Pan Boricua: Developing a Market Strategy for the Hispanic Market in the United States

Individual Case Analysis: 1.

PAN BORICUA: DEVELOPING A MARKET STRATEGY FOR THE HISPANIC MARKET IN THE UNITED STATES

Problem Statement

According to the case, the partners would like to expand their business however they are unsure of how to execute. Should they stay in already established markets and expand within them or stay in the markets where they are not successful. And finally should they increase their distribution to other regions within the nation.

Analysis

SWOT:

Strengths * Recognized brand * Unique tasting bread straight from Porto Rico * Already established in Orlando, Tampa, Kissimmee and Daytona | Weakness * Production of pan sobao in the U.S is very limited. * Non lasting business relationships * Dependent on distributors * History of entering new markets without much planning |

Opportunities * Exclusive rights to export pan sobao anywhere in the U.S. * New distribution channels * Untapped markets * Rise of Hispanics in the U.S. * Expanding product line | Threats * Main competitor is Mi Pan Asociados * Growth of Hispanic bakeries * Rising transportation costs. * Taxes/Tariffs * Potential change of policies |

PEST:

Political

Because of the high regulation with the double blades in the United States, thus the production of Pan Sobao within the States was very limited. This political factor is a reason as to why Pan Bpricua hasn’t produced the bread in the States instead of exporting it from Porto Rico.

Economical

According to the case the bread industry is a growing market. It recorded nearly $34 billion in profits generated from the industry in 2007. The market for the Pan Saboa is made of mainly Hispanics. This group of people is projected to $670 billion in personal income in 2010 (Cuellar, 2006).. As well as the younger group (45-years and younger) would increase the purchasing power from $295 billion (2006) to nearly $397 billion (Cuellar, 2006). This proves that people are...