Marketing Analysis

Market Analysis

Bazaar Sauce A taste of tradition

MKT 304 Tuesday 4pm

Professor Heisley

Client: Bazaar Sauce

Group # 9

Eric Gonzalez,

Lindsey Michels,

Lance Lange,

Raika Bozorge Marashi,

Zhakeyah Walton

II

MARKET ANALYSIS - FEBRUARY 2015

Executive Summary:

As requested, team 9 has conducted the following report implementing marketing

strategies for Wanda Sauce. In addition to providing extensive research to develop an in depth

market analysis. Throughout the report, you will find our goals and projections for Wanda Sauce

to follow within the next few years. Since the name Wanda Sauce is already taken in the sauce

industry we proposed first changing the name to Bazaar sauce. Therefore, the Bazaar Sauce

brand will be referred to solely as Bazaar or Bazaar Sauce in the remainder of this report. The

name “Bazaar,” is an actual Persian word meaning “Middle eastern market.” The name brings

tradition and culture to ethnic sauces. Bazaar sauce was also chosen for its English meaning,

something that is bizarre is often unique and new. Bazaar Sauce offers a variety of flavors red

hot/mild sauce, white sauce, and green sauce. Altogether, a taste of ethnic tradition

complementing any dish. The potential customers we recommend Bazaar Sauce looking into are

small local ethnic supermarkets in the Los Angeles, Seattle, and San Francisco areas to attract

local customers.

The goal is to increase the market share starting January of 2016, and break even in

investments by the end of 2019. In order to achieving these goals, will mean Bazaar Sauce will

have to successfully sell their products through attending trade shows and local farmer markets,

creating self-awareness of their brand. Eventually reaching out to their local ethnic supermarkets

to be displayed in an eye-catching manner. To start we will advertise our sauces at local ethnic

supermarkets throughout the Los Angeles area. We will allow local restaurants to use our sauces

for name recognition and for consumers to be able to taste our sauces on different types of foods.

Not to mention, utilizing the environmental packaging and vibrant customized detailed food

pairing printing label will be a great beneficial factor for Bazaar Sauce to offer a personable

uniqueness for each flavor.

III


When considering our target consumers, we desire to have them notice Bazaar Sauces

purpose, bringing culture together to establish new unforgettable memories to families when

compared to our competitors. Through our recommendations Bazaar Sauce should have a long

product life cycle with the potential to grow each year. With the ethnic races constantly

increasing more in the US each year gives Bazaar Sauce a tremendous advantage.

IV


Table of Contents:

I. INTRODUCTION:................................................................................................................. 1

II. SITUATION ANALYSIS: ..................................................................................................... 1

A. COMPANY ANALYSIS: ............................................................................................................ 1

B. CUSTOMER ANALYSIS: ........................................................................................................... 2

C. INDUSTRY ANALYSIS: ............................................................................................................ 3

1. Competitive analysis: .................................................................................................................................................. 3

2. Environmental trends:................................................................................................................................................. 6

D. SWOT TABLE: ..................................................................................................................... 11

1. Opportunities: ................................................................................................................................................................ 11

2. Threats: .............................................................................................................................................................................. 12

III. MARKET-PRODUCT FOCUS & GOAL SETTING: .................................................. 14

A. SEGMENTATION, TARGET MARKETS, GROWTH STRATEGY AND VALUE PROPOSITION ........ 14

1. Market segmentation: ................................................................................................................................................ 14

2. Target market(s): ......................................................................................................................................................... 14

3. Market-product grid and growth strategy: ................................................................................................... 15

4. Value Proposition: ...................................................................................................................................................... 15

B. POSITIONING STRATEGY: ..................................................................................................... 16

C. SET MARKET AND PRODUCT GOALS: ................................................................................... 17

IV. CONCLUSION: ................................................................................................................ 19

V. REFERENCES: .................................................................................................................... 21

VI. APPENDIX:....................................................................................................................... 23

VII. TABLES AND FIGURES: ...................................................................................................................... 24

1


I. INTRODUCTION:

This market analysis is being provided by Team 9 regarding our client, Bazaar Sauce and

is intended for Professor Heisley of Marketing Management 304. Within this report, we will

consider many aspects of Bazaar Sauce brand and the industry it operates in with the primary

goal of its founders in mind, making Bazaar Sauce a national brand. It is Team nine’s privilege

to analyze the market, establish marketing objectives and suggest the best marketing strategies in

an effort to insure the success of Bazaar Sauce.

Bazaar Sauce is a blossomed seed that stems from warm memories of one family’s

grandmother. Generation after generation, this grandmother was loved by her family and

community for creating her special paste featuring hand selected tomatoes. Throughout their

lifetime, the aroma and atmosphere of the sauce making events stayed with the founders of

Bazaar Sauce as fond memories of food, family, health and love.

The founders of Bazaar sauce were inspired and set out to create these recipes as a means

to share joyful memories with everyone. In this report, we will examine the sauce industry to

determine which strategic path offers Bazaar the greatest chance at being a successful national

and eventually global brand. The success of Bazaar means people will be able to indulge in

warm thoughts of family and love while exploring exotic flavors.

II. SITUATION ANALYSIS:

A. Company Analysis:

Bazaar Sauce, Inc. is a startup food company located in Los Angeles offering a variety of

exotic traditional sauces/condiments. Bazaar Sauce’s products are a mixed culture recipe

consisting of Persian, Italian and Turkish ingredients to create the perfect sauces to complement

your food. Bazaar Sauce wants to be the consumers everything sauce, condiment, dip or spread.

