Paradise Kitchen Case Study

Paradise Kitchen is a developer and marketer of high quality Mexican food products at a premium price that satisfies the taste of the most discerning customer. Specifically, Paradise Kitchen provides the Howlin’ Coyote brand of foods. This product line provides distinctive, high quality chilies and related products using Southwestern/Mexican recipes that appeal to and excite the contemporary taste for these products. We then deliver these products to the consumer’s table using effective manufacturing and distribution systems that maintain the Company’s exacting standards.
Currently, two thirds of American household use Mexican foods such as burritos, enchiladas and tacos. Furthermore, with the growing Hispanic population in the United States, currently over 50 million with an approximate buying power of $1.2 trillion in 2013 and a projected growth to $1.5 trillion by 2016, the demand for Mexican foods will continue to grow. Per Grocery Headquarters more consumers are frequenting the frozen food section of grocery retailer. It attributes the uptick to hectic lifestyles demanding increased convenience and an abundance of
The biggest buyers of the product tend to be those pressed for time and range in age from 25 to 54 years old and often live in the western United States where spicy foods are readily available. At $3.99 retail price for an 11ounce package, Howlin’ Coyote chili is priced comparably to the other frozen food offerings but, higher than the canned and dried chili variety. However, the significant taste advantage it has over canned chilies and the convenience advantages over dried chilies justify this pricing strategy. The retail price also provides adequate margins for wholesalers and retailer in our channel of