Inthey extended their dip product line to include several cheese-based dips, such as Mild Cheddar, Cheddar and Herb, Cheddar and Jalapeno, and Cheddar and Bacon.
Potential for the new sour cream-based dip to carry the same recognition as the cheese-based dip was likely to extend to various salty snacks, especially chips. The more products we have, the more acknowledgment we could receive, and the profits will highly increase.
Also their brand name will provide them extra benefits as they are already established and have people trust in them. The dip market has accelerated with new products and increased advertising.
People are moving towards vegetable dips because of health consciousness giving sour based cream dip to flourish its market. They already had made their reputation in salty snacks market so they can go ahead with it and they should aggressively advertise their new sour based shelf stable dip in chip dip category.
It is always wise to purse an ethnic audience attracted to the Mexican-style dips, as they make up a large amount of the product line. We can opt to produce a new product line consisting of vegetable dips.
Their marketing strategy, inthe company shifted promotion emphasis from retail-store buyers to consumer promotions through sampling, couponing and television and radio advertising to generate trial of new products. Even though people are becoming health conscious, I believe that a large portion of these snack foods have been and will continue to be eaten primarily by children and teens, but perhaps more refined flavors could be directed toward adults in the future.
They will be the pioneer of the produce market as well.
Their shelf stable innovation inFrito-Lay introduced the first sour cream-based, shelf-stable dip to be displayed with the rest of the product line in the salty snack section of supermarkets.
This category is more fragmented so less difficult to enter into it as no major competitors are there. The increased competition from firms like Campbell Soup and Lipton along with Borden Kraft and regional chip manufacturers began to pursue dip market with cheese and vegetable dip as well as dip mixes giving head to head competition in this segment.
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 Mexican dip lines.
As sour cream based dips are already more popular than cheese dips and generate more revenue. The new sour cream-based, shelf-stable vegetable dip would be displayed along-side the refrigerated dips and have little to no differentiation.
More than one, single flavor dip would need to be manufactured for it to take a place in the market, and product line extensions are costly, especially in unfamiliar territory due to research, development and promotion expenses.
Sour cream based dips are more popular than cheese dips in the vegetable 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.
With the upcoming budgets for 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.
By above points I think that they should not pursue vegetable dip market as instead entering into new territory with so much cost involved they can focus on their strengths and go for aggressive advertising and marketing campaign.
Till now no major competitor has promoted sour cream based shelf stable dip in the vegetable market. Discontinuance of Enchilada Bean Dip had an unexpected effect and instead of customers switching to another Mexican dip, they left the product line all together.
Should we categorize our dips only in the "chip and dip" category or should we actively pursue the "vegetable dip" category as well? Their Supermarket produce distribution: We switched our marketing strategy to consumer promotions insuch as product sampling and coupons to generate "trial" of new products that could raise awareness of our new products that we are offering that compliments are established line of salty snacks.
The average number of times shelf stable dips were purchased by households was four, and on pack coupon offers would encourage repeat sales. Nutritional value and salt content of dips are becoming concern of consumer these dips are likely to attract them more.
Cons of Entering vegetable dip market with sour cream:§ Frito-Lays were a highly profitable product line and had show phenomenal sales growth in the past five years. § Shelf-stable' dips can be displayed virtually anywhere in a supermarket. § Frito-Lay is a nationally recognized leader in the manufacture and marketing of salty snack foods.
§ In. A detailed study on Frito Lays. Frito_Lay. Frito Lays CaseSolution. Frito Lay Brand Case Study. Case 2 Frito-Lay Inc. Frito Lays SWOT Sunchips Snacks Case Analysis. Frito-Lay - Logistics Model. _ Frito Lay Assignment. Frito Lay's Brand Tracker. Case Study Frito Lay. Uploaded by.
Akanksha Shrivastava. Frito-Lay's Dips? How would you characterize the dip category in general?
Dips are a complementary product; they are served along with chips, crackers, or raw vegetables. Frito Lay Case Study 3 Prior to line until the introduction of the cheese dips in late After the introduction of the cheese dip line, Frito-lay began promoting all of their dips, but almost all of their marketing efforts were steered toward retail-store snack food buyers in the form of trade-oriented promotions.
In the emphases of marketing shifted from Trade Promotions to Consumer 80%(10). FRITO LAY CASE STUDY Factual Summary: Frito-Lay, Inc has been developing multigrain chips since the early s.
It is a worldwide leader in the manufacturing and marketing of snack chips. It is a worldwide leader in the manufacturing and marketing of snack chips.
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 Mexican dip lines.Download