Lays: Halal/haram crisis

Jami Moiz, Institute of Business Administration, Karachi
Nida Aslam Khan, Institute of Business Administration, Karachi

Abstract

The following case revolves around Frito Lays which is a highly popular Snack-food Company in various Muslim nations. One of Frito Lays biggest brands, Lays Potato Chips, is a major competitor in the Pakistani Snack foods market. However in 2009, Lays faced a major controversy when it was targeted with a campaign saying that an ingredient found in the manufacturing is Haram (prohibited for Muslims).This claim proved to be disastrous from Lays as it meant a loss in the consumer base as well as a dent onto the Brand's image amongst its wide base of Muslim consumers. The case further goes on to explain the background, the controversy as well as the strategy, Lays' Brand Managers formulated in order to deal with this dilemma in a fashion that was both tactful and strategic in nature. Key lessons to be extracted from this case study for brands dealing with consumer goods are that Pakistani companies need to:  Chalk out a PR strategy/system to prevent the assortments of media from defaming brands and their respective products. Have a system in place where edible consumer items are validated and certified as Halal (Allowed for Muslims) as this would guarantee absolutely no 'Brand-Assassination'. Have in place an effective and efficient Public Relations Department which can strategically handle and consequently resolve controversies similar to the one that Lays faced in 2009.