Marketing Analysis

Market Analysis
Bazaar Sauce
A taste of tradition
MKT 304 Tuesday 4pm
Professor Heisley
Client: Bazaar Sauce
Group # 9
Eric Gonzalez,
Lindsey Michels,
Lance Lange,
Raika Bozorge Marashi,
Zhakeyah Walton

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MARKET ANALYSIS - FEBRUARY 2015
Executive Summary:
As requested, team 9 has conducted the following report implementing marketing
strategies for Wanda Sauce. In addition to providing extensive research to develop an in depth
market analysis. Throughout the report, you will find our goals and projections for Wanda Sauce
to follow within the next few years. Since the name Wanda Sauce is already taken in the sauce
industry we proposed first changing the name to Bazaar sauce. Therefore, the Bazaar Sauce
brand will be referred to solely as Bazaar or Bazaar Sauce in the remainder of this report. The
name “Bazaar,” is an actual Persian word meaning “Middle eastern market.” The name brings
tradition and culture to ethnic sauces. Bazaar sauce was also chosen for its English meaning,
something that is bizarre is often unique and new. Bazaar Sauce offers a variety of flavors red
hot/mild sauce, white sauce, and green sauce. Altogether, a taste of ethnic tradition
complementing any dish. The potential customers we recommend Bazaar Sauce looking into are
small local ethnic supermarkets in the Los Angeles, Seattle, and San Francisco areas to attract
local customers.
The goal is to increase the market share starting January of 2016, and break even in
investments by the end of 2019. In order to achieving these goals, will mean Bazaar Sauce will
have to successfully sell their products through attending trade shows and local farmer markets,
creating self-awareness of their brand. Eventually reaching out to their local ethnic supermarkets
to be displayed in an eye-catching manner. To start we will advertise our sauces at local ethnic
supermarkets throughout the Los Angeles area. We will allow local restaurants to use our sauces
for name recognition and for consumers to be able to taste our sauces on different types of foods.
Not to mention, utilizing the environmental packaging and vibrant customized detailed food
pairing printing label will be a great beneficial factor for Bazaar Sauce to offer a personable
uniqueness for each flavor.

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When considering our target consumers, we desire to have them notice Bazaar Sauces
purpose, bringing culture together to establish new unforgettable memories to families when
compared to our competitors. Through our recommendations Bazaar Sauce should have a long
product life cycle with the potential to grow each year. With the ethnic races constantly
increasing more in the US each year gives Bazaar Sauce a tremendous advantage.

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Table of Contents:
I. INTRODUCTION:................................................................................................................. 1
II. SITUATION ANALYSIS:..................................................................................................... 1
A. COMPANY ANALYSIS:............................................................................................................ 1
B. CUSTOMER ANALYSIS:........................................................................................................... 2
C. INDUSTRY ANALYSIS:............................................................................................................ 3
1. Competitive analysis: ..................................................................................................................................................3
2. Environmental trends:.................................................................................................................................................6
D. SWOT TABLE:..................................................................................................................... 11
1. Opportunities:................................................................................................................................................................11
2. Threats:..............................................................................................................................................................................12
III. MARKET-PRODUCT FOCUS & GOAL SETTING:.................................................. 14
A. SEGMENTATION, TARGET MARKETS, GROWTH STRATEGY AND VALUE PROPOSITION ........ 14
1. Market segmentation:................................................................................................................................................14
2. Target market(s): .........................................................................................................................................................14
3. Market-product grid and growth strategy:...................................................................................................15
4. Value Proposition:......................................................................................................................................................15
B. POSITIONING STRATEGY: ..................................................................................................... 16
C. SET MARKET AND PRODUCT GOALS:................................................................................... 17
IV. CONCLUSION:................................................................................................................ 19
V. REFERENCES:.................................................................................................................... 21
VI. APPENDIX:....................................................................................................................... 23
VII. TABLES AND FIGURES:...................................................................................................................... 24

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I. INTRODUCTION:
This market analysis is being provided by Team 9 regarding our client, Bazaar Sauce and
is intended for Professor Heisley of Marketing Management 304. Within this report, we will
consider many aspects of Bazaar Sauce brand and the industry it operates in with the primary
goal of its founders in mind, making Bazaar Sauce a national brand. It is Team nine’s privilege
to analyze the market, establish marketing objectives and suggest the best marketing strategies in
an effort to insure the success of Bazaar Sauce.
Bazaar Sauce is a blossomed seed that stems from warm memories of one family’s
grandmother. Generation after generation, this grandmother was loved by her family and
community for creating her special paste featuring hand selected tomatoes. Throughout their
lifetime, the aroma and atmosphere of the sauce making events stayed with the founders of
Bazaar Sauce as fond memories of food, family, health and love.
The founders of Bazaar sauce were inspired and set out to create these recipes as a means
to share joyful memories with everyone. In this report, we will examine the sauce industry to
determine which strategic path offers Bazaar the greatest chance at being a successful national
and eventually global brand. The success of Bazaar means people will be able to indulge in
warm thoughts of family and love while exploring exotic flavors.
II. SITUATION ANALYSIS:
A. Company Analysis:
Bazaar Sauce, Inc. is a startup food company located in Los Angeles offering a variety of
exotic traditional sauces/condiments. Bazaar Sauce’s products are a mixed culture recipe
consisting of Persian, Italian and Turkish ingredients to create the perfect sauces to complement
your food. Bazaar Sauce wants to be the consumers everything sauce, condiment, dip or spread.

