This is the exclusive line of single serve and microwaveable frozen chili products with a unique Southern Western Mexican style. It originated in Minneapolis St Paul and expanded to Denver two years later, followed by Phoenix two years after. Paradise Kitchens has successfully implemented their high-quality, high-priced strategy. This marketing plan outlines the company’s goal to expand their geographic reach to three markets by 2016.
The mission of Paradise Kitchens is to market high-quality southern western Mexican food products at premium prices, meeting the needs of customers in the fast-developing food segment. The company also aims to provide challenging career opportunities for employees and above-average returns for stakeholders.
The objectives include expanding market presence in supermarket chains, continuously introducing new products to maintain freshness, and becoming one of the top 5 chilli producers. Financially, they aim for an 8% annual stock development, a minimum return on investment, and a public stock offering.
In terms of core competency, Paradise Kitchens aims to achieve the specialized ability to provide unique, high-quality ingredients and efficiently manufacture and distribute these products using quality standards that align with the company. The annual sales in the chili market exceed $500 million, with an average consumer purchase of 5 to 6 servings per year, as reported by the NPD Group. The products primarily fall into two categories: canned chili and dry chili. However, a challenge that the company encounters is the unfavorable taste perception of canned chili among consumers.
The husband and wife team who co-founded Paradise Kitchens, Inc. have a combined experience of 44 years in the food processing business. Both of them have played important roles in the management of the Pillsbury Company. Their financial goals include:
- To attain the real development in earnings per share of 8% per year over time.
- To attain the return on equity of at least 20%
- To have the public stock offering by the year 2009.
Non-financial objectives:
- To retain their present image like the highest-quality line of southern western Mexican products in the food categories in which it competes.
- To enter 17 new metropolitan markets.
- To attain national distribution in two convenience store.
- To add the new product line every third year.