2


Bazaar Sauce will be environment friendly packaged out of glass and offer to-go packets for the

consumer’s convenience at a low price of about $1.50 per ounce. The creators of Bazaar Sauce

are up against a huge and already developed industry, but the uniqueness of their sauce will

differentiate them from the rest of the market.

CEO, Dr. Ladan Behnia has previously formed and established successful businesses.

Partners, Mitra Pakdaman, Shirin Behnia and Pasha Shoari also have experience to help make

this business successful. For example, Mitra Pakdaman is the Co-Founder of “Georgia Honey

Farm”, an all-natural honey production and distribution company; Shirin Behnia is Vice

President of marketing at Mitratech; and Pasha Shoari has extensive experience and knowledge

in the food and retail industry. With all their experience they hope to bring their traditional sauce

that has been passed down and modified to perfection into market. Their vision is “to be the best

food company with the most traditional and quality taste possible” and value quality, tradition,

integrity, consumers and innovation.

B. Customer Analysis:

When the recession hit the US economy, it affected the sauce industry in a good way.

According to agr.gc.ca, between, 2007 and 2012, many people started to consume more food at

home instead of restaurants, which made them aim for higher quality and more premium sauces

to make better meals at their homes while keeping the costs lower than dining at restaurants. This

opened a new market for many new sauces; such as barbeque sauces, dressings, and many other

sauces as well, but they were usually presented in a more premium glass packaging’s, which

made them differ from the regular lower price sauces.

The demand for new sauces is increasing in today’s society. “The global condiments

sauces market has been segmented by seven types of condiments sauces such as chili/hot sauce,

brown sauce, national specialties, mustard sauce, other condiment sauces, tomato ketchup and

soy based sauces”(1). Bazaar Sauce fits well into the “other condiment sauces” category. The

3


interest for trying new foods, and taste preferences is one of the reasons, as well as the

consumers concerns regarding the health issues which increased the home cooking consumption.

Preparing different foods at the houses have also increased the demand for the sauces. The

consumers are looking for flavor food as well as high quality for their ingredients. We can for

example see that the Hispanic food culture has put its effect on American food culture, as well as

other food cultures have; Such as the Italian.

According to agr.gc.ca, the consumers in today’s society are looking for organic

ingredients, such as vegetarian or beans. There is also a high demand for kosher products

because of its reliability.

The consumers are looking for convenience, something that is time saving to cook with

in the kitchen, easy to handle, but also a packaging that is the perfect size for a single home

because this can be the opening market to the future households.

C. Industry Analysis:

1. Competitive analysis:

Consumers are experiencing dishes with new sauces and marinades. Bazaar Sauce is

entering a competitive market with Heinz in the lead, McILhenny Co.’s tabasco sauce, and

McCormick. The Market share leader, Heinz is the nation’s favorite sauce. We see Heinz

everywhere from the grocery store, to wholesale markets, and fast food to-go packing. Heinz was

founded on principles, and the first advocate of the pure food and corporate transparency.

Consumer’s main concern is the quality of the product they are purchasing. Therefore, Heinz

very first product, horseradish was packaged in a clear bottle for consumers to see that it

contained no fillers. This was a great move and immediately put Heinz apart from the

competition. This shows Heinz is paying close attention to their market’s needs. That

“unwavering focus on quality and goodness still drives our mission and our focus on innovation

(http://www.heinz.com/our-food/innovation.aspx)” is the Heinz way of life. Portraying to their

http://www.heinz.com/our-food/innovation.aspx

4


consumers, they are a brand that cares and wants to make a difference. Finding create ways to

connect, listen, and learn more about their consumers. Their target customers are families and

health conscious people. In addition, more than 70% of Heinz products can be classified in the

healthy category. Ingredients like trans-fat, salt, and sugar are being removed. Heinz says, their

value is, “A company that values people is a company people value.” As a matter of fact, they

like to maintain the highest standards of nutrition and natural goodness. Heinz most popular

products are Classico pasta sauce, Heinz Ketchup, and Lea & Perrins. These values Heinz holds

close to, and it displays a sense of culture. This allows them to control the quality of their

tomatoes from seed to store, improving the lives of farmers in the developing nations. Heinz has

produced a can that uses 13% less steel and saves 750,000 dollars annually. Heinz is known for

their eco-friendly packaging initiatives, elegant labels, and mason jars. Which, having a

sustainable agriculture, supply chain, micronutrient campaigns and inexpensive prices is what

makes them so beneficial. Heinz innovation, “We’re always cooking up something at Heinz

(http://www.heinz.com/our-food/innovation.aspx0).” Heinz communicates their value to their

consumers through their dedication to the continuous health of people, the planet, and their

company. However, through an intensive research, we have acknowledged a few weaknesses

Heinz possess. (1) The company manufacturing plants are located in the US, which depends all

on the economic environment. (2) Low or cheaper quality technology, which directly affects the

factors of production. (3) Shares in the market have decreased due to the need upon the

economic situations.

