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Pan Boricua: Developing a Market Strategy For

The Hispanic Market in the United States


Pan Boricua Inc. was formed back in 2001 when Auriel Rivera and Franco came up with a plan to export Puerto Rican bread to the United States. Their major product was pan sobao which is bread that is known for its unique flavor and texture; and it’s made in Puerto Rico. An opportunity was identified when several Puerto Rican residents would take several pounds of pan sabao from local bakeries to the United States. The program included the export of frozen bread dough along with branded bread-loaf paper cover and merchandising at the point of sale. The initiative was aimed at cities in the United
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Worldwide rise in the prices of fuel and key ingredients which in turn put pressure on the company’s profit margins. Could also potentially drive them out of business


See Exhibit (b) in the Appendix section

The baked goods industry in the United States is one that is highly competitive; especially once big stores such as Wal-Mart and entered. It is however important to note that “artisanal” baked goods hold 49% market share1. The market for bread was highly competitive with a number of barriers which stirred competitors away from traditional bread offering and explore the opportunities in niches such as gourmet and specialty breads. A variety of bakery products of Hispanic origin were also available in the United States. This meant that numerous bakeries had surfaced.

When it comes to pan sobao however, Pan Boricua faced only one rival, Mi Pan Asociados. The rival had set up a system of “mini bakeries” that allowed supermarkets, gas stations and other retail establishments to sell fresh bread. In the United States, they also faced other competitors, such as the majority of U.S. retailers who had aisles dedicated to ethnic foods in their stores. In fact, some such as Wal-Mart and Kroger have also incorporated bakeries within the stores.
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