Frito Lay Inc. should commence the launching of the new product line by placing the recently developed sour-cream chip dip onto the market, but in the form of a vegetable dip. While the population becomes acquainted with the vegetable dips, the producer should have their research and development department investigate the needs and desires of the consumers. As such, they would be better able to enlarge the vegetable dip offer as to suit the taste of a wide customer palette.

Furthermore, they should pay increased attention to the appearance and packaging of the dips. It would be best if they sold the vegetable dips in shelf stable containers. Also, for the future, the research and development team could focus on developing a container that preserves the freshness of the vegetable dips even after they have been opened. This strategy would guarantee Frito Inc. A net advantage in comparison to their competitors, who currently only sell vegetable dips that require refrigeration.

Conclusions
Frito Lay Inc. successfully activates in the salty snacks and dip market segment. Their leading position is being threatened by numerous competitors and in order to increase their market share and revenues, the producer has to develop new strategies. Their current problem is revealed by the difficulty to choose one of two viable development strategies. The first alternative is to expand their chip dip product line and the second alternative is to launch a new product line, the vegetable dips.

Both alternatives present the board members with advantages as well as shortcomings, but the second one offers increased chances of success. This is generally due to an increased demand of vegetable dips and better possibilities of registering significant revenues from a new market segment.

Bibliography

Frito Lay's Dip Case Review

Frito Lay's Inc. Executive, Chip Dip Opportunity

Frito Lay's Inc., Vegetable Dip Opportunity