By 2017, hot sauce production in the US is expected to be $1.3 billion industry, with

McILhenny Co.’s tabasco sauce in the lead for hot sauce, right behind Heinz in the overall sauce

market. McILhenny was founded in 1868 on Avery Island, Louisiana. A brief background on

MciLhenny, they are a family run and privately held company. Over the past 10 years, the hot

sauce industry in the US has seen an average annual revenue increase of 9.3% a year. However,

http://www.heinz.com/our-food/innovation.aspx0

5


McIlhenny tabasco sauce had an advantage in the market due to the benefits of higher quality,

fresh ingredients, and fewer preservatives in their recipe it has to offer their consumers. It just

takes three ingredients to make this incredible hot sauce everyone loves including; original red

pepper, sauce salt mined from the island, pepper mash, and grain vinegar. In fact, it takes a total

of three years to mature the mixture in white oak barrels before bottling. Altogether,

sustainability has been their way of life. They are always looking for new ways to improve their

business. McILhenny’s company, over the years has developed new flavors that have been added

including; green jalapeno and chipotle. Not to mention, tabasco sauce five generation later is still

made so similar to the original way and this is what strives their market. Consumers appreciate

and respect the generation story behind this fresh delicious hot sauce. To add, the hot sauce

industry has grown 150% since 2000, this is greater than mustard, mayonnaise, ketchup, and

BBQ sauces all combined. There has been a higher demand in the market for spicy hot foods.

Restaurant chefs are even taking advantage and designing creative inspiring dishes with a spicy

flavor. McIlhenny biggest strengths are their loyal customers. As well, they are also sold in every

grocery store in the United States putting them at a great advantage. Since, McIlhenny is an

independent company this is a weakness of theirs, they don’t have the financial backing that

large corporations can depend on. In addition, they only produce their tabasco sauce in one

location, making it difficult to relocate or build new factories. Not to mention, there is a large

growing market for hot sauce and many competitors are able to advertise more efficiently.

McCormick is the next leading sauce in this growing industry. McCormick proclaims,

“Our company mission is to consistently provide premium quality spices, seasonings, flavorings

and specialty foods which offer our consumers and customers superior meal solutions

(http://www.mccormick.com.au/about/company-mission.aspx).” People all around the world

trust McCormick, to enhance their enjoyment of life through creating this memorable food

experiences in and outside of their consumer’s home. McCormick introduces culture and passion

http://www.mccormick.com.au/about/company-mission.aspx

6


to their flavors. McCormick’s target groups are retail outlets, food manufacturers, and the food

service industry. McCormick’s Strengths are their products are worldwide reaching more than

110 countries. Not to mention, they are also a leading supplier of private label items. Their vision

is to build on strong brands with new breakthrough products that will provide exceptional quality

and service to their customers all around the world. McCormick’s weakness is the fluctuation in

the cost and availability of raw packing materials. In addition, the sauce industry has many

competitors. The possible threats McCormick faces are due to their raw materials being

agricultural products, they are subjected to fluctuate in the market price and availability caused

by harvesting conditions, weather, and growing.

2. Environmental trends:

a) Economic environment:

The environmental trends occurring in the sauce and condiment industry have the

potential to affect our company. According to PRNewswire, “The global condiments sauces

market has been segmented by seven types of condiments sauces such as chili/hot sauce, brown

sauce, national specialties, mustard sauce, other condiment sauces, tomato ketchup and soy based

sauces.” Bazaar Sauce fits well into the “other condiment sauces.” Globally “Asia Pacific led the

condiments sauces market followed by North America” (NewsWire 1.) Bazaar Sauce may sell

well in the large North American market and have less appeal in the Asian markets, as they

prefer soy based sauces.

Outside of the Asian market though, there is an increase in demand for more than

dynamic ethnic sauces like Bazaar Sauce. Specifically, our red tomato based sauce may be very

appealing to US, Saudi Arabian and German markets that prefer tomato based sauces because

they can we used an ingredient ( Newswire 1). Also noteworthy, “U.S., Japan, China and

7


Germany dominate the market for condiments sauces and are expected to maintain its

dominance” until 2020 (NewsWire 1).

As previously highlighted, the recession of 2008 affected the sauce industry sales volume

in a positive way as more people dined at home and sought sauces to complement home prepared

meals. Now with the economy in recovery, consumers have more flexible income and are

seeking high quality sauces.

The “Greying of America” phenomenon should be considered because it will have a

significant impact on the economy in coming years. “In some ways, the U.S. economic future

will mirror the current situation in Japan…[ In Japan], the average age is roughly 16 years

older...and the effects of a consumer base that is spending less on housing, food and luxury items

are taking an economic toll” (Jones Journal 1). In order to make sure Bazaar Sauce appeals to my

older population which is soon to be the majority, it should monitor this situation.

b) Political and regulatory environment:

The production of Bazaar Sauce will be regulated by the United States Federal

Government and the state it is produced in. In general, regulation of production by the federal

Food and Drug Administration is strict. The state where production is hosted will also have the

power to regulate production in compliance with federal law. The FDA regulates two categories,

meat and “all other foods” Bazaar Sauce falls into this less strictly regulated “all other foods”

segment. The state and the federal government will have the authority to inspect the food

producing firm anytime, unannounced. The regulation of this segment is less strict than the

regulation of meat. The FDA does set requirements for what can be called “hot sauce”, “tomato”

sauce and the like; Bazaar Sauce should be sure to abide by federal and state regulations

regarding production. Specific FDA production requirements can be found in Appendix A.