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Bazaar Sauce will be environment friendly packaged out of glass and offer to-go packets for the
consumer’s convenience at a low price of about $1.50 per ounce. The creators of Bazaar Sauce
are up against a huge and already developed industry, but the uniqueness of their sauce will
differentiate them from the rest of the market.
CEO, Dr. Ladan Behnia has previously formed and established successful businesses.
Partners, Mitra Pakdaman, Shirin Behnia and Pasha Shoari also have experience to help make
this business successful. For example, Mitra Pakdaman is the Co-Founder of “Georgia Honey
Farm”, an all-natural honey production and distribution company; Shirin Behnia is Vice
President of marketing at Mitratech; and Pasha Shoari has extensive experience and knowledge
in the food and retail industry. With all their experience they hope to bring their traditional sauce
that has been passed down and modified to perfection into market. Their vision is “to be the best
food company with the most traditional and quality taste possible” and value quality, tradition,
integrity, consumers and innovation.
B. Customer Analysis:
When the recession hit the US economy, it affected the sauce industry in a good way.
According to agr.gc.ca, between, 2007 and 2012, many people started to consume more food at
home instead of restaurants, which made them aim for higher quality and more premium sauces
to make better meals at their homes while keeping the costs lower than dining at restaurants. This
opened a new market for many new sauces; such as barbeque sauces, dressings, and many other
sauces as well, but they were usually presented in a more premium glass packaging’s, which
made them differ from the regular lower price sauces.
The demand for new sauces is increasing in today’s society. “The global condiments
sauces market has been segmented by seven types of condiments sauces such as chili/hot sauce,
brown sauce, national specialties, mustard sauce, other condiment sauces, tomato ketchup and
soy based sauces”(1). Bazaar Sauce fits well into the “other condiment sauces” category. The

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interest for trying new foods, and taste preferences is one of the reasons, as well as the
consumers concerns regarding the health issues which increased the home cooking consumption.
Preparing different foods at the houses have also increased the demand for the sauces. The
consumers are looking for flavor food as well as high quality for their ingredients. We can for
example see that the Hispanic food culture has put its effect on American food culture, as well as
other food cultures have; Such as the Italian.
According to agr.gc.ca, the consumers in today’s society are looking for organic
ingredients, such as vegetarian or beans. There is also a high demand for kosher products
because of its reliability.
The consumers are looking for convenience, something that is time saving to cook with
in the kitchen, easy to handle, but also a packaging that is the perfect size for a single home
because this can be the opening market to the future households.
C. Industry Analysis:
1. Competitive analysis:
Consumers are experiencing dishes with new sauces and marinades. Bazaar Sauce is
entering a competitive market with Heinz in the lead, McILhenny Co.’s tabasco sauce, and
McCormick. The Market share leader, Heinz is the nation’s favorite sauce. We see Heinz
everywhere from the grocery store, to wholesale markets, and fast food to-go packing. Heinz was
founded on principles, and the first advocate of the pure food and corporate transparency.
Consumer’s main concern is the quality of the product they are purchasing. Therefore, Heinz
very first product, horseradish was packaged in a clear bottle for consumers to see that it
contained no fillers. This was a great move and immediately put Heinz apart from the
competition. This shows Heinz is paying close attention to their market’s needs. That
“unwavering focus on quality and goodness still drives our mission and our focus on innovation
(http://www.heinz.com/our-food/innovation.aspx)” is the Heinz way of life. Portraying to their

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consumers, they are a brand that cares and wants to make a difference. Finding create ways to
connect, listen, and learn more about their consumers. Their target customers are families and
health conscious people. In addition, more than 70% of Heinz products can be classified in the
healthy category. Ingredients like trans-fat, salt, and sugar are being removed. Heinz says, their
value is, “A company that values people is a company people value.” As a matter of fact, they
like to maintain the highest standards of nutrition and natural goodness. Heinz most popular
products are Classico pasta sauce, Heinz Ketchup, and Lea & Perrins. These values Heinz holds
close to, and it displays a sense of culture. This allows them to control the quality of their
tomatoes from seed to store, improving the lives of farmers in the developing nations. Heinz has
produced a can that uses 13% less steel and saves 750,000 dollars annually. Heinz is known for
their eco-friendly packaging initiatives, elegant labels, and mason jars. Which, having a
sustainable agriculture, supply chain, micronutrient campaigns and inexpensive prices is what
makes them so beneficial. Heinz innovation, “We’re always cooking up something at Heinz
(http://www.heinz.com/our-food/innovation.aspx0).” Heinz communicates their value to their
consumers through their dedication to the continuous health of people, the planet, and their
company. However, through an intensive research, we have acknowledged a few weaknesses
Heinz possess. (1) The company manufacturing plants are located in the US, which depends all
on the economic environment. (2) Low or cheaper quality technology, which directly affects the
factors of production. (3) Shares in the market have decreased due to the need upon the
economic situations.
By 2017, hot sauce production in the US is expected to be $1.3 billion industry, with
McILhenny Co.’s tabasco sauce in the lead for hot sauce, right behind Heinz in the overall sauce
market. McILhenny was founded in 1868 on Avery Island, Louisiana. A brief background on
MciLhenny, they are a family run and privately held company. Over the past 10 years, the hot
sauce industry in the US has seen an average annual revenue increase of 9.3% a year. However,

