In 1985, total dip’s market share = $620million Frito Lays market share = $135million/$620million = 21.77% Frito Lays dollar market share in the chip dips category = 135/420 = 32.14% There is no dollar market share for vegetable dips for Frito Lay’s in 1985. Further, calculation of Frito Lay’s market share in the four sub categories: Sour-cream based dips = 0% Cheese based dips = 48/87= 0.55* 135 = 74.4/$620million = 12.01% Bean/Picante dips = 39/87 = 0.44*135 = 60.51/$620million = 9.75% Cream cheese based dips = 0% SWOT ANALYSIS OF FRITO LAY DIPS STRENGTHS • Distribution and sales effort: Frito Lay distributes its product lines to 35000 outlets nationwide consisting of supermarkets, convenience stores ,non food outlets, small grocery stores, service stations etc, however majority of their sales are from supermarkets. The company uses a “front door store delivery system”. This system is used for the 270000 outlets. • Marketing: The company shifted promotion emphasis from retail store buyers to consumer promotions through coupon ,TV and radio advertising. The consumer penetration increased from 12% in 1983 to 20% in 1984. • Shelf Stable Innovation: Frito Lay introduced its first sour cream based dip .The introduction of French onion flavor is a valuable addition to company’s product line. WEAKNESSES • Reduction in consumers: Frito Lay ceased the enchilada bean dip from Mexican dip line after reduction in sales. The discontinuity of this dip had an effect of consumers shifting to other brand’s Mexican dip and they left the entire product line. • In 1985,household penetration flattened ,indicating a need in consumer pull marketing. OPPORTUNITIES • Chip Dip Promotion: Frito Lay could continue to develop the chip dip market by the aggressive promotion. Research indicates that 20% of the chips were currently eaten with dips and only 45% used dips. This provides a big opportunity to move further into chip dip ma