8


Internationally, regulations of food production will vary. The regulations Bazaar Sauce is

subject too will mostly be from the US government as long as Bazaar Sauce is produced here or

sold in the US market.

Bazaar Sauce could choose to produce elsewhere where regulations are less strict. When

conducting business overseas, Bazaar Sauce will be subject to different export, import and

shipment and tariffs policies. Important to consider, US consumers may favor food items ‘Made

in America” for its reliability regarding safety.

In regards to politics, Bazaar Sauce will benefit most from pro-business policies and

economy boosting initiatives implemented by government. The sauce industry hasn’t come under

extensive scrutiny but there have been cases regarding the ingredient requirements of tomato

sauces. Bazaar Sauce will have to be familiar with and abide by all applicable requirements. For

specific requirements for a product to qualify as a ‘hot sauce’ or ‘tomato’ sauce, see Appendix

B.

The word sauce may produce some difficulty for Bazaar Sauce because in the public

opinion, the word sauce has negative connotations. The negative feelings associated with the

word sauce stem from America’s battle against obesity and the trend toward more green,

healthier living. Being that the government and the public may feel negatively about the word

sauce; Bazaar Sauce may not be the best product name.

c) Social and cultural factors:

Many social and cultural trends have the potential to affect our company. “Busy lifestyle

and spurt in the number of working population is fueling the demand for condiment sauces in the

U.S., Japan, China, Germany and Brazil among other countries (NewsWire 1).” As people are

spending more time outside of the home, demand for condiments such as marinades, dipping

sauces, and spreads rise. People that pack food at home and people that buy food on the go have

9


a positive impact on the food industry and demand for our product as both groups seek

condiments to add to food. These people also have a need for convenient and transportable

packaging.

The global trend toward “green” practices may also affect our industry. ‘Growing health

concerns is one of the main [reasons why consumers are] shifting towards products like superior

quality condiment sauces as it contains less salt and sugar (NewsWire 1).” As people want to eat

healthier, they are shying away from these ingredients and seeking fresher, wholesome

ingredients.

Both groups of sauce consumers, at-home diners and on-the-go diners, have a need for

convenient and transportable packaging but accompanying the green trend, is a push for less

wastefulness. Eco-friendly and efficient packaging is becoming more important and appreciated

by customers.

The changing taste preferences of consumers also has the potential to affect our business

strategy. More and more consumers of sauces are demonstrating a preference for heat. As

consumers express their need for the ‘hot’ factor, Bazaar Sauce may need to consider the

components if their sauce. As many in home diners seek desire more exotic flavors at home,

industry food manufacturers are introducing a variety of soy sauces.

d) Technology:

Technology does not pose a threat to Bazaar Sauce. In fact, technology can only help

Bazaar Sauce meet its future goals. By creating online website and social media like Facebook,

Bazaar sauce can be advertised efficiently. An efficient web page or social media page can also be

a place where consumers ask questions and interact with employees of Bazaar sauce. Having a

website can also create efficiency by allowing customers to order our sauces online, which make it

convenient and easy.

10


Other technologies include special tools that would help run the day to day operations and

business of Bazaar sauce. Kitchen tools such as, blenders, crock pots, kitchen aides, and other

electric tools will make cooking the Bazaar sauce more efficient and be able to help with larger

quantities when demanded.

Technology is a big part of peoples’ everyday lives. If people can see it on Facebook or

other online websites, then that is the way to target our audience. In fact, technology is how we

will conduct our business as well. When Bazaar Sauce needs to order containers, flyers, business

cards, advertisements, and other materials to help promote or carry our business, it will be

through technology that it happens. The good news is that the technology will not require

expensive equipment that needs to be maintained or will go out of date quickly. As Bazaar

Sauce expands however, production may require machinery that can produce more quantity

quickly, for our company, technology can only help us, and it can help our competitors in the

same manner so it is important that our advertisements are that much better.

e) Demographics:

America is in prime position to accept new food products, especially sauces. America’s

demographics include a diverse culture full of different ideas, taste, music, and ethnicity. It is no

wonder why hot sauce is one of America’s fastest growing industries. That is why we are

promoting Bazaar Sauce as a hot sauce and trying to introduce into the market as a hot sauce. My

information will come from Business new daily writer Ned Smith. You can find this information

at (www.businessnewsdaily.com/2371-hot-sauce-industry-growth.html. Hot sauces is at number

7 of the top 10 growing industries. According to IBIS world, an industry and market research

company, it is the demographics of the U.S. that are forcing the growth of this product. The

demographic trends in supermarkets suggest that homes and consumers are now leaning towards

a variety of sauce rather than the traditional sauces that have been used for years. The Hispanic

http://www.businessnewsdaily.com/2371-hot-sauce-industry-growth.html

11


influence in the states, especially here in California is a no brainer. However, it is not only the

Hispanic population that is growing, Asian population is growing at a rapid pace also.

All this tells us is that the market for sauces, especially hot sauce, is in is primal stage.

