Name of Product: Nacho Fiesta
Time Period Designed For: Current
Persons and Positions:
Starla Bond-Chief Executive Officer
Tanesha Gadlen-Chief Financial Officer
Adam Coleman-Chief Marketing Officer
Jonathan Pufal- Chief Technological Officer
Person Submitted To: Amanda Ewing
Date Submitted: November 25, 2013
Executive Summary
The snack industry is ever-growing. Consumers can choose from a variety of snacks, each one in
particular will present a different experience to them. People love chips and dip, it is one of the
favourite snacks in America. It is a product that is delicious and fun to eat. Even though there are
different companies making snacks, a portable chips and dip package has not been created yet.
Chips and Dip are among the best selling snacks in the United States. We strongly
believe that our product could possibly be one of the best selling snacks in the market. According
to Ibis World, today the industry is estimated to yield over 31 billion dollars per year. The annual
growth in the last five years has been of 2.3 percent. It also employes over 45,000 people. They
also stated that “Chips are the most common snack consumed in the United States, accounting
for 49.3% of revenue in 2013.“
Snacks have been around for many years, but recently people started to be concerned on
the health impacts that some of them may bring to their lives. Customers want a product that is
not filled with preservatives and chemicals that may harm their bodies, while not losing the full
flavour of the snack. The health quality concern brings us at Nacho Fiesta to the fact that we
take seriously the quality of our products. We strive to make the best snacks in the market. We
believe that a product that tastes good should be good also to our consumer’s lives. Our products
are made and inspected with the higher quality standards because we believe that customer
satisfaction should come before profit.
Our distribution plan will be primarily in a college campus area. Since most of the
millennial generation is a college student nowadays, that will be our main focus. Students are
always hungry and love snacks. We intent to take advantage of the facilities provide on campus
such as Books N’ Beans at Campbellsville University and expand our market.
Nacho Fiesta will also be affordable since our target market is known for not having
much money. Our research draws attention to the fact that most people suggested the price to be
set at $ 1.98, which makes the product affordable for the majority of people.
Portability is one the main points of our product since everybody is on a rush nowadays.
Before, chips and dip had to be in different containers, usually large and not very portable. The
Nacho Fiesta is compact and nutritious at the same time, which makes is easy to be carried
around and makes the consumer to fill full longer without compromising the customer’s health.
The Nacho Fiesta is the newest chips and dip in a growing market eager for new tastes
and varieties. We at Nacho fiesta believe that our product will create a new standard in the
market for snacks. With our proposal we offer you the chance to eat and join an industry with a
strong trend of growth.
TABLE OF CONTENTS
Title Page ........................................................................................................................................... 1
Executive Summary ...........................................................................................................................2
Table of Contents ...............................................................................................................................4
Introduction ........................................................................................................................................5
SWOT Analysis .................................................................................................................................6
Industry Analysis ...............................................................................................................................7
Marketing Objectives .........................................................................................................................8
Target Markets ...................................................................................................................................9
Marketing Mix ...................................................................................................................................10
Marketing Research ...........................................................................................................................11
Summary ............................................................................................................................................12
References ..........................................................................................................................................13
Introduction
According to a study conducted by Virginia Foundation for Healthy Youth, the majority
of young adults consume snack items an average of seven times a week (2012, Chart). Between
working, going to class, studying, and having a social life, most college students are always on
the move. Because of this constant go-go-go mentality, these young adults are grabbing meals on
the go frequently. Nacho Fiesta Company created a snack to fill up students and keep up with
their active lifestyles. The first product by Nacho Fiesta Company is Nacho Fiesta, a portable
container of chips and salsa.
After deliberation the company determined the main goal would be to provide a snack
food that consumers are familiar with in an innovative way. The product, Nacho Fiesta, aims to
satisfy customers by being affordable, delicious and filling.
With a product as unique as Nacho Fiesta, we determined that it would be best to start off
small on the campus of Campbellsville University in the Books N Beans location, in order to
understand the market and the product demand, as well as build up a reputation. Once the
company better understands these things the goal is to sell our product in other places, such as
the convenience store and gas stations for everyone to have access to Nacho Fiesta.
We realize that there are several benefits to starting small at Books N Beans. The first is
that we can offer job opportunities to students of Campbellsville University. The students would
be in charge of various tasks, such as packaging, preparing, and selling of the product.
Preparation is very important to Nacho Fiesta Company as ingredients in the portable Nacho
Fiesta will be fresh and organic. A second benefit of starting at Books N Beans is the opportunity
to quickly improve. By offering comment cards, our company shows that it is invested in
pleasing consumers and responding to what they believe will improve the product, customer
service, or any other concerns that they might have. The Nacho Fiesta Company knows that if a
customer isn’t happy they will not purchase our product and tell others to do the same.
