Frito-Lays is a nationally recognized leader in the manufacture and marketing of salty snack foods with 33% market share in the U.S. Frito-Lay has a highly profitable dip product line with $87 million sales in 1985. Dips are most frequently used with salty snacks whereas account for 67% of total dip sales. Rest of dip sales (33%) are linked to vegetable usage. But the market for dips is highly fragmented and difficult to measure. In late 1986, management team of Frito-Lays wants to complete their planning review of whether they should continue to develop the chip dip market or pursue the vegetable dip market as well. I will analyze pros/cons of these two product lines and make a recommendation based on the analysis.

There were three dips sold by the company until 1983. During 1983 and 1984, there were a number of cheese-based dips introduced by the company. In 1986, company introduced its first sour cream-based, shelf-stable dip. All the dips were displayed in the salty snack......

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Title: Frito-Lay Dips
Approximate Word Count: 588
Approximate Pages: 3 (250 words per double-spaced page)

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