Frito Lay Case Essay

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Frito-Lay Dips Case Study Gideon Matzkin Marketing Capstone Professor Laufer April 14, 2011 Strengths At the time of the case study, Frito-Lay dips had an advantage of being producer of prepared dips, a product type that captures two-thirds of the dip market. Also their dips are produced in metal canisters that eliminate the need for refrigeration creating a durable, long lasting good that can be displayed anywhere in the store relinquishing the need to be advertised strictly in the refrigerated section with other dairy goods. With the rise in popularity of Mexican good, the demand for cheese-based dips has also grown. In addition the company is a recognized leader in the snack food industry with many diverse products and brands, ranging from chips to nuts crackers, beef sticks, cookies and snack bars. Also, according Ann Mirabato cheese dips are “novel” and the “flavors innovative” and they had a strong location next to “salty snacks”. (137) In addition to their dips, Frito-Lay also had competing chips and other snacks such as Doritos and Fritos to couple with the dips and create easy marketing and advertising opportunities from within their customer base. This also lent the Frito-Lay name to the wide and stable product selection. Also, the marketing of the chip-dip combination has allowed Frito Lay introduce the bowl and platter which opens the eyes of consumers to see the ease of combining chips and dips. Opportunities Compounded with the fact that their dips are sold adjacent to the chip section in supermarkets, the increase in demand for these goods allows for more opportunity for growth in the Mexican food category to compete with already established producers in the market with jalapeno and salsa dips. The company also has an enormous net sales of $3 Billion, and lending their name to enhance their dip industry could be effective by
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