This industry has been growing for the past 10 years and that is no sign of it stopping. The

industry is hot sauce, not sauces. Bazaar sauce is not a hot sauce, however, in order to insert the

hot market of spicy sauces, we have decided to create two versions of the red bazaar sauce. The

first one being the normal red sauce and the second being a spicy version of the red sauce for

more to enjoy its flavor and taste.

f) Key publics:

Making Bazaar Sauce and introducing it into the market will require the company to meet

the federal regulations. The agency involved in this is the FDA or the food and drug

administration under the department of health and human services of the U.S. This includes

regulations such as ingredients, packaging, and labeling. It will be important to follow these

regulations beforehand to make sure there are no ingredients that are not permitted by the

FDA. After the main ingredients are compliant with the regulation, it is a matter of finding a

suitable way to package and label the sauce so that it meets FDA standards and is appealing to

the market.

D. SWOT Table:

Tables and Figures #1 SWOT

1. Opportunities:

One of the greatest opportunities we have with our new product is that we are launching

it in Los Angeles, a very multicultural city. Making it easier for us to reach out to all the different

cultures from all over the world. Starting in California and especially Los Angeles is great

12


because it can help us have the product easily accessible for most of the people since this is a

population center. According to IBISworld, the West is where most of the industry establishment

happens, 22.8%, and California, is higher than any other state with 14.6%, because of its major

cities such as Los Angeles, San Francisco and Seattle.

Another great advantage and opportunity is that the people developing Bazaar Sauce are

all well experienced. Making the business much stronger, as well as the networking that is

brought with all the experience. The knowledge regarding how the market is developing within

the food business in general is a great opportunity.

The idea that these are the only ones who knows the recipes since its family made and

passed down thru generations is a great opportunity, consisting of fresh and organic ingredients,

because it will make it harder for others to copy and make a cheap knock off. Since the product

is inspired by different cultures as well, it will provide the consumers a new flavor, which will

also satisfy a bigger consumers market.

Since the recession hit, people started to eat more at home, which increased a higher

demand for new sauces, and it still does, which is a great opportunity now that people are

looking for it.

2. Threats:

a) Major threats:

Bazaar Sauce operates in a highly competitive market. The company operates in an

industry that is characterized by how popular the brand is by quality of facilities, brand identities,

marketing and growth strategies. The intensity of these local and national competitors may lead

to shorter product life cycle.

13


b) Potential threats:

There are several environmental factors that present potential threats to the sauce

industry. Culturally, the largest threat to the Bazaar Sauce brand is the move toward healthier,

organic, GMO- free food consumption which conceptually, disapproves of adding unhealthy

sauce to food. The U.S has recently launched initiatives to battle childhood obesity. The

growing preference for environmentally responsible produced and packaged items may also have

an effect on the Bazaar Sauce marketing plan in the future. Different cultures, appreciate and

prefer different tastes therefore, Bazaar Sauce’s ability to satisfy taste preferences across cultural

lines will be a point of consideration.

As Bazaar Sauce becomes more popular there may be a copycat sauce trying to enter the

market. If a copycat enters the market with a similar sauce but at a lower price, this potential

threat may become a major threat. In order to avoid such a threat, Bazaar Sauce must continue to

innovate. The reason why this is just a potential threat for the mean time is because the sauce

industry is all about the brand.

Business wise, the largest potential threat to Bazaar Sauce is the sheer size and power its

market leaders have. If for example, Heinz creates similar, ethnic sauces they may stunt the

growth of Bazaar Sauce. This effect may be deterred by patenting something unique about our

product such as the specialized packaging to be proposed later in this report. There also many

companies constantly trying to enter this market and gain market share; Bazaar Sauce faces ever

increasing demand. Also worth considering, Bazaar sauce is a normal good and although, during

times of recession demand for sauces rise, demand for pricier, high end sauces may suffer.

c) Minor threats:

Demographically, an aging society may also lead to reduced sales if older citizens

do not buy into the sauce market because of a lack of need and reduced expendable

income.

14


III. MARKET-PRODUCT FOCUS & GOAL SETTING:

A. Segmentation, Target Markets, Growth Strategy and Value Proposition

1. Market segmentation:

It is not in the best interest for Bazaar sauce to focus on a specific age or gender because

it is important to not exclude potential customers. The sauce industry is extremely competitive

and if we exclude potential customers, we risk losing recognition from potential customers. Our

sauce is made for a traditional taste. Therefore, our main focus will be to family member and

those who are seeking a unique sauce. Geographically bazaar sauce is located in Los Angeles

California and would introduce the sauce throughout Los Angeles because of its estimated

population per square mile of 2,827 (United States Census Bureau, n.d.). As for psychographic

segmentation, Bazaar Sauce should consider wealthy family based customers. Wealthier families

are more likely to spend 110.7 % more on groceries annually. Those with a traditional family

lifestyle are our main focus.

2. Target market(s):

Each market is homogeneous through the benefits and they are all attainable. Bazaar

Sauce market of offering a high quality sauce will build a “must try” reputation. When

discussing our target market, Los Angeles has a median household income of 82,679 annually

(United States Census Bureau, n.d.). Although, we are aiming for those with a household

income of about 100,000 annually because they are most likely to spend more on groceries,

majority of those who are in the median would buy the sauce if they are single or have no kids

because they would be more willing to spend money on groceries. We do want our sauce to have

a quality, healthy and organic taste. Therefore, our sauce would be prices at a higher but

reasonable price. Thus, our sauce is measurable through the amount of grocery stores through the

city, accessible if they want a traditional tasting sauce, differentiable as for the taste is unique as

15


it was created by different cultures and it will be actionable through advertisement and free

samples.

