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Essay's paper info
| Topic: |
Business
|
| Number of pages / Number of words: |
4 / 1062 |
Essay's paper body
Since dips are most frequently used with salty snacks, such as potato ships and corn chips, Frito-Lay's distinctive competency is the distribution and location near the salty snacks.
? What sales volume and market share(s) will be required of the dip line to preserve its profit contribution given budgeted promotion expenses?
Sales in 1985
Profit contribution in 1985
Total fixed costs in 1986
Advertising and merchandising
General and administrative overhead costs = $
=
= $
= $
= $ 87,336,000
10...
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households used dips (1985) whereas 97% used salty snacks.
+ The chip dip is the larger segment (67%).
+ The frequency of shelf-stable dips purchases can be increased through promotion.
+ Increased competitive activity; a lot of new styles of dips had been introduced since 1983.
+ Frito-Lay didn't aggressively promote their dips yet...
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