Name of Product: Nacho Fiesta

Transcription

1 Name of Product: Nacho Fiesta Time Period Designed For: Current Persons and Positions: Starla Bond-Chief Executive Officer Tanesha Gadlen-Chief Financial Officer Adam Coleman-Chief Marketing Officer Jonathan Pufal- Chief Technological Officer Person Submitted To: Amanda Ewing Date Submitted: November 25, 2013

2 Executive Summary

3 The snack industry is ever-growing. Consumers can choose from a variety of snacks, each one in particular will present a different experience to them. People love chips and dip, it is one of the favourite snacks in America. It is a product that is delicious and fun to eat. Even though there are different companies making snacks, a portable chips and dip package has not been created yet. Chips and Dip are among the best selling snacks in the United States. We strongly believe that our product could possibly be one of the best selling snacks in the market. According to Ibis World, today the industry is estimated to yield over 31 billion dollars per year. The annual growth in the last five years has been of 2.3 percent. It also employes over 45,000 people. They also stated that Chips are the most common snack consumed in the United States, accounting for 49.3% of revenue in Snacks have been around for many years, but recently people started to be concerned on the health impacts that some of them may bring to their lives. Customers want a product that is not filled with preservatives and chemicals that may harm their bodies, while not losing the full flavour of the snack. The health quality concern brings us at Nacho Fiesta to the fact that we take seriously the quality of our products. We strive to make the best snacks in the market. We believe that a product that tastes good should be good also to our consumer s lives. Our products are made and inspected with the higher quality standards because we believe that customer satisfaction should come before profit. Our distribution plan will be primarily in a college campus area. Since most of the millennial generation is a college student nowadays, that will be our main focus. Students are always hungry and love snacks. We intent to take advantage of the facilities provide on campus such as Books N Beans at Campbellsville University and expand our market.

4 Nacho Fiesta will also be affordable since our target market is known for not having much money. Our research draws attention to the fact that most people suggested the price to be set at $ 1.98, which makes the product affordable for the majority of people. Portability is one the main points of our product since everybody is on a rush nowadays. Before, chips and dip had to be in different containers, usually large and not very portable. The Nacho Fiesta is compact and nutritious at the same time, which makes is easy to be carried around and makes the consumer to fill full longer without compromising the customer s health. The Nacho Fiesta is the newest chips and dip in a growing market eager for new tastes and varieties. We at Nacho fiesta believe that our product will create a new standard in the market for snacks. With our proposal we offer you the chance to eat and join an industry with a strong trend of growth.

5 TABLE OF CONTENTS Title Page... 1 Executive Summary...2 Table of Contents...4 Introduction...5 SWOT Analysis...6 Industry Analysis...7 Marketing Objectives...8 Target Markets...9 Marketing Mix...10 Marketing Research...11 Summary...12 References...13

6 Introduction According to a study conducted by Virginia Foundation for Healthy Youth, the majority of young adults consume snack items an average of seven times a week (2012, Chart). Between working, going to class, studying, and having a social life, most college students are always on the move. Because of this constant go-go-go mentality, these young adults are grabbing meals on the go frequently. Nacho Fiesta Company created a snack to fill up students and keep up with their active lifestyles. The first product by Nacho Fiesta Company is Nacho Fiesta, a portable container of chips and salsa. After deliberation the company determined the main goal would be to provide a snack food that consumers are familiar with in an innovative way. The product, Nacho Fiesta, aims to satisfy customers by being affordable, delicious and filling. With a product as unique as Nacho Fiesta, we determined that it would be best to start off small on the campus of Campbellsville University in the Books N Beans location, in order to understand the market and the product demand, as well as build up a reputation. Once the company better understands these things the goal is to sell our product in other places, such as the convenience store and gas stations for everyone to have access to Nacho Fiesta. We realize that there are several benefits to starting small at Books N Beans. The first is that we can offer job opportunities to students of Campbellsville University. The students would be in charge of various tasks, such as packaging, preparing, and selling of the product. Preparation is very important to Nacho Fiesta Company as ingredients in the portable Nacho Fiesta will be fresh and organic. A second benefit of starting at Books N Beans is the opportunity to quickly improve. By offering comment cards, our company shows that it is invested in

7 pleasing consumers and responding to what they believe will improve the product, customer service, or any other concerns that they might have. The Nacho Fiesta Company knows that if a customer isn t happy they will not purchase our product and tell others to do the same. Nacho Fiesta plans on starting out small and understanding the marketplace and then grow into competition with Kraft and Nabisco. Our plan is to offer a healthy and fresh alternative to the typical snacks that college students enjoy.

