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Essay heading: Frito Lay
 
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Issue: Business
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Date added: April 16, 2001
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No of pages / words: 3 / 583
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First, the competitive activity was not improving its position in the chip dip category. Second, Frito-Lay’s recent sales growth in dips was due to new products, and it was not clear that further product line extensions could produce continued growth. Third, the new sour cream dip represented a break with Mexican-style dips and cheese dips and was probably more suitable for vegetable dipping...
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Third, the new sour cream dip represented a break with Mexican-style dips and cheese dips and was probably more suitable for vegetable dipping. In vegetable dip opportunity, executives who voiced concern about focusing on the chip dip category also raised several points in favor of the vegetable dip opportunity...
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frito-Lay dips
Further, sour cream dips are the most popular flavor, accounting for about 50% of dip sales in the salty snack dip segment of the market. The gross margin on sour cream dip was 45 percent and it is a really cash cow product line...
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Frito-Lay's net sales for dips of over $87 million in 1985 amounted to a 290% increase in sales growth from 1981. This success leads the company to a major issue of how the company can be further developed...
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Because their sour cream-based dips are already their most popular, this implies that the new sour cream-based french onion dip may be complimentary to one of Frito-Lay's existing chip products...
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Case 1: Frito?Lay Dips
Also, Frito-Lay's had to look ahead not only for the competitors but the other product which might replace dips. Many consumers use salad dressing as a dip; actually 35% of refrigerated salad dressing volume is used for dips...
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