Which are sold in the freezer section of supermarkets

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Delicioso foods produces frozen dinners, which are sold in the freezer section of supermarkets in the U.S. Delicioso is positioned as a high quality brand of frozen Tex-Mex dinners, and prices it's brands accordingly (i.e. higher than competing brands). Over the years, sales have increased steadily and the company has been very profitable. Things were going well until recently, when two rival brands lowered their prices. Delicioso Foods has lost market share, and its profits are decreasing. In order to regain market share, some executives at Delicioso suggested that they lower their prices. Others have argued, instead, that they should spend more money on advertising. Before making a decision, what underlying key factor(s) should the folks at Delicioso Foods first consider? Discuss and explain.

Reference no: EM131192834

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