CASE STUDY: GOYA HELPS LATINOS MAINTAIN MEALTIME TRADITIONS
* Comment on Goya as a whole1
* Of six environmental forces presented in the PESTEL ANALYSIS,3 discuss the forces that most greatly affect Goya’s marketing strategy.
* Discuss market segmentation in the context of this case.4
* What might be some pros and cons of Goya’s attracting 6 more and more non-Latino consumers to its products?
* ‘Goya remains a privately owned business steeped in strong family 7 tradition, with no plans to change the way it operates.’ Discuss this comment.
* Develop a plan for Goya’s future. 9
Comment on Goya as a whole
Goya Foods is a family owned business which was established in the United States of America (US) in 1936. It specialises in providing authentic Latino cuisine to both the Latino and non-Latino community. By maintaining its value for excellence through their slogan, “If it’s Goya, it has to be good.”, they have managed to become the US’s leading provider of Latino cuisine with an average annual turnover of one billion US Dollars. (Goya, 2012, PR Newswire, 2011)
They offer a wide range of affordable fast moving consumer goods (FMCG). These include olive oil, mayonnaise, beans, pasta, juices, rice and condiments.
From their humble beginnings 80 years ago, Goya has managed to become a global company with distribution centres throughout the US, Puerto Rico, Dominican Republic and Spain. Their products are readily available at retail outlets and chains in the US, South America and Spain and can also be bought online from anywhere in the world. (Goya, 2012)
Goya promotes its products in print (e.g. magazines and newspapers), online (e.g. their own website: www.goya.com, food websites, food blogs and mobile websites), on radio and on TV. They also have in-store activation activities which include scan-system promotions (e.g. when a customer picks up a box of rice a scanner will print out a discount voucher for a can of Goya beans to go with the rice), point-of-sale banners and display units. (Vega, 2010)
Goya continues to enjoy significant fiscal success and is not going unnoticed by its competitors. For example, the Campbell Soup Company (a.k.a. Campbell’s) is looking at purchasing a Latino based food company in order to gain inroads into the Latino cuisine market, which Goya dominates.
In addition to Campbell’s there are a number of companies such as ConAgra Foods who have entered the Latino food market. ConAgra Foods has a Hispanic Shopper Marketing and Consumer Promotions division. They recently awarded its communication business to MarketVision, which is a marketing agency that specialises in cultural communications. This means that it is serious about increasing its market share in the Latino community. (Market Watch: The Wall Street Journal, 2012)
The Unanue family forms part of an American success story. They have embraced and achieved the American dream. They came to the US as immigrants and managed to establish an enterprise which has grown into a multibillion dollar business. To remain at the top and maintain their legacy, Goya must acknowledge that they are not the only ones who can produce authentic Latino food. They also need to be more open-minded about remaining a close knitted family owned business, which is not willing to change the way it operates. The art of doing business in the 21st century has changed dramatically in comparison to what it was before. Consumer trends, marketing activities and business environments are extremely dynamic. Even big companies with a dominant market share in their particular industry need to “keep their ears to the ground”, by knowing exactly what is happening with their competitors and their target market. They must also have the flexibility and willingness to adjust...