3. Market-product grid and growth strategy:

Tables and Figures #2 Ansoff Matrix

Using the Ansoff Matrix grid allowed us to really separate where we are at with our

product and how to get it into the market. The two categories that we need to focus on are

Market Penetration and Product Development.

Market Penetration involves the activities and strategy to actually get our product into the

market. Since we are a new company, this is really getting not only our product in the market,

but our name as well. To do this we said that we would need to advertise our product and name

by attending ethnic supermarkets and using our sauces at local restaurants. We would also need

to create advertisement via the internet with a web page and Facebook.

Product development is a must. Once we enter the market we need to continually

develop our sauces and products. Since we are just starting some of the development that we

need to do is packaging and a label on each sauce that provides several recipes which include our

sauces. We also want to develop a spicy red sauce since the market for spicy sauces is on the

rise and growing fast. We believe that by having an alternative spicy sauce would help develop

our name and products.

Overall we have choose to attack these two areas on the ansoff matrix grid because we

are starting off new and not just adding a product to an already existing company. So product

penetration and development are our focuses.

4. Value Proposition:

Our value proposition is to break into the sauce market with a new product like never

before. This new product is mainly meant for the more high income people who are more on a

16


traveling foot annually compared to the regular American, we are focusing on the high income

traveler who’s willing to try ethical products from different cultures. This will help us reach a

higher number of consumers from more diverse cultures, especially in Los Angeles. Since the

products are most probably going to be made in the Southern California to start with, this is a

huge benefit regarding the transportation cost. It will be a helpful for the company to keep the

expenses at a low rate, and therefore, one of our goals is to keep the cost of our products as low

as possible, and therefore follow Porters Cost Leadership Strategy, by keeping it low, but not just

by cheating with bad quality products, but with high quality products, preferably organic, but

still at a decently low price. An example would be to make deals with local farmers regarding

organic products, deals that will benefit them as farmers, and the company as producers. We are

aiming for high income customers who are willing to spend those few extra dollars, while we are

still keeping our costs decently low. The second strategy of Porters that we are mainly focusing

on is the differentiation strategy, where we really like to present a new product that differentiate

itself from the others, a more ethnic and flavorful products that haven’t been on the market

before. Along with the differentiation, we are able to manage our focusing on a specific group,

which in this case would be the higher income, mostly travelers who are familiar with foods

from other cultures, and therefore reach out to more multicultural markets.

B. Positioning Strategy:

Ideally in our target customer’s opinion, we are the best organic, flavorful, ethnic sauce

brand that also offers its products in portable, eco-friendly packaging. Therefore it is our

recommendation to leverage Bazaar’s unique competence in offering convenient portable options

as our point of difference relative to competing brands. Companies in the sauce and condiment

industry have yet to fulfill the need for convenient sauces in to-go packaging; offering Bazaar’s

flavors to-go will differentiate the brand from its competitors and provide added value to its

17


consumers. When placed next to its closest competitors, Bazaar is generally higher-priced and

higher- quality.

When positioned next to other brands that offer organic, ethnic sauces, Bazaar is

especially competent in offering convenience to its consumers through it’s to go products. In

comparison to other organic, ethnic sauces, Bazaar excels in offering exotic flavor. In regards to

pricing and the exotic flavor element, Bazaar offers substantial value to its customers. From the

design of its package to its ingredient, everything about Bazaar Sauces quality.

It is crucial that our product’s attributes are clearly communicated to our target

customers; Bazaar is organic, loaded with exotic flavors, environmentally cautious and available

on the go!

Tables and Figures #3 Price v. Ethnic Flavors Positioning Demonstration

Tables and Figures #4 Organic and Ethnic Flavors v. Offers to-go option Demonstration

C. Set Market and Product Goals:

Phase 1: Establish Company Foundation

First, we recommend our client to change their company name to prevent from any legal

issues. Wanda Sauce has already been taken and we feel that the most important objective of this

goal is to help establish credibility. We propose Wanda Sauce testing the name Bazaar Sauce.

With this new name, our client will illustrate a deeper culture meaning making it more

personable. Thus, highlighting the fact that it defines a market in the Middle Eastern country

helps the names stand out. Since we chose Ethnic supermarkets as the target markets it gives

customers the choice to differentiate between Bazaar sauces from competing ethnic sauces.

Bazaar red sauce, Bazaar hot sauce, Bazaar white sauce, and Bazaar green sauce a delicacy sauce

with just about any dish. A potential weakness from the name Bazaar sauce is the different

18


meanings the word portrays. Consumers who don’t know it’s a Middle Eastern Market may

presume it as out of the ordinary.

Phase 2: Target Market and Positioning Strategy

We propose our client reach out to ethnic supermarkets in the Los Angeles area

particularly in highly populated metropolitan areas, they carry mainly specialty products not

found in mainstream supermarkets. Hence, Bazaar sauces is a unique sauce you could not find in

other retail outlets. The strategy we suggest our client is attracting local customers, this will help

ensure a solid market share. Bazaar sauce can start out at some of the local farmer’s market to

appeal to the local community. Then when our client is displayed in the supermarket Bazaar

sauces wants to have an attractive product presentation. Specifically, presenting itself in an eye-

catching manner in the Persian Middle Eastern section to increase shoppers’ awareness and

encourage sales. Many of this industry’s larger companies boast active involvement in charitable

works for the local and national communities. Such nonprofit support can help Bazaar sauce

improve their reputation. Likewise, having this involvement and sustaining that commitment

among their consumers and giving support back to the community is what will set them apart

from their competitors.

