Case Analysis of Frito Lay

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Case Analysis of Frito-Lay

MKT610: Marketing Strategies

Jane Student

Davenport University

Terry O’Connor, Ph.D.

June 15, 2010

Table of Contents

Purpose and Overview3

Analysis of Our Past and Current Situations3

External Opportunities We Could Exploit4

External Threats That May Impeded Success4

Internal Strengths on Which to Capitalize4

Internal Weaknesses to Overcome4

Assumptions on Which the Strategies are Based5

Marketing Strategies That Emerge from the SWOT5

Summary and Request for Action5

Case Analysis of Frito-Lay Company
Purpose and Overview
The purpose of this analysis is to determine the most viable marketing opportunity for the Frito-Lay’s Dips product line. Frito-Lay can continue to develop the chip dip market, or as I will recommend, a strategy to spur a foray into the vegetable dip market with our new sour cream-based dip. This analysis contains external opportunities and threats, internal strengths and weaknesses, and assumptions. These strengths, weaknesses, opportunities, and threats (SWOT) serve as the foundation for which my marketing strategy recommendations will be based. Analysis of Our Past and Current Situations

Frito-Lay is a nationally recognized leader in the marketing and manufacturing of salty snack foods (Kerin, Peterson, pg. 121). In the 1950’s our company began marketing dips to complement our products in the chip market. Throughout the 1980’s the dip product line has shown slow, but consistent growth and has proven to be a highly profitable product line. This is very apparent in our sales growth for the period of 1981-1985 in which our sales nearly tripled from $30 million in 1981 to $87 million in 1985 (Kerin, Peterson, pg. 118). We have also boosted our market share from 38 percent to 55 percent (Greenwald, 1996). Undeniably we have a strong foothold in the chip dip market on which we...
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