New Salsa Business Case Study

918 Words Jan 28th, 2018 4 Pages
The quality, texture, and taste differentiates Hector's product from other, more established competitors. In order not to limit his company to selling only salsa, it is important to find a name that will work for both salsa and other products. Since Hector is focusing on bringing this to consumers who enjoy Tex Mex, that element might be an important piece to the name (Clow & Black 2012). Thus, he could brand his product Hector's Tex Mex.
Hector's business is still extremely small in comparison to his competitors like Pace and El Paso. Yet, there is also a niche market that he can tap into that will help differentiate his product from those other competitors. Hector's recipe is a secret, family recipe, where customers can really taste the fact that it is a home made style specialty product. Hector also uses a different spice recipe that differentiates his product from his more bland competitors. Thus, Hector can tap into the specialty market niche, where customers may actually be willing to pay a higher price for a better quality product. In this, Hector may be selling less volume to a more devoted consumer base, but he is selling each unit at a higher premium. The research shows that many customers are willing to pay higher prices if higher quality is involved (Kim & Swinney 2011). Moreover, Hector can market specifically to customers…

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