Frito lays Dip’s operated within the chips-dips segment till 1985, the retail sale amounted to $135 million, it commanded robust market share for “cheese Dips and Mexican-dips. Frito-Lay’s Dip’s introduced a shelf- stable dip within the “Sour-Cream Dips” Category to position its usage as a veggie dip for 1986, the sales was forcasted to be $10 million. It was associated with investment, costs, reallocations of programmed/ committed funds. It would be called for executive board stresses at the same time gross margin and profit must be stabilized. The financial analysis figured out the sales volume and market share required and the gap to be achieved the dips line to sustain the budgeted incremental expenditure.
Frito-Lay’s, Inc., distributes its product lines to 350,000 outlets nationwide consisting of supermarkets, convenience stores, non-food outlets, small grocery stores, liquor stores, service stations, and institutional customers; however, the majority of its products are sold through supermarkets. The company uses a “front-door store delivery system,” where one employee performs both the sales and delivery functions taking orders, unloading the product, stocking and arranging shelves and handling in-store merchandising. This system is well-suited for 270,000 of the company’s non-chained outlets serviced by Frito-Lay.
In 1985, the 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. Driven largely by placing cheese dips near salty snacks. In 1985, penetration flattened, indicating need for consumer-pull marketing.” It was then that dips were promoted jointly with Frito-Lay salty snacks as a complementary product, and an “association was made in promotion and in shelf placement”