Pringles the global market leader in the ‘potato crisps’ category in the US is facing a new threat. In late 2003, Frito Lays has launched Lays Stax–a variety of potato crisps that closely resembles Pringles. Though people across the world are accustomed to the crunchy taste and the unique packaging of Pringles, Frito Lays, is offering an extensive range of flavours in the potato crisps segment. It also offers unique packaging and competitive pricing and enjoys a huge distribution network. Being a market leader in the potato chips market, Frito Lays is a formidable competitor. How can Pringles maintain its market share in the face of stiff competition from Frito Lays?
The case can be used to teach competitive strategy, branding strategy and market strategy.