Thursday, September 12, 2013

Creating Customer Value


Lay’s is a potato chips brands which is a commercial product developed to quench a short term   hunger. A large number of   consumers of this product ranges from kids to  young professionals whose age group varies from 5 – 30 . Since the total population of the consumer is huge, the brand had the duty to come up with innovative projects to reach all the consumers in the market and sustain for a long period of time.
Lay’s always focuses on customer tastes and preference in the flavours as the main objective of the company. The brand focuses on the customer value and satisfaction in buying the product. The major aspects that add to the value of lays are :-

  •  Taste and Quality of the product. 
  •  Variety of  Flavours. 
  • Make the product available to everyone in the market due to strong distribution Channel.   
  •  Available in different forms of preparation (Eg. Lay’s Baked, Lay’s Stax).
  •  Attractive Packing of the product making the consumers to buy the product.  International Brand image.

Customer Perceived Value :
            Customer Perceived Value is the difference between the total benefits earned by the customer to the total cost.   



Total Customer Benefit :      
            The Total Customer benefit Includes
  •  Product benefit - Availability of different kinds of flavours like American cream And Onion, Tangy Tomato, Hot and sweet Chilli etc.
  •  Services Benefit - offers such as 25 % extra on 20 Rs. Pack which adds more chips to the pack.
  •  Personnel Benefit- Used as a tea time snack and uses brand ambassadors like Saif Ali Khan, M.S Dhoni etc.
  • Image Benefit – Lays is a very old international brand that gives the value to the customer.

Total Customer Cost :
            The Total Customer cost includes
  •  Monetary Cost- Cost paid for the product like Rs.5, 10, 20 etc.
  •  Time Cost- Lay’s is available anywhere around within 1km for urban areas . In case  of rural areas people need to travel a little farther.
  •  Energy Cost-  Since lay’s are easily available in any mom and pop stores energy pent  in acquiring the product is minimal.
  •  Psychological Cost -  Since Lay’s is a FCMG product, there is no psychological cost  involved 









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