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McIlhenny tabasco sauce had an advantage in the market due to the benefits of higher quality,
fresh ingredients, and fewer preservatives in their recipe it has to offer their consumers. It just
takes three ingredients to make this incredible hot sauce everyone loves including; original red
pepper, sauce salt mined from the island, pepper mash, and grain vinegar. In fact, it takes a total
of three years to mature the mixture in white oak barrels before bottling. Altogether,
sustainability has been their way of life. They are always looking for new ways to improve their
business. McILhenny’s company, over the years has developed new flavors that have been added
including; green jalapeno and chipotle. Not to mention, tabasco sauce five generation later is still
made so similar to the original way and this is what strives their market. Consumers appreciate
and respect the generation story behind this fresh delicious hot sauce. To add, the hot sauce
industry has grown 150% since 2000, this is greater than mustard, mayonnaise, ketchup, and
BBQ sauces all combined. There has been a higher demand in the market for spicy hot foods.
Restaurant chefs are even taking advantage and designing creative inspiring dishes with a spicy
flavor. McIlhenny biggest strengths are their loyal customers. As well, they are also sold in every
grocery store in the United States putting them at a great advantage. Since, McIlhenny is an
independent company this is a weakness of theirs, they don’t have the financial backing that
large corporations can depend on. In addition, they only produce their tabasco sauce in one
location, making it difficult to relocate or build new factories. Not to mention, there is a large
growing market for hot sauce and many competitors are able to advertise more efficiently.
McCormick is the next leading sauce in this growing industry. McCormick proclaims,
“Our company mission is to consistently provide premium quality spices, seasonings, flavorings
and specialty foods which offer our consumers and customers superior meal solutions
(http://www.mccormick.com.au/about/company-mission.aspx).” People all around the world
trust McCormick, to enhance their enjoyment of life through creating this memorable food
experiences in and outside of their consumer’s home. McCormick introduces culture and passion

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to their flavors. McCormick’s target groups are retail outlets, food manufacturers, and the food
service industry. McCormick’s Strengths are their products are worldwide reaching more than
110 countries. Not to mention, they are also a leading supplier of private label items. Their vision
is to build on strong brands with new breakthrough products that will provide exceptional quality
and service to their customers all around the world. McCormick’s weakness is the fluctuation in
the cost and availability of raw packing materials. In addition, the sauce industry has many
competitors. The possible threats McCormick faces are due to their raw materials being
agricultural products, they are subjected to fluctuate in the market price and availability caused
by harvesting conditions, weather, and growing.
2. Environmental trends:
a) Economic environment:
The environmental trends occurring in the sauce and condiment industry have the
potential to affect our company. According to PRNewswire, “The global condiments sauces
market has been segmented by seven types of condiments sauces such as chili/hot sauce, brown
sauce, national specialties, mustard sauce, other condiment sauces, tomato ketchup and soy based
sauces.” Bazaar Sauce fits well into the “other condiment sauces.” Globally “Asia Pacific led the
condiments sauces market followed by North America” (NewsWire 1.) Bazaar Sauce may sell
well in the large North American market and have less appeal in the Asian markets, as they
prefer soy based sauces.
Outside of the Asian market though, there is an increase in demand for more than
dynamic ethnic sauces like Bazaar Sauce. Specifically, our red tomato based sauce may be very
appealing to US, Saudi Arabian and German markets that prefer tomato based sauces because
they can we used an ingredient ( Newswire 1). Also noteworthy, “U.S., Japan, China and

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Germany dominate the market for condiments sauces and are expected to maintain its
dominance” until 2020 (NewsWire 1).
As previously highlighted, the recession of 2008 affected the sauce industry sales volume
in a positive way as more people dined at home and sought sauces to complement home prepared
meals. Now with the economy in recovery, consumers have more flexible income and are
seeking high quality sauces.
The “Greying of America” phenomenon should be considered because it will have a
significant impact on the economy in coming years. “In some ways, the U.S. economic future
will mirror the current situation in Japan…[ In Japan], the average age is roughly 16 years
older...and the effects of a consumer base that is spending less on housing, food and luxury items
are taking an economic toll” (Jones Journal 1). In order to make sure Bazaar Sauce appeals to my
older population which is soon to be the majority, it should monitor this situation.
b) Political and regulatory environment:
The production of Bazaar Sauce will be regulated by the United States Federal
Government and the state it is produced in. In general, regulation of production by the federal
Food and Drug Administration is strict. The state where production is hosted will also have the
power to regulate production in compliance with federal law. The FDA regulates two categories,
meat and “all other foods” Bazaar Sauce falls into this less strictly regulated “all other foods”
segment. The state and the federal government will have the authority to inspect the food
producing firm anytime, unannounced. The regulation of this segment is less strict than the
regulation of meat. The FDA does set requirements for what can be called “hot sauce”, “tomato”
sauce and the like; Bazaar Sauce should be sure to abide by federal and state regulations
regarding production. Specific FDA production requirements can be found in Appendix A.

