Synopsis of the Situation:
In the mid 1980s the dips industry was a very profitable growing industry. The total dip sales through supermarkets in 1985 were $620 million (construct 80 % of the total dip sales), which encourage some of the main food companies to seriously pursue introducing a line of dips in their products line. Frito-Lay's was the major competitor in shelf-stable dips with $135 million in sales. The total shelf-stable dips sales in 1985 were $185 millions. Since 1981 Frito-Lay's had been enjoying profits and growth in sales. However, 1985 did not witness a growth in Frito-Lay's dips sales. Frito-Lay's Marketing director was faced with 2 options to develop their dips line, either focus only on the bigger market and expand their existing market in the "chip dip" category, or pursued the "vegetable dip" category.
Key Issues:
The dip market during that period was a very attractive market, which attract competition to enter and try to compete in that market. New......

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Title: Case 1: Frito‐Lay Dips
Approximate Word Count: 767
Approximate Pages: 4 (250 words per double-spaced page)

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