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Marketing Analysis - Case Study Example

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Marketing Analysis

Other grocers inquired about using Texmati in their private blend program. This product has been marketed with promising results, but has also contributed to an increase in overhead and the final market price. The product line is at five million annual retail sales, and this is below that of dominant brands, however, this is also a result of a thirty percent increase in sales, the growth is also due to an influx of immigrants and growing popularity of ethnic foods. Andrews and market team are in process of setting the marketing and distribution strategy for new aromatic rice that developed called Kamati, and would be a different in appearance and have superior taste, good US market potential, and international sales potential is even better, especially in Middle East and UK where consumption of basmati rice was high.
There are several factors which influence the development of a marketing strategy for Rice Select. The first is the company brand and product lines that are currently on the market and in half of the national grocery stores. This is the baseline for marketing research and is used to establish what has or has not worked to further the business goals. As new product lines are integrated with the company brand, RiceSelect will want to envision marketing and distribution strategies that encompass the product goals. The competitive market analysis assists the business in understanding what other company's levels of engagement are. Marketing strategy also looks at the methods of exchange amongst various entities as well as the projected or perceived values of those exchanges, and the manner in which advertising and promotional strategies have affected commercial exchanges.
The main brand is Texmati rice under the Master Choice label, which was traditionally sold in Texas markets. Texmati brand of rice was developed and marketed as aromatic and flavorful basmati rice, and local Texas marketing began in 1978, where sales were mostly bulk to natural health food stores. Volume, however, remained low until marketing efforts concentrated in Texas with the eventual goal to direct retailer sales. Movement into the national markets took off in 1991, when Texmati was added to a Loblaw, a leading Canadian grocery retailer, that controlled almost forty percent of Canadian grocery rice sales. Their licensed President's Choice branding was distributed to Northeastern US retailers. Supplying Texmati to the President' Choice brand allowed for more visibility of Texmati on a national scale.
In 1991, Jasmati, jasmine aromatic specialty rice, was added to the Tesmati product line. This rice was ideal for oriental cooking and rated very high in taste tests, which led to the addition of Jasmati as an accompaniment to the Texmati Master Choice labels. RiceTec had developed a new umbrella brand, RiceSelect, product line by 1994 designed to convey high quality and attract attention on the store shelf. This is expected to bring different tastes to consumers as aromatic rice. The product line expanded to include Italian specialty rice blends and basmati rice. These new products needed to receive facing on the grocer's shelf, which increases shelf space for RiceSelect products and billboard marketing. New marketing tools were directed at ...Show more


RiceTec's current president is Robin Andrews. Since his 1994 involvement, the board of directors has been please with the increase in distribution and profitability, however, debates in the use of specialty blends as retailer labels and co-branding has left Andrews with the option to continue using this avenue of distribution or to move away from the sub ordinance to private brand labels…
Author : godfrey02
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