Pringles: get to the crunch

Susanna Lee – Grey Hong Kong

BACKGROUND

The growth of salted snack category in China has been slowing down in the past five years. The average annualized market growth was less than 5%. Yet, the salted snack category in China is highly competitive in terms of price and promotion offerings.

Unlike developed markets of Pringles where the communication target is mom with kids, the core snack shoppers and consumers in China are single male and female between 18-24 years old and 90% of them consume potato chips at home.

Lay’s is the dominated market leader with over 18% value share among salty snack and around 70% value share in potato chips. Lay’s has been very successful in capturing the young generation by introducing more new product initiatives, featuring young celebrities in advertising, driving aggressive in-store promotions and offer price offs day in day out.