* A highly profitable product line and had phenomenal sales growth between 1981($30M) and 1985 ($87M).
* More than 80% of all dips are accounted for by supermarkets, with a total dip retail dollar sales volume of $620 million (in 1985).
* Major competitor in shelf stable dips.
* Virtually all of the growth in 1984 and 1985 was accounted for by cheese-based dips, which captured market share from other dip flavors.
* Dip competitors spent $58 million for consumer advertising in 1985. This is 25% higher than in 1984.
* Dip popularity increased in 1983.
* Products are shelved perfectly for better sales.
* Front door store delivery system.
* In 1985 consumer promotions began.
* Every year from 1983-1986, Frito Lay’s have almost double their advertising and merchandising expenditure.
Scenarios as per problems or opportunities:
* Where and How Frito Lay’s Dips could be developed further.
* Chip dip
* Vegetable dip
* Expense Budget and aggressive marketing are major concerns.
* Mexican food has fueled growth of cheese-based dips.
* 20% of all dip volume consumed by households is homemade.
* 35% of salad dressing is used in place of dips.
* Should Frito - lay’s brand name be used with the cheese dips. Finally they stayed with the brand name.
* Cheese dips showed huge sales in the introductory year.
* Frito Lay’s lost few customers as they discontinued Enchilade Bean dip. They believed that customers would change to Frito lays other Mexican dip.
* Decline of sales in 1985 was due to 3 factors. [continues]
Cite This Essay
(2011, 02). Frito Lay's Dip Case. StudyMode.com. Retrieved 02, 2011, from http://www.studymode.com/essays/Frito-Lay-s-Dip-Case-583558.html
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