The company’s competitors can be divided into two categories: dry dip mixes producers (Heritage Line Herbs, Best Darn Foods, Uncle Dan’s, and Blanco Valley Farms) and ready-to-use dips and dressings producers (Spice West, Jimmy’s Salad Dressings, Marzetti, and Frito-Lay). The main competitive strength of the company is that it uses high-quality natural ingredients. Its weakness is that it is a new player in the industry and has to gain its market share, which is connected with large expenses.
The closest competitor of the company is Frito-Lay. The company’s differentiation strategy is that it has a wider variety of dry dip mixes. Also, the company emphasizes that its products are all natural and do not contain any artificial flavorings, preservatives or colorings.
The company is currently a follower within the vegetable dip industry. However, it intends to occupy a segment of healthy snacks and be a leader in it. This strategy will require significant marketing efforts, including advertising, branding, and sales promotion, as well as strong commitment to the chosen production technology and quality control.
The company has to take into account technological and economic issues of its macro-environment. Progress in food processing and preservation has made available technologies which help extend shelf-life of products with minimal changes to their properties and nutrition value (Bhat, Alias, and Paliyath, 2012). The company should adopt such technologies in order to execute its differentiation strategy. While the economic situation in the country is getting more stable, people are likely to spend more money on snacks, including vegetable dips, and will be willing to pay a somewhat higher price for a healthier snack. Legal and social issues are unlikely to affect the company’s activity significantly.
The most significant trend that can affect the business is a growing concern about healthy way of life. People’s preferences switch to products, which can help them stay healthy and fit. While dips are mostly perceived as junk food, the company has a chance to promote its products as a healthy and yet delicious alternative to traditional dips. It can produce low calorie, low fat, and natural dips and thus gain a large market share of healthy-eaters.
References
Bhat, R., Alias, A.K., & Paliyath, G. (Eds). (2012). Progress in food preservation. Oxford: Wiley-Blackwell.
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