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Frito-Lay's Dips I. Introduction Frito-Lay, Inc. is a division of PepsiCo, Inc. which manufactures markets and sells a variety of corn chips, potato chips and other snack foods. In 1985, Frito-Lay captured about 33 percent of the salty snack food tonnage sold in the U.S. Frito-Lay's net sales in 1985 approached 3 billion. In the 1950s the first two dips introduced by Frito-Lay were Frito-Lay's Jalapeno Bean Dip and Enchilada Bean Dip. A Picante Sauce Dip was introduced in 1978 to complement the newly introduced Tositos tortilla chips. These three dips were the only Frito-Lay dips sold until 1983. In late 1986, Ben Ball, Marketing Director, and Ann Mirabito, Product Manager, had just finished the planning review for the line of dips sold by Frito-Lay, Inc. Frito-Lay's Dips were a highly profitable product line and had shown phenomenal sales growth in the past five years. Sales in 1985 were $87 million,...

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