Edit This Plan

Make it your own. Use Business Plan Pro to edit this plan or any of 500+ other sample plans.

Salsa Manufacturer Business Plan

Salvador's, Inc.

This business plan was created with Business Plan Pro software, the fastest way to prepare a complete business plan.

With Business Plan Pro, you can open this plan (or any of the 500 others included in the product) and quickly customise it to match your business. Or you can use the software's step-by-step wisard to easily create a custom business plan from scratch. Learn more »

Executive Summary

1.0 Executive Summary

Salvador's is a manufacturer of authentic Hispanic foods including 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 in business now for three years and has grown in popularity. What was once a business targeting solely the Hispanic community has grown into a business that has far broader appeal.

Salvador's has several objectives that they will achieve within the next three years. The first is an increase in sales reaching two million pounds by 2000. Salvador's also would like gross margins to be above 55%. Salvador's also hopes to have 40 different outlets that will distribute their product. Lastly, they aim to become known as the premier authentic Hispanic food producer in the area with an ever-expanding geographic distribution area.

Currently, Salvador's has two main line of products. Their flagship product is their salsa, renowned for its freshness, uniqueness, and quality ingredients. Originally introduced in one temperature, hot, the market demand has asked for milder temperatures and Salvador's has responded with both a medium and mild version. To compliment their salsa, Salvador's offers fresh chips in both yellow and blue corn.

Salvador's has targeted three main customer groups to sell their products to. The first group is grocery stores. The grocery stores will be then sell directly to the end consumer. This segment is growing at 75% and there currently are 53 potential customers. The second group is wholesale distributors. This segment has a 100% growth rate with 5 potential distributors. The last customer segment is restaurants which have a 45% growth rate. There are 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 recognised this and acted accordingly. The Hispanic community was initially targeted because of its exciting growth rate. The community has been growing at 22% a year, almost double the average of the overall US population.

While there are many competitors at the mid price point, both regional and national, there are few direct competitors at Salvador's high price point. 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 and Pat Torres will ensure sustainable growth for Salvador's. Pat is the President and has 12 years of food industry experience. The previous five years was as manager of a four store Tex-Mex restaurant chain. This provided Pat with incredible insight and industry knowledge that reinforced the idea to start a business from scratch. Ricardo brings Salvador's over six years of financial control experience that was gained as an accountant with Arthur Andersen. Salvador's management team, due to its seasoned strength will help Salvador's achieve the dream of being the premier Hispanic food manufacturer.

Salvador's has begun to reach profitability and forecasts £59,000 in net profit in three years. The profit margin will reach 19.20% from sales of £312,000. The financials within the plan further reinforce the exciting nature of this business.

Highlights



1.1 Objectives

1. Increase sales to more than £1 million over the next three years.
2. Move gross margin to above 55% over the current product line and maintain that level.
3. Add products and services to meet market demand, again at 55% margin or above.
4. Improve stock turnover, reduce the cost of goods sold while maintaining the high quality of the products.
5. To provide jobs to the Hispanic community that are rewarding and fulfiling.

1.2 Mission

Salvador's was built on offering the highest quality and value in its authentic hot salsa, filled with the history of the Hispanic community. Time honoured family recipes have been passed down through the generations, rich with ethnic heritage. Knowledgeable consumers were looking for authentic products, filled with the best ingredients. The consumer was crying out for a change! They wanted real down home Hispanic salsa.

Salvador's answered this call, first with its hot salsa, then adding mild and extra hot salsa, followed by yellow and blue corn chips. Constantly striving to supply what the consumer is asking for, we continually review what is available in the marketplace, 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. Delivering high quality products that set themselves apart from the others in taste and value.
2. Providing service, support, and a better than average margin to our dealers.
3. Increase gross margin to over 55%.
4. Bring new products into the mix to increase sales volume.