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Internationally, regulations of food production will vary. The regulations Bazaar Sauce is
subject too will mostly be from the US government as long as Bazaar Sauce is produced here or
sold in the US market.
Bazaar Sauce could choose to produce elsewhere where regulations are less strict. When
conducting business overseas, Bazaar Sauce will be subject to different export, import and
shipment and tariffs policies. Important to consider, US consumers may favor food items ‘Made
in America” for its reliability regarding safety.
In regards to politics, Bazaar Sauce will benefit most from pro-business policies and
economy boosting initiatives implemented by government. The sauce industry hasn’t come under
extensive scrutiny but there have been cases regarding the ingredient requirements of tomato
sauces. Bazaar Sauce will have to be familiar with and abide by all applicable requirements. For
specific requirements for a product to qualify as a ‘hot sauce’ or ‘tomato’ sauce, see Appendix
B.
The word sauce may produce some difficulty for Bazaar Sauce because in the public
opinion, the word sauce has negative connotations. The negative feelings associated with the
word sauce stem from America’s battle against obesity and the trend toward more green,
healthier living. Being that the government and the public may feel negatively about the word
sauce; Bazaar Sauce may not be the best product name.
c) Social and cultural factors:
Many social and cultural trends have the potential to affect our company. “Busy lifestyle
and spurt in the number of working population is fueling the demand for condiment sauces in the
U.S., Japan, China, Germany and Brazil among other countries (NewsWire 1).” As people are
spending more time outside of the home, demand for condiments such as marinades, dipping
sauces, and spreads rise. People that pack food at home and people that buy food on the go have

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a positive impact on the food industry and demand for our product as both groups seek
condiments to add to food. These people also have a need for convenient and transportable
packaging.
The global trend toward “green” practices may also affect our industry. ‘Growing health
concerns is one of the main [reasons why consumers are] shifting towards products like superior
quality condiment sauces as it contains less salt and sugar (NewsWire 1).” As people want to eat
healthier, they are shying away from these ingredients and seeking fresher, wholesome
ingredients.
Both groups of sauce consumers, at-home diners and on-the-go diners, have a need for
convenient and transportable packaging but accompanying the green trend, is a push for less
wastefulness. Eco-friendly and efficient packaging is becoming more important and appreciated
by customers.
The changing taste preferences of consumers also has the potential to affect our business
strategy. More and more consumers of sauces are demonstrating a preference for heat. As
consumers express their need for the ‘hot’ factor, Bazaar Sauce may need to consider the
components if their sauce. As many in home diners seek desire more exotic flavors at home,
industry food manufacturers are introducing a variety of soy sauces.
d) Technology:
Technology does not pose a threat to Bazaar Sauce. In fact, technology can only help
Bazaar Sauce meet its future goals. By creating online website and social media like Facebook,
Bazaar sauce can be advertised efficiently. An efficient web page or social media page can also be
a place where consumers ask questions and interact with employees of Bazaar sauce. Having a
website can also create efficiency by allowing customers to order our sauces online, which make it
convenient and easy.

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Other technologies include special tools that would help run the day to day operations and
business of Bazaar sauce. Kitchen tools such as, blenders, crock pots, kitchen aides, and other
electric tools will make cooking the Bazaar sauce more efficient and be able to help with larger
quantities when demanded.
Technology is a big part of peoples’ everyday lives. If people can see it on Facebook or
other online websites, then that is the way to target our audience. In fact, technology is how we
will conduct our business as well. When Bazaar Sauce needs to order containers, flyers, business
cards, advertisements, and other materials to help promote or carry our business, it will be
through technology that it happens. The good news is that the technology will not require
expensive equipment that needs to be maintained or will go out of date quickly. As Bazaar
Sauce expands however, production may require machinery that can produce more quantity
quickly, for our company, technology can only help us, and it can help our competitors in the
same manner so it is important that our advertisements are that much better.
e) Demographics:
America is in prime position to accept new food products, especially sauces. America’s
demographics include a diverse culture full of different ideas, taste, music, and ethnicity. It is no
wonder why hot sauce is one of America’s fastest growing industries. That is why we are
promoting Bazaar Sauce as a hot sauce and trying to introduce into the market as a hot sauce. My
information will come from Business new daily writer Ned Smith. You can find this information
at (www.businessnewsdaily.com/2371-hot-sauce-industry-growth.html. Hot sauces is at number
7 of the top 10 growing industries. According to IBIS world, an industry and market research
company, it is the demographics of the U.S. that are forcing the growth of this product. The
demographic trends in supermarkets suggest that homes and consumers are now leaning towards
a variety of sauce rather than the traditional sauces that have been used for years. The Hispanic

