* Frito-Lay introduced the first sour cream-based, shelf-stable dip (1986) French onion flavor coupled with potato chips and used as a vegetable dip.
* 350,000 outlets nationwide to supermarkets, convenience stores, non-food outlets, small grocery stores, liquor stores, service stations “Front-door store delivery system” one employee performs sales and delivery.
* Consumer trial promotions via sampling, couponing and television and radio Pull strategy promotes dips using shelf placement and next to Frito-Lay snacks.
* The U.S. households eat salty snacks with dips Average number of households purchasing shelf-stable dips was four On-pack coupon offers encouraged repeat sales Increased competitive activity introduced 40 new Mexican-style cheese dips taking space Frito-Lay’s had not previously promoted chip dips.
* The advertising budget had been more than double expenditures and available
* The Vegetable dip category more fragmented and less difficult to enter with no major competitors.
* Frito-Lay dropped the Enchilada Bean dip from the Mexican dip line after falling sales
* Novelty of shelf-stable cheese dips has passed and competitive activity increased
* Decreased Frito-Lay’s Dip volume growth
* All dip in the U.S. is homemade and many consumers use refrigerated dips.
* Promoting sour cream-based, shelf-stable French onion dip primarily as a chip dip most sour cream dips complemented vegetables.
* New shelf-stable dip would be displayed along-side refrigerated dips with little to no differentiation.
* Vegetable dips have to “go-it-alone” unlike previous jointly promoted chips and dip campaigns. [continues]
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