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Innovative promotions lead to award-winning performance for Frito-Lay

DKSH’s innovative marketing strategies and effective promotional activities gives Frito-Lay an award-winning performance in Hong Kong.

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Business Units

Consumer Goods

Business Lines

Fast Moving Consumer Goods

Services

Distribution and logistics, Marketing and sales

Markets

Hong Kong

Frito-Lay is a member of PepsiCo International, a world leader in convenient snacks, foods and beverages with revenues of over USD 60 billion and more than 285,000 employees. The popular brands managed by Frito-Lay include Fritos, Cheetos, Doritos, Lay's and Ruffles.

Innovative promotions lead to award-winning performance for Frito-Lay

Challenge

The snack food market in Hong Kong is a very competitive category. Coupled with the, at that time, weak economy meaning that people were spending their money on necessities first; the challenge faced by Frito-Lay was to stay ahead in this very competitive market.

In addition, Frito-Lay’s product range in Hong Kong was also limited by US export requirements. The presence of parallel import products within the market was also a concern for the snack food manufacturer.

Approach

To capture consumers’ attention, we introduced new thematic promotion packs for Frito-Lay’s snacks, including collaboration with movie titles such as the Avengers, Batman and Superman.

We also stepped up on product and brand display activities to help drive sales during festive seasons like Christmas and Chinese New Year and in conjunction with major sports events such as the Olympics and European Cup football competitions.

To drive interest from more consumers, we tirelessly drove in-store execution and helped Frito-Lay introduce new packaging choices including mid-sized packaging. We also actively persuaded retailers to stop carrying parallel imports of Frito-Lay’s products.

Result

Over the last ten years, while the overall growth of the snack food market in Hong Kong was flat, Frito-Lay recorded double-digit growth, outperforming the overall market.

The brand’s local market share also moved up a notch to number two, while its sister-brand, Doritos, emerged top in the corn chips segment. Another achievement was the successful reduction in the presence of parallel imports of Frito-Lay’s products.

Frito-Lay has captured numerous trade awards such as the 7-11 Top Brand Campaign Award for six consecutive years and the Wellcome Favorite Brand Award for three years running.

Despite the unprecedented disturbances including fierce competition and a weak economy, DKSH’s team hung on and helped us make it through those challenging times. The various awards received proved that the hard work and effort put in has paid off. DKSH has always been a passionate and committed partner for us.

Vill Lam, Commercial Manager of PepsiCo Hong Kong

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