Frito-Lay’s Competitive Position in the Chip – dip category
A general preview of the chip-dip segment
67 percent of all dip sales accounted in the chip-dip category
Aggressive Competition in the dip market especially in 1984-85
Increase in Advertising expenses - in 1985 the market’s (excluding Frito-Lay) total advertising expense was 58 million dollars which was up 25 percent from the year before.
Frito – Lay’s offering in the market
2 types of Mexican dips as of 1984 (Jalapeno Bean dip and Picante Sauce Dip; Enchilada Bean dip was dropped in 1985)
A line of cheese dips introduced in the late 1983-early 1984
Sour cream based shelf-stable dip introduced in 1986
All the dips displayed in the salty snack section of supermarkets, where 80 percent of dip sales are made.
Frito-Lay’s well developed line of salty snack foods help the sale of the dips
Frito – Lay’s Position and Dip Marketing
Main player in the shelf-stable dip segment; in 1985 supermarket retail dollar sales volume was $135 million constituting about 73% in that segment.
Prior to 1984, Frito-Lay’s dips viewed as a non-promoted profit producer.
In 1985, consumer advertising and promotion was focused.
In 1986, budget increased by $2.3 million from last year.
Advertising and merchandising budget in 1987 not likely to increase from the budget of $4.73 million in 1986.
Increased competition in the dip industry
In 1984, Kraft added Mexican flavors to both its existing and new product lines.
In late 1985, Kraft entered the shelf-stable market with 2 types of nacho-dips.
In 1985, Campbell Soup launched a nacho soup/d ...