Phase 3: Increase Product Development by 2019

Designing and creating products and services that will be beneficial to the public is

crucial. According to the data from the US Census, each population has grown 40.0% in the past

10 years, thus meaning this growth combined with the new demand from younger consumers,

has created an environment in which ethnic food retailers have thrived. Fortunately, within the

next 5 years the ethnic supermarket industry revenue will increase at average annual rates of

3.4% to

$33.9 billion over. The IBISWorld US report states the number of store locations is

expected to grow from 23,614 in 2014 to 27,609 in 2019. At the same time the expanding ethnic

19


population is pushing non industry supermarkets to increase their product offerings. Due to the

constantly increasing immigration population this industry will be always growing. In addition,

this industry has the potential to reach new customers outside its traditional target demographic.

Phase 4: Packaging and Labeling

Packaging appearance plays a significant role in the consumer’s product choice.

Therefore, our last recommendation to our client is getting Bazaar sauces approved from the

FDA through the Fair packaging and Labeling Act. According to the regulation and policy for

public health and product labeling, consumers are demanding more stringent rules for food

labeling, packaging and other nutritional claims that are being made by producers. Not doing so

can seriously impair credibility. We propose presenting Bazaar sauces in environmentally

friendly 12oz glass containers. Including a vibrant customized detailed food pairing printing

label to offer a personable uniqueness for each flavor of Bazaar sauce. Due to the increasing

demand in organic we suggest mentioning organic and all the natural ingredients contained in

each flavor.

IV. Conclusion:

Based on our research, the demand for sauces are increasing but with a competitive

market the barriers of entry are extremely high. Companies such as Heinz or McCormick already

own a huge part of the sauce market. The difference of our sauce and their sauce is the unique

taste and traditional/ culture background ours carries. We are aiming for a higher quality market.

Our plan is to aim for families or those who travel and are looking for a traditional sauce and/or

those who are more familiar with the different flavors and food cultures. That’s why we are

starting in Los Angeles, a multicultural city, with many different preferences, but also

welcoming consumers. There are three new flavor entering the market, where one of them comes

in two forms, mild and spicy. These new sauces are bringing us a more ethical flavor, where you

20


can taste the different hints of cultural taste; such as Italian, Turkish and Persian. The sauces

consist of natural ingredients, which we can tell that the demand for is increasing in today’s

society. The flavors are unique, and we are definitely looking forward to see ourselves among

our competitors on the shelves in the stores. We want to focus in more ethical stores and

markets, where the consumer’s buy their regularly high quality products such as kosher products

for example. We also recommend to package the product in glass to give it a higher quality look,

but also environmental friendly. In order to reach our goal of breaking even within three years

we must advertise the product in multiple forms such as trade shows, sampling and social media.

Marketing our products as such will bring in the most profit.

21


V. REFERENCES:

Condiment sauces market - global industry analysis, size, share, growth, trends and forecast 2014

- 2020. (2015, Feb 09). PR Newswire Retrieved from

http://search.proquest.com/docview/1652468353?accountid=7285

"Condiment Sauces Market - Global Industry Analysis, Size, Share, Growth, Trends and

Forecast 2014 - 2020." Condiment Sauces Market- Global Industry Analysis, Size, Share,

Trends & Forecast 2014-2020. Transparency Market Research. 31 Dec. 2014. Web. 20

Feb. 2015. <http://www.transparencymarketresearch.com/condiments-sauces-

market.html>.

"Consumer Trends - Sauces, Dressings and Condiments in the United States." Canada

Brand; International Markets Bureau; Market and Industry Services Branch; Agriculture

and Agri-Food Canada;Government of Canada. 1 Mar. 2013. Web. 20 Feb. 2015.

<http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-

information/by-region/united-states/consumer-trends-sauces-dressings-and-condiments-

in-the-united-states/?id=1410083148531>

CSUN Library Access to Restricted Resources. (n.d.). Retrieved from

http://content.ebscohost.com.libproxy.csun.edu/ContentServer.asp?T=P&P=AN&K=960

17435&S=R&D=buh&EbscoContent=dGJyMMTo50SeqK44xNvgOLCmr02ep7NSr6a4

SLOWxWXS&ContentCustomer=dGJyMPGtsk2vp7NJuePfgeyx44Dt6fIA

CSUN Library Access to Restricted Resources. (n.d.). Retrieved from

http://go.galegroup.com.libproxy.csun.edu/ps/retrieve.do?sgHitCountType=None&sort=

DASORT&inPS=true&prodId=ITOF&userGroupName=csunorthridge&tabID=T004&se

archId=R42&resultListType=RESULT_LIST&contentSegment=&searchType=BasicSea

rchForm¤tPosition=1&contentSet=GALE%7CA373913469&&docId=GALE|A3739134

69&docType=GALE&role=

"Heinz." - Innovation. Web. 24 Feb. 2015. <http://www.heinz.com/our-food/innovation.aspx>.


http://www.transparencymarketresearch.com/condiments-sauces-market.html

http://www.transparencymarketresearch.com/condiments-sauces-market.html

http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-information/by-region/united-states/consumer-trends-sauces-dressings-and-condiments-in-the-united-states/?id=1410083148531



http://go.galegroup.com.libproxy.csun.edu/ps/retrieve.do?sgHitCountType=None&sort

http://www.heinz.com/our-food/innovation.aspx

22


Leigh Jones Journal Record,Staff Reporter. (1998, Sep 23). Hart: Congress remains in slow

motion with elderly. Journal RecordRetrieved from


"Real Mayonnaise." Hellmann's. Web. 24 Feb. 2015.

