help frito-lay maintain their lead in the chip category
identify different kinds of chip eaters and get to know them
market to each of the 5 different segments through recommended messaging
the strategic thinking
re-evaluate frito-lay’s chip market segments to help maintain the lead in the consumer chip category.
frito-lay currently dominates the chip category, and the category itself is thriving too. nearly nine in ten adults in the us have reported at least one purchase of chips in the past three months.
solid growth in the market is driven by the increasing prevalence of snacking, a steady stream of new flavors, and the category’s status as a permissible indulgence. frito-Lay’s current portfolio offers a variety of chips appealing to an array of preferences.
however, due to people becoming more and more concerned with the health implications of what they consume, and the growing popularity of “healthy” or “craft” style chip brands, frito-lay faces a growing threat they need to address to ensure they maintain their domination.
we conducted several different types of research including social listening & secondary research (Mintel, IBISWorld, etc.), in-depth interviews, man-on-the-street interviews, and used this along with existing market research to guide our segmentation survey (behavioral, values-based questions with agree/disagree Likert scale questions).
through the results of our research, we were able to define five distinct segments of consumers in the chip market that could help frito-lay determine their communication strategies and advertising campaigns moving forward.
we identified five chip segments
recommendation #1: up the crunch!
release an extra-crunchy version of the classics people love
target: texture cravers
offer extra crunchy doritos, ruffles, and lays
similar to the ruffles mega crunch found in the mexican market, but using classic flavors
recommendation #2: embrace comfort
launch a campaign that embraces couch-sitting, comfort-seeking indulgence
target: comfort seekers
target media buy to viewing platforms that enable binge-watching, such as hulu, amazon prime, youtube, and espn+
consider spokespeople to portray unexpected comfort eaters
recommendation #3: travel with flavors
travel with lay’s matched to the seasons
target: flavor adventurers
salted cucumber from russia in the summer
baked chicken with thyme from romania in the fall
winter onion from poland in the winter
green tea from china in the spring
recommendation #4: refresh healthy offerings
innovate new products to appeal to a wider range of health-conscious consumers
target: chip skeptics
expand simply line to include different cooking oils for dietary preferences and restrictions
expand dip offerings to include healthy, fresher options like hummus and veggie dips
rebrand baked as lower calorie chips versus low fat
recommendation #5: appeal to gourmet connoisseurs
buy small scale gourmet brands like route 11
target: chip socialites
similar to how big beer companies are acquiring local breweries
maintain independent branding, messaging, etc.
captures a different type of chip consumer
oh, that's cool!
when your fresh bag of potato chips has more air than crunchy goodness, don't be alarmed. bags are actually filled with nitrogen that prevents the chips from oxidizing or turning stale.