Goya foods Essay

Started in 1936, Goya feed is to a greater extent famous in the Ameri contribute commercialize where it has pited the diverse Latino market the in the new markets it is targeting. With its headquarters in Secaucus, New island of Jersey the bon ton deals in piece of assned nourishments and some other regimen products such(prenominal) as juice and cooking oil. Some of the major brand builds in the market are extra virgin oil, Paela, Adobo and an assortment of designed recipes and mixes for the market.These products are spread out in tetrad major industries Bakeries Beverage get and bottling Coffee and tea manufacturing Fruit and vegetable processing Meat and nutriment products processing Cereals and other foods processing Conrad colon, the groups marketing music director says that the idea behind their vesting into different food products such as beans and sift is to trans corpse ordinary products to Goya specials (Luther, 2008, pp 69). Ranked number 366 in the Forbes magazine largest undercover companies the participation has shown that it is on its way from climbing form the sm all told enterp parachutes category to one of the top 20 multinationals. The firma has grown over time in size and form.At the moment the companion is using its success in the American and South American market as a motive to launch its products in the Asian market such as capital of Singapore and Taiwan, Malaysia and Hong Kong otherwise known as the Asian tiger economies. These economies are presently experiencing very high economic developing. Consumer spending is on the rise as the welfare of the society improves (Thang, 2008, pp 28). Competitive analysis Goya Foods is to enter the market at the height of its success as a brand offering something more than the common.Its brand is synonymous with creativity in recipes (Luther, 2008, pp 67). In addition to this, Luther (2008 says that the come with has transformed canned beans to more than canned beans to Goya beans. He notes that this is the notion that the guild is riding high on brand identification with grapheme and client loyalty. Goya Foods, which had revenues of $713 million last year, has become synonymous with Latino packaged products of any persuasion. He cites the case where retail outlets and supermarkets pee transformed form labeling Latino food aisles as so to Goya foods.This is against the traditional labeling systems where aisles are tagged as Asian foods. Of this, Conrad says We declare been selling our products for 60 years, so that some of our products, uniform our black beans, fruit nectars and olives, have become part of the culture. The company has reciprocated this embrace with recognition of Hispanic culture such as celebrating the Puerto Rican daytime Parade in New York. Advertising and promotion is done twain in English and Spanish even in their websites (Telvin, 2006 pp110)Moving on to the culturally rich market could then be a bend point for t he company and the market if the entry to the market is well strategized and the quantify is correct. This gives the company a war-ridden advantage in that the markets in Asia have traditionally been shaped by the Asian culture. Making a live into the market would appear to critics as banging your head on a wall. This is more so beca economic consumption China has dominated the processed foods market in China and has manage to penetrate the US and European market.The strength of this growth in the market for Chinese products is pegged on low pricing other than brand name and quality. However, Colon sees this as a marvelous fortune to challenge the status quo and introduce another culture in the market. He believes that the same cultural experimentation that has taken place in the US can be replicated in Asia using the right marketing strategies. He says their strength lies in the identification of the companys brand name with Hispanic culture which is very important in targetin g the culturally heroic market in that region. so, Goyas entry into the Asian market can be viewed as a cultural export form the Hispanic world. Telvin (2006, pp112) sees that the 2005 donation by Goya foods to tsunami victims in South East Asia as court strategy in the region before the marketer happen upons a arse around into the market. Goya Foods recognizes their major competitors in the American market are Del four-card monte, Can Agra and kraft paper foods as shown in the companys website. Del monte is one of the largest competitors with a global forepart well represented in Asia by its Del Monte Pacific branch.The growth of this Pacific branch serving the Asian and American market has been experiencing double digits growth since the turn of the millennium. Former Chairman of Del Monte Pacific, Tony Chew says that the companys 100 plus years presence in the intentness has created strong brand name for the company whose regional head marketer attributes to leveraging our strengths in production, marketing, and distribution, and expanding our business done interactive alliances or strategic acquisitions One of the integration alliances are with the Cadbury Schweppes in US, Nabisco in Canada and Seven-up.Such alliances combined with an experienced management, strong financial standstill from shareholders and a