Nacho Fiesta plans on starting out small and understanding the marketplace and then
grow into competition with Kraft and Nabisco. Our plan is to offer a healthy and fresh alternative
to the typical snacks that college students enjoy.
SWOT Analysis
There are several strengths to the Nacho Fiesta product produced. The first is that this is
an innovative product; there is no other product quite like ours. We offer more food, a larger
variety of salsas, and at an excellent price point. This price point will be something to draw
customers’ interest in our product. It is a great product at a very reasonable price. Our price is
cheaper than most other snacks designed for adults, but it still offers a filling and tasty snack.
Our product is also portable. We have designed a container that allows Nacho Fiesta customers
to take their snack anywhere with little-to-no mess. This is a great benefit for college students
who are always on the go.
In spite of the strengths of the Nacho Fiesta company and product, there are still a few
weaknesses. Even though our snack is very affordable, there are other snacks that consumers can
purchase for an even lower price, such as Ramen Noodles and Lunchables. We will also have
some problems when it comes to keeping our product fresh. Since our snacks are made with
organic ingredients it is important to maintain their freshness for both health and flavor. We are
determined as a company to offer the best tasting product that we can. Another weakness could
be the size of the container. Nacho Fiesta is sold in portions that are bigger than typical snack
sizes. While some people might want a small snack, most college students have large appetites
and they want the best product for their money and that is what our product offers.
The Nacho Fiesta Company sees several opportunities for our product. We believe we are
tapping into an un-targeted market. Our focus is on college students. The competition focuses
mainly on children and adults that are on the go. Another opportunity for us is that we plan on
making the product available in several markets starting with Books N Beans, then vending
machines and convenience stores, such as Walmart and Kroger. We are affording the opportunity
to improve on a small scale and then grow. The Nacho Fiesta Company recognizes that college
students love to talk, especially about food. We believe that this is an opportunity for our product
as when a student tastes our product they will talk about how much they love and word-of-mouth
will help our product’s market grow rapidly. The final opportunity is that whenever more people
start consuming our product other people will notice and be curious about it and they in turn will
end up buying it as well.
There are also a few threats to our product. Pricing could be a major threat to our product.
Many college students do not have much money to spend on items such as snacks. Many
students spend all their money on the necessities, such as tuition and gas in their vehicles. For
food many of them rely on their meals plans and food in the cafeteria. But we think our price
point is so low that college students will still buy it. The Nacho Fiesta Company is also afraid of
a larger brand stealing our idea. A brand such as Kraft or Nabisco could come in and steal our
idea. If they try to tackle the college student market with a nachos and salsa snack they will have
lower production costs, enabling a lower price point and they are more well-known and trusted.
Another threat that is possible is that our target market could possibly want a larger variety than
what we can offer. Even though we offer a couple of different things with our product it still may
not be enough to satisfy our market.
Industry Analysis
When analyzing the social aspect involving our product we understand two important
facts about college students: they post about food to Facebook, Instagram, and Twitter and they
typically do not eat alone, often eating with more than two people. By posting to social media
websites about Nacho Fiesta, our product’s word-of-mouth will improve and gain attention. The
more people hear about Nacho Fiesta the more likely they are to purchase it and continue
purchasing it as a snack. Because college students do not eat alone they are likely to share their
product with friends or be able to talk about the product with them. Just seeing our product being
ate by others might convince someone to go try it out.
Demographic trends will be a major factor in our product sales. Something that could be
a hindrance is that there are many non-traditional college students, meaning that they usually
start college later than someone directly out of high school. This in turn means that most of these
students will not live in a dorm, but a home or an apartment where they will have a kitchen and
can cook for themselves. This could hurt our market because they would not be buying as many
snacks. The buying power of teens will be a positive impact on our product, though.
Teenagers and young adult’s buying power in the market has significantly increased over
recent years. This is a good thing because they will be able to buy our product or influence their
parents to buy it. Also, most college students and young adults do not cook. They usually will
buy their meals from a restaurant, eat in the cafeteria, or purchase things with little to no prep
work with them, such as chips and popcorn. We believe Nacho Fiesta will be perfect for them.
Economic trends will also affect the sales of our products. With the current economic
situation everyone is looking to save money. Sometimes that means that they will not be
spending as much money on food. Luckily, they will always spend at least some money on food
so if we produce a good product at an affordable price people will choose to buy our product.
Since college students do not spend a lot of money and are always in a hurry our product will be
perfect for them.
Technology will be a major influence in the growth of our product. We plan to use social
media to spread the word about our product. Advertisements on Facebook and Instagram will be
utilized to the fullest because that is where college students spend a lot of their time. Technology
will also be crucial in the production of our product. We will use the latest technology to make
sure that every one of our packages are fresh for all of our customers. We will also be using
technology to make our packaging and advertisements appealing.