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influence in the states, especially here in California is a no brainer. However, it is not only the
Hispanic population that is growing, Asian population is growing at a rapid pace also.
All this tells us is that the market for sauces, especially hot sauce, is in is primal stage.
This industry has been growing for the past 10 years and that is no sign of it stopping. The
industry is hot sauce, not sauces. Bazaar sauce is not a hot sauce, however, in order to insert the
hot market of spicy sauces, we have decided to create two versions of the red bazaar sauce. The
first one being the normal red sauce and the second being a spicy version of the red sauce for
more to enjoy its flavor and taste.
f) Key publics:
Making Bazaar Sauce and introducing it into the market will require the company to meet
the federal regulations. The agency involved in this is the FDA or the food and drug
administration under the department of health and human services of the U.S. This includes
regulations such as ingredients, packaging, and labeling. It will be important to follow these
regulations beforehand to make sure there are no ingredients that are not permitted by the
FDA. After the main ingredients are compliant with the regulation, it is a matter of finding a
suitable way to package and label the sauce so that it meets FDA standards and is appealing to
the market.
D. SWOT Table:
Tables and Figures #1 SWOT
1. Opportunities:
One of the greatest opportunities we have with our new product is that we are launching
it in Los Angeles, a very multicultural city. Making it easier for us to reach out to all the different
cultures from all over the world. Starting in California and especially Los Angeles is great

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because it can help us have the product easily accessible for most of the people since this is a
population center. According to IBISworld, the West is where most of the industry establishment
happens, 22.8%, and California, is higher than any other state with 14.6%, because of its major
cities such as Los Angeles, San Francisco and Seattle.
Another great advantage and opportunity is that the people developing Bazaar Sauce are
all well experienced. Making the business much stronger, as well as the networking that is
brought with all the experience. The knowledge regarding how the market is developing within
the food business in general is a great opportunity.
The idea that these are the only ones who knows the recipes since its family made and
passed down thru generations is a great opportunity, consisting of fresh and organic ingredients,
because it will make it harder for others to copy and make a cheap knock off. Since the product
is inspired by different cultures as well, it will provide the consumers a new flavor, which will
also satisfy a bigger consumers market.
Since the recession hit, people started to eat more at home, which increased a higher
demand for new sauces, and it still does, which is a great opportunity now that people are
looking for it.
2. Threats:
a) Major threats:
Bazaar Sauce operates in a highly competitive market. The company operates in an
industry that is characterized by how popular the brand is by quality of facilities, brand identities,
marketing and growth strategies. The intensity of these local and national competitors may lead
to shorter product life cycle.

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b) Potential threats:
There are several environmental factors that present potential threats to the sauce
industry. Culturally, the largest threat to the Bazaar Sauce brand is the move toward healthier,
organic, GMO- free food consumption which conceptually, disapproves of adding unhealthy
sauce to food. The U.S has recently launched initiatives to battle childhood obesity. The
growing preference for environmentally responsible produced and packaged items may also have
an effect on the Bazaar Sauce marketing plan in the future. Different cultures, appreciate and
prefer different tastes therefore, Bazaar Sauce’s ability to satisfy taste preferences across cultural
lines will be a point of consideration.
As Bazaar Sauce becomes more popular there may be a copycat sauce trying to enter the
market. If a copycat enters the market with a similar sauce but at a lower price, this potential
threat may become a major threat. In order to avoid such a threat, Bazaar Sauce must continue to
innovate. The reason why this is just a potential threat for the mean time is because the sauce
industry is all about the brand.
Business wise, the largest potential threat to Bazaar Sauce is the sheer size and power its
market leaders have. If for example, Heinz creates similar, ethnic sauces they may stunt the
growth of Bazaar Sauce. This effect may be deterred by patenting something unique about our
product such as the specialized packaging to be proposed later in this report. There also many
companies constantly trying to enter this market and gain market share; Bazaar Sauce faces ever
increasing demand. Also worth considering, Bazaar sauce is a normal good and although, during
times of recession demand for sauces rise, demand for pricier, high end sauces may suffer.
c) Minor threats:
Demographically, an aging society may also lead to reduced sales if older citizens
do not buy into the sauce market because of a lack of need and reduced expendable
income.

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III. MARKET-PRODUCT FOCUS & GOAL SETTING:
A. Segmentation, Target Markets, Growth Strategy and Value Proposition
1. Market segmentation:
It is not in the best interest for Bazaar sauce to focus on a specific age or gender because
it is important to not exclude potential customers. The sauce industry is extremely competitive
and if we exclude potential customers, we risk losing recognition from potential customers. Our
sauce is made for a traditional taste. Therefore, our main focus will be to family member and
those who are seeking a unique sauce. Geographically bazaar sauce is located in Los Angeles
California and would introduce the sauce throughout Los Angeles because of its estimated
population per square mile of 2,827 (United States Census Bureau, n.d.). As for psychographic
segmentation, Bazaar Sauce should consider wealthy family based customers. Wealthier families
are more likely to spend 110.7 % more on groceries annually. Those with a traditional family
lifestyle are our main focus.
2. Target market(s):
Each market is homogeneous through the benefits and they are all attainable. Bazaar
Sauce market of offering a high quality sauce will build a “must try” reputation. When
discussing our target market, Los Angeles has a median household income of 82,679 annually
(United States Census Bureau, n.d.). Although, we are aiming for those with a household
income of about 100,000 annually because they are most likely to spend more on groceries,
majority of those who are in the median would buy the sauce if they are single or have no kids
because they would be more willing to spend money on groceries. We do want our sauce to have
a quality, healthy and organic taste. Therefore, our sauce would be prices at a higher but
reasonable price. Thus, our sauce is measurable through the amount of grocery stores through the
city, accessible if they want a traditional tasting sauce, differentiable as for the taste is unique as

