Swot Frito-Lay’s Dips

Frito-Lay’s Dips

Strengths

  * 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.

Opportunity

  * 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.

Weaknesses

  * 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

Threats

  * 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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