Frito

Problem Statement

We are currently faced with the dilemma of how to market or Frito-lay's line of dips. Should we categorize our dips only in the 'chip and dip' category or should we actively pursue the 'vegetable dip' category as well? With the significant raise in sales growth from 1981- 1985 with an increase of $57 million dollars, it is obvious that the Frito-Lay's Dips are a highly profitable product line. With the upcoming budgets for 1986 for both sales and advertising media, we are troubled with the possibilities for our company to misrepresent our product and potentially lose revenue if we make the mistake of not furthering the development of the vegetable dip market. Moreover, at this particular time, it is crucial that we truly identify a well thought out plan and execute it efficiently to the best of our ability. By deciphering between which market will have the most promising benefits to our company.

Analysis

Frito-Lay is given the opportunity to profit from their most recent powerful position in the dip market by expanding their product line to include vegetable dips that will harmonize their successful cheese and Mexican dip lines. With the accurate launch and positioning, Frito-Lay, Inc. could penetrate and venture into a large and undefined, yet extremely feasible, vegetable dip market. We can opt to produce a new product line consisting of vegetable dips. The more products we have, the more acknowledgment we could receive, and the profits will highly increase.

We switched our marketing strategy to consumer promotions in 1985, such as product sampling and coupons to generate "trial" of new products that could raise awareness of our new products that we are offering that compliments are established line of salty snacks. They have already developed an understanding for the industry as well as the technological