Spice Man is a B2B distributor of premium quality organic Asian cooking sauces to the specialty supermarket sector, in four key areas across the UK. Spice Man aims to fill a clear gap in the market and cater for growing customer demand for high quality, healthy premium Asian sauces.
The product concept:
• Premium quality specialty imported South East Asian cooking sauces
• The USP's of the product: organic luxury ingredients and completely authentic recipes developed by top specialist chefs
The types of sauce include:
• Rendang sauce and fried rice sauce from Indonesia
• Curry noodle sauce from Thailand
• Curry sauce for fish and one for lamb from Malaysia
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Research has shown that in relation to grocery shopping, the majority of ethnic consumers found this to be an important source of food information
SWOT - Market Overview
• The UK's diverse population and the growth of worldwide travel have developed the UK's taste for Asian cooking sauces and this trend is set to continue
• Asian food has an image of being healthy and quick and easy to prepare, as a result the oriental grocery food market is worth £146m with a growth of 4% year on year. Indonesian food has grown 82% in value since 2007.
• 8 out of 10 UK households buy a cooking sauce at least once every year, with the average shopper buying once every three weeks
• There are few equivalent products available
• The retail price of Spice Man's sauces is relatively high at £2.49 per jar and in today's difficult economic climate customers may prefer cheaper, trusted products
• There is strong competition from other ethnic food markets such as the Italian food sector in the UK, which has the largest market share and is worth £324m and grows by 8.7% each year 3
• Consumer interest in health has encouraged some customers to stop using ready-made sauces 4
• The cooking sauce market will grow by 7% by 2011 4
• Key competitor markets are under pressure e.g. sales are static in the Indian food sector 3
• More shoppers with children are buying, as are up-market shoppers and customers under 28 years old. There is also growing consumer demand for higher quality, greater nutritional value and more convenient formats. This could offer communications opportunities for Spice Man to differentiate itself from its mass of competition.
• The competition is fierce in the Asian cooking sauce market and new, competitively priced products are being introduced all the time
The competition is strong in this market and new, competitively priced products are continually being introduced.
Key brands in competition with Spice Man:
• Sharwood's - quality brand, Red Thai sauce £1.57
• Lloyd Grossman - premium brand at £2.09 per jar
• Supermarket own brands - high quality yet reasonably priced products such as Tesco Finest Thai curry sauce (Red or Green Thai) at only £1.65. New variants include Finest Yellow Thai and Finest Laksa at £1.49
• Patak's Karai – quality mainstream sauce at £1.57
• Goldfish Curry sauce (specialty product) - £1.49 per container
• The Real Organics Food Company - organic Thai cooking sauce at £2.69 per jar (only currently available in the south of England)
• ‘Xotiq' produces ambient South Eastern Asian meal kits which are distributed through independent grocer shops, butchers, delicatessens, farm shops and garden centers
Specialty supermarkets have been identified as the best retail outlets because:
• Such operations can be flexible in their terms and conditions, whereas mainstream supermarkets will want to impose conditions such as low...