Question 4 Sizing up a segment is important, as well as knowing your company’s share of...

Question 4 Sizing up a segment is important, as well as knowing your company’s share of the segment. This exercise looks at the Dips, segmented by product-type preferences and usage. The solution requires a quantitative analysis of the Dips market. The total market for dips is $620 million. Dips usage for chips accounts for 67% of the market, and the usage of dips for vegetables account for the remaining 33%. Sour cream dips account for 50% of the market; bean/picante is 10%; cheese is 25%; and, cream cheese is 15%. Consider that Frito-Lay’s sour cream dip has revenues of $220 million, 76% of which is used for chips, and sour cream dips make up 65% of Frito-Lay’s vegetable dip revenue. What is Frito-Lay’s share of the vegetable dip segment, and what is its share of the sour cream dip market.

A. 26% and 71% B. 40% and 71% C. 26% and 35% D. 46% and 35%

Expert Solution

Answer

A. 26% and 71%

Frito-Lay’s share of the vegetable dip segment = $205 million *(percentage )= dips for vegetable ( $53 million)

= 26 %

Frito-Lay’s share share of the sour cream dip market.=

Sour cream dips account for 50% of the market= = $620 million*(50/100)

= $310 million

Frito-Lay’s sour cream dip has revenues of $220 million=

= $220 million

Frito-Lay’s share in $310 million market = $310 million *(percentage )= $220 million

=70.96 %

= 71%

keosha answered 3 months ago

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