Frito-Lay’s first research objective was to
Multiple Choice
increase promotional spending on Lay’s.
determine the most effective advertising plan.
determine new pricing objectives.
The Correct Answer and Explanation is:
Correct Answer: determine the most effective advertising plan.
Explanation (300+ words):
Frito-Lay, a division of PepsiCo, is a leading snack food manufacturer in the United States. One of its most iconic brands is Lay’s potato chips, and like many consumer product companies, Frito-Lay frequently undertakes research to understand market trends, consumer preferences, and advertising effectiveness. The company’s first research objective, especially when launching or revamping a marketing campaign, typically centers around evaluating how to best position the product in the minds of consumers—this relates directly to determining the most effective advertising plan.
In the case of Lay’s, Frito-Lay wanted to understand how their brand was perceived and what kind of advertising would most successfully communicate their message. For instance, one of their past campaigns emphasized that Lay’s chips were made with “all-natural ingredients” like potatoes, oil, and salt. This shift required data to determine whether such a message would resonate with consumers. As a result, consumer perception research and advertising testing were essential to validate the direction before rolling out the campaign nationwide.
Rather than immediately increasing promotional spending or changing pricing strategies—both of which involve significant financial investment—Frito-Lay’s logical and efficient first step was to conduct research on the advertising approach. Effective advertising could then drive increased demand, which might later justify pricing changes or greater promotional budgets.
Determining the most effective advertising plan also aligns with integrated marketing communication (IMC) strategies, where companies ensure that all promotional tools and messages are carefully coordinated. By identifying which advertising approach—TV, digital, in-store displays, messaging tone, celebrity endorsements, etc.—had the most appeal to target consumers, Frito-Lay could better tailor its messaging to maximize return on investment (ROI).
In conclusion, the primary and most foundational research goal for Frito-Lay when considering a major campaign, particularly for a flagship product like Lay’s, is to determine the most effective advertising plan to reach and influence their target market.