S&W Beans Situation Analysis

Target Audience: Young professionals and young families between 22-35 who shop for convenient and budget conscious healthy food options

 Competitive Environment

Current usage of canned beans:

-Chili

-Side dish

-Ingredients

-Ethnic dishes

Recipe Collection users:

-Majority of people use them as an ingredient in a Main Dish (implied as a substitute for regular beans) (51-58%)

-Over a third of consumers are using the product as a standalone side dish (33-38%)

-Side dish is the next most popular usage (23-29%)

-Main Dish (7-12%)

-Other (4-5%)

Key competitors to S & W and Their Major Strengths/ Weaknesses-

Bush’s- (only other national competitor)

Strengths-

  1. Strong national brand identity and brand loyalty
  2. Bush’s now has a new Hispanic line of beans called “Cocina Latina” which is similar to the Recipe Collection but it is marketed directly to the Hispanic demographic
  3. Great website and online presence
  4. Strong social media presence-many recipes
  5. Well-recognized national ad campaigns
  6. Available at the majority of retailers, including Target and Walmart

Weaknesses-

  1. Cocina Latina is only marketed to the Hispanic demographic, so Bush’s is limiting the audience for these beans
  2. No coupons/promotions on social media

Goya-

Strengths-

  1. High market share out east
  2. Largest Hispanic owned food company in the US
  3. International presence

Weaknesses-

  1. Not great social media
  2. No products that are similar to the Recipe Collection
  3. Website is difficult to navigate

Although not a direct competitor the store brand is also a competitor

Retail Distribution Issues

1. Don’t know what section of the store to sell the Recipe Collection. Should it be with all the other canned beans or in the ethnic foods section?

2. Center of the grocery store (canned/processed foods) is struggling with recent emphasis on   fresh, organic foods.

3. The Recipe Collection isn’t well known and therefore isn’t selling so stores are removing it from the shelf.

4. Can be expensive to ship and can be a waste of money especially if stores are failing to sell the items.

5. Not sold in Target or Walmart, this is a especially a problem if S&W wants to break into the Midwest market

 Company History and Resources

-Been around for over 100 years-use this as brand identity

-Family owned for four generations

-Started in 1895, Faribault, MN

-Branched out to have a large market share in the West

- Quality is a high priority

-Minnesota is the world’s premier quality growing area for beans, corns, and wheat

 How Has the Company and Brand Grown Over the Years

-Midwest canneries closed or were consolidated-only 6 by 2000

-Added products and product lines-including the recipe collection

-Hold a large market share in the west and want to bring it back to the Midwest

-Four current Minnesota facilities-down from 6

 Resources Do They Have to Foster Growth in this Category

-Knowledge of the canned bean business

-Successful brand in the west

-Tastings

-There is room to develop social media and create brand loyalty

-More publicity via blogs and through featuring the item at grocery stores

Objectives for the Campaign

-Make people come to the beans section of the store

- Use coupons and other forms of engagement (placing sign reminders in aisles of tortillas and rice), and create side aisle stands

-Dish on its own, not just an ingredient

-Gain acceptance from Retailers

-Allowing consumers to taste test the product

Sales/Volume Goals

-Move the brand from #3 or #4 ranking up to #2 or #1

-Gain at least 20% more of the market share

-Bush carries a unit volume of 110,848,623, Goya carries 81,505,754 and S&W carries 25,332,516

-Need to gain 56,173,238 in volume

Key Issues Facing the Brand

-Not well known in the Midwest

-People are uneducated about the product

-It is hard to get people excited about beans

-The grocers don’t see the value in the recipe line

-Standing out on the shelves is difficult

-Packaging

-The product is not in the key stores in the Twin Cities like Target