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it was created by different cultures and it will be actionable through advertisement and free
samples.
3. Market-product grid and growth strategy:
Tables and Figures #2 Ansoff Matrix
Using the Ansoff Matrix grid allowed us to really separate where we are at with our
product and how to get it into the market. The two categories that we need to focus on are
Market Penetration and Product Development.
Market Penetration involves the activities and strategy to actually get our product into the
market. Since we are a new company, this is really getting not only our product in the market,
but our name as well. To do this we said that we would need to advertise our product and name
by attending ethnic supermarkets and using our sauces at local restaurants. We would also need
to create advertisement via the internet with a web page and Facebook.
Product development is a must. Once we enter the market we need to continually
develop our sauces and products. Since we are just starting some of the development that we
need to do is packaging and a label on each sauce that provides several recipes which include our
sauces. We also want to develop a spicy red sauce since the market for spicy sauces is on the
rise and growing fast. We believe that by having an alternative spicy sauce would help develop
our name and products.
Overall we have choose to attack these two areas on the ansoff matrix grid because we
are starting off new and not just adding a product to an already existing company. So product
penetration and development are our focuses.
4. Value Proposition:
Our value proposition is to break into the sauce market with a new product like never
before. This new product is mainly meant for the more high income people who are more on a

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traveling foot annually compared to the regular American, we are focusing on the high income
traveler who’s willing to try ethical products from different cultures. This will help us reach a
higher number of consumers from more diverse cultures, especially in Los Angeles. Since the
products are most probably going to be made in the Southern California to start with, this is a
huge benefit regarding the transportation cost. It will be a helpful for the company to keep the
expenses at a low rate, and therefore, one of our goals is to keep the cost of our products as low
as possible, and therefore follow Porters Cost Leadership Strategy, by keeping it low, but not just
by cheating with bad quality products, but with high quality products, preferably organic, but
still at a decently low price. An example would be to make deals with local farmers regarding
organic products, deals that will benefit them as farmers, and the company as producers. We are
aiming for high income customers who are willing to spend those few extra dollars, while we are
still keeping our costs decently low. The second strategy of Porters that we are mainly focusing
on is the differentiation strategy, where we really like to present a new product that differentiate
itself from the others, a more ethnic and flavorful products that haven’t been on the market
before. Along with the differentiation, we are able to manage our focusing on a specific group,
which in this case would be the higher income, mostly travelers who are familiar with foods
from other cultures, and therefore reach out to more multicultural markets.
B. Positioning Strategy:
Ideally in our target customer’s opinion, we are the best organic, flavorful, ethnic sauce
brand that also offers its products in portable, eco-friendly packaging. Therefore it is our
recommendation to leverage Bazaar’s unique competence in offering convenient portable options
as our point of difference relative to competing brands. Companies in the sauce and condiment
industry have yet to fulfill the need for convenient sauces in to-go packaging; offering Bazaar’s
flavors to-go will differentiate the brand from its competitors and provide added value to its

17
consumers. When placed next to its closest competitors, Bazaar is generally higher-priced and
higher- quality.
When positioned next to other brands that offer organic, ethnic sauces, Bazaar is
especially competent in offering convenience to its consumers through it’s to go products. In
comparison to other organic, ethnic sauces, Bazaar excels in offering exotic flavor. In regards to
pricing and the exotic flavor element, Bazaar offers substantial value to its customers. From the
design of its package to its ingredient, everything about Bazaar Sauces quality.
It is crucial that our product’s attributes are clearly communicated to our target
customers; Bazaar is organic, loaded with exotic flavors, environmentally cautious and available
on the go!
Tables and Figures #3 Price v. Ethnic Flavors Positioning Demonstration
Tables and Figures #4 Organic and Ethnic Flavors v. Offers to-go option Demonstration
C. Set Market and Product Goals:
Phase 1: Establish Company Foundation
First, we recommend our client to change their company name to prevent from any legal
issues. Wanda Sauce has already been taken and we feel that the most important objective of this
goal is to help establish credibility. We propose Wanda Sauce testing the name Bazaar Sauce.
With this new name, our client will illustrate a deeper culture meaning making it more
personable. Thus, highlighting the fact that it defines a market in the Middle Eastern country
helps the names stand out. Since we chose Ethnic supermarkets as the target markets it gives
customers the choice to differentiate between Bazaar sauces from competing ethnic sauces.
Bazaar red sauce, Bazaar hot sauce, Bazaar white sauce, and Bazaar green sauce a delicacy sauce
with just about any dish. A potential weakness from the name Bazaar sauce is the different

