Student Anaylsis on FritoLay's Dips Essay Example | Topics and Well Written Essays - 1250 words

Student Anaylsis on FritoLays Dips - Essay ExampleFrito-Lays capacity to realize this strategic prey is predicated on the companys ability to accurately identify the relevant strategic issues, understand the challenges to the realization of this goal, and analyze and evaluate its position. This report shall do just that, concluding with a set of recommendations.Frito Dips has been a major player in the salty snacks market with 33% market share. It is North Americas largest and most popular snack food manufacturer, and controls a good third of the salty-snack market. Its position in the dips market, however, is unstable. This is largely because of the reputation of its competitors, which include Borden and Kraft, not to mention several local companies who are also determinedly act to capitalize on the popularity of cease dips market. The fact is that the reputation of both Borden and Kraft in the cheese dip market function as an immediate bulwark to Frito-Lays capacity to realize its strategic objective vis--vis the cheese dips market.Considering Frito-Lays supremacy in the salty snacks market and its status as an untested brand in the cheese dips market, several questions impose themselves upon us. As the company has enjoyed a solid profitability base, the question that now arises is how to sustain profit levels in the dips category The major paradox lies in how to develop Frito Lays dips and capitalize on the new shelf stable sour flail based dip to maintain the high growth rate the company has achieved in recent years. Would the best future strategy be to pursue an aggressive promotion in the market for the chip-dip category which appears to be arrival saturation levels or develop the vegetable-dip category, which requires the development of new modes of marketing and foundation into a hitherto unfamiliar market Indeed, the question is whether or not entry into segments of the snack food market where Frito-Lay does not have the consumer-base its compe titors do and which already appear to be highly saturated is wise. If there are profits to be accrued and a market segment to be capitalized upon, should Frito-Lay, Inc. seek entry into the cheese or the vegetable dips markets Answers shall be provided in the form of recommendations, following a critical evaluative analysis of the market and Frito-Lays position therein.Analysis and evaluationThe popularity of dips in general, as accompaniments to snacks and vegetables has grown in recent years. The vast majority of sales, however, estimated at 80%, occur through supermarket outlets, in addition to which, 45% of available dips are of the shelf stable variety. Out of the total $650 million in one-year sales for all types and kinds of dips, the latter accounts for $185 million. Two-thirds of the available dips are the prepared, ready-to-serve, variety while the remainder is comprised of different kinds of dip mixes to be prepared at home. Sour cream based dips are most popular, accoun ting for 50% of total sales. The popularity of Mexican foods