We as a company are also aware of the legal aspects of our business. Luckily, we have
already been FDA approved and we are working on obtaining our copyrights. We have hired a
legal team to make sure that we do not infringe on any copyrights and patents that our
competitors have. We at Nacho Fiesta believe in running a morally sound and respected
company.
We have a very tough competition. We are aware that some of our competitors’ prices are
cheaper, but we believe that our product is better. While our competitors are already more wellknown than our brand we believe that when we get our brand out to the public it will not take
long for it to become as well known as the other national brands. A struggle that we will have is
these previously established brands already have their patents. We have to make sure we do not
infringe on those patents. We are aware that our competition has been under scrutiny because of
the contents in their product because it is not very healthy. We want to assure our customers that
our product is totally organic and made with only the best ingredients.
Marketing Objectives
One of our financial goals is to be debt free by the year 2016. We plan to do this by
expanding our marketing plan as we have finances built up. We have enlisted the help of Dave
Ramsey, Christian financial expert to help us achieve this goal. We believe with our
determination and his help this goal can be achieved. Another goal is to have an annual growth
rate of 10% every year. We believe this will be done through the execution of our marketing
plan. We believe that through word of mouth and other aspects of our marketing plan, such as
social media, our company will grow at this pace, if not faster. Another goal is for our product to
be sold at college sporting events all across the country. We will start in Campbellsville, but
when people find out about our product we feel like other schools will want to feature it in their
own concession stands.
A non-financial goal for Nacho Fiesta is to be a featured ad in several national
magazines, such as Sports Illustrated, Time, and People. This will expose our product to millions
of different people who may have not have been exposed to our product before. Another goal is
to have Nacho Fiesta in all 50 states by the end of 2015. Social media and the Internet will allow
for the name of our product to spread rapidly through the country and we believe this will allow
us to sell in all states and all markets. Another objective of our company is to have 1 million
Facebook “likes” and 1 million Twitter followers by 2016. We emphasize the use of social media
very much in our marketing strategy, so the more people we reach this way, the more effective
our market strategy will be.
Target Markets
The target markets of Nacho Fiesta are young adults, specifically those in college. This
means we will target the millennial generation starting at Campbellsville University and growing
from there. We understand that this generation is second only to the baby boomer group in sheer
size, but has limited spending power as they are new to the workforce and the economy has been
in a recession for the majority of their young adult and adult life.
We aim to not target specific ethnicities but our product naturally appeals to students
from Hispanic countries where nachos and salsa is an everyday food. However, any American
student will be familiar with Lunchables as a great snack meal that is cheap. By offering more
food than Lunchables, we are addressing that Fiesta Nacho is for young adults; people who need
more to eat.
Our advertising campaign has to be targeted to what these students care about, it is more
than food, it is the sustenance that gets them on the next class and the next paper. We do not have
the benefit of parents who will purchase anything for their kids, we have to be creative and create
a product and campaign that fits into the average college student’s lifestyle.
Marketing Mix
Product: Nacho Fiesta Corporation created a new product that was introduced to the food
market. Nacho Fiesta is a portable, snack size chips and salsa. The package comes in one size
which is 8 inches by 8inches and has a built in handle to make it easy to carry from place to
place. Our product will stand out when compared to any other product that is similar because we
use all natural, organic ingredients. We want to give our customer the healthiest most filling
snack for a bargain price.
Price: Whenever a company produces a new product the number one question is always
how much are we going to sell said item for? After doing a little bit of research by conducting
surveys asking random people what kind of snacks they eat and how much they were willing to
pay for said snack we decided a fair price for our Nacho Fiesta is $1.89. We decided this was a
great price because chips and salsa is a very filling snack and it will cover the costs that are
incurred during the production process.
Distribution: We plan to sell Nacho Fiesta in Books N Beans that is located in the library.
We chose to sell our product here because it is the most convenient spot on campus to sell food.
College students are always going in and out of the library, and many of them spend several
hours at a time in there. It is beneficial to students to take a break and eat a quick snack to help
them recharge and refocus on their assignments at hand.
Promotion: Nacho Fiesta believes that the best way to promote our new product is by
advertising around campus. Our CMO, Jonathan Pufal has created some eye catching posters that
are going to be displayed around campus. As well as allowing students to try some samples for
the first couple of days. If we allow them to sample the product they are going to tell their friends
how much they liked our product and tell them to try it. Word of mouth is one of the fastest ways
to get news of a new product out to everyone.
Our marketing mix is created with college students in mind and will be built upon based
upon their reaction on Campbellsville’s campus. It will be edited with our critiques in mind and
then changed to fit the expansion we hope to see of our product in upcoming years.
