Frito-Lay's Line of Dips

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