INSTRUCTIONS

o Read Case and identify/highlight the key points

o YOU WILL ONLY USE THE INFORMATION PROVIDED IN THE CASE TO COMPLETE THIS

ASSIGNMENT.

oCOMPLETE THE FOLLOWING ANALYSIS ON THE PAGES PROVIDED.

o Identify the Decision-Maker, Main Problem and Key Issues

o Data Analysis

o SWOT Analysis: Using the information in the case, complete a SWOT analysis.

Do not copy and paste from the case. You must paraphrase all information and data.

4 points in each SWOT

Case Study

Saha International Cuisine

Rahul Jain and Rob Heindrech have a problem. As the founders, owners and operators of Toronto-based Saha International Cuisine, they had begun, developed and launched their lines of international sauces and marinades in 2010, starting with one product line of 3 sauces, rapidly growing to 3 product lines with 9 sauces and marinades today. As a former Food Safety Manager and Restaurant Chef, respectively, the two friends had a goal to establish a line of sauces and marinades which:

1. Addressed undeveloped or underdeveloped regional segments in the GTA market; and

2. Were made "restaurant quality" - premium ingredients, no preservatives, authentic recipes - as demanded by discerning consumers

History

After developing a variety of offerings in their test kitchen, Rahul and Rob identified their first product line - 3 Middle Eastern sauces, with varying degrees of flavour profile and spiciness. Using their savings and credit cards as initial financing, they found a local co packer to produce their initial runs.

For early distribution and sales, Rahul and Rob focused on two priority channels:

1. Local specialty food stores. These stores offered wider distribution, a broader customer market and the potential for significant case orders; however, in order to make a profit, these retailers demanded a price per unit that made it difficult for Saha to make meaningful profit. In addition, these retailers demanded that new suppliers stage several days of in store demonstrations regularly, to promote the product. These "demos" took time away from other activities - as they were essentially spending entire days selling product that their retailers had already purchased.

In addition, all product orders were delivered personally by Saha, which saved the cost of a distributor, but also took valuable time away from other business building activities.

2. Farmer's Markets and Food Shows. All around the world, as consumers become more aware, knowledgeable and conscious of what they eat, specialty food and locally produced markets have become increasingly popular. In the City of Toronto and surrounding areas, there are approximately 1 dozen year-round

operating Farmer's Markets, with that number increasing 5 fold in the spring/summer months. In addition, there are no fewer than 2 dozen food shows, focusing on everything from Vegetarian/Vegan, Gluten-Free, All-Natural offerings, to shows focusing on specific ethnic or lifestyle groups.

Saha secured positions at several of these markets, and invested in several shows as a way of introducing their products to a wider audience. These markets and shows offered the opportunity to introduce their products to new consumers, develop (in the case of weekly markets) a regular customer base, the opportunity to talk directly with consumers and receive feedback, try/introduce new products and marketing ideas at relatively low cost or risk - and most importantly - to sell their products at a full retail price, comparable to what their retail customers were charging their consumers, without having to offer a margin discount.

However, these activities also took considerable time - with Rahul and Rob sharing responsibilities for servicing 20-30 hours of markets per week, and up to 20 full days of food shows per year.

The Business Today

Within two years of launch, business was steady, with a loyal and growing fan base among their consumers and retail customers. With their success, and an eye on profits and growth, Rahul and Rob had secured a small production facility of their own, increasing their fixed costs. As well this required them to spend time actually producing product, but saved money on the expensive costs of co-packing.

The success of their initial line, which had developed a strong and loyal following from both their retail and market customers, spawned two additional lines - a Thai Curry line and a Caribbean line- each consisting of 3 varieties, bringing their total product offerings to 9.

The new lines seemed to complement their existing Thai Curry line quite well, bringing in new customers, and developing a stronger shelf presence. However, self-production of 9 lines demanded considerable time, inventory and ingredient scheduling in addition to their existing duties of selling at markets and shows, servicing existing customers and seeking new ones.

The original values are still true today. Saha continues to strive to offer customers the highest quality products available anywhere, using the best ingredients available. Saha continues to manufacture its products in small batches locally in Toronto. Products healthy, and convenient to use, but also free of (do not contain) additives, preservatives, gluten, trans-fat, saturated fat, cholesterol, starches, gums, emulsifiers, and fillers. Rahul

and Rob continue to feel the satisfaction and excitement of speaking with, serving, and pleasing customers, and plan to continue doing so.

Customers can visit the website (www.sahacuisine.com) to find product information, a list of retailers, and recipes. Customers can sign up for the newsletter to receive promotional information that includes recipes, updates and deals, as well as engage with Saha on social media. Facebook has 1,516 followers, Twitter has 903 followers, Instagram has 658 followers, and Pinterest has 112 followers. Customers can create an account on the website and purchase products as well. Shortly after launching the website, Saha created a Rewards program. Customers can sign up to earn points that can be converted to coupons. Points can earned by signing up, ordering online, and engaging on social media.

Sales of cooking sauces, pasta sauces and marinades grew 12 percent between 2010 and 2015, according to research firm Mintel International. Marinades is projected to rise 17 percent through 2020 to reach $1.6 billion with the overall category reaching $6 billion. There is a lot of competition in this category. Small manufacturers like Saha appeal to consumers who want a premium and healthy product, and don't mind paying the premium price. The key challenge for small manufacturers is keeping up with changing consumer tastes. Thai curry is popular today, but what about tomorrow? National and established brands like Kikkoman and Stubb's are popular items on grocery store shelves and appeal to consumers who want to flavour their foods but are price-sensitive. In uncertain economic times, consumers seek out cheaper options, and Canada's economy is currently weak.

The business is at a turning point. Time and experience have proven the viability of the product, and careful control of production and pricing has resulted in a business that is profitable, but not large. Neither partner has been able to take a salary yet, with all profits being invested back in to development and promotion.

Saha is a proven business concept and has a fully developed line of products, but how does the business grow to the next level?