Frito-Lays Dips

Atrium Echo

1. How would you characterize the dip category in general? Discuss both qualitative and quantitative aspects of this market.



Dip has become increasingly popular in recent years due to its convenience and "grazing" trends in the United States. The dip category in general is substantially fragmented and hard to measure, but 80% of dip sales are made through supermarkets, estimating $620 million in 1985. Out of this dollar volume, two-thirds was accounted for by prepared dips and the rest for home-made dips. Approximately 45% of prepared dips were "shelf-stable," meaning that refrigeration wasn't required. Frito-Lay's was the major competitor in the shelf-stable dips. The other 55% of prepared dips required refrigeration. According to industry research, there has been a 10% growth rate in the dip market but this growth is mainly due to inflation.

Since sour cream-based dips are the most popular flavor, it......

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Title: Frito
Approximate Word Count: 2913
Approximate Pages: 12 (250 words per double-spaced page)

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