Salsa Manufacturer Business Plan

Salvador’s sells its authentic Hispanic salsa and chips to an ever-growing clientele. Originally geared toward the local Hispanic community, the market has expanded to include a much larger geographical area, in addition to a very broad consumer response.

We are selling quality and product-uniqueness in a market segment filled with competition. Our approach is to take our product image up-market because or our rich heritage and uncompromising view of product quality. This focus has enabled us to view the voids in the market, and add product to our line that will fill it. We have researched and reviewed other ethnic food item organizations, tracking their successes and positioning ourselves similarly.

Salvador’s is building a reputation for high quality and strong value in a product filled with authentic Hispanic flavor. We service our dealers just as if they were a part of the family – and that is our unique approach to marketing our products. You are not just a dealer; not just a consumer; you are special to us – you are family. We go to great lengths to provide our dealers with high quality products, and the ability to make a good margin on them. In addition, we make ourselves available for on-site demonstrations of the product at no charge to them. We hope to continue offering this service, but at a minimal cost to lower our expenses in the future.

3.1 Product Description

We currently offer two basic product lines:

• Our original product, Salsa, was available only in a hot flavor. Because of consumer demand, we have added extra hot and mild flavors.
• Chips, both yellow corn and blue corn.

3.2 Competitive Comparison

To differentiate ourselves from all of the others, we stress quality and authenticity of the ingredients, and the heritage of the family recipe.

We sell more than a jar with salsa in it. We sell high quality ingredients, carefully put together in a masterful blend that can’t be matched in taste or true Hispanic authenticity.

These are simple products that must be presented in a way that encourages the consumer to just give us a chance. Once they try our product, we will have a long-term relationship with them.

As in similar food items, we can charge a premium for what we supply. The market has shown it will buy our product over more readily known names because of the richness and authentic taste of our salsa.

3.3 Sales Literature

We are currently working on a new line of brochures and sales materials to assist our marketing, and that of our dealers. Our newly designed labels show the direction we are taking in this area, and we have enclosed a copy as an appendix/attachment.

3.4 Sourcing

Our costs are a part of the margin squeeze. As our orders go up, we need to increase our production in a way that also increases our margin. We have found a local supplier that can reduce our costs by handling much larger batches of salsa than we are currently able, yet maintain our high quality. This will reduce our costs over 32% per jar in the production of our salsa.

We need to continue to find additional opportunities that will afford us lower costs of production while maintaining the quality that has put us on the map. Our outsourcing for the corn chips has shown we can contract for a high quality product that we will be able to put our name on, and meet our goals for gross-profit margin.

3.5 Future Products

We are currently researching the addition of an authentic Hispanic Sauce, as well as other Hispanic food items to offer our current clients, and to build increased interest in Salvador’s, Inc.

We are now looking into additional products, sauce, and other Hispanic food items, as well as other ways of marketing the overall line.

We are also looking into creation of a small store front, and eventually a lunch counter or small restaurant setting.