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Abstract

This is the third of a four-part case series. 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 (ie, 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. The teaching purpose is to introduce, as a managerial decision making framework, a funnel analysis of the consumer decision-making process. The managerial problem is to split a marketing budget between advertising and sales promotions. Two sets of additional teaching objectives can be included: (1) deciding when to use sales promotions, how to protect from their risks, and how to evaluate their success; and (2) applying various psychological concepts (eg, attention, memory, categorisation, just-noticeable-difference, causal attributions) to marketing and consumer analysis. Case (A) (5 pages) should be read at home prior to the course, cases (B1) to (C) are in-class material.
Location:
Size:
USD85 billion sales in nearly 200 countries
Other setting(s):
1996-1997

About

Abstract

This is the third of a four-part case series. 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 (ie, 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. The teaching purpose is to introduce, as a managerial decision making framework, a funnel analysis of the consumer decision-making process. The managerial problem is to split a marketing budget between advertising and sales promotions. Two sets of additional teaching objectives can be included: (1) deciding when to use sales promotions, how to protect from their risks, and how to evaluate their success; and (2) applying various psychological concepts (eg, attention, memory, categorisation, just-noticeable-difference, causal attributions) to marketing and consumer analysis. Case (A) (5 pages) should be read at home prior to the course, cases (B1) to (C) are in-class material.

Settings

Location:
Size:
USD85 billion sales in nearly 200 countries
Other setting(s):
1996-1997

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