Marketing Research
People eat snacks all of the time, in the classroom, in their cars, at work, in sporting
events and other occasions. We see college students who are always in a rush to get to their next
classes, or those who have a project/paper due and do not have time to go and eat a full meal in
the cafeteria. These college students need something fast that will keep them satisfied, they also
need something that is cheap and that tastes good.
In our marketing research we have asked people their opinion on what would be the ideal
snack and how we could make the perfect snack for college students. Chips and Dip are a great
option for snacks. Nacho Fiesta strives to make the best dip and chips in the market. Since the
company produces both the chips and the dips, they are designed to complement one another.
The researchers Ryan Rahinel and Joseph P. Redden did a study regarding items made by
the same brand, and they stated that “Process evidence shows that this brand matching effect
arises because matching brand labels cue consumers’ belief that the two products were
coordinated through joint testing and design to go uniquely well together“ (2013). We believe
that the consumers will see our product as superior to others because a lot of research has been
put into it.
We have seen that the majority of people eat snacks on a regular basis, most of the time
more than two times a week people will eat snacks. College students are usually under a lot of
stress, always rushing for the next class, and eating on the go. They are also on a tight budget
which makes them to choose from cheaper alternatives. The majority of the surveyed would buy
a snack in the $ 1.00 - 2.00 range.
Chips and Dip are an excellent option for a quick snack. Nacho fiesta comes in a nice
package with the chips and the salsa; there is also an option for cheese. The chips are made of
whole grain which is healthy and tastes great. The fact that the chips and the salsa comes in one
single package makes a big difference because the consumer will have everything in one place.
College students would beneficiate from this product very much because it is compact and can
be taken virtually everywhere. It is a great snack for studying late at night and sharing with
friends. Since it is in a single package it makes it easier to be shared, the consumers don’t have to
carry a container for the chips and another one for the salsa.
We strongly believe that the best way to tell people about a great product is by the word
of mouth. In our survey the majority of the surveyed stated the same fact. Word of mouth is more
convincing than somebody who has been paid to promote the product. College students talk
about their favorite foods all the time and Nacho Fiesta would be well known in no time.
Nacho fiesta contains a good serving portion of the snack. People who eat snacks are
looking for a quantity that will be enough to fill their stomachs. The whole grain, preservativefree snack is healthier than the average chips out there and makes somebody fill full longer. In
our survey we asked people to choose from a variety of dips. The top 2 dips for the chips are
cheese and mild salsa, both varieties will be available with our product.
In the survey we noticed that most people bought their snacks in grocery stores. We
believe that by bringing it to the campuses we would reach a wider scope of our target market,
college students. Our snacks were designed to be easy to share. The package makes it easy to
pass around and share with friends. We believe sharing a snack is something that should be
natural among friends, even though that the survey showed that most people did not share their
snacks. Nacho Fiesta is the perfect snack for a college student. It is tasty, cheap and can be taken
everywhere in your backpack.
Summary
Nacho Fiesta Company has created a product for college students and young adults by
college students and young adults. All our information was developed from personal tastes and
surveys conducted and taken by our target market. We are invested in producing the best
product, for the best price, and making an impact in the snack food world.
Nacho Fiesta is a simple concept; portable nachos and salsa meant for young adults, but it
hasn’t been brought forth into an actual product before. As college students ourselves, the Nacho
Fiesta Company, knows how important snacks are to getting through the day. Many college
students do not allocate time to eat lunch and sometimes lunch isn’t worth eating anyway. We
want to offer a healthy alternative to a candy bar that is more filling and still doesn’t cost much.
By offering Nacho Fiesta on the campus itself, we have a direct market, no one needs to
travel for our product, they just walk in the library. Eventually, when the company expands to
convenience stores and gas stations we hope that other colleges will see the importance of
keeping the product on campus and offering it for students without travel cutting in.
We want to be financially stable and plan to analyze our budget with experts and plan
production and expansion based on sales. It is crucial to us to not get in so much debt that we
cannot offer our product at a reasonable price to our consumers.
The Nacho Fiesta Company has created the best product we could for college students
and believes that Nacho Fiesta will be a huge success among students and young adults who
don’t want to cook, don’t have time to cook or eat, and don’t have money to spend on eating out
all the time.
Works Cited
Rahinel, Ryan R. and Redden, Joseph P. (2013) Brands as Product Coordinators: Matching
Brands Make Joint Consumption Experiences More Enjoyable, 40,. doi: 10.1086/668525.
http://www.behaviorlab.org/Papers/Coordination.pdf
Snack Food Production in the US: Market Research Report IbisWorld.com Retrieved November
22, 2013 from http://www.ibisworld.com/industry/default.aspx?indid=271
Virginia Childhood Obesity Survey (2012). In Virginia Foundation for Healthy Youth. Retrieved
November 13, 2013, from http://www.vfhy.org/sites/default/files/images/snacks2.jpg