8 SWOT Analysis There are several strengths to the Nacho Fiesta product produced. The first is that this is an innovative product; there is no other product quite like ours. We offer more food, a larger variety of salsas, and at an excellent price point. This price point will be something to draw customers interest in our product. It is a great product at a very reasonable price. Our price is cheaper than most other snacks designed for adults, but it still offers a filling and tasty snack. Our product is also portable. We have designed a container that allows Nacho Fiesta customers to take their snack anywhere with little-to-no mess. This is a great benefit for college students who are always on the go. In spite of the strengths of the Nacho Fiesta company and product, there are still a few weaknesses. Even though our snack is very affordable, there are other snacks that consumers can purchase for an even lower price, such as Ramen Noodles and Lunchables. We will also have some problems when it comes to keeping our product fresh. Since our snacks are made with organic ingredients it is important to maintain their freshness for both health and flavor. We are determined as a company to offer the best tasting product that we can. Another weakness could be the size of the container. Nacho Fiesta is sold in portions that are bigger than typical snack sizes. While some people might want a small snack, most college students have large appetites and they want the best product for their money and that is what our product offers. The Nacho Fiesta Company sees several opportunities for our product. We believe we are tapping into an un-targeted market. Our focus is on college students. The competition focuses mainly on children and adults that are on the go. Another opportunity for us is that we plan on making the product available in several markets starting with Books N Beans, then vending machines and convenience stores, such as Walmart and Kroger. We are affording the opportunity

9 to improve on a small scale and then grow. The Nacho Fiesta Company recognizes that college students love to talk, especially about food. We believe that this is an opportunity for our product as when a student tastes our product they will talk about how much they love and word-of-mouth will help our product s market grow rapidly. The final opportunity is that whenever more people start consuming our product other people will notice and be curious about it and they in turn will end up buying it as well. There are also a few threats to our product. Pricing could be a major threat to our product. Many college students do not have much money to spend on items such as snacks. Many students spend all their money on the necessities, such as tuition and gas in their vehicles. For food many of them rely on their meals plans and food in the cafeteria. But we think our price point is so low that college students will still buy it. The Nacho Fiesta Company is also afraid of a larger brand stealing our idea. A brand such as Kraft or Nabisco could come in and steal our idea. If they try to tackle the college student market with a nachos and salsa snack they will have lower production costs, enabling a lower price point and they are more well-known and trusted. Another threat that is possible is that our target market could possibly want a larger variety than what we can offer. Even though we offer a couple of different things with our product it still may not be enough to satisfy our market.

10 Industry Analysis When analyzing the social aspect involving our product we understand two important facts about college students: they post about food to Facebook, Instagram, and Twitter and they typically do not eat alone, often eating with more than two people. By posting to social media websites about Nacho Fiesta, our product s word-of-mouth will improve and gain attention. The more people hear about Nacho Fiesta the more likely they are to purchase it and continue purchasing it as a snack. Because college students do not eat alone they are likely to share their product with friends or be able to talk about the product with them. Just seeing our product being ate by others might convince someone to go try it out. Demographic trends will be a major factor in our product sales. Something that could be a hindrance is that there are many non-traditional college students, meaning that they usually start college later than someone directly out of high school. This in turn means that most of these students will not live in a dorm, but a home or an apartment where they will have a kitchen and can cook for themselves. This could hurt our market because they would not be buying as many snacks. The buying power of teens will be a positive impact on our product, though. Teenagers and young adult s buying power in the market has significantly increased over recent years. This is a good thing because they will be able to buy our product or influence their parents to buy it. Also, most college students and young adults do not cook. They usually will buy their meals from a restaurant, eat in the cafeteria, or purchase things with little to no prep work with them, such as chips and popcorn. We believe Nacho Fiesta will be perfect for them. Economic trends will also affect the sales of our products. With the current economic situation everyone is looking to save money. Sometimes that means that they will not be spending as much money on food. Luckily, they will always spend at least some money on food

