Question & Answer: Prudencio Unanue Ortiz, a Spanish immigrant, founded Goya Foods in 1936 in New York City. At the time, the…

Prudencio Unanue Ortiz, a Spanish immigrant, founded Goya Foods in 1936 in New York City. At the time, the demand for Hispanic food was not high, but his keen market sense led him to a successful strategy. As immigrants from Puerto Rico, the Dominican Republic, Cuba, and other Hispanic cultures began entering the city, Ortiz started selling foods that appealed to their native tastes. The market grew year after year as non-Hispanic consumers developed a taste for new flavors and began cooking with ingredients traditionally used in Hispanic foods.

It wasn’t until 2005, however, that the company began targeting non-Hispanics by offering tortillas, taco kits, and desired Mexican sides such as jalapeno peppers and ranchero refried pinto beans. It also incorporated new media into its marketing campaign, working with Foodnetwork.com and blogging site Foodbuzz.com to create buzz about its products and increase awareness of the brand. Through these media, the company was able to show non-Latinos how to incorporate Goya foods into their everyday cooking. As a result, the firm has increased its market share to 25 percent and now rings up more than $1.3 billion in annual sales, making it the largest and fastest growing Hispanic-owned food company in the United States.

The company continues to innovate and expand. Its most recent endeavor is a partnership with Beech-Nut Nutrition. Together, the firms are marketing Beech-Nut Goya, baby foods featuring flavors familiar to Hispanic families, furthering their presence in the lives of American households and adding to the success of their suppliers and distribution partners.

You are examining the forces in the marketing environment that could affect customers, their perceptions of products and value, and your ability to successfully create and launch Beech-Nut Goya baby foods. Select the type of force each situation represents.

Stores in areas with high unemployment are seeking to stock affordably-priced baby foods. SelectCompetitiveEconomicLegal and RegulatorySocioculturalTechnologicalItem 1

The Food and Drug Administration is changing the rules for product labels. SelectCompetitiveEconomicLegal and RegulatorySocioculturalTechnologicalItem 2

Parents are using cell phones to comparison shop for baby foods before they make a purchasing decision. SelectCompetitiveEconomicLegal and RegulatorySocioculturalTechnologicalItem 3

Consumers are paying closer attention to the environmental impact of products, including whether food ingredients come from sustainable sources. SelectCompetitiveEconomicLegal and RegulatorySocioculturalTechnologicalItem 4

A number of major hospitals give new parents samples of Gerber baby foods.

Expert Answer

Stores in areas with high unemployment are seeking to stock affordably-priced baby foods. – Economic

The Food and Drug Administration is changing the rules for product labels. – Legal and Regulatory

Parents are using cell phones to comparison shop for baby foods before they make a purchasing decision. – Technological

Consumers are paying closer attention to the environmental impact of products, including whether food ingredients come from sustainable sources. – Sociocultural

A number of major hospitals give new parents samples of Gerber baby foods. – Competitive

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