General Business : Identify elements of an Integrated Marketing

Subject: Business / General Business
Learning Objectives
Identify elements of an Integrated Marketing Communications (IMC) program.
Describe how these elements can generate revenues for an innovative, consumer packaged-goods product: Frito-Lay STAX potato crisps.
Assignment Introduction
In the past, organizations designed their advertising programs without consulting departments or agencies responsible for 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 activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all target audiences. At a 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 were young adults as their target market. Frito-Lay’s STAX promotional objectives were two-fold:

Create awareness.
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.

Assignment DirectionsPart 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

website 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 the promotional objectives previously laid out. Using the following matrix as a guide, be sure to describe in detail your recommendations for specific actions (e.g., advertisements, coupons, POP displays, etc.) and why you believe these actions will improve sales. 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 IMCIMC actionHow the action produces salesAdvertising Personal selling Public relations Sales promotions Direct marketing

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