long history has contributed to the companys labeling as one of Asias highest value creators This has created a kind of market entry barrier in the market with a lot of customer loyalty and strategic alliances forming the base of the barriers. Industry forecast The bakeries industry as on of the very competitive market is expected to grow by 5% in 2009.This is a significant rise after the decrease in consumer spending price the market with estimated growth for 2008 only expected to be 2% in the American market. The growth will steady up to around 4% in the next four years as per market predictions. Colon attributes their continued growth and dominance in the Hispanic American market to knowing the Hispanic market better than any competitor through market research. Given that there exist many of opportunities in a rural area like Malaysia, good market research in the country should be expected to yield good results.According to an industry brood on the status of the processed food industry in Malaysia the industry has a lot of opportunities short listed as flour based products such as pasta, biscuits, pre-mixes, frozen pastries and chocolate confectionery cereal-based products such as eat cereals, muesli and rolled oats pure fruit juices, orange juice concentrates, frozen vegetables, provisions nuts and canned fruit condiments, seasoning and sauces nutritional snacks such as fruit rolls and yoghurt bars health foods and bars halal-processed meat such as corned beefCanAgra as a competitor to Goya deals in brands such as Rosarita, Blue bonnet and Gilroys foods is already making a gradual exit from the Asian mark et after years of unsatisfying gross revenue by cutting operations. With an extra room created by CanAgra, Goya can enter the making to have a share of the profits. Canned, frozen food processing industry is experiencing good growth despite the fall in this years consumer spending which has hurt sales across all industries. This industry is expected to register a increment of 1% to 5% from last years and maintain the same in 2009. ulterior years are estimated to see the industry fall back to 4%. This increase in growth is largely tied to increase in population. In addition, Indias processed food industry is growing at an average of 12% per year. Such opportunities exist for companies such as Goya to make full use of by venturing into the market. Goyas product strategy wisdom of culture as the main selling pint by the company has been put into full utilization through market segmentation by culture.Goya recognizes that eating habits from one cultural grouping to the other changes a lot. Therefore the company has realized the need to satisfy all markets by segmenting the deferral markets and developing specific products for that market. According to a link in the companys website http//www. goya. com/english/recipes/recipe_category. html? id=6 the markets are divided into four major categories. These are Mexico, Central and South America, Spanish and the Caribbean. In distributively market there are various products in form of recipes that are unique to that market only.However, the aspect of cultural exchanges does allow variety in that cultural experimentation through Goya products is facilitated. The company has strategically made use of promotional and marketing campaigns that are well publicized. Alliances with traditional supermarkets and large retail outlets have helped in product placement as a form of advertising. In addition, the fact that Hispanic foods are all being labeled Goya is working well for the companys policy. However, the same labeling c an stretch out to loss of market.Poor quality products meant for the Hispanic market can be viewed by the market as belonging to Goya which is not the case and indeed the company loses customer loyalty on the basis of poor quality products. This would d be against the companys slogan If its Goya, it has to be good. Profitability and budget analysis Increased commodity prices and decreased consumer displace has for the better of this year proved problematic to marketers. In a address to remain afloat, Goya and her other industry competitors were forced to increase their prices.Therefore, as kraft paper foods admitted their increase in profits this year was partly due to a 7% increase in the prices of their products. Again, going by the same argument, the target of Goya hitting the $1 billion mark this year in sales is definitely going to be a reality (Thang, 2008, pg 27). Del Monte as the other competitor has also reported profits at 11. 1%. Given that all the industries in which Goya operates are estimated to be on the rise ceteris paribus, then the market share for Goya in particular and to all the players in the industry is going to increase in the near future.Marked by such an increase in sales and profits, Goya is increasing her expenditure on marketing and promotional activities. Last year the company reportedly tripled its marketing budget to counter market encroachment by competitors. Again, there have been increased sponsorship and philanthoppy activities by the company. As a result more Americans in addition to the Latinos are turning to Goya foods for an alternative to the traditional American food to more stylized processed food.