Frito-Lay's Dips

• How would you characterize the dip category in general?

Dips are a complementary product; they are served along with chips, crackers, or raw vegetables. The market for dips is highly fragmented and difficult to measure. More than 80% of all dips are accounted for by supermarkets, with a total dip retail dollar sales volume of $620 million (in 1985).

The dip category became more popular in late 1983 and early 1984, an explanation for this increase is the growing popularity of Mexican food, including nachos, which stimulated the trial and acceptance of Mexican-style dips. Even though the market for dips is large, it is estimated that about 20% of all dip volume consumed by households in the U.S. is homemade. Also many consumers use refrigerated salad dressings for dips, especially for vegetables, which can be considered the main dip substitute.

• How might the dip category be segmented?

The main segments in the dip market are the "chip dip"......

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Title: Frito Lays Dips Case
Approximate Word Count: 997
Approximate Pages: 4 (250 words per double-spaced page)

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