Frito Lay and Chip Dip Opportunities Free Essay, Term Paper and Book Report
Frito Lay
SWOT Analysis
Strengths
* Major competitor in shelf-stable dips
o Sales nearly tripled between 1981-1985
o 1981: $30 million
o 1985: $87 million
* Introduced first shelf-stable, sour cream-based French onion dip in the nation
o 1986 sales for French onion dip expected to reach $10 million
* Leading salty snack provider
o Accounted for 33% of all salty snack sales in the U.S.
* Ideal location for product in retail outlets
o 67% of dip sales are for salty snack consumption
o 80% of dip sales are products found in salty snack section
o Frito brands complement one another, resulting in increased sales for salty snack and chip dip lines
* Recent diversification of product line
o Met "Mexican food phenomenon" by adding several cheese dips to line
o French onion dip
Weaknesses
* No actual growth forecasted for future chip dip sales
* Aggressive competition
o Kraft, Borden, Campbell Soup, Lipton and regional chip manufacturers
* Sour cream-based dips and mixes account for ½ of total dip sales
o Frito Lay only produces one sour cream-base......
Word Count: 641
Page Count: 2.5 (250 words a page / double spaced)
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