References 7 Case Analysis of Frito-Lay Company Purpose and Overview The purpose of this analysis is to determine the most viable Internal Weaknesses to Overcome Internal weaknesses that we may need to overcome include: • Historically we have not promoted dips aggressively. • We may lose the potential for joint promotion with our other products (chips). • Our national distribution system may hinder us in our regional distribution attempts. • Added expense for the research, development, and promotion of additional flavors to extend this product line. Assumptions on Which the Strategies are based The assumptions on which my marketing strategy recommendations are based are as follows: • Pricing among competitors will remain at current levels. • New competitors will not be entering the industry. • We are willing to increase our R&D and promotional expenditures in the next two years. Marketing Strategies That Emerge from the SWOT I strongly recommend that we aggressively focus on expansion into the vegetable dip market by implementing a strategy of market-development with forward integration, which means we use our earnings to gain ownership or control over distributors and retailers which will allow us to set competitive barriers for our much smaller competitors. In addition, I recommend we further the development of a vegetable dip product line through diversification. We have a proven competency in our dip products and I believe we can rely on our marketing expertise and
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