11 so if we produce a good product at an affordable price people will choose to buy our product. Since college students do not spend a lot of money and are always in a hurry our product will be perfect for them. Technology will be a major influence in the growth of our product. We plan to use social media to spread the word about our product. Advertisements on Facebook and Instagram will be utilized to the fullest because that is where college students spend a lot of their time. Technology will also be crucial in the production of our product. We will use the latest technology to make sure that every one of our packages are fresh for all of our customers. We will also be using technology to make our packaging and advertisements appealing. We as a company are also aware of the legal aspects of our business. Luckily, we have already been FDA approved and we are working on obtaining our copyrights. We have hired a legal team to make sure that we do not infringe on any copyrights and patents that our competitors have. We at Nacho Fiesta believe in running a morally sound and respected company. We have a very tough competition. We are aware that some of our competitors prices are cheaper, but we believe that our product is better. While our competitors are already more wellknown than our brand we believe that when we get our brand out to the public it will not take long for it to become as well known as the other national brands. A struggle that we will have is these previously established brands already have their patents. We have to make sure we do not infringe on those patents. We are aware that our competition has been under scrutiny because of the contents in their product because it is not very healthy. We want to assure our customers that our product is totally organic and made with only the best ingredients.

12 Marketing Objectives One of our financial goals is to be debt free by the year We plan to do this by expanding our marketing plan as we have finances built up. We have enlisted the help of Dave Ramsey, Christian financial expert to help us achieve this goal. We believe with our determination and his help this goal can be achieved. Another goal is to have an annual growth rate of 10% every year. We believe this will be done through the execution of our marketing plan. We believe that through word of mouth and other aspects of our marketing plan, such as social media, our company will grow at this pace, if not faster. Another goal is for our product to be sold at college sporting events all across the country. We will start in Campbellsville, but when people find out about our product we feel like other schools will want to feature it in their own concession stands. A non-financial goal for Nacho Fiesta is to be a featured ad in several national magazines, such as Sports Illustrated, Time, and People. This will expose our product to millions of different people who may have not have been exposed to our product before. Another goal is to have Nacho Fiesta in all 50 states by the end of Social media and the Internet will allow for the name of our product to spread rapidly through the country and we believe this will allow us to sell in all states and all markets. Another objective of our company is to have 1 million Facebook likes and 1 million Twitter followers by We emphasize the use of social media very much in our marketing strategy, so the more people we reach this way, the more effective our market strategy will be.

13 Target Markets The target markets of Nacho Fiesta are young adults, specifically those in college. This means we will target the millennial generation starting at Campbellsville University and growing from there. We understand that this generation is second only to the baby boomer group in sheer size, but has limited spending power as they are new to the workforce and the economy has been in a recession for the majority of their young adult and adult life. We aim to not target specific ethnicities but our product naturally appeals to students from Hispanic countries where nachos and salsa is an everyday food. However, any American student will be familiar with Lunchables as a great snack meal that is cheap. By offering more food than Lunchables, we are addressing that Fiesta Nacho is for young adults; people who need more to eat. Our advertising campaign has to be targeted to what these students care about, it is more than food, it is the sustenance that gets them on the next class and the next paper. We do not have the benefit of parents who will purchase anything for their kids, we have to be creative and create a product and campaign that fits into the average college student s lifestyle.

14 Marketing Mix Product: Nacho Fiesta Corporation created a new product that was introduced to the food market. Nacho Fiesta is a portable, snack size chips and salsa. The package comes in one size which is 8 inches by 8inches and has a built in handle to make it easy to carry from place to place. Our product will stand out when compared to any other product that is similar because we use all natural, organic ingredients. We want to give our customer the healthiest most filling snack for a bargain price. Price: Whenever a company produces a new product the number one question is always how much are we going to sell said item for? After doing a little bit of research by conducting surveys asking random people what kind of snacks they eat and how much they were willing to pay for said snack we decided a fair price for our Nacho Fiesta is $1.89. We decided this was a great price because chips and salsa is a very filling snack and it will cover the costs that are incurred during the production process. Distribution: We plan to sell Nacho Fiesta in Books N Beans that is located in the library. We chose to sell our product here because it is the most convenient spot on campus to sell food. College students are always going in and out of the library, and many of them spend several hours at a time in there. It is beneficial to students to take a break and eat a quick snack to help them recharge and refocus on their assignments at hand. Promotion: Nacho Fiesta believes that the best way to promote our new product is by advertising around campus. Our CMO, Jonathan Pufal has created some eye catching posters that are going to be displayed around campus. As well as allowing students to try some samples for the first couple of days. If we allow them to sample the product they are going to tell their friends

15 how much they liked our product and tell them to try it. Word of mouth is one of the fastest ways to get news of a new product out to everyone. Our marketing mix is created with college students in mind and will be built upon based upon their reaction on Campbellsville s campus. It will be edited with our critiques in mind and then changed to fit the expansion we hope to see of our product in upcoming years.

