Salvador’s is a producer of authentic Hispanic foods, such as salsa and chips. Their products are positioned at the high end of the market in terms of both quality and price. Salvador’s has been around for three years, and it has enjoyed great popularity. The business was initially targeted only at the Hispanic population, but it has expanded to appeal to many more people.

Salvador’s has several goals that they want to achieve in the next three-years. The first is an increase in sales reaching two million dollars by Year 5. Salvador’s would like gross margins to exceed 55%. Salvador’s hopes to have 40 outlets that distribute their product. Finally, they want to be known as the most authentic Hispanic food producer within the area and have an ever-expanding geographical distribution.

Currently, Salvador’s has two main line of products. Their salsa is the company’s flagship product. It is well-known for its freshness, uniqueness and high quality ingredients. Salvador’s originally introduced the salsa in hot temperature. However, market demand for milder versions has led to a milder version and a medium one. To compliment their salsa, Salvador’s offers fresh chips in both yellow and blue corn.

Salvador&#8217’s has focused on three key customer groups to market its products. The first is grocery stores. These stores will then sell directly to consumers. This segment is expanding at 75%. Currently, there are 53 potential customers. The second group is wholesale distributors. This market has a 100% growth rate and 5 potential distributors. Restaurants are the last segment with a growth rate of 45%. There are currently 18 potential restaurant customers. As mentioned before, Salvador’s originally targeted the Hispanic community. The market has indicated that their products have broader appeal and Salvador’s has recognized this and acted accordingly. The Hispanic community was targeted initially because of its incredible growth rate. The community is growing at 22% per year, nearly twice the rate of the US average.

Salvador’s high cost point has many direct competitors. This is quite advantageous for Salvador’s, providing them with additional breathing room to establish themselves as the premier brand of authentic Hispanic food.

Salvador’s strong management team of Ricardo Torres and Pat Torres will ensure that Salvador’s continues to grow. Pat has 12 years of experience in the food industry. The five previous years were spent as a manager at a four-store Tex-Mex chain. Pat gained incredible industry insight that helped to strengthen the decision to start a new business. Ricardo brings Salvador’s over six years of financial control experience that was gained as a CPA with Arthur Andersen. Salvador’s management team is seasoned and will assist in Salvador’s dream to become the top Hispanic food producer.

Salvador’s has reached profitability and expects to make a modest profit over the next three years. A modest profit margin of around 10% will be realized from sales. The plan includes financial information that reinforces the business’s exciting nature.

1.1 Objectives

1. Increase sales significantly over the next three years.
2. Increase gross margin % relative to the current product line, and maintain it.
3. To meet market demand, you can add products and/or services at a high margin.
4. Improve inventory turnover, reduce the cost of goods sold while maintaining the high quality of the products.
5. To offer rewarding and fulfilling jobs for the Hispanic community.

1.2 Mission

Salvador’s is a hot salsa restaurant that prides itself on authentic hot salsa and the rich history of the Hispanic Community. These recipes, which have been handed down through generations, are full of ethnic heritage. The best products were sought out by knowledgeable consumers who are looking for the authentic and highest quality ingredients. Consumers were ready for a new experience. They wanted authentic Hispanic salsa.

Salvador’s responded to this request with its hot salsa and then added mild and extra hot salsa. Then, it offered yellow and blue corn chips. We constantly review the market to see what is in stock and what isn’t.

Improving on what is available and providing new products and services to the areas of need will assure our success in a market driven by consumer demand.

1.3 Keys to Success

1. High-quality products that stand out from the rest in value and taste.
2. Providing service, support, and a better than average margin to our dealers.
3. Increase gross margin to %
4. To increase sales volume, add new products to the mix.