Market Analysis Summary
The Hispanic/Latino population in the Richmond Metro area has grown by 10% over the past five years. The current population stands at over 100,000. It is projected that the population will continue its growth pattern for the next five years and will eventually reach over 160,000. A majority of these inner-city residents live in family groups of six or more members. The average household income for the area is $32,000.
There are four major supermarkets that operate in the area and over 50 smaller food stores that serve the metro communities. Last year, the four major supermarkets grossed over $150,000,000 in sales. There are plans to build additional supermarkets in the Richmond Metro area in 2003 and 2004. Two of the current supermarkets in the Richmond Metro area are part the local PriceRight chain. PriceRight is planning a new store in the area in 2004.
Though it is difficult to know the exact sales figures for the small markets in the area, traditionally, the community residents have been supportive of the smaller store if their prices are competitive. Last year, Wilson Foods Imports grossed $1.5 million in sales with smaller markets in the Richmond Metro area.
4.1 Market Segmentation
Aztec Food Imports will serve all retail food outlets in the Richmond Metro area. These include neighborhood markets and supermarkets.
4.2 Target Market Segment Strategy
Aztec Food Imports will have two distinct marketing approaches:
- For Neighborhood Markets: Raymond will promote a small group of popular mexican food products that are likely to move fast in smaller stores. These products will be priced to be attractive to the small store owner. Once successful, Raymond will expand the product group.
- For Supermarkets: Raymond will promote the complete line of products that Aztec can provide. Aztec prices will reflect a stronger import connection in Mexico that will results in lower prices and more product.
4.3 Main Competitors
Currently, Acme Food Importers located in Wilsonville supplies the Richmond area food stores with imported mexican food products. Wilsonville is 150 miles north of Richmond. Only in the past two years has the demand for these products grown sufficiently to impact Acme's ability to satisfy demand. Besides the distance, Acme is plagued with weak import connections in Mexico. These factors contribute to the high wholesale price of Acme's imported products.