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Lay's Potato Chips in Hungary (B1): Promotion Activity and Results

Published 01 Jul 2006
Reference 5334
Topic Marketing
Region Europe
Summary

Lay's was a second mover when it introduced its potato chips to rapidly evolving post-communist Hungary. By inserting cash into its potato chip bags, Lay's increased sales dramatically and permanently (i.e., also post-promotion). In contrast, after withdrawing a second "Money in the Bag" promotion, sales fell. Students prepare case A (5 pages) at home. Three in-class cases and a teaching note provide analysis and managerial implications.

Keywords
  • Advertising and sales promotions
  • Consumer behaviour
  • Allocating a marketing budget
  • Funnel analysis
  • Hierarchy of effects models
  • Setting communications goals
  • Consumer decision making process
  • Consumer memory and choice