to age growth in population incomes and tastes in the American diet should

To age growth in population incomes and tastes in the

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to age, growth in population, incomes, and tastes in the American ! diet should continue to fuel the trend for spicy foods in the United States. Retail sales of fiery food could top $l.8 billion in the year 2000, according to Packaged Facts, up from $1 billion in 1994. These trends reflect a generally more favorable attitude toward spicy foods on the part of Americans. The Southwestern/Mexican market includes the foods shown in Figure 2. Figure 2. Some Foods Included in the Southwestern/ Mexican Product Category 1996 This summary of sales in a the Southwestern/Mexican Item Percentage of Sales Sales in Millions ,~ro.du~t category sho,":s it 1\ Salsa 39 $624 IS.slgnifl.S;tDtand t?~ovides 'i Cheese/bean dips 13 208 variety of future opportun- , \ Refriedbeans 9 144 ities for paradise Kitchens. Seasoningmix 8 128 Chilies 7 112 \ to Tacoshells 7 112 Dinner kits 5 80 Tacosauce 3 48 Enchiladasauce 2 32 Other 7 112 Total 100 $1,600 ! As with the Industry - - - COMPETITORS INSOUTHWESTERN/MEXICAN MARKET ~alysis;the ComJ.J~titor The chili market represents $495 million in annual sales. The Ahalysis demonstnites' that products fall primarily into two groups: canned chili (62 percent the company has a realistic of sales) and dry chili (16 percent of sales). The remaining 22 understanding of who its" percent of sales go to frozen chili products. Besides Howlin' II major competitors are and Coyotef", Stouffers and Marie Callender's offer frozen chilies as I: what their marketing part of their broad lines of frozen dinners and entrees. Major strategies are. Again, a .'f canned chili brands include Harmel, Wolf, Dennison, Stagg, Chili realistic assessment gives Man, Chili Magic, and Castleberry's. Their retail prices range from confidence to re~gyrs that i $.99 to $l.79. ~subsequent marketing ,,1' Bluntly put, the major disadvantage of the segment's actions in the plan rest on ei dominant product, canned chili, is that it does not taste very good. a solid foundation. A taste test described in the October 1990 issue of Consumer [1 Reports magazine ranked 26 canned chili products "poor" to "fair" Ii in overall sensory quality. The study concluded, "Chili doesn't have I, to be hot to be good. But really good chili, hot or mild, doesn't come out of a can." ! =. ~~ -- -
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24 CHAPTER 1 FOUNDATIONS OF STRATEGIC MARKETING MANAGEMENT Dry mix brands include such familiar spice brands as Lawry's, II McCormick, French's, and Durkee, along with smaller offerings II such asWick Fowler's and Carroll Shelby's. Their retail prices range from $.99 to $1.99. The Consumer Reports study was more favorable about dry chili mixes, ranking them from "fair"to "very good."The magazine recommended, "Ifyou want good chili, make it with fresh ingredients and one of the seasoning mixes we tested." Amajor drawback of dry mixes is that they require the preparers to add their own meat, beans, and tomatoes and take more preparation time than canned or frozen chilies. The Consumer Reports study did not include the frozen chili entrees from Stouffer's or Marie Callender's (Bowlin' Coyotef was not yet on the market at the time of the test). However, it is fair to say that these products-consisting of ground beef, chili beans, and tomato sauce-are of average quality. Furthermore, they are
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