Gallardo’s Goes To Mexico Business Analytics Essay

Situation: â€Å"Growing but not winning†- The US market for Gallardo’s sauces, salsas and seasoning had saturated. Having seen immense potential for its product, it entered the Mexico market in 2001. They have grown 20% every year, and their share has grown from 12% to 15%. They have positioned their products on the basis of the jobs carried out by customers, which was a success in the US. Despite all of their efforts to discover separate, distinct jobs to be done and to position their brand on these jobs, they are not growing fast enough and have not been able to overtake California. Gallardo tried to position itself as a distinctive aspiring brand that commanded a significant price premium, however this has not worked and they have not been able to differentiate their products from that of California. Gallardo’s discovered the job-to-be-done, the market leader already had a product in the market that could readily do the job. Objective: To formulate a winning strategy so as to make it a market leader in Mexico. Hypothesis: 1. Gallardo has not been very successful in forging a strong link in the consumers’ minds between the jobs carried out by them and Gallardo’s brand. 2. The communication strategy is a major challenge and there is a need to re-position the brand in the minds of the consumers. 3. Gallardo has not been able to provide value to Mexican women, who are very passionate about cooking. 4. Gallardo holds only 10% share in general trade which accounts for 90% of the overall sales of salsa, sauces and seasoning. Evaluation: 1. Gallardo 2. Gallardo has positioned itself as a product to get a job-done; however, it is equally important to consider the user while positioning the product especially where the demographics of the new market are so different from the company’s market in USA. As per the case, the women in advertisements were not representing the common women in Mexico. Hence, making the brand distant from its users. 3. Although Gallardo could picture the passion for cooking, it couldn’t provide the value to its consumers. This was mainly because of their premium pricing. For example, a small deficiency in California products can be compensated by a little amount of salt or pepper. For this minor adjustment, consumers didn’t find it justified to pay 30-40% more. They were not getting any additional value of the product offering. The product attributes and usage experiences required to do the â€Å"jobs† were not well distinguished from each other, further enlarging this gap. Their products were designed on experience, which the consumer was already having. In short, we can say that value propositions offered by Gallardo were not unique enough to sell it. 4. The figure of 10% shows that there was very less penetration in the general market. This needs to increase as it shows the huge amount of untapped market for Gallardo. This would include distribution and household penetration beyond urban.