Salsa Manufacturer Business Plan Leave a comment

Salvador’s is a producer of authentic Hispanic foods, such as salsa and chips. Their products are at the top of the market for both price and quality. Salvador’s has been around for three years, and it has enjoyed great popularity. The business was initially targeted only at the Hispanic population, but it has expanded to appeal to many more people.

Salvador’s has several goals that they want to achieve in the next three-years. The first goal is to increase sales to two million dollars by year 5. Salvador’s would like gross margins to exceed 55%. Salvador’s also plans to open 40 retail outlets that sell their product. They aim to be the best Hispanic food producer in the region with an expanding geographic distribution.

Salvador’s currently offers two main products. Their salsa is their most popular product. This salsa is known for its freshness and uniqueness. Salvador&#8217’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&#8217s has targeted three main customer segments to sell its products to. Groceries are the first. The grocery stores will then sell directly towards the end consumers. This segment is expanding at 75%. Currently, there are 53 potential customers. The second group is wholesale distributors. This segment is growing at 100% with five potential distributors. The last customer segment is restaurants which have a 45% growth rate. There are 18 potential restaurants customers. Salvador&#8217s originally targeted the Hispanic communities. 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 been growing at 22% a year, almost double the average of the overall US population.

There are many local and national competitors at the middle price point but few at Salvador&#8217’s high price point. Salvador’s has this advantage, allowing them to be the best brand of authentic Hispanic foods.

Salvador’s strong management team of Ricardo and Pat Torres will ensure sustainable growth for Salvador’s. Pat is the President and has 12 years of food industry experience. The previous five years was as manager of a four store Tex-Mex restaurant chain. Pat gained incredible insight and industry experience that bolstered the idea of starting a business. Salvador’s six years of experience with financial control from his time as a CPA working with Arthur Andersen is now available to Ricardo. Salvador’s management team, due to its seasoned strength will help Salvador’s achieve the dream of being the premier Hispanic food manufacturer.

Salvador’s has begun to reach profitability and forecasts a modest net profit in three years. A modest profit margin is expected to be attained from sales. This plan also highlights the excitement of the business.

1.1 Objectives

1. Over the next three years, you can expect to see significant sales growth.
2. Improve gross margin % over the current product line and maintain that level.
3. To meet market demand, you can add products and/or services at a high margin.
4. Reduce inventory turnover, increase sales volume and maintain high product quality.
5. To offer rewarding and fulfilling jobs for the Hispanic community.

1.2 Mission

Salvador’s is a hot salsa restaurant that prides itself on authentic hot salsa and the rich history of the Hispanic Community. Family recipes that have been passed down through generations are rich with ethnic heritage. Knowledgeable consumers were looking for authentic products, filled with the best ingredients. The consumer was crying out for a change! They wanted authentic Hispanic salsa.

Salvador’s responded with its hot salsa, then milder and extra hot salsa, and then yellow and blue chip corn chips. We continually evaluate what is on the market and what we can offer to satisfy the customer’s needs.

Our success in a market driven primarily by consumer demand will be ensured by improving on the existing products and services and providing new products and/or services.

1.3 Keys to Success

1. High quality products that differentiate themselves from all others in taste and price.
2. Service, support and a greater than average margin for our dealers.
3. Increase gross margin by %
4. Bring new products into the mix to increase sales volume.