Salvador’s is a manufacturer of authentic Hispanic foods including salsa and chips. Their products are considered to be at the highest quality and most affordable price point on the market. Salvador’s has been around for three years, and it has enjoyed great popularity. What was once a business targeting solely the Hispanic community has grown into a business that has far broader appeal.
Salvador’’s has several goals they hope to achieve over the next three year. First, they want to double sales and reach two million dollars in five years. Salvador’s also would like gross margins to be above 55%. Salvador’s also hopes to have 40 different outlets that will distribute their product. They aim to be the best Hispanic food producer in the region with an expanding geographic distribution.
Salvador’s currently has two main lines of products. Their salsa, their flagship product, is highly acclaimed for its freshness. Salvador’’s original salsa was only available in hot temperatures. But, customers have asked for milder versions. Salvador’s offers fresh chips in both yellow or blue corn to compliment their salsa.
Salvador’s has targeted three main customer segments to sell its products to. The first is grocery stores. Groceries will then be sold directly at the end customer. This segment is growing at 75% and there currently are 53 potential customers. The wholesale distributors form the second category. This segment has a 100% growth rate with 5 potential distributors. Restaurants represent the last customer segment. They have a 45% rate of growth. There are 18 potential restaurant customers. Salvador’s initially targeted the Hispanic community, as previously mentioned. Salvador’s recognized the market’s need for their products to have greater appeal and has acted accordingly. The Hispanic community was initially targeted because of its exciting growth rate. The community has experienced a 22% annual growth rate, almost twice that of the US population.
Salvador’s high priced point is not as competitive as the regional or national mid-price points. There are however many other options. Salvador’s enjoys this advantage as it gives them more time to become the top brand in authentic Hispanic food.
Salvador’s strong management team, Ricardo Torres (Pat Torres), will ensure long-term growth. Pat has 12 year experience in the food and beverage industry. The five previous years were spent as a manager at a four-store Tex-Mex chain. Pat gained incredible insight and industry experience that bolstered the idea of starting a business. Salvador’s more than six years of experience as a CPA in Arthur Andersen’s financial control department is brought to Ricardo. Salvador’s management team is seasoned and will assist in Salvador’s dream to become the top Hispanic food producer.
Salvador’’s has achieved profitability and is forecasting a modest net profit within three years. Sales will generate a modest profit margin. The plan’s financials further emphasize the business’s exciting nature.
1.1 Objectives
- Over the next three years, you can expect to see significant sales growth.
- Maintain your current level of gross margins and improve your gross margins by %
- To meet market demand, add products and services again at a high gross margin.
- Increase inventory turnover, lower costs of goods sold and maintain the highest quality of products.
- To provide fulfilling and rewarding jobs for the Hispanic population.
1.2 Mission
Salvador’s was built on offering the highest quality and value in its authentic hot salsa, filled with the history of the Hispanic community. Time honored family recipes have been passed down through the generations, rich with ethnic heritage. Knowledgeable consumers were looking for authentic products, filled with the best ingredients. This consumer wanted a change. They wanted real down home Hispanic salsa.
Salvador’s responded with its hot salsa, then milder and extra hot salsa, and then yellow and blue chip corn chips. Constantly striving to supply what the consumer is asking for, we continually review what is available in the marketplace, and what isn’t.
In a market driven solely by consumer demand, our success will depend on improving what is already available and providing new services and products to those in need.
1.3 Keys to Success
- Delivering high quality products that set themselves apart from the others in taste and value.
- Our dealers receive service, support, as well as a higher than average margin.
- Gross margin increase %
- Add new products to your product line in order to increase sales volume.