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Southern New Hampshire University: Student Signature Date
Southern New Hampshire University: Student Signature Date
Student Signature
FRITO-LAYS DIPS
First of all; before expressing my opinion on the best alternative for Frito Lays
Dips case, I would like to discuss all mentioned alternatives in the class.
Let me start by evaluating my alternatives (solutions) with their pros and cons.
My first alternative for Frito Lays Dips case was reserving leadership in chip dip
market while at the same time focusing on vegetable dip market. I did come up with this
alternative; because after doing a lot of outside research, I did learn that Frito Lays
company had strong distribution channels, was very good at information technology
systems like the hand held computers and finally was efficient at using the data
(resources : instant-essays.com, line56.com, speedofheat.com). As a result; I thought that
by using these strengths, Frito could easily reserve its leadership in the chip dip market.
Pros for this alternative were more profits and the advantage of being the first-in
company to dominate vegetable dip market. Cons were additional expenses and risks.
Also, concentration on the chip dip market would lower. Then; my other alternative was
creating really innovative dips for vegetable dip market. Because; after doing an
outside research on innovative products of Frito Company, I did learn that the company
was also advantageous here. For instance; Lays new Stax chips is now having great
battle with P&Gs Pringles chips. My outside research showed me that Lays Stax chips
was off to a very good start and was stealing the market share of Pringles. Additionally;
referring to my outside research, Lays new chips for Hispanic consumers were also very
innovative products bringing good profits (resources: vendingbiz.biz, Wall Street Journal
October 8, 2003, Shapiro Library Exp. Academic Database December 2003, Exp.
Academic ASAP Database October 2003). Pros for this alternative were that; vegetable
dip project would be much more easier which could lead to very high profits. On the
other hand; cons were manufacturing, advertising and research expenses. Also; demand
to new dips was not guaranteed. My next alternative was considering the long-run
success with vegetable dip market. Because; again according to my outside research, I
did learn that nutrition concerns in U.S. was increasing going parallel with obesity. For
this alternative; my outside research proved that I was right. Because; I did learn that
Frito was currently producing organic and no trans-fat chips in accordance with FDA
ruling
and
increasing
consumer
product
awareness
(resources:
pepsico.com,
would require funds. My final alternative was producing new fat-free chips and telling
that Frito highly values health via advertisements. Pros for this alternative were that;
chip dip sales would go up, nutrition concerns for chips would lower and new image
would bring competitive advantage. Cons were that; advertisement costs would be high
and producing new dips would require time and financials.
In addition to my alternatives (your favorites were creating innovative dips for
vegetable dip market, taking necessary risks for vegetable dip market and doing a more
detailed marketing research and supermarket warehouses research); I think the class did
also come with very intelligent alternatives. One of the most creative alternatives was
producing new products like Taco Bell and Pizza Hut Dips. Another nice alternative
was producing dry formula dips (when dry formula is added to water, it becomes a
dip). Next, horizontal marketing idea was discussed as an alternative solution. Finally;
the class also thought that Frito could manage the dip marketing business with other
companies.
In conclusion; among all alternatives, I think the best one is creating innovative
dips for vegetable dip market. Because; as I told before, my outside research indicates
that Frito has a significant expertise here. Especially; if this alternative can be well
implemented; vegetable dips market will be owned immediately and much more easily
which will result in very high profits (as mentioned in pros). I know that manufacturing,
advertising and research expenses will be high (as mentioned in cons); but if we think of
the potential profits waiting there; this will be a clever sacrifice. Finally; Frito has no
other way, but to try. Demand waiting there can not be explored in any other way.