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An IMC for Lay’s STAX
Learning Objectives.
To have students:
(1) suggest elements of an integrated marketing communications
(IMC) program and
(2) describe how these elements can generate revenues for an
innovative consumer packaged goods product—Frito-Lay STAX
potato crisps.
Nature of the Activity.
Have students identify integrated marketing communications
(IMC) program actions and potential results that Frito-Lay
might take to reach prospective buyers of its STAX potato
crisps.
Marketing Lesson
. An effective IMC program needs to target both retailers and
consumers with very specific (1) IMC actions and
(2) expectations of what the actions will achieve for each of the
five promotional activities—advertising, personal selling,
public relations, sales promotions, and direct marketing
In the past, organizations designed their advertising program
without consulting departments or agencies that had
responsibility for sales promotion or public relations. The

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result was an overall communication effort that was
uncoordinated and, in some cases, inconsistent. Today, savvy
marketers like Frito-Lay use an integrated marketing
communications (IMC) program to coordinate all promotional
activities—advertising, personal selling, sales promotion, public
relations, and direct marketing—to provide a consistent message
across all target audiences.
In August 2003, Frito-Lay launched its Lay’s STAX potato
crisps, which are stacked in a portable, resealable, crush-
resistant container. Initially, there were four flavors.
But by early 2010, there were six flavors sold in the U.S. At
the time of the new-product launch, Lay’s had $800 million in
sales within the $2.7 billion U.S. potato chip market. But, it
had no product to compete directly with Proctor & Gambles’
Pringles, which had a 60 percent share of the ‘pre-formed,
stacked, potato-chip-in-a-can market segment.
A truly complete IMC program will include communications
that are targeted at both distributors (jobbers) and retailers in
the channel of distribution as well as those targeted at ultimate
consumers. In fact, Frito-Lay developed a major IMC effort
directed at its retailers to encourage and support them in their
decision to stock and sell the new line of Frito-Lay’s STAX
potato crisps.
Funny Stax commercial:
https://www.youtube.com/watch?v=8zJyhz16NXM
Deliverables for Assignment

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Part I
. Identify ‘IMC Actions’—the middle column in the handout—
for an IMC program for the Frito-Lay STAX potato crisps using
the Frito-Lay’s STAX IMC Program Handout as a guide. As the
handout shows:
The target audience is the U.S. young adult premium snack
consumer.
The promotional objectives are to (1) generate awareness and
(2) achieve sales of the Frito-Lay’s STAX potato crisps by
reaching both retailers (grocery, mass merchandiser, and
convenience stores) and ultimate consumers.
Part II
. For each of the five actions of the IMC program you identify,
explain ‘How the Action Produces Sales’ for Frito-Lay—the
right-hand column in the handout.