strenghts
  • Lays brand equity.
  • Existing distribution network.
  • Cost leadership.
  • first mover advantage (if things work out)
  • Their awe inspiring market experience.
  • And of course the funds to execute the strategy. 




Weaknesses
  •  A snack is a snack! Health and snack  don't go hand in hand.
  • Premium Price.




Opportunity
  • The rising health consciousness among the people.
  • If things work out as planned ,then it can be launched in semi urban areas as well.





Threats
  • Other players like Bingo, Haldiram, Hippo et al might follow suit.
  • Bigwigs in the food industry are diversifying aggressively, like Horlicks entering the instant noodles market. They might mull over entering the chips market also.  


Frito lay has so far been incessant with the chips market, I wish them a HEALTHY luck for the journey ahead.

2 comments:

  1. i expected haldiram,bingo to follow the suit after the success of Aliva.
    it is interesting to see that Fritolays is pushing indegenously developed Aliva and Kurkure in US markets at the same time.
    it has been a year since Aliva has been launched and it is still available at selected places (believe me!!).i dont get the distribution dilemma that Fritolays has been facing given its Lays long established network. Am i being too optimistic about eating baked lays in Goa???

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  2. You might be right. But i have particularly noticed Aliva at most of the snack outlets since its launch in 2009. Aliva is available in our Sanquelim! And i Said they MIGHT follow suit. They might provide Baked in Goa but not all over the state. We can go to Panjim to review it though.

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