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Case Title:

Pringles– Combating the Launch of Lays Stax

Publication Month and Year : 2010

Authors: Mridu Verma

Industry: Food & Beverage Industry

Region:US

Case Code: MM0066

Teaching Note: Available

Structured Assignment: Available


OR





Abstract:
Pringles the global market leader in the ‘potato crisps’ category in the US is facing a new threat. In late 2003, Frito Lays has launched Lays Stax--a variety of potato crisps that closely resembles Pringles. Though people across the world are accustomed to the crunchy taste and the unique packaging of Pringles, Frito Lays, is offering an extensive range of flavours in the potato crisps segment. It also offers unique packaging and competitive pricing and enjoys a huge distribution network. Being a market leader in the potato chips market, Frito Lays is a formidable competitor.  How can Pringles maintain its market share in the face of stiff competition from Frito Lays?

The case can be used to teach competitive strategy, branding strategy and market strategy.

Pedagogical Objective:

  • Analyse the snack industry and the changing trends in the industry
  • Pringles’ strategy vis-à-vis other brands
  • Relationship between product differentiation, brand premium and pricing.

Keywords : potato chips; innovative packaging; premium branding; Competitive Strategies Case Study; pricing strategy; frito lays; impulse purchase; mini brands

Contents:

  • Potato Chip Market
  • Background
  • About Pringles
  • The Launch of Lays Stax
  • Product Comparison
  • LookingAhead

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