18
meanings the word portrays. Consumers who don’t know it’s a Middle Eastern Market may
presume it as out of the ordinary.
Phase 2: Target Market and Positioning Strategy
We propose our client reach out to ethnic supermarkets in the Los Angeles area
particularly in highly populated metropolitan areas, they carry mainly specialty products not
found in mainstream supermarkets. Hence, Bazaar sauces is a unique sauce you could not find in
other retail outlets. The strategy we suggest our client is attracting local customers, this will help
ensure a solid market share. Bazaar sauce can start out at some of the local farmer’s market to
appeal to the local community. Then when our client is displayed in the supermarket Bazaar
sauces wants to have an attractive product presentation. Specifically, presenting itself in an eye-
catching manner in the Persian Middle Eastern section to increase shoppers’ awareness and
encourage sales. Many of this industry’s larger companies boast active involvement in charitable
works for the local and national communities. Such nonprofit support can help Bazaar sauce
improve their reputation. Likewise, having this involvement and sustaining that commitment
among their consumers and giving support back to the community is what will set them apart
from their competitors.
Phase 3: Increase Product Development by 2019
Designing and creating products and services that will be beneficial to the public is
crucial. According to the data from the US Census, each population has grown 40.0% in the past
10 years, thus meaning this growth combined with the new demand from younger consumers,
has created an environment in which ethnic food retailers have thrived. Fortunately, within the
next 5 years the ethnic supermarket industry revenue will increase at average annual rates of
3.4% to
$33.9 billion over. The IBISWorld US report states the number of store locations is
expected to grow from 23,614 in 2014 to 27,609 in 2019. At the same time the expanding ethnic

19
population is pushing non industry supermarkets to increase their product offerings. Due to the
constantly increasing immigration population this industry will be always growing. In addition,
this industry has the potential to reach new customers outside its traditional target demographic.
Phase 4: Packaging and Labeling
Packaging appearance plays a significant role in the consumer’s product choice.
Therefore, our last recommendation to our client is getting Bazaar sauces approved from the
FDA through the Fair packaging and Labeling Act. According to the regulation and policy for
public health and product labeling, consumers are demanding more stringent rules for food
labeling, packaging and other nutritional claims that are being made by producers. Not doing so
can seriously impair credibility. We propose presenting Bazaar sauces in environmentally
friendly 12oz glass containers. Including a vibrant customized detailed food pairing printing
label to offer a personable uniqueness for each flavor of Bazaar sauce. Due to the increasing
demand in organic we suggest mentioning organic and all the natural ingredients contained in
each flavor.
IV. Conclusion:
Based on our research, the demand for sauces are increasing but with a competitive
market the barriers of entry are extremely high. Companies such as Heinz or McCormick already
own a huge part of the sauce market. The difference of our sauce and their sauce is the unique
taste and traditional/ culture background ours carries. We are aiming for a higher quality market.
Our plan is to aim for families or those who travel and are looking for a traditional sauce and/or
those who are more familiar with the different flavors and food cultures. That’s why we are
starting in Los Angeles, a multicultural city, with many different preferences, but also
welcoming consumers. There are three new flavor entering the market, where one of them comes
in two forms, mild and spicy. These new sauces are bringing us a more ethical flavor, where you

20
can taste the different hints of cultural taste; such as Italian, Turkish and Persian. The sauces
consist of natural ingredients, which we can tell that the demand for is increasing in today’s
society. The flavors are unique, and we are definitely looking forward to see ourselves among
our competitors on the shelves in the stores. We want to focus in more ethical stores and
markets, where the consumer’s buy their regularly high quality products such as kosher products
for example. We also recommend to package the product in glass to give it a higher quality look,
but also environmental friendly. In order to reach our goal of breaking even within three years
we must advertise the product in multiple forms such as trade shows, sampling and social media.
Marketing our products as such will bring in the most profit.

21
V. REFERENCES:
Condiment sauces market - global industry analysis, size, share, growth, trends and forecast 2014
- 2020. (2015, Feb 09). PR Newswire Retrieved from
http://search.proquest.com/docview/1652468353?accountid=7285
"Condiment Sauces Market - Global Industry Analysis, Size, Share, Growth, Trends and
Forecast 2014 - 2020." Condiment Sauces Market- Global Industry Analysis, Size, Share,
Trends & Forecast 2014-2020. Transparency Market Research. 31 Dec. 2014. Web. 20
Feb. 2015. <http://www.transparencymarketresearch.com/condiments-sauces-
market.html>.
"Consumer Trends - Sauces, Dressings and Condiments in the United States." Canada
Brand; International Markets Bureau; Market and Industry Services Branch; Agriculture
and Agri-Food Canada;Government of Canada. 1 Mar. 2013. Web. 20 Feb. 2015.
<http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-
information/by-region/united-states/consumer-trends-sauces-dressings-and-condiments-
in-the-united-states/?id=1410083148531>
CSUN Library Access to Restricted Resources. (n.d.). Retrieved from
http://content.ebscohost.com.libproxy.csun.edu/ContentServer.asp?T=P&P=AN&K=960
17435&S=R&D=buh&EbscoContent=dGJyMMTo50SeqK44xNvgOLCmr02ep7NSr6a4
SLOWxWXS&ContentCustomer=dGJyMPGtsk2vp7NJuePfgeyx44Dt6fIA
CSUN Library Access to Restricted Resources. (n.d.). Retrieved from
http://go.galegroup.com.libproxy.csun.edu/ps/retrieve.do?sgHitCountType=None&sort=
DASORT&inPS=true&prodId=ITOF&userGroupName=csunorthridge&tabID=T004&se
archId=R42&resultListType=RESULT_LIST&contentSegment=&searchType=BasicSea
rchForm¤tPosition=1&contentSet=GALE%7CA373913469&&docId=GALE|A3739134
69&docType=GALE&role=
"Heinz." - Innovation. Web. 24 Feb. 2015. <http://www.heinz.com/our-food/innovation.aspx>.