16 Marketing Research People eat snacks all of the time, in the classroom, in their cars, at work, in sporting events and other occasions. We see college students who are always in a rush to get to their next classes, or those who have a project/paper due and do not have time to go and eat a full meal in the cafeteria. These college students need something fast that will keep them satisfied, they also need something that is cheap and that tastes good. In our marketing research we have asked people their opinion on what would be the ideal snack and how we could make the perfect snack for college students. Chips and Dip are a great option for snacks. Nacho Fiesta strives to make the best dip and chips in the market. Since the company produces both the chips and the dips, they are designed to complement one another. The researchers Ryan Rahinel and Joseph P. Redden did a study regarding items made by the same brand, and they stated that Process evidence shows that this brand matching effect arises because matching brand labels cue consumers belief that the two products were coordinated through joint testing and design to go uniquely well together (2013). We believe that the consumers will see our product as superior to others because a lot of research has been put into it. We have seen that the majority of people eat snacks on a regular basis, most of the time more than two times a week people will eat snacks. College students are usually under a lot of stress, always rushing for the next class, and eating on the go. They are also on a tight budget which makes them to choose from cheaper alternatives. The majority of the surveyed would buy a snack in the $ range. Chips and Dip are an excellent option for a quick snack. Nacho fiesta comes in a nice package with the chips and the salsa; there is also an option for cheese. The chips are made of

17 whole grain which is healthy and tastes great. The fact that the chips and the salsa comes in one single package makes a big difference because the consumer will have everything in one place. College students would beneficiate from this product very much because it is compact and can be taken virtually everywhere. It is a great snack for studying late at night and sharing with friends. Since it is in a single package it makes it easier to be shared, the consumers don t have to carry a container for the chips and another one for the salsa. We strongly believe that the best way to tell people about a great product is by the word of mouth. In our survey the majority of the surveyed stated the same fact. Word of mouth is more convincing than somebody who has been paid to promote the product. College students talk about their favorite foods all the time and Nacho Fiesta would be well known in no time. Nacho fiesta contains a good serving portion of the snack. People who eat snacks are looking for a quantity that will be enough to fill their stomachs. The whole grain, preservativefree snack is healthier than the average chips out there and makes somebody fill full longer. In our survey we asked people to choose from a variety of dips. The top 2 dips for the chips are cheese and mild salsa, both varieties will be available with our product. In the survey we noticed that most people bought their snacks in grocery stores. We believe that by bringing it to the campuses we would reach a wider scope of our target market, college students. Our snacks were designed to be easy to share. The package makes it easy to pass around and share with friends. We believe sharing a snack is something that should be natural among friends, even though that the survey showed that most people did not share their snacks. Nacho Fiesta is the perfect snack for a college student. It is tasty, cheap and can be taken everywhere in your backpack.

18 Summary Nacho Fiesta Company has created a product for college students and young adults by college students and young adults. All our information was developed from personal tastes and surveys conducted and taken by our target market. We are invested in producing the best product, for the best price, and making an impact in the snack food world. Nacho Fiesta is a simple concept; portable nachos and salsa meant for young adults, but it hasn t been brought forth into an actual product before. As college students ourselves, the Nacho Fiesta Company, knows how important snacks are to getting through the day. Many college students do not allocate time to eat lunch and sometimes lunch isn t worth eating anyway. We want to offer a healthy alternative to a candy bar that is more filling and still doesn t cost much. By offering Nacho Fiesta on the campus itself, we have a direct market, no one needs to travel for our product, they just walk in the library. Eventually, when the company expands to convenience stores and gas stations we hope that other colleges will see the importance of keeping the product on campus and offering it for students without travel cutting in. We want to be financially stable and plan to analyze our budget with experts and plan production and expansion based on sales. It is crucial to us to not get in so much debt that we cannot offer our product at a reasonable price to our consumers. The Nacho Fiesta Company has created the best product we could for college students and believes that Nacho Fiesta will be a huge success among students and young adults who don t want to cook, don t have time to cook or eat, and don t have money to spend on eating out all the time.

19 Works Cited Rahinel, Ryan R. and Redden, Joseph P. (2013) Brands as Product Coordinators: Matching Brands Make Joint Consumption Experiences More Enjoyable, 40,. doi: / Snack Food Production in the US: Market Research Report IbisWorld.com Retrieved November 22, 2013 from Virginia Childhood Obesity Survey (2012). In Virginia Foundation for Healthy Youth. Retrieved November 13, 2013, from