To analyze the environment, I chose the following internal and external factors that I believe play an essential role:

Internal Factors External Factors

Sales effort Customer preference

The income statement that was shown on page 112 in the case shows that although Frito Lay's Mexican Dip has lower net sales, its overall profit contribution is higher in comparison to its Cheese Dip. In addition, dollar sales of Mexican Dips have gradually increased from 1981 to 1986 whereas Cheese Dip sale decreased from 1984 to 1985 and stayed constant the following year. This decline, according Product Manager, Ann Mirabito, was caused by three factors: 1) novelty of shelf-stable cheese dips passed; 2) increased competitive activity; 3) discontinuance of Enchilada Bean Dip.

Frito-Lay's distribution system covers the entire country and is organized into four geographical zones. Each zone has distribution centers that a

More aggressive marketing, however, would require higher marketing investment or at least a reallocation of funds, while simultaneously preserving gross margin and profits. Unfortunately, the odds of increasing the advertising and merchandising budgets beyond their current $4.73 million mark, are very slim.

Sour cream-based dips are the most popular flavor among consumers. More than half of total dip sales is credited to these prepared dips. Cheese-based dips are the second most popular. The popularity of Mexican food, including nachos, has fueled the growth of cheese-based dips in particular. New products and increase d marketing have also stimulated "trial and acceptance" if Mexican-style chips.

With the introduction of cheese dips in 1983, Frito-Lay began promoting dips with the focus of marketing and promotion geared toward retail-store snake food buyers. However, the gears shifted in 1985 to consumer promotions such as product sampling and coupons to generate "trial" of new products. In addition, Frito-Lay started incorporating television and radio into their marketing plans. This, mixed with increased industry activity, resulted in an increase in the forecasted levels of advertising and promotion. Increased competitive activity may have stemmed from the "complimentary" product placement as part of their promotion. Frito-Lay dips were promoted jointly with same brand salty

Some common words found in the essay are:
Dip Frito-Lay's, IV Choosing, Campbell Soup, Inc Companies, Frito-Lay Inc's, Ann Mirabito, Cheese Dip, Campbell's Lipton, Location Shelf, Mexican Dip, competitive activity, cheese-based dips, distribution system, 1984 1985, dip market, vegetable dip, vegetable dips, increased competitive activity, cheese dip, dip addition, cheese dips,
Approximate Word count = 945
Approximate Pages = 4 (250 words per page double spaced)