Assignment Introduction

In the past, organizations designed their advertising programs without consulting departments or agencies responsiblefor sales promotion or public relations. The result was an uncoordinated and, in some cases, inconsistent overall communication effort. Today, savvy marketers like Frito-Lay use an IMC program to coordinate all promotional activitiesadvertising, personal selling, sales promotion, public relations, and direct marketingto provide a consistent message across all target audiences. Ata new-product launch, a truly complete IMC program includes communications targeted at both distributors (jobbers) and retailers in the channel of distribution as well as those targeted at ultimate consumers.

Case Analysis

Lay's had $800 million in sales within the $2.7 billion U.S. potato chip market. But, it had no product to compete directly with Procter & Gamble's Pringles, which had a 60% share of the "pre-formed, stacked, potato-chip-in-a-can" market segment.

In August 2003, Frito-Lay launched its Lay's STAX potato crisps, which are stacked in a portable, resealable, crush-resistant container.

Frito-Lay identified premium snack consumers in the United States who wereyoung adults as their target market. Frito-Lay's STAX promotional objectives were two-fold:

1. Create awareness.
2. Achieve sales by reaching both retailers, and ultimately, consumers.

Frito-Lay developed a major IMC effort directed at its retailers to encourage and support them in their decision to stock and sell the new line of Frito-Lay's STAX potato crisps. At product launch, there were four flavors. However, by early 2010, there were six flavors sold in the United States. In 2017, there are 13 flavors of STAX chips. As the product moves through the product life cycle, the goals (inform, persuade, remind and connect) should change as well as the the integrated marketing campaign.

Assignment Directions

Part 1

Building upon the background you just read, conduct additional research, which should include Frito-Lay, Frito-Lay's STAX potato crisps, marketing campaigns conducted by Frito Lay, as well as IMC programs. Visiting the Frito-Laywebsite may be a good place to begin your research.

Part 2

Based upon the synthesis of your research, please develop an IMC program for the Frito-Lay STAX potato crisps that addresses where the product currently is on the Product Life Cycle. Using the following matrix as a guide, be sure to describe in detail your "BIG IDEA" ( see Olive Garden's Never Ending Pasta Pass for inspiration) and recommendations for specific actions (e.g., advertisements, coupons, POP displays, etc.) and why you believe these actions will help you reach your IMC objective. Be sure to explain how these work as part of an IMC program and not as stand-alone elements. What is the cohesive message you are trying to portray?

Elements of the IMC	IMC action	How the action produces sales
Advertising
Personal selling
Public relations
Sales promotions
Direct marketing