How would you characterize the dip category in general? Dips are complementary products that go well with salty snacks like chips and crackers or with raw vegetables. Dips have become very popular in the mid 80s mainly due to the convenience of use and snacking habits of the Americans. Supermarkets account of about 80% of the total retail sales in the dip category. The Supermarket retail sale of dips in 1985 was estimated at $620 million. The retail sales have been increasing at a steady rate of 10% every year. The total units sold per year were however constant and the sales growth was mainly due to price increases. The growth in this category was entirely in Cheese based dips category mainly due to growing popularity of Mexican food such as nachos. Years 1984 and 1985 saw an increased level of competition in the dip category. The reasons are two fold. 1) Existing players in the market introduced new flavors of dip in addition to increased investment in advertising activities. 2) Financially strong......

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