<http://www.hellmanns.com/product/detail/97847/real-mayonnaise>.

"Sauces, Dressings and Condiments in the US." Sauces, Dressings and Condiments in the US.

Euromonitor. 1 Nov. 2014. Web. 21 Feb. 2015. <http://www.euromonitor.com/sauces-

dressings-and-condiments-in-the-us/report>.

"Seasoning, Sauce and Condiment Production in the US: Market Research Report." Seasoning,

Sauce and Condiment Production in the US Market Research. IBISworld, 1 Nov. 2014.

Web. 23 Feb. 2015. <http://www.ibisworld.com/industry/default.aspx?indid=276>.

United states seasoning, sauce and condiment production market: Increasing disposable income

and the new healthy products will drive industry demand (2014). . Chatham: Newstex.

Retrieved from http://search.proquest.com/docview/1634886153?accountid=7285

"Consumer Trends Sauces, Dressings and Condiments in the United States." Agriculture and

Agri-Food Canada. 1 Mar. 2013. Web. 10 Mar. 2015.

<http://www5.agr.gc.ca/resources/prod/Internet-Internet/MISB-DGSIM/ATS-

SEA/PDF/6362-eng.pdf>.

"Company Mission and Vision." McCormick Australia -. Web. 10 Mar. 2015.

<http://www.mccormick.com.au/about/company-mission.aspx>.

"Access to Restricted Resources." CSUN Library. Web. 10 Mar. 2015.

<http://clients1.ibisworld.com.libproxy.csun.edu/reports/us/industry/productsandmarkets.

aspx?entid=4333>.

Chiao, Christine. "7 Great Los Angeles Ethnic Markets." LA Weekly. 4 June 2012. Web. 10 Mar.

2015. <http://www.laweekly.com/restaurants/7-great-los-angeles-ethnic-markets-

2380230>.

Web. 10 Mar. 2015. <http://www.census.gov/quickfacts/table/PST045214/00,0643224>.


http://www.hellmanns.com/product/detail/97847/real-mayonnaise

http://www.euromonitor.com/sauces-dressings-and-condiments-in-the-us/report

http://www.euromonitor.com/sauces-dressings-and-condiments-in-the-us/report

http://www.ibisworld.com/industry/default.aspx?indid=276


23


VI. APPENDIX:

Appendix 1. Link to FDA Food Production Regulations

http://www.fda.gov/ICECI/ComplianceManuals/CompliancePolicyGuidanceManual/ucm074470

.htm

Appendix 2. FDA requirements for tomato sauces

http://www.fda.gov/ICECI/ComplianceManuals/CompliancePolicyGuidanceManual/ucm074470

.htm

(http://www.ag.ndsu.edu/foodlaw/safe-408-608/foodprocessingregulation)(citation for tomato

info)

Appendix 3. Sector vs. Industry Costs

http://www.fda.gov/ICECI/ComplianceManuals/CompliancePolicyGuidanceManual/ucm074470.htm




http://www.ag.ndsu.edu/foodlaw/safe-408-608/foodprocessingregulation

24


VII. TABLES AND FIGURES:

SWOT Table: #1

Positive Negative

Internal Strengths: Experience

Wealth

traditional

fresh ingredients

Innovative culture

Weaknesses: New to market

Small business

Name Change

External Opportunities: Market growth

Potential profitability

location

Threats: Intense competitors

Impostors

25


Market-product grid and growth strategy: Ansoff Matrix #2

Ansoff Matrix For Bazaar Sauce

Markets

Existing New

Pro

du

cts

Existing

Market Penetration Product Development

* advertisement through ethnic supermarkets. *Use different types of packaging and containers

*Advertisement through attendance at tradeshows

as product become more popular. This containers

*Allow local restaurants to use our sauce for include; Family size, Portable, and pack of 10 to

market recognition. carry with you.

*Create a Facebook page and website to promote *Make two different red sauces. We need one

our sauces. red sauce to attack the spicy sauce market. So we

*Target Markets; Those with income range of will have a spicy red sauce and just a red sauce.

150k and more. They have more money to spend *Develop a label that has several recipes for

on exotic sauces and they are more likely to travel sauce use.

the world and have that interest of trying exotic

foods. N

ew

Market Development Diversification

*Make NEW red SPICY sauce to attack the spicy *Currently have 3 different sauces and will create

sauce market, which is on a huge rise. Use of one more sauce for market penetration and

cayenne pepper or curry to spice it up. Diversification.

*Use of different kinds of containers. One for *Create SPICY red sauce by adding curry or

Families, one portable version, and packs of 10 or cayenne pepper.

so that are in little packs.

26


Price v. Ethnic Flavors Positioning Demonstration: #3

Positioning Demonstration

Organic & Ethnic and Offers to-go options

Positioning Demonstration Price Range and Ethnic Flavors

27


Organic and Ethnic Flavors v. Offers to-go option Demonstration: #4

Marketing Analysis

Documents

Transcript of Marketing Analysis