22
Leigh Jones Journal Record,Staff Reporter. (1998, Sep 23). Hart: Congress remains in slow
motion with elderly. Journal RecordRetrieved from
http://search.proquest.com/docview/259384759?accountid=7285
"Real Mayonnaise." Hellmann's. Web. 24 Feb. 2015.
<http://www.hellmanns.com/product/detail/97847/real-mayonnaise>.
"Sauces, Dressings and Condiments in the US." Sauces, Dressings and Condiments in the US.
Euromonitor. 1 Nov. 2014. Web. 21 Feb. 2015. <http://www.euromonitor.com/sauces-
dressings-and-condiments-in-the-us/report>.
"Seasoning, Sauce and Condiment Production in the US: Market Research Report." Seasoning,
Sauce and Condiment Production in the US Market Research. IBISworld, 1 Nov. 2014.
Web. 23 Feb. 2015. <http://www.ibisworld.com/industry/default.aspx?indid=276>.
United states seasoning, sauce and condiment production market: Increasing disposable income
and the new healthy products will drive industry demand (2014). . Chatham: Newstex.
Retrieved from http://search.proquest.com/docview/1634886153?accountid=7285
"Consumer Trends Sauces, Dressings and Condiments in the United States." Agriculture and
Agri-Food Canada. 1 Mar. 2013. Web. 10 Mar. 2015.
<http://www5.agr.gc.ca/resources/prod/Internet-Internet/MISB-DGSIM/ATS-
SEA/PDF/6362-eng.pdf>.
"Company Mission and Vision." McCormick Australia -. Web. 10 Mar. 2015.
<http://www.mccormick.com.au/about/company-mission.aspx>.
"Access to Restricted Resources." CSUN Library. Web. 10 Mar. 2015.
<http://clients1.ibisworld.com.libproxy.csun.edu/reports/us/industry/productsandmarkets.
aspx?entid=4333>.
Chiao, Christine. "7 Great Los Angeles Ethnic Markets." LA Weekly. 4 June 2012. Web. 10 Mar.
2015. <http://www.laweekly.com/restaurants/7-great-los-angeles-ethnic-markets-
2380230>.
Web. 10 Mar. 2015. <http://www.census.gov/quickfacts/table/PST045214/00,0643224>.

23
VI. APPENDIX:
Appendix 1. Link to FDA Food Production Regulations
http://www.fda.gov/ICECI/ComplianceManuals/CompliancePolicyGuidanceManual/ucm074470
.htm
Appendix 2. FDA requirements for tomato sauces
http://www.fda.gov/ICECI/ComplianceManuals/CompliancePolicyGuidanceManual/ucm074470
.htm
(http://www.ag.ndsu.edu/foodlaw/safe-408-608/foodprocessingregulation)(citation for tomato
info)
Appendix 3. Sector vs. Industry Costs

24
VII. TABLES AND FIGURES:
SWOT Table: #1
Positive Negative
Internal Strengths:
Experience
Wealth
traditional
fresh ingredients
Innovative culture
Weaknesses:
New to market
Small business
Name Change
External Opportunities:
Market growth
Potential profitability
location
Threats:
Intense competitors
Impostors

25
Market-product grid and growth strategy: Ansoff Matrix #2
Ansoff Matrix For Bazaar Sauce
Markets
Existing New
Products
Existing
Market Penetration Product Development
* advertisement through ethnic supermarkets.
*Use different types of packaging and
containers
*Advertisement through attendance at
tradeshows
as product become more popular. This
containers
*Allow local restaurants to use our sauce for
include; Family size, Portable, and pack of 10
to
market recognition. carry with you.
*Create a Facebook page and website to
promote *Make two different red sauces. We need one
our sauces.
red sauce to attack the spicy sauce market. So
we
*Target Markets; Those with income range of
will have a spicy red sauce and just a red
sauce.
150k and more. They have more money to
spend *Develop a label that has several recipes for
on exotic sauces and they are more likely to
travel sauce use.
the world and have that interest of trying exotic
foods.
New
Market Development Diversification
*Make NEW red SPICY sauce to attack the spicy
*Currently have 3 different sauces and will
create
sauce market, which is on a huge rise. Use of one more sauce for market penetration and
cayenne pepper or curry to spice it up. Diversification.
*Use of different kinds of containers. One for *Create SPICY red sauce by adding curry or
Families, one portable version, and packs of 10
or cayenne pepper.
so that are in little packs.

26
Price v. Ethnic Flavors Positioning Demonstration: #3
Positioning Demonstration
Organic & Ethnic and Offers to-go options
Positioning Demonstration
Price Range and Ethnic Flavors

27
Organic and Ethnic Flavors v. Offers to-go option Demonstration: #4

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