Market Segmentation - Lays Potato Chips

MARKET SEGMENTATION 1

Market Segmentation – Lays Potato Chips

Ralph Maurer

Capella University

MARKET SEGMENTATION 2

Market Segmentation – Lays Potato Chips

Introduction

Frito-Lay potato chips are the dominant heavy weight in the salty-snack market at large

and potato chips specifically. In the food category of top-selling, salty-snacks, potato chips were

the clear leader with twelve-month ending June, 2017, sales of $7.35 billion (bakeryandsnacks,

2017). Second in the list of salty-snacks are tortilla chips with same time-frame sales of $5.06

billion (bakeryandsnacks, 2017). Drilling specifically into the various brands of potato chips,

Lays dominates with sales of $2.18 billion as shown in Table One ((bakeryandsnacks, 2017).

Table 1 – Top Five Potato Chips for Twelve Months Ending June 2017

Rank

Brand

Owner

Sales

Market Share

1

Lays

Frito-Lay

$2.18 B

59.85%

2

Ruffles

Frito-Lay

$870 M

13.31%

3

Pringles

$713 M

10.91%

4

Frito-Lay

$518 M

7.93%